Get access to latest and updated syllabus of PIPFA Level 1 Basic Accounting now. Here you will find detailed course content or syllabus of PIPFA Level 1 Basic Accounting for upcoming attempt.
Unfortunately, PIPFA does not publish it’s own study text. But you need not to worry as you can use study texts of ICAP and/or ICMAP. You will have the advantage on other students. The reason being ICAP and ICMAP study texts are comparatively more difficult than the books recommended by PIPFA examination body.
Here is the grid for syllabus of PIPFA Level 1 Basic Accounting.
|Introduction to Accounting||8 – 12|
|Book Keeping||35 – 45|
|Preparation of Financial Statements of a sole trader||20 – 30|
|Preparation of Accounts from Incomplete Records||20 – 30|
Detailed Syllabus Contents:
The detailed syllabus of PIPFA Level 1 Basic Accounting for upcoming attempt is given below.
Introduction to Accounting
- Business Entities and Business Transaction
- Forms of business organizations (sole proprietorship, partnership and limited liability companies)
- Fundamental accounting concepts (Accrual, going concern, true and fair view, consistency, prudence, substance over form, materiality, completeness)
- Financial Statements (Quantitative Characteristics of Financial Statements,
- Objective, Components, Assumptions of Preparing Financial Statements & Users)
- Elements of financial statements (Assets, Liabilities, Equity, Income, Expense)
- Double entry system and rules for debit and credit
- General Journal
- Cash Book
- Sales Journal and Sales Ledger
- Purchase Journal and Purchase Ledger
- General Ledger
- General Ledger Control Accounts and their reconciliation with subsidiary ledgers
- Bank Reconciliation Statement
Preparation of Financial Statements of a sole trader:
- Unadjusted trial balance
• Depreciation on fixed assets and methods of depreciation (Straight Line, Diminishing Balance, Sum of Years’ digits, Number of Units produced)
• Allowance for bad debts and write offs
• Closing inventory
• Prepayments and accruals
• Correction of errors including those relating to bank reconciliations and other control account reconciliations
- Statement of Financial Position (Balance Sheet)
- Income Statement
Preparation of Accounts from Incomplete Records
Introduction to Accounting:
- Explain the characteristics of a business
- Classify transactions that fall under the definition of business transactions.
- Describe the key features of sole proprietorship, partnership and limited company
- Differentiate amongst the features of sole proprietorship, partnership and limited company
- Explain the difference between book-keeping and accounting
- Understand and apply the main accounting concepts, namely, accrual, consistency, and completeness
- Demonstrate familiarity with the concepts of true and fair view, materiality, prudence, going concern and substance over form.
- List the components of a set of financial statements
- Explain the characteristics and purpose of the statement of financial position and the statement of comprehensive income
- Describe the basic presentation layout of statement of financial position and statement of comprehensive income
- Identify users of financial information and describe how the information is useful to them.
- Define and identify examples of assets, liabilities, equity, income and expenses
- Apply the underlying concepts of assets, liabilities, income and expenses.
- Understand and apply, the accounting equation (Assets = Liabilities + Equity)
- Identify financial and nonfinancial transactions in a well- defined scenario
- Understand and apply the concept of double entry accounting
- Understand the use of business documents as source of information
- Understand the use and format of the cash book and its types
- Record their respective entries
- Describe the basic contents of the sales day book, sales ledger,
- Customer/debtor’s ledger, purchase day book, purchase journal and purchase ledger/creditors ledger
- Describe the main features of the general ledger
- Post entries in the general ledger
- Balance the ledger accounts as required, make transfers to the final accounts
- Understand the need for a bank reconciliation
- Identify the main reasons for differences between the cash book and bank statements
- Prepare a bank reconciliation statement in the circumstances of simple and well explained transactions
- Correct cash book errors and post journal entries after identifying the same in bank reconciliation statement.
Preparation of Financial Statements of a sole trader:
- Understand the purpose of the trial balance
- Understand and demonstrate mapping between general ledger balances and the trial balance
- Identify the limitations of a trial balance.
- Explain the nature of depreciation expense and accumulated depreciation
- Calculate depreciation expense using straight line, diminution balance, sum-of-digits and number of units produced methods
- To understand that the Closing stock is the amount of inventory that a business still has on hand at the end of a reporting period
- Understand the journal entry of closing inventory and appreciating the impact of increase and decrease of closing inventory on reported profit or loss of entity
- Post journal entries to record depreciation expense
- Understand the disposal of fixed assets and gain/(loss) on disposal
- Post journal entry of disposal and gain or loss on disposal
- Estimate allowance for bad debts based on a given policy.
- Post journal entry to record bad debt expense
- Compute and record write-off and understand its impact on allowance of bed debts
- Understand the matching concept that applies to prepayments and accruals
- Post journal entries and ledgers entries for prepayments and accruals
- Post adjusting entries to recognized revenue or expenses
- Identify the types of error which occur in a record keeping system
- Calculate and understand the impact of errors on the financial statements within a reporting period
- Prepare journal entries to correct errors that have occurred within a reporting period
- Explain the difference between a trading and a service business
- Understand the purpose of the statement of financial position
- Prepare simple statements of financial position from information provided.
- Understand the purpose of the statement of comprehensive income
- Prepare simple statements of comprehensive income from information provided.
Preparation of Accounts from incomplete records:
- Define ‘incomplete record’
- Understand the cause & effect of incomplete record
- Using Comparison Method & Analysis Method
- Prepare financial report from incomplete record
syllabus of PIPFA Level 1 Basic Accounting syllabus of PIPFA Level 1 Basic Accounting syllabus of PIPFA Level 1 Basic Accounting syllabus of PIPFA Level 1 Basic Accounting syllabus of PIPFA Level 1 Basic Accounting syllabus of PIPFA Level 1 Basic Accounting