Preparing for an examination requires proper guidance and resources to ensure success. In the case of the West African Examination Council (WAEC) Financial Accounts exam, studying the syllabus is essential for effective preparation.
This blog post aims to provide a comprehensive overview of the Financial Accounts syllabus, including its aims and objectives, exam format, and recommended textbooks.
Aims and Objectives:
The WAEC Financial Accounts examination aims to assess candidates’ understanding of accounting principles, the role of accounting in recording business transactions, the application of accounting rules and functions in an organization, and the foundation for further studies in accounting.
Scheme of the Examination:
The Financial Accounts examination consists of two papers: Paper 1 and Paper 2, which are combined into a composite paper to be taken at one sitting.
Paper 1: This paper comprises fifty multiple-choice questions to be answered within one hour, carrying a total of 25 marks.
Paper 2: Paper 2 consists of two sections, A and B, and lasts for 2½ hours.
Section A:
In this section, candidates will find four essay questions related to the theory of Financial Accounting. They are required to choose and answer two out of the four questions, with each question carrying 15 marks.
Section B:
Section B includes five essay questions on Financial Accounting Practice. Candidates must select and answer three out of the five questions, and each question carries 15 marks.
WAEC Financial Accounts Syllabus:
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Introduction to Financial Accounting:
- History, nature, and functions of accounting.
- Users of accounting information.
- Stages in the accounting process.
- Characteristics of accounting information.
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The Accounting Equation and Double Entry Principles:
- Accounting Equation.
- Purpose and functions of source documents.
- Subsidiary books.
- Ledger: classification of accounts.
- Cash Book: analytical cash book, including petty cash book.
- Preparation of Trial Balance.
- Bank Reconciliation Statements.
- Correction of errors and Suspense Account.
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Accounting Concepts:
- Meaning.
- Types.
- Significance.
- Limitations.
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The Final Accounts of a Sole Trader/Proprietorship:
- Trading, profit and loss accounts/income statement.
- Balance sheet/statement of financial position.
- Adjustments to final accounts.
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Provisions and Reserves:
- Provision for doubtful debts/Allowance for doubtful debts.
- Provision for discounts.
- Depreciation: concepts, reasons for recording, and methods.
- Accounting for depreciation.
- Reserves: revenue and capital reserves.
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Manufacturing Accounts:
- Purpose of manufacturing accounts.
- Cost classification in manufacturing accounts.
- Preparation of final accounts of a manufacturing concern.
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Control Accounts and Self-balancing Ledgers:
- Meaning and uses of control accounts.
- Types: sales ledger control and purchases ledger control.
- Preparation of control accounts.
- Reconciliation of control accounts.
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Single Entry and Incomplete Records:
- Meaning and limitations.
- Computation of profit or loss from opening and closing balance sheets.
- Conversion of single entry to double entry.
- Preparation of final accounts from a set of incomplete records.
- Mark up and Margin.
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Accounts of Not-for-Profit Making Organizations:
- Meaning and terminologies.
- Receipts and payments accounts.
- Subscriptions Account.
- Income and expenditure accounts.
- Accumulated fund.
- Balance sheet.
- Profit or loss from income-generating activities.
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Partnership Accounts:
- Nature and formation of partnership.
- Partnership agreements/Deed.
- Profit and loss appropriation accounts.
- Partners capital account and balance sheet.
- Admission of a new partner.
- Treatment of goodwill and revaluation of assets.
- Dissolution of partnership.
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Company Accounts:
- Nature and formation of a company.
- Types of companies and shares.
- Issue of shares.
- Loan capital, debentures/loan notes, and mortgages.
- Final accounts of the company for internal use only.
- Interpretation of accounts using simple ratios.
- Purchase of business account.
- Statement of Cash Flow (using direct and indirect methods).
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Accounting for Value Added Tax (VAT):
- Purpose of VAT.
- Characteristics of VAT.
- Bases of computing input/output VAT.
- Preparation of VAT returns.
- Exempt goods and services.
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Departmental and Branch Accounts:
- Meaning and importance.
- Differences between a department and a branch.
- Preparation of departmental accounts.
- Preparation of branch accounts (excluding foreign branches).
- Inter-branch transactions.
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Public Sector Accounting:
- Meaning and difference between Public Sector and Private Sector Accounts.
- Sources of public revenue.
- Capital and recurrent expenditures.
- Preparation of simple government accounts.
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Information Technology in Accounting:
- Manual and computerized Accounting Processing Systems.
- Processes involved in data processing.
- Computer Hardware and Software.
- Merits and demerits of manual and computerized accounting processing systems.
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Miscellaneous Accounts:
- Meaning, introduction, terminologies, and preparation of: (i) Joint Venture Accounts, (ii) Consignment Accounts, (iii) Contract Accounts, (iv) Hire Purchase Accounts.
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Financial System:
- Meaning and components.
- Meaning, functions, and features of: (i) Money market, (ii) Capital market, (iii) Insurance market.
- Methods of raising funds from the capital market.
- Requirements for accessing the capital market.
- Benefits of the capital market to investors, government, economy, and individual companies.
- Types, features, and reasons for regulation.
Recommended Textbooks:
To aid your preparation for the WAEC Financial Accounts examination, consider referring to the following textbooks:
- Business Accounting Volume 1 – West African Edition by Frank Wood and Omunya.
- Business Accounting Volume 2 – Frank Wood.
- Accounting and Finance – Frank Wood.
- Foundation Accounting – A. H. Millchamp.
- Basic Accounting – J. D. Magee.
- Accounting for Senior Secondary School – S. C. Malhorta, P. K. Botchweyand, P. A. Amankwah.
- Accounting in Business – R. J. Bull.
- Company Accounts – J. N. Amorin.
- Principles of Accounting – K. B. Appiah Mensah.
Conclusion
The Financial Accounts syllabus for the WAEC examination provides a comprehensive outline of the topics to be covered.
By utilizing this syllabus and the recommended textbooks, candidates can effectively prepare for the exam.
Understanding accounting principles, practicing various accounting procedures, and mastering financial concepts will contribute to success in the examination. So, make sure to start your exam preparation using the syllabus and recommended resources.
