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KASNEB · CPA Foundation

Financial Accounting — revision hub

Topic-by-topic revision aligned to the KASNEB Financial Accounting syllabus. Each topic page has full revision notes, sample exam-style questions, and a free practice CTA. Reviewed by a Kenyan CPA before being marked verified.

12topics
50objectives
Beta — flag if wrong
Topic 1

Introduction to Accounting

The accounting equation, users of accounting information, branches of accounting, and the regulatory environment for financial reporting in Kenya.

Topic 2

Double Entry and Recording Transactions

The double-entry principle, debits and credits, the books of original entry, and the ledger.

Topic 3

Books of Original Entry and the Trial Balance

Sales day book, purchases day book, returns books, cash book, petty cash book, the journal, and preparation of the trial balance.

Topic 4

Bank Reconciliation Statements

Reconciling the cash book balance with the bank statement balance, identifying timing differences, errors, and unrecorded items.

Topic 5

Control Accounts and Suspense Accounts

Sales ledger and purchases ledger control accounts, locating errors using control accounts, and clearing the suspense account.

Topic 6

Accounting for Non-Current Assets

Capitalisation of cost, depreciation methods (straight-line, reducing-balance, sum-of-digits, units-of-production), disposal of assets, and revaluation.

Topic 7

Inventory Valuation

Inventory cost formulas (FIFO and weighted average), the lower-of-cost-and-NRV rule, periodic vs perpetual systems, and the impact on profit.

Topic 8

Adjustments and Final Accounts — Sole Trader

Year-end adjustments (accruals, prepayments, bad debts, allowance for doubtful debts) and preparation of the statement of profit or loss and statement of financial position.

Topic 9

Partnership Accounts

Partnership Act 2012 default rules, capital and current accounts, profit and loss appropriation, admission and retirement of partners, and goodwill.

Topic 10

Incomplete Records and Single-Entry

Reconstructing financial statements from incomplete records using the accounting equation, mark-up and margin, and control account techniques.

Topic 11

Non-Profit Organisations and Manufacturing Accounts

Receipts and payments accounts, income and expenditure accounts, accumulated fund, and manufacturing accounts (prime cost, factory overheads, cost of production).

Topic 12

Introduction to Company Accounts and Cash Flow Statements

Share capital and reserves, simple final accounts of a limited company, and a basic statement of cash flows (IAS 7) using the indirect method.