All Financial Accounting Topics
Introduction to Accounting
The accounting equation, users of accounting information, branches of accounting, and the regulatory environment for financial reporting in Kenya.
Double Entry and Recording Transactions
The double-entry principle, debits and credits, the books of original entry, and the ledger.
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.
Bank Reconciliation Statements
Reconciling the cash book balance with the bank statement balance, identifying timing differences, errors, and unrecorded items.
Control Accounts and Suspense Accounts
Sales ledger and purchases ledger control accounts, locating errors using control accounts, and clearing the suspense account.
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.
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.
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.
Partnership Accounts
Partnership Act 2012 default rules, capital and current accounts, profit and loss appropriation, admission and retirement of partners, and goodwill.
Incomplete Records and Single-Entry
Reconstructing financial statements from incomplete records using the accounting equation, mark-up and margin, and control account techniques.
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).
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.