You must master the Financial Accounts section of the WAEC syllabus before taking the test. The purpose and goals, notes, and format for the Financial Accounts exam are all included.
You must study the Financial Accounts course in order to be prepared for the exam. You can use it as a guide to help you decide which topics to read about. Additionally, there are notes on ideas that you ought to learn carefully.
Exam preparation without reference to the Financial Accounts syllabus is equivalent to visiting a farm without your farm equipment. You won’t be effective in the end.
Make sure to use the syllabus when you start your exam preparations.
The West African Examination Council’s Financial Accounts syllabus and suggested texts are included in this section (WAEC).
WAEC Financial Accounts
Aims and Objectives
The purpose of the exam in this subject is to evaluate candidates’:
- understanding of accounting principles and the role of accounting in recording business transactions;
- appreciation and application of the rules and functions of Accounting as they apply to the organization;
- foundation for further studies in Accounting.
There will be two papers, Paper 1 and Paper 2, that together will be taken as a single composite paper.
50 multiple-choice questions on PAPER 1 must be answered in one hour for a total of 25 marks.
Paper 2 will have two portions, Sections A and B, and will take two and a half hours to complete.
Four essays on the Theory of Financial Accounting will be found in Section A. Candidates must respond to two of the four questions correctly to receive 15 points each.
Five essays on financial accounting practice will be included in Section B. Candidates must respond to three of the questions correctly to receive 15 points each.
WAEC Financial Accounts Syllabus
|1.||Introduction to Financial Accounting||1.1 History, nature and functions of Accounting.
1.2 Users of Accounting information.
1.3 Stages in the Accounting process.
1.4 Characteristics of Accounting Information.
|2.||The Accounting Equation and Double Entry Principles||2.1 Accounting Equation.
2.2 Purpose and functions of source documents.
2.3 Subsidiary books.
2.4 The ledger: classification of Accounts.
2.5 Cash Book: analytical cash book, including petty cash book.
2.6 Preparation of Trial Balance.
2.7 Bank Reconciliation Statements.
2.8 Correction of errors and Suspense Account.
|4.||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.
|5.||Provisions and Reserves||Provision for doubtful debts/Allowance for doubtful debts.
Provision for discounts.
Depreciation – concepts, reasons for recording and methods:
(i) straight line;
(ii) reducing balance;
(iii) sum of the years digits;
(iv) revaluation.5.4 Accounting for depreciation.
Reserves – revenue and capital reserves.
|6.||Manufacturing Accounts||6.1 Purpose of Manufacturing Accounts.
6.2 Cost classification in Manufacturing Accounts.
6.3 Preparation of final Accounts of a Manufacturing concern.
|7.||Control Accounts and Self-balancing Ledgers||Meaning and uses of control accounts
(i) sales ledger control
(ii) purchases ledger control
Preparation of Control Accounts
7.4 Reconciliation of Control Accounts
|8.||Single Entry and Incomplete Records||Meaning and limitations
8.2 Computation of profit or loss from opening and closing balance sheets.
8.3 Conversion of single entry to double entry.
8.4 Preparation of final accounts from a set of incomplete records.
8.5 Mark up and Margin
|9.||Accounts of Not-for-Profit Making Organizations||Meaning and terminologies.
9.2 Receipts and payments accounts.
9.3 Subscriptions Account
9.4. Income and expenditure accounts.
9.5 Accumulated fund.
9.6 Balance sheet.
9.7 Profit or loss from income generating activities.
|10.||Partnership Accounts||10.1 Nature and formation of partnership.
10.2 Partnership agreements/Deed.
10.3 Profit and loss appropriation accounts.
10.4 Partners capital account and balance sheet
10.5 Admission of a new partner.
10.6 Treatment of goodwill and revaluation of assets
10.7 Dissolution of partnership (Questions will not be set on Garner V. Murray and piecemeal realization)
|11.||Company Accounts||11.1 Nature and formation of a company.
11.2 Types of companies and shares.
11.3 Issue of shares.
11.4 Loan capital, debentures/loan notes and mortgages.
11.5 Final accounts of company for internal use only.
11.6 Interpretation of accounts using simple ratios.
11.7 Purchase of business account.
11.8 Statement of Cash Flow (using direct and indirect methods).
NOTE: Separate questions may be set to meet statutory requirements of individual countries.
Candidates’ answers must meet statutory requirements of individual countries.
|12. *||Accounting for Value Added Tax||12.1 Purpose of VAT.
12.2 Characteristics of VAT.
12.3 Bases of computing input/output VAT.
12.4 Preparation of VAT returns.
12.5 Exempt goods and services.
|13.||Departmental and Branch Accounts||13.1 Meaning and importance
13.2 Differences between a department and branch.
13.3 Preparation of departmental account.
13.4 Preparation of Branch Account excluding foreign branches.
13.5 Inter branch transactions.
|14.||Public Sector Accounting||14.1 Meaning and difference between Public Sector and Private Sector Accounts.
14.2 Sources of public revenue.
14.3 Capital and recurrent expenditures.
14.4 Preparation of simple government accounts.
|15. *||Information Technology in Accounting||15.1 Manual and computerized Accounting Processing Systems.
15.2 Processes involved in data processing.
15.3 Computer Hardware and Software.
15.4 Merits and demerits of manual and computerized accounting processing systems.
|16**||Miscellaneous Accounts||16.1 Meaning, introduction, terminologies and preparation of simple:
(i) Joint Venture Accounts
(ii) Consignment Accounts
(iii) Contract Accounts
(iv) Hire Purchase Accounts
|17.**||Financial system||17.1 Meaning and components.
17.2 Meaning, functions and features of:
(i) money market;
(ii) capital market;
(iii) insurance market.
17.3 Methods of raising funds from the capital market:
(i) offer for sale;
(ii) offer for subscription;
(iii) rights issue;
(iv) private placement;
17.4 Requirements for accessing the capital market.
17.5 Benefits of capital market to:
(iv) individual company;
17.6 Types, features and reasons for regulation.
NOTE: * Available to candidates in Ghana only
** Available to candidates in Nigeria, The Gambia, Sierra Leone and Liberia only
- 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
- Incorporated private Partnership Act 1962, Act 152.