Grade 11

Accounting

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Ownership

01PartnershipsPartners' salaries are deducted before the remaining profit is shared. A partnership is not a sole trader buying equipment.

Theory

02GAAP principlesGAAP is the set of rules that keeps financial statements comparable and honest. The ones used most in Grade 11 are historical cost, prudence, matching, going concern and materiality.

Reconciliations

03Bank and creditors reconciliationsThe bank statement and the cash journals disagree until outstanding deposits are added and unpresented cheques are subtracted.

Assets

04Fixed assets and depreciationStraight-line depreciation spreads the cost less the residual value evenly over the useful life.

Statements

05Financial statementsOn the statement of financial position, assets equal equity plus liabilities. This is a statement, not a new purchase.