Singapore · MOE Syllabus Outcomes
Secondary 3 Principles of Accounts.
Principles of Accounts (POA) introduces Secondary 3 students to the fundamental principles and concepts of accounting. Students will develop an understanding of the role of accounting in providing information for monitoring and decision-making in various business contexts.
01The Roles of Accounting and the Accounting Information System
This unit introduces the purpose of accounting, its stakeholders, and the fundamental accounting equation. Students will learn the foundational double-entry system used to record business transactions.
Students explore the purpose of accounting and identify the internal and external stakeholders who rely on financial information. They will understand the ethical responsibilities of an accountant.
Students learn the fundamental accounting equation and classify items into assets, liabilities, and equity. They will analyze how business transactions affect the accounting equation.
This topic introduces the rules of double-entry bookkeeping. Students will apply the concepts of debits and credits to record basic business transactions.
02Recording Transactions and the Accounting Cycle
Students explore the accounting cycle by examining source documents and recording transactions in books of original entry. The unit culminates in posting to the general ledger and extracting a trial balance.
Students examine various source documents and their role in the accounting cycle. They will learn to record transactions in special journals such as the Sales and Purchases Journals.
Students learn to record cash and bank transactions in a cash book. They will also understand the imprest system for managing petty cash.
This topic covers the posting of journal entries to the general ledger and the balancing of accounts. Students will extract a trial balance to check the arithmetical accuracy of the ledgers.
03Adjustments to Financial Statements
This unit covers essential end-of-year adjustments required to present accurate financial information. Students will learn to account for capital and revenue expenditure, depreciation, accruals, and prepayments.
Students differentiate between capital and revenue expenditures and understand their impact on financial statements. They will analyze the consequences of incorrect classification.
Students explore the concept of depreciation and calculate it using straight-line and reducing-balance methods. They will record depreciation and accumulated depreciation in the ledger.
This topic introduces the matching principle and the need for adjusting entries at the end of the financial year. Students will calculate and record accrued and prepaid expenses and income.
04Preparation of Financial Statements
Students apply their knowledge to prepare financial statements for both service and trading sole proprietorships. They will also learn to interpret these statements using basic profitability and liquidity ratios.
Students prepare the Statement of Financial Performance and Statement of Financial Position for a service-oriented sole proprietorship. They will incorporate end-of-year adjustments into the statements.
Students learn to prepare financial statements for a trading business, calculating gross profit and profit for the year. They will account for cost of sales, returns, and carriage inwards.
This topic introduces basic financial ratio analysis to evaluate a business's profitability and liquidity. Students will calculate and interpret margins, mark-ups, and working capital ratios.