NSSCAS Accounting Syllabus Final Nov 2020

Republic of Namibia
MINISTRY OF EDUCATION, ARTS AND CULTURE
NAMIBIA SENIOR SECONDARY CERTIFICATE (NSSC)
ACCOUNTING SYLLABUS
ADVANCED SUBSIDIARY LEVEL
SYLLABUS CODE: 8244
GRADE 12
FOR IMPLEMENTATION IN 2021

FOR FIRST EXAMINATION IN 2021
Ministry of Education, Arts and Culture
National Institute for Educational Development (NIED)
Private Bag 2034
Okahandja
Namibia
© Copyright NIED, Ministry of Education, Arts and Culture, 2019

Accounting Syllabus Advanced Subsidiary level Grade 12
ISBN: 978-99945-2-217-0
Printed by NIED
Publication date: 2020

TABLE OF CONTENTS
1. Introduction ................................................................................................................... 1
2. Rationale ....................................................................................................................... 1
3. Aims………………………………………………………………………………………………2
4. Additional information .................................................................................................... 2
5. Learning content ........................................................................................................... 3
6. Assessment objectives ................................................................................................ 19
7. Scheme of assessment ............................................................................................... 20
8. Specification grid ......................................................................................................... 20
9. Grade descriptions ...................................................................................................... 21
10. Command words ......................................................................................................... 23
11. Glossary ....................................................................................................................... 25
Annexe A Summary of commonly used ratios ................................................................... 29
Annexe B Income statement of a sole trader ..................................................................... 31
Annexe C Statement of financial position for a sole trader................................................. 32
Annexe D Appropriation account for partnerships.............................................................. 33
Annexe E Statement of financial position for partnerships ................................................. 34
Annexe F Income statement of companies ....................................................................... 35
Annexe G Statement of changes in equity for companies .................................................. 36
Annexe H Statement of financial position for companies ................................................... 37
Annexe I Statement of cash flow for companies............................................................... 38
Annexe J Statement of financial position for a non-profit organisation .............................. 39
Annexe K Conventional break-even chart ......................................................................... 40

1. INTRODUCTION
The Namibia Senior Secondary Certificate Advanced Subsidiary (NSSCAS) level is designed as a
one year course for examination after completion of the Namibia Senior Secondary Certificate for
Ordinary (NSSCO) level. The syllabus is designed to meet the requirements of the National
Curriculum for Basic Education and has been approved by the National Examination, Assessment
and Certification Board (NEACB).
The National Curriculum Guidelines, applicable at the stage of Senior Secondary Education (Grades
10 -12) and at equivalent stages of non-formal education, as a part of life-long learning, recognise the
uniqueness of the learner and adhere to the philosophy of learner-centred education.
The Namibia National Curriculum Guidelines

 recognise that learning involves developing values and attitudes as well as knowledge and skills
 promote self-awareness and an understanding of the attitudes, values and beliefs of others in a
multilingual and a multicultural society
 encourage respect for human rights and freedom of speech
 provide insight and understanding of crucial “global” issues in a rapidly changing world which
affect quality of life: the AIDS pandemic, global warming, environmental degradation,
maldistribution of wealth, expanding and increasing conflicts, the technological explosion and
increased connectivity
 recognise that as information in its various forms becomes more accessible, learners need to
develop higher cognitive skills of analysis, interpretation and evaluation to use information
effectively
 seek to challenge and to motivate learners to reach their full potential and to contribute positively
to the environment, economy and society
Thus the Namibia National Curriculum Guidelines provide opportunities for developing essential, key
skills across the various fields of study. Such skills cannot be developed in isolation and they may
differ from context to context according to the field of study.
Accounting contributes directly to the development of the following:
 Communication skills
 Numeracy
 Information skills
 Problem-solving skills
2. RATIONALE
In Accounting learners understand and master mathematical skills, knowledge, concepts and
processes, in order to investigate and interpret numerical relationships and patterns. It helps learners
develop conciseness and logical and analytical thinking and apply these skills to other areas of
learning and real life.
NSSCAS Accounting syllabus, NIED 2020
1
3. AIMS
The aims of the syllabus are the same for all learners. They are set out below and describe the
educational purposes of a course in Accounting. They are not listed in order of priority.
The aims are to enable learners to:

 develop an understanding of the principles of accounting
 examine the role of accounting as an information system, enabling students to prepare and
evaluate accounting statements, systems and reports
 provide a means of developing a critical and analytical approach to quantitative problems, and
the numerate skills required for accounting
 explore the use of accounting as an aid to decision making
 behave ethically in the job and be aware of the combating of fraud and financial risk
management
4. ADDITIONAL INFORMATION
4.1 Guided learning hours
The NSSCAS level syllabuses are designed on the assumption that learners have about 180 guided
learning hours per subject over the duration of the course (1 year), but this is for guidance only. The
number of hours required to gain the qualification may vary according to local conditions and the
learners’ prior experience of the subject. The National Curriculum for Basic Education (NCBE)
indicates that this subject will be taught for 9 periods of 40 minutes each per 7-day cycle, or 6 periods
of 40 minutes each per 5-day cycle, over a year.
4.2 Recommended prior learning
It is required that learners who are beginning this course should have previously completed the
NSSCO course in Accounting.
4.3 Progression
NSSCAS Accounting provides a suitable foundation for the study of Accounting related courses in
higher education. Depending on the local university entrance requirement, it may permit or assist
progression directly to university courses in Accounting or other related course in higher education.
Equally it is suitable for learners intending to pursue careers or further study as chartered
accountants, auditors, bankers, quantity surveyors and others.
4.4 Grading and reporting
NSSCAS results are shown by one of the grades a, b, c, d or e indicating the standard achieved,
grade a being the highest and grade e the lowest. ‘Ungraded’ indicates that the candidate has failed
to reach the standard required for a pass at NSSCAS level.
4.5 Support materials and approved textbooks
Copies of NSSCAS syllabuses, recent specimen materials, question papers and examiner reports are
sent to all schools. Assessment/Coursework manuals in subjects, where applicable are sent to
schools. Approved learning support materials are available on the Senior Secondary Textbook
Catalogue for Schools. The Textbook Catalogue is available on www.nied.edu.na
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5. LEARNING CONTENT
The content is divided into five themes and different units and these are:
THEME 1 BASIC ACCOUNTING SYSTEMS

Unit 1.1 Basic principles of accounting for sole traders
Unit 1.2 Accounting principles
THEME 2 PREPARATION AND PRINCIPLES OF FINANCIAL STATEMENTS

Unit 2.1 Adjustments for financial statements
Unit 2.2 Partnerships
Unit 2.3 Introduction to Company accounts
THEME 3 PREPARATION OF OTHER FORMS OF FINANCIAL STATEMENTS

Unit 3.1 Single entry and incomplete records
Unit 3.2 Non-profit making organisations
THEME 4 INTERPRETATION OF FINANCIAL STATEMENTS

Unit 4.1 Ratios and interpretation
THEME 5 COST AND MANAGEMENT ACCOUNTING

Unit 5.1 Cost structures
Unit 5.2 Budgets and budgetary control
ALL FINANCIAL STATEMENTS SHOULD BE PREPARED IN VERTICAL FORMAT
3
THEME 1 BASIC ACCOUNTING SYSTEMS
UNIT 1.1 BASIC PRINCIPLES OF ACCOUNTING FOR SOLE TRADERS
GENERAL OBJECTIVES SPECIFIC OBJECTIVES

TOPIC
Learners will: Learners should be able to:
1.1.1 Double entry system  know the principles of the double  explain the meaning of the double entry system in relation to the dual
entry system aspect principle
 relate the accounting equation to the double entry system
 state the rules of double entry
1.1.2 The ledgers  demonstrate the skills of recording  explain the ledgers and their importance
transactions in the ledgers and  record transactions using the double entry system for capital, drawings,
prepare a trial balance assets, liabilities, income, expenses
 record transactions in the general ledger in the traditional T-accounts
 balance T-accounts in the general ledger
 record transactions in the sales ledger and purchases ledger in three-
column format
 explain the meaning of a balance on ledger accounts
 draw up a trial balance
1.1.3 Financial statements  demonstrate the skills of preparing  prepare an income statement
an income statement and statement  prepare a statement of financial position
of financial position
4
THEME 1 BASIC ACCOUNTING SYSTEMS (CONTINUED)
UNIT 1.2 ACCOUNTING PRINCIPLES

TOPIC
1.2.1 Accounting  demonstrate the importance and  identify the accounting principles
principles show understanding of the main - historical cost
principles underlying the preparation - money measurement
of financial statements - business entity
- dual aspect
- realisation
- going-concern
- consistency
- prudence
- accrual/matching
- materiality
 explain and illustrate each of the accounting principles
5
UNIT 2.1 ADJUSTMENTS FOR FINANCIAL STATEMENTS

TOPIC
2.1.1 Adjustments for  acquire knowledge and  explain the need for the following adjustments
income and understanding of how to make the - accrued income
expenses necessary adjustments required for - income received in advance
the preparation of financial - accrued expenses
statements including balances - prepaid expenses
brought down from the previous  explain accrued expenses and income, prepaid expenses and income
financial year received in advance
 prepare income and expense accounts in the general ledger for the
adjustments above, including the balances brought down from the
previous financial year1
 prepare an income statement2 and statement of financial position
including adjustments
1
Adjustments for accrued income, income received in advance, accrued expenses and prepaid expenses are indicated as balances in the
income and expense accounts in the general ledger and the total of the balances are appearing in the statement of financial position as part
of other receivables and other payables
2
The detail for closing transfers in the income and expense accounts in the general ledger is “income statement”.
6
UNIT 2.1 ADJUSTMENTS FOR FINANCIAL STATEMENTS

TOPIC
2.1.2 Depreciation and  demonstrate an understanding of  explain the need for depreciation and provision for depreciation
disposal of non- the nature of depreciation  explain the meaning of depreciation and provision for depreciation and
current assets its effect on non-current assets (prudence and matching principles)
 explain the causes of depreciation
 explain the reasons for depreciation
 explain the difference between capital and revenue receipts and
capital and revenue expenditure
 explain the effect of depreciation and provision for depreciation on
non-current assets using the accrual/matching and prudence
principles
 explain the different methods of depreciation
- straight line
- reducing balance
- revaluation
 state the advantages and disadvantages of each of the above
methods of depreciation
 state and justify which of the above methods of depreciation is most
suitable for each non-current asset
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THEME 2 PREPARATION AND PRINCIPLES OF FINANCIAL STATEMENTS (CONTINUED)
UNIT 2.1 ADJUSTMENTS FOR FINANCIAL STATEMENTS (CONTINUED)

TOPIC
2.1.2 Depreciation and  demonstrate knowledge and  calculate depreciation using the above methods taking into account
disposal of understanding of the calculation of non-current assets bought or disposed of during the year and or at year
non-current assets depreciation end
(continued)
 demonstrate knowledge and  record depreciation of non-current assets in the general ledger using
understanding of the accounting the depreciation (expense) account and provision for depreciation
treatment of depreciation account
 know and understand the  record the disposal of a non-current asset in the asset account,
accounting treatment of asset provision for depreciation account and the disposal account
disposal  prepare an income statement to include depreciation of non-current
assets and profit or loss on asset disposal
 prepare a statement of financial position
2.1.3 Bad debts and  know and understand bad debts and  distinguish between bad debts, provision for doubtful debts and bad
provision for provision for doubtful debts debts recovered
doubtful debts  explain the need to record bad debts and provide for doubtful debts
 explain the application of the accrual/matching and prudence
principles to bad debts and provision for doubtful debts
 demonstrate knowledge and  record bad debts and provision for doubtful debts in the general ledger
understanding of the accounting  prepare an income statement including bad debts and the adjustment
treatment of bad debt and provision of provision for doubtful debts
for doubtful debts  prepare a statement of financial position including provision for doubtful
debts
8
UNIT 2.2 PARTNERSHIPS

TOPIC
2.2.1 Accounting for  demonstrate an understanding to  explain the features of a partnership agreement
partnerships prepare the accounts and financial  explain the position of the partnership when there is no partnership
statements of partnerships deed
 prepare the income statement of a partnership including the
adjustments as detailed in Theme 2, Unit 2.1 to calculate the profit or
loss for the year
 show the accounting records for a partner’s interest on loan
 explain the importance of appropriation
 prepare an appropriation account to show the treatment of
 interest on drawings
 interest on capital
 partners’ salaries
 remaining profit or loss
 differentiate between fixed and fluctuating capital accounts
 prepare the capital and current accounts of partners in the general
ledger
 prepare the partnership’s statement of financial position
 explain the meaning of the term goodwill
 prepare the accounting entries for goodwill and revaluation on
admission of a new partner
 demonstrate an understanding of  explain reasons why a partnership may be dissolved
the dissolution of a partnership  record the entries in the general journal and general ledger which arise
from the dissolution of a partnership using a realisation account
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UNIT 2.3 INTRODUCTION TO COMPANY ACCOUNTS
TOPIC
2.3.1 Nature of limited  understand the capital structure of  explain the meaning of the terms limited liability and unlimited liability
liability companies limited liability companies  explain the difference between authorised and issued share capital
 explain the difference between
- the nominal and market value of shares
- ordinary shares and preference shares
- cumulative and non-cumulative preference shares
 explain the difference between capital reserves (share premium
reserve and revaluation reserve) and revenue reserves (general
reserve and retained earnings)
 explain the features of debentures
 explain the difference between a share and a debenture
2.3.2 Accounting for  demonstrate an understanding of  calculate and record the entries which arise from the issue of shares
limited liability and acquire the skill of preparing fully paid at par or at a premium including
companies accounting entries for the issue of - general journal
shares - general ledger
 show the effect of the issue of shares in the financial statements
(The application and allotment account is not required)
 demonstrate an understanding of  explain the meaning of the terms interim dividend and final dividend
simple financial statements of  calculate interim and final dividends
limited liability companies  explain the term audit fees
 make the other adjustments as detailed in Theme 2, Unit 2.1
 prepare an income statement of a limited liability company (see
Annexe F)
 prepare a statement of changes in equity (see Annexe G)
 prepare a statement of financial position (see Annexe H)
(Proposed dividends are NOT recorded in the financial statements, but
added as a note.)
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UNIT 2.3 INTRODUCTION TO COMPANY ACCOUNTS

TOPIC
2.3.2 Accounting for  demonstrate an understanding of  explain the purpose of a statement of cash flow
limited liability statement of cash flows  explain the difference between a statement of cash flow and cash
companies budget
(continued)  prepare a statement of cash flow
(no calculations are required for dividends, tax and depreciation – figures
will be provided)
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THEME 3 PREPARATION OF OTHER FORMS OF FINANCIAL STATEMENTS
UNIT 3.1 SINGLE ENTRY AND INCOMPLETE RECORDS

TOPIC
3.1.1 Accounts and  demonstrate an understanding of  explain the meaning of
financial statements how to prepare financial statements - single entry
from incomplete from single entry and incomplete - incomplete records
records records  state the disadvantages of single entry and incomplete records as a
method of bookkeeping
 prepare an opening statement of affairs to calculate the opening capital
 calculate profit for the year from opening and closing capital
 calculate credit purchases using the purchases ledger control account
 calculate credit sales using the sales ledger control account
 apply the following techniques to arrive at missing figures
- mark up
- margin
- rate of inventory turnover
 calculate missing figures using various general ledger accounts and the
cash book
 make the other adjustments as detailed in Theme 2, Unit 2.1
 prepare an income statement using all the information available
 prepare a statement of financial position using all the information
available
12
THEME 3 PREPARATION OF OTHER FORMS OF FINANCIAL STATEMENTS (CONTINUED)
UNIT 3.2 NON-PROFIT MAKING ORGANISATIONS

TOPIC
3.2.1 Nature of non-profit  demonstrate an understanding  explain
making organisations of non-profit making organisations - accumulated fund
- subscriptions
- surplus
- deficit
- receipts and payments account
- income and expenditure account
- life membership
 differentiate between the terminology of a profit and non-profit
organisation
13
THEME 3 PREPARATION OF OTHER FORMS OF FINANCIAL STATEMENTS (CONTINUED)
UNIT 3.2 NON-PROFIT MAKING ORGANISATIONS (CONTINUED)

TOPIC
3.2.2 Accounts and  demonstrate an understanding of  prepare an opening statement of affairs to calculate the accumulated
financial statements preparing accounts and financial fund
statements of non-profit making  state the sources of income of a non-profit making organisation
organisations  state the sources of expenditure of a non- profit making organisation
 prepare a subscriptions account in the general ledger including
subscriptions in advance, subscriptions in arrears and subscriptions
written off
 make the following adjustments in the accounts of non-profit making
organisations
- accrued expenses
- accrued income
- prepaid expenses
- income received in advance
- depreciation
- bad debts including subscriptions written off
- profit or loss on disposal of non-current assets
 prepare an income statement to calculate the profit on a fund raising
activity and the transfer to the income and expenditure account
 prepare an income and expenditure account to include only the net
amounts from other fund raising activities
 prepare a statement of financial position
14
THEME 4 INTERPRETATION OF FINANCIAL STATEMENTS
UNIT 4.1 RATIOS AND INTERPRETATION

TOPIC
4.1.1 Ratios  understand accounting ratios and  classify accounting ratios into
their uses for sole traders and - profitability
limited liability companies - liquidity
- efficiency
- investment
 calculate and analyse profitability ratios
- mark up
- gross margin
- profit margin
- expenses to revenue
- operating expenses to revenue (companies)
- return on capital employed
 calculate and analyse liquidity ratios
- current ratio
- quick/liquid/acid test ratio
 calculate and show the effects of transactions on working capital
 calculate and analyse efficiency ratios
- rate of inventory turnover
- trade receivables collection period
- trade payables payment period
 make suggestions and recommendations for improving profitability,
liquidity and working capital
 calculate and analyse investment ratios
- earnings per share
- price earnings
- dividend per share
15
THEME 4 INTERPRETATION OF FINANCIAL STATEMENTS (CONTINUED)
UNIT 4.1 RATIOS AND INTERPRETATION (CONTINUED)

TOPIC
4.1.2 Interpretation and  understand the importance of  discuss the importance of accounting ratios to
evaluation of accounting ratios for the - owners
financial statements interpretation and evaluation of - managers
business performance - trade payables
- trade receivables
- banks
- employees
- potential investors
 compare accounting ratios over time or to similar businesses to advise
management and to aid decision making
 identify and discuss the limitations of accounting ratios
16
THEME 5 COST AND MANAGEMENT ACCOUNTING
UNIT 5.1 COST STRUCTURES

TOPIC
5.1.1 Material and labour  understand material and labour  explain direct and indirect materials
costs costs  explain direct and indirect labour
 understand the need for inventory  define and apply the principle of valuing inventory at the lower of cost
control and calculate inventory or net realisable value (NRV)
values using different methods  explain the first in first out (FIFO) and average cost (AVCO) methods of
inventory valuation
 explain advantages and disadvantages of FIFO and AVCO
 calculate closing inventory using FIFO and AVCO
 calculate the effect on gross profit of FIFO and AVCO methods of
inventory valuation
5.1.2 Overheads  understand absorption costing  define absorption costing
 define direct, indirect, variable and fixed costs
 allocate and apportion overheads between production and service
departments
 calculate the following absorption rates
- direct labour hour rate
- machine hour rate
- unit cost rate
 apply the absorption rates to calculate the full cost and determine the
profit
 explain over and under absorption of overheads
 explain the causes of over and under absorption of overheads
 calculate over and under absorption of overheads
17
THEME 5 COST AND MANAGEMENT ACCOUNTING (CONTINUED)
UNIT 5.1 COST STRUCTURES (CONTINUED)

TOPIC
5.1.2 Overheads  understand marginal costing  explain the terms
(continued) - contribution
- marginal costing
- break-even
 explain limiting factors and their effect in marginal costing
 use marginal costing to calculate the contribution made towards fixed
costs and profit including
- calculate break-even
- prepare a conventional break-even chart showing the break-even
point, the margin of safety, profit and loss
- calculate contribution to sales ratio
 explain the advantages and disadvantages of break-even analysis
 use marginal costing in decision making
- pricing a product
- accept or reject a special order
- make or buy a product
- continue or discontinue production
UNIT 5.2 BUDGETS AND BUDGETARY CONTROL
5.2.1 Budgets  demonstrate an understanding of  explain the uses of budgets
the uses of budgets and budgetary  explain the control function of budgets
control and the preparation of  explain the advantages of budgetary control, including both financial
simple budgets and non-financial factors
 explain the purpose of a sales budget
 prepare a production budget
 prepare a cash budget
 advise management on appropriate courses of action on the budgeted
results
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6. ASSESSMENT OBJECTIVES
The four assessment objectives in Accounting are:

A Knowledge with understanding
B Application
C Analysis
D Evaluation and decision making
A description of each assessment objective follows:
A KNOWLEDGE WITH UNDERSTANDING
Learners should be able to:

1. demonstrate knowledge and understanding of facts, terms, principles and techniques
appropriate to financial accounting and cost and management accounting
Questions assessing these objectives will often begin with words such as: define, list, state,
outline, explain.
B APPLICATION

1. apply knowledge and understanding of financial accounting and cost and management
accounting to a variety of accounting situations
2. recognise, select and organise relevant data in written, numerical and diagrammatic
form
3. present information in an appropriate accounting format
Questions assessing these objectives will often begin with words such as: calculate,
prepare, draw up, record.
C ANALYSIS

1. analyse financial accounting and cost and management accounting and communicate
the outcomes in the most appropriate form
Questions assessing these objectives may begin with words such as: analyse, discuss,
examine, assess, present.
D EVALUATION AND DECISION MAKING

1. present reasoned explanations and communicate them in an accurate and logical
manner
2. make reasoned judgements and present appropriate recommendations and draw valid
conclusions to facilitate effective decision making
Questions assessing these objectives will begin with words such as: suggest, advise,
comment on.
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7. SCHEME OF ASSESSMENT
Learners must be entered for both Paper 1 and Paper 2.
DIFFERENTIATION
All learners are expected to pursue the same curriculum content and differentiation will be by
outcome.
DESCRIPTION OF PAPERS
Paper 1 2 hours 100 marks 50 % weighting
This paper will contain questions to test candidates’ skills in and knowledge of financial
accounting. Some understanding of how these principles are applied to business situations
will be required.
The paper will consist of four compulsory questions of variable length. Learners answer on
the question paper.
Paper 2 2 hours 100 marks 50 % weighting
This paper will require candidates to demonstrate knowledge of and skills in the principles
and practices of financial accounting (2 questions) and cost and management accounting
(2 questions).
The paper will consist of four compulsory questions of variable length. Learners answer on
the question paper.
8. SPECIFICATION GRID
The relationship between the assessment objectives and components of the schemes of
assessment is shown in the table.
Weighting of
Paper 1 Paper 2
Assessment objectives Assessment
Marks Marks
Objectives
A Knowledge with
20 20 20 %
understanding
B Application 55 45 50 %
C Analysis 20 20 20 %
D Evaluation and decision

5 15 10 %
making
Total marks 100 100 100 %
Weighting 50 % 50 %
The marks given to test the assessment objectives give an indication of their relative
importance in each paper. Marks may differ with ±2.
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9. GRADE DESCRIPTIONS
Grade descriptions are provided to give a general indication of the standards of achievement
likely to have been shown by learners awarded particular grades. The grade awarded will
depend in practice upon the extent to which the learner has met the assessment objectives
overall and it might conceal weakness in one aspect of the examination which is balanced by
above average performance in some other. Learners will be graded on a scale of a to e.
The descriptors for judgemental thresholds a, c, e are given below.
A Grade a learner should demonstrate:

1. An excellent ability to identify detailed facts, principles and techniques in relation to
the content of the syllabus
2. A thorough ability to define and explain accounting principles
B Application
1. A thorough ability to select, classify and apply information in an accurate and
orderly manner
2. An excellent ability to relate facts, principles and techniques in a logical manner
C Analysis
1. An excellent ability to classify information presented in various forms
2. An excellent ability to select and use appropriate data
3. A thorough ability to interpret accounting information
D Evaluation and Decision Making

1. A sound ability to make clear reasoned judgements and communicate them in an
accurate and logical manner which is appropriate to the situation
2. A sound ability to form conclusions from available information and make high quality
decisions
A Grade c learner should demonstrate:

1. A good ability to identify facts, principles and techniques in relation to the content of
the syllabus
2. An ability to define and explain accounting principles
B Application
1. A good ability to select, classify and apply information in an accurate and orderly
manner
2. A sound ability to relate facts, principles and techniques in a logical manner
C Analysis
1. A good ability to use information presented in various forms
2. A sound ability to select and use appropriate data
3. An ability to interpret accounting information

1. An ability to make reasoned judgements
2. An ability to form conclusions from available information and make appropriate
decisions
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A Grade e learner should demonstrate:
A Knowledge with Understanding

1. An ability to recall and use facts, principles and techniques in relation to the content
of the syllabus
2. An ability to define and explain accounting principles
B Application
1. An ability to select, classify and apply information in an orderly manner
2. An ability to relate facts, principles and techniques to some situations
C Analysis
1. An ability to classify and present data in a simple way and some ability to select
relevant information from a set of data
2. An ability to select and use appropriate data
3. An ability to gather information relating to a particular topic, present it in an ordered
manner

1. An ability to understand implications and make recommendations
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10. COMMAND WORDS
Advise Write down a suggested course of action in a given situation. Often

linked with Suggest (see below).
Calculate Work out. Often not format specific. Often accompanied by – show
workings/show calculations.
Comment Make relevant statements, usually on given figures, or results of

calculations.
Compare Write down the differences between two accounting statements/two

businesses/methods of recording something etc.
Complete Fill in. Often use in relation to tables/sentences/boxes.
Define Write down an explanation of the meaning of an accounting term

e.g. Define depreciation/Define current assets.
Discuss Often linked with Comment (see above). Write down a reasoned
explanation of the causes/effects of a course of action/the
difference between two sets of figures/two financial statements etc.
Draw up Sometimes used in place of Prepare. Present something in

statement or account format etc. Often used in relation to bank
reconciliation, statement of corrected profit etc.
Enter Sometimes used in place of Make entries. Record given information

in specified accounts/books/ledgers.
Explain Give a written account of what something means/why it is done/the

outcome of it etc. Examples include – Explain the entries in an
account/Explain why a trader ……………..
Give Sometimes used in place of State. Write down. Sometimes used as

Give 2 examples ………..
List Write down information in a number of points – usually no further

explanation is necessary.
Make entries See Enter above. Record information in specified accounts etc.
Name Write down the title of etc. Often used for short one-word answers
e.g. Name a fixed asset/Name an example of ……………….
Outline Write down. Often linked to State – see below. Give a brief written
account of something, e.g. Outline the ways to reduce bad
debts/Outline the imprest system of petty cash.
Prepare See Draw up above. Present some accounting information in

suitable format e.g. Prepare a statement of financial
position/Prepare journal entries/Prepare a bank reconciliation
statement.
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Record Used in place of Enter or Write up. Make the necessary entries in a
set of accounting records e.g. Record a series of transactions in the
cash book/ledger/books of prime entry.
Select Choose relevant information from that given. Often linked to further
instructions e.g. Select the relevant information and prepare a
Manufacturing Account/Trial Balance.
Show Write down your workings/calculations or write down how an item

will appear in some accounting statement. Often used when
requiring preparation of extracts from statements of financial
position/income statements etc.
State Write down. Often used instead of Give – see above. Used when
requiring written explanation of something e.g. State 2 ways in
which ………/
State how the trader can ………..
State and explain Usually requires a little more detail than just State and often an
explanation of why/how.
Suggest Requiring knowledge to be related to a given situation. Offer

explanation why something occurred/how a situation can be
improved/methods available to deal with a situation etc.
Write up May be used in place of Prepare see above. Often used in

connection with ledger accounts, cash books, books of prime entry
etc.
24
11. GLOSSARY
Absorption costing it is a method which seeks to charge a fair proportion of

overhead cost to a unit of production
Accrual/matching principle income and expenditure is recognised in the accounting year

to which they are related rather than on a cash basis. This
ensures that the actual income is matched against the actual
expenditure for the year and shows a true and fair view of the
profit for the year.
Appropriation account an account that shows how a partnership’s profits are divided
up
Articles of association document containing regulations for internal matters and

management of a particular company
Authorised share capital total number of shares which the company is allowed to issue
as stated in the memorandum of association
Business entity principle the business and its owner are separate business entities and
therefore their affairs are recorded separately in the accounts
Capital reserves any reserve created as a result of non-trading activities e.g.

share premium and revaluation reserve
Company legally constituted society of people with common capital and

a legal, common objective, usually to make a profit
Consistency principle requires that a company's financial statements uses the

same accounting principles, methods, practices and
procedures from one accounting period to the next. This
allows the readers of the financial statements to make
meaningful comparisons between years.
Depreciation the loss in value of a non-current asset during a financial year
Direct costs costs that are directly related to the production of a product
Dissolution the action of formally ending a partnership
Dividends a payment made to the shareholders as a return on the capital

invested in the business. It is distributed from profits
Dual aspect principle is the basis for recording financial transactions into the ledger
accounts. Every transaction has a double effect and should
be recorded twice. Every debit entry has a corresponding
credit entry of the same value.
Efficiency ratios used to measure how effective a business uses its assets and
liabilities internally e.g. rate of inventory turnover, trade
receivables collection period, trade payables payment period
Equity share capital plus reserves
25
Factory overhead those factory costs which are associated with the
manufacturing process but not directly identifiable as a part of
the individual unit
Fixed cost cost that stays the same, irrespective of the level of output of
production
Going-concern principle a business is seen as a going concern if it is to continue for the

foreseeable future
Gross margin when the gross profit is calculated as a percentage (%) of the
selling price
Gross profit the difference between sales revenue and the cost of sales
where revenue exceeds the cost of sales
Historical cost principle a non-current asset is recorded at its original cost
Indirect cost costs which are not directly related to the production process
of a product
Interim dividends dividends declared and paid from profit by directors of a

company during a financial year, before the year end
Investment ratios ratios which are used to measure the performance of a

company’s shares
Issued share capital part of authorised share capital already issued
Legal entity competent body regarded as a person in legal matters, with

contractual capacity
Liquidity ratio measures the ability of a business to meet its short term debts
e.g. current ratio, quick/liquid/acid test ratio
Mark up when the gross profit is calculated as a percentage (%) of the

cost price
Materiality principle financial statements should only include items that will have an
impact on decision making. An accounting standard can be
ignored if the net impact of doing so will not mislead the users
of the financial statements.
Memorandum of association document stating the main objective of a company, the general
nature of the business, the name of the company and details
on the amount of share capital with which the company is to
be registered
Money measurement only transactions which can be expressed in monetary terms

principle are recorded in the books
Net realisable value the amount that can be obtained by selling an asset after
deducting expenses incurred to get it in a saleable condition
Net turnover sales less sales returns
26
Nominal share capital see authorised share capital
Nominal value value allocated to a share when issued
Ordinary shares shares entitling the shareholder to a share in the distributable

profit of the company in the form of a dividend after preference
dividends are paid
Par value see nominal value
Partnership a business with two to twenty owners working together to

make a profit
Preference shares shares entitling the shareholder to a fixed dividend, providing

that sufficient income is available and that the dividend is
declared in accordance with the articles of association
Prime cost the total cost of direct raw material and direct labour and direct
expenses spent directly on a product in the manufacturing
process
Private company company of which the minimum number of shareholders is one

and the maximum number of shareholders is fifty, the public
being prohibited from buying shares in a private company
Profit margin when profit for the year is calculated as a percentage of

revenue
Profit for the year is the difference between gross profit and other income less
expenses
Profitability ratios ratios that measure the ability of a business to generate profit
e.g. mark up, gross margin, profit margin, return on capital
employed
Prospectus invitation to the public to buy shares in a public company
Provision for depreciation the accumulated amount of depreciation written off on a non-
current asset up to a certain date
Prudence principle when preparing financial statements revenue and profits

should not be overstated and losses and expenses should not
be under-estimated. Assets should not be overvalued and all
liabilities should be recognised immediately.
Public company company of which the minimum number of members is seven

and the maximum number of members is limited to the number
of shares issued, the public being invited to buy shares by
means of a prospectus
Rate of inventory turnover the number of times that the average inventory of a business
is replaced during a financial year
Realisation account is used to close the books of accounts and determine the profit
or loss on the sale of assets and the payment of liabilities
27
Realisation principle revenue can only be recognised when the legal title to the
goods passes from the seller to the buyer
Register of members list kept by a company of all its shareholders
Registered share capital see authorised share capital
Retained earnings is profit which has not been distributed to shareholders. It is

treated as a revenue reserve in the statement of financial
position.
Revenue Reserves the portion of a business’ profit retained for investment in

future growth which is created out of revenue profit and not
distributed to shareholders e.g. general reserve and retained
earnings
Share capital consists of all the funds raised by selling ordinary shares and
preference shares. It is part of the equity.
Share premium The amount received when the issuing price is higher than the
par value of a share. It is a capital reserve and part of
shareholders’ equity
Shareholders people who own shares in a company
Shares units into which the capital of a company is divided
Statement of Cash Flow statement showing the source and application of all cash
sources during a financial year
Stock exchange place where shares are bought and sold to the public
Unissued share capital difference between authorised and issued share capital
Variable cost cost which changes with different levels of output of

production
28
ANNEXE A Summary of commonly used ratios
1. Profitability ratios
Gross margin Gross Profit × 100

Revenue
= %
Mark up Gross Profit × 100

Cost of Sales
= %
Profit margin Profit for the year × 100

Revenue
= %
can also be expressed as
Profit for the year (after interest) × 100

Revenue
= %
Return on capital employed Profit for the year before interest × 100
Capital Employed
= %
[Capital Employed = Issued Shares + Reserves + Non-

Current Liabilities]
Expenses to revenue Expenses × 100

Revenue
= %
Operating expenses to Operating Expenses × 100

revenue Revenue
= %
2. Liquidity ratios
Current ratio Current Assets

Current Liabilities
=x:1
Quick/liquid/acid test ratio Current Assets – Inventory

Current Liabilities
= x:1
29
3. Efficiency ratios
Trade receivables collection Trade receivables × 365 days

period Credit sales
= days
Trade payables payment Trade payables × 365 days

period Credit purchases
= days
Rate of inventory Cost of sales

turnover Average inventory
= times per annum
4. Investment ratios
Earnings per share Profit for the year – preference share dividend
Number of issued ordinary shares
= N$
Price earnings ratio Market price per share
Earnings per share
= x (number)
Dividend per share Ordinary dividend paid
Number of issued ordinary shares
= N$
Calculate ratios using year-end balances where appropriate, unless the question specifies
the use of average figures.
Calculate ratios correct to two decimal places.
30
ANNEXE B Income Statement of a sole trader
Example Stores
Income Statement for the year ended 28 February 2020
Revenue (Sales – Returns inwards) xxx
Less: Cost of Sales xxx
Opening Inventory xxx
Add: Purchases (Purchases – Returns outwards) xxx
Carriage inwards xxx
xxx
Less: Closing inventory xxx
Gross Profit xxx
Add: Other Income xxx
Rent Income xxx
Discount Received xxx
xxx
Less: Other Expenses xxx

Salaries xxx
Water and Electricity xxx
Insurance xxx
Bad Debts xxx
Discount Allowed xxx
Loss on sale of non-current asset xxx
Stationery xxx
Depreciation xxx
Profit for the year xxx
31
ANNEXE C Statement of Financial Position for a sole trader
Example Stores
Statement of Financial Position at 28 February 2020
Non-Current Assets Cost Provision for Net Book
depreciation Value
Land and Buildings xxx xxx xxx
Equipment xxx xxx xxx
Vehicles xxx xxx xxx
xxx xxx xxx
Investments xxx
Fixed Deposit: Example Investors xxx
Current Assets xxx

Inventory xxx
Trade receivables xxx
Less: Provision for doubtful debts xxx xxx
Other Receivables xxx
Bank xxx
Total Assets xxx
Owners’ Equity xxx

Capital xxx
Add: Profit for the year xxx xxx
Less: Drawings xxx
Non-current Liabilities xxx

Loan: Example Bank xxx
Current Liabilities xxx

Trade payables xxx
Other payables xxx
Total capital and liabilities xxx
32
ANNEXE D Appropriation Account for Partnerships
Partner 1 and Partner 2

Appropriation Account for the year ended 28 February 2020
Profit for the year xxx
Add: Interest on drawings - Partner 1 xxx
- Partner 2 xxx xxx
xxx
Less: Interest on capital - Partner 1 xxx

- Partner 2 xxx xxx
Partner salary – Partner 1 xxx xxx
xxx
Profit Share - Partner 1 xxx
- Partner 2 xxx xxx
33
ANNEXE E Statement of Financial Position for Partnerships
Example Partners
Non-current Assets Cost Provision for Net Book
depreciation Value
xxx xxx xxx
Investments xxx
Current Assets xxx
Inventory xxx
Bank xxx
Total Assets xxx
Partner 1 Partner 2 Total

Capital Accounts xxx xxx xxx
Current accounts
Balance xxx (xxx)
Interest on capital xxx xxx
Salaries xxx xxx
Profit xxx xxx
xxx xxx
Drawings (xxx) (xxx)
Interest on drawings (xxx) (xxx)
xxx xxx xxx
xxxx
Loan: Partner 1 xxx
Trade payables xxx
Other payables xxx
Total capital and liabilities xxx
Note: If a Goodwill account iskept, Goodwill will be included in the Non-current assets in the
Statement of Financial position.
34
ANNEXE F Income Statement of Companies
Example Ltd
Income Statement for the year ended 28 February 2020
Revenue (Sales – Returns inwards) xxx
Less: Cost of Sales xxx
Opening Inventory xxx
Add: Purchases (Purchases – Returns outwards) xxx
Carriage inwards xxx
xxx
Less: Closing inventory xxx
Gross Profit xxx
Add: Other Income xxx
Rent Income xxx
Discount Received xxx
xxx
Less: Other Expenses xxx

Salaries xxx
Water and Electricity xxx
Interest on debentures xxx
Bad Debts xxx
Discount Allowed xxx
Loss on sale of non-current asset xxx
Audit fees xxx
Depreciation xxx
Profit for the year before tax xxx
Taxation xxx
Profit for the year after tax xxx
35
ANNEXE G Statement of Changes in Equity for Companies
Example Ltd
Statement of Changes in Equity for the year ended 28 February 2020
N$ N$ N$ N$ N$ N$ N$
Ordinary 5% Share Revaluation General Retained Total
Share Preference Premium Reserve Reserve Earnings
Capital Share
Capital
Opening Balances – 01/03/2019 xxx xxx xxx xxx xxx xxx xxx
Ordinary Shares issued xxx xxx
5% Preference Shares issued xxx xxx
Revaluation Surplus xxx xxx
Share premium xxx xxx
Preference share dividends - interim (xxx) (xxx)
Ordinary Share dividends - interim (xxx) (xxx)
Profit for the year after tax xxx xxx
Preference share dividends paid - final (xxx) (xxx)
Ordinary share dividends paid - final (xxx) (xxx)
Transfer to General Reserve xxx (xxx)
Closing Balances – 28/02/2020 xxx xxx xxx xxx xxx xxx xxx
* Only interim dividends paid will reduce the Retained Earnings. According to the
Prudence concept, proposed dividends will not be recorded, but shown as a note to
the accounts.
36
ANNEXE H Statement of Financial Position for Companies
Example Ltd
depreciation Value
xxx xxx xxx
Investments xxx
Current Assets xxx

Inventory xxx
Cash and cash equivalents xxx
Total Assets xxx
Equity
Authorised Issued
200 000 Ordinary Share Capital at N$1 each xxx xxx
50 000 5% Preference Share Capital at N$1 each xxx xxx
xxx
Reserves xxx
Share premium xxx
Revaluation reserve xxx
General reserve xxx
Retained earnings xxx
Total equity xxx
Non-current Liability xxx

6% Debentures xxx

Trade payables xxx
Other payables xxx
Total equity and liabilities xxx
37
ANNEXE I Statement of Cash Flow for Companies
Example Ltd
Statement of Cash Flow for the year ended 28 February 2020
Operating activities
Profit before tax xxx
Depreciation xxx
Interest on debentures xxx
Interest on overdraft xxx
Loss on asset disposal xxx
Profit on asset disposal (xxx)
(Increase) or Decrease Inventory xxx
(Increase) or Decrease Trade receivables xxx
Increase or (Decrease) Trade payables xxx
Cash inflow from operating activities xxx
Returns on investments and servicing of finance (xxx)

Dividends paid (xxx)
Interest on overdraft (xxx)
Interest on debentures (xxx)
Cash inflow before tax xxx
Taxation (xxx)
Cash inflow after tax xxx
Investing Activities (xxx)

Proceeds on sale of Non-current assets xxx
Non-current assets purchased (xxx)
Cash inflow before financing xxx
Financing Activities xxx

Shares issued xxx
Debentures paid (xxx)
Net inflow xxx
Analysis of Cash and Cash Equivalents

Opening balance of cash and cash equivalents xxx
Inflow of cash and cash equivalents xxx
Closing Balance of cash and cash equivalents xxx
38
ANNEXE J Statement of Financial Position for a Non-Profit Organisation
Example Club
depreciation Value
Clubhouse xxx xxx xxx
xxx xxx xxx
Investments xxx
Current Assets xxx

Inventory xxx
Subscriptions in arrears xxx
Bank xxx
Total Assets xxx
Accumulated Fund xxx

Add: Surplus xxx xxx


Trade payables xxx
Subscriptions received in advance xxx
Other payables xxx
Total accumulated funds and liabilities xxx
39
ANNEXE K Conventional break-even chart
Break-even chart – Example Ltd
50 000
45 000
40 000
35 000
Profit
Total Revenue
Sales 30 000
and
costs BEP
Total Cost
(N$) 25 000
20 000
Fixed cost
15 000
Loss
10 000
5 000
0
0 150 300 450 600 750 900 1 050 2 000
Output (units)
40
The National Institute for Educational Development
P/Bag 2034
Okahandja
NAMIBIA
Telephone: +264 62 509000

Facsimile: + 264 62 509073
E-mail: [email protected]
Website: http://www.nied.edu.na

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Republic of Namibia

MINISTRY OF EDUCATION, ARTS AND CULTURE

NAMIBIA SENIOR SECONDARY CERTIFICATE (NSSC)

FOR IMPLEMENTATION IN 2021

© Copyright NIED, Ministry of Education, Arts and Culture, 2019

Publication date: 2020

4. Additional information .................................................................................................... 2

5. Learning content ........................................................................................................... 3

6. Assessment objectives ................................................................................................ 19

7. Scheme of assessment ............................................................................................... 20

8. Specification grid ......................................................................................................... 20

9. Grade descriptions ...................................................................................................... 21

10. Command words ......................................................................................................... 23

11. Glossary ....................................................................................................................... 25

Annexe A Summary of commonly used ratios ................................................................... 29

Annexe B Income statement of a sole trader ..................................................................... 31

Annexe C Statement of financial position for a sole trader................................................. 32

Annexe D Appropriation account for partnerships.............................................................. 33

Annexe E Statement of financial position for partnerships ................................................. 34

Annexe F Income statement of companies ....................................................................... 35

Annexe G Statement of changes in equity for companies .................................................. 36

Annexe H Statement of financial position for companies ................................................... 37

Annexe I Statement of cash flow for companies............................................................... 38

Annexe J Statement of financial position for a non-profit organisation .............................. 39

Annexe K Conventional break-even chart ......................................................................... 40

The Namibia National Curriculum Guidelines

NSSCAS Accounting syllabus, NIED 2020

The aims are to enable learners to:

4.1 Guided learning hours

4.2 Recommended prior learning

4.4 Grading and reporting

4.5 Support materials and approved textbooks

NSSCAS Accounting syllabus, NIED 2020

THEME 1 BASIC ACCOUNTING SYSTEMS

THEME 2 PREPARATION AND PRINCIPLES OF FINANCIAL STATEMENTS

THEME 3 PREPARATION OF OTHER FORMS OF FINANCIAL STATEMENTS

THEME 4 INTERPRETATION OF FINANCIAL STATEMENTS

THEME 5 COST AND MANAGEMENT ACCOUNTING

ALL FINANCIAL STATEMENTS SHOULD BE PREPARED IN VERTICAL FORMAT

NSSCAS Accounting syllabus, NIED 2020

UNIT 1.1 BASIC PRINCIPLES OF ACCOUNTING FOR SOLE TRADERS

GENERAL OBJECTIVES SPECIFIC OBJECTIVES

NSSCAS Accounting syllabus, NIED 2020

UNIT 1.2 ACCOUNTING PRINCIPLES

NSSCAS Accounting syllabus, NIED 2020

UNIT 2.1 ADJUSTMENTS FOR FINANCIAL STATEMENTS

GENERAL OBJECTIVES SPECIFIC OBJECTIVES

NSSCAS Accounting syllabus, NIED 2020

UNIT 2.1 ADJUSTMENTS FOR FINANCIAL STATEMENTS

GENERAL OBJECTIVES SPECIFIC OBJECTIVES

NSSCAS Accounting syllabus, NIED 2020

UNIT 2.1 ADJUSTMENTS FOR FINANCIAL STATEMENTS (CONTINUED)

GENERAL OBJECTIVES SPECIFIC OBJECTIVES

NSSCAS Accounting syllabus, NIED 2020

UNIT 2.2 PARTNERSHIPS

GENERAL OBJECTIVES SPECIFIC OBJECTIVES

NSSCAS Accounting syllabus, NIED 2020

NSSCAS Accounting syllabus, NIED 2020

UNIT 2.3 INTRODUCTION TO COMPANY ACCOUNTS