Accounting Unit 3: Recording and Reporting for a Trading Business
Students are strongly advised to complete Units 1 and 2 before undertaking Unit 3.
This unit focusses on financial accounting for a single activity trading business as operated by a sole trader and emphasises the role of accounting as an information system. Students use the double entry system of recording financial data and prepare reports using the accrual basis of accounting. The perpetual method of stock recording with the First In, First Out (FIFO) method is used.
Areas of Study
Recording Financial Data
This area of study focusses on identifying and recording financial data for a single activity sole trader. Students record data using double entry accounting to provide the owner with accounting information, to enable them to make informed decisions about the operation of the business.
Balance Day Adjustments and Reporting and Interpreting Accounting Information
The preparation of financial reports at the end of the reporting period provides information for planning and decision making by the owner of a small business. Students complete the accounting processes required at balance day and apply the accrual method of accounting in the preparation of accounting reports. They identify the differences between cash and profit and explain the implications of these differences when using reports to make decisions.
|Record financial data for a single activity sole trader using a double entry system and discuss the function of various aspects of this accounting system.
||Structured questions or tests (manual and/or ICT).
|Record balance day adjustments and prepare and interpret accounting reports.
||Tests (manual and/or ICT).
Overall Final Assessment
||Contribution to Study Score (%)
||Unit 3 Coursework
||Unit 4 Coursework
Information can be obtained from the Victorian Curriculum and Assessment Authority, Victoria, Australia: www.vcaa.vic.edu.au