JYSS Memory Essence Sec 4E5N 2025

Format & memory essence (Sec 4E5N) Name Class Logical Learning. Life-Long Skill. We Nurture People of Accountability JUNYUAN SECONDARY SCHOOL FOR O LEVEL SYLLABUS 7087 Required to interpret the accounts but need not prepare the accounts. 2025 EDITION

JYSS: POA FORMAT & MEMORY ESSENCE | P a g e 2 Contents Page CHAPTER 1 INTRODUCTION TO ACCOUNTING ................................ ................................ ............ 5 TYPES OF BUSINESSES ................................ ................................ ................................ ................... 5 ROLE OF ACCOUNTING & ACCOUNTANTS ................................ ................................ ................ 5 PROFESSIONAL ETHICS ................................ ................................ ................................ ................. 5 STAKEHOLDERS ................................ ................................ ................................ .............................. 6 ACCOUNTING THEORIES ................................ ................................ ................................ ............... 7 CHAPTER 2 ACCOUNTING INFORMATION SYSTEM ................................ ................................ .. 11 TYPES OF BUSINESS TRANSACTIONS ................................ ................................ ....................... 11 ACCOUNTING CYCLE ................................ ................................ ................................ ................... 12 ACCOUNTING INFORMATION SYSTEM ................................ ................................ .................... 13 SOURCE DOCUMENTS ................................ ................................ ................................ .................. 14 CHAPTER 3 ELEMENTS OF FINANCIAL STATEMENTS & ACCOUNTING EQUATION........... 15 ELEMENTS OF FINANCIAL STATEMENTS ................................ ................................ ................ 15 ACCOUNTING EQUATION ................................ ................................ ................................ ............ 15 KEYWORDS TO IDENTIFY ACCOUNT NAMES ................................ ................................ ......... 16 CHAPTER 4 DOUBLE-ENTRY RECORDING ................................ ................................ .................. 17 DOUBLE ENTRY SYSTEM ................................ ................................ ................................ ............ 17 CONCEPT OF DEBIT & CREDIT ................................ ................................ ................................ ... 17 JOURNAL ENTRIES................................ ................................ ................................ ........................ 18 LEDGER ACCOUNTS ................................ ................................ ................................ ..................... 18 TRADE DISCOUNT AND CASH DISCOUNT ................................ ................................ ................ 22 CHAPTER 5 TRIAL BALANCE & FINANCIAL STATEMENTS ................................ ..................... 24 TRIAL BALANCE ................................ ................................ ................................ ........................... 24 STATEMENT OF FINANCIAL PERFORMANCE ................................ ................................ .......... 25 STATEMENT OF FINANCIAL POSITION ................................ ................................ ..................... 29 CHAPTER 6 INCOME ................................ ................................ ................................ ........................ 32 SALES REVENUE ................................ ................................ ................................ ........................... 33 SALES RETURNS ................................ ................................ ................................ ............................ 34 INCOME RECEIVABLE ................................ ................................ ................................ .................. 35 INCOME RECEIVED IN ADVANCE ................................ ................................ .............................. 36 CHAPTER 7 EXPENSES ................................ ................................ ................................ .................... 39 COST OF SALES ................................ ................................ ................................ ............................. 40 PREPAID EXPENSE ................................ ................................ ................................ ........................ 42 EXPENSE PAYABLE ................................ ................................ ................................ ...................... 43 INCOME SUMMARY ACCOUNT ................................ ................................ ................................ .. 46

JYSS: POA FORMAT & MEMORY ESSENCE | P a g e 3 CHAPTER 8 CASH ................................ ................................ ................................ ............................. 48 DISHONOURED CHEQUE................................ ................................ ................................ .............. 48 INTERNAL CONTROL................................ ................................ ................................ .................... 49 CASH IN HAND & CASH AT BANK ACCOUNT ................................ ................................ .......... 50 BANK RECONCILIATION................................ ................................ ................................ .............. 51 CHAPTER 9 INVENTORY ................................ ................................ ................................ ................. 55 COST OF PURCHASES ................................ ................................ ................................ ................... 55 FIRST-IN-FIRST-OUT (FIFO) ................................ ................................ ................................ ......... 55 IMPAIRMENT LOSS ON INVENTORY ................................ ................................ ......................... 59 CHAPTER 10 TRADE RECEIVABLES (TR) ................................ ................................ ..................... 62 ALLOWANCE FOR IMPAIRMENT OF TRADE RECEIVABLES ................................ ................. 64 IMPAIRMENT LOSS ON TRADE RECEIVABLES ................................ ................................ ........ 65 WRITING OFF DEBT ................................ ................................ ................................ ...................... 70 CHAPTER 11 NON-CURRENT ASSETS (NCA) ................................ ................................ ............... 72 CAPITAL & REVENUE EXPENDITURE ................................ ................................ ....................... 72 DEPRECIATION ................................ ................................ ................................ .............................. 75 SALE OF NON-CURRENT ASSET (O LEVEL ONLY) ................................ ................................ .. 80 CHAPTER 12 TRADE PAYABLES ................................ ................................ ................................ .... 83 CHAPTER 13 LONG-TERM BORROWINGS ................................ ................................ .................... 85 BANK LOAN VS BANK OVERDRAFT................................ ................................ .......................... 85 CHAPTER 14 EQUITIES ................................ ................................ ................................ .................... 90 OWNER'S EQUITY ................................ ................................ ................................ .......................... 91 FORMS OF BUSINESS OWNERSHIPS ................................ ..............................