INNOVATIVE LESSON PLAN

POWER POINT PRESENTATION

ONLINE ASSIGNMENT

Topic: Approaches in teaching of accountancy

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                                                                    NAME:   ASWATHY M S

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Introduction

                      In this assignment highlighted to the topic is “approaches of accountancy”. Accountancy is meant for systematically recording business transactions. Commerce student should be familiarized with the accounting discipline. There are seven approaches are mainly used in accounting. The formation of approaches are mainly used for simplify the difficulties of learn accountancy.

                                The approaches mainly indicate the rules and procedure followed by the accounting. Accountancy is the subject for followed the details business events and transactions. The main aim of accountancy is develop the skill of observation, drawing diagrams, experimental, manipulative skill and generate interest in field of business, commerce and industry.

                                               Content

Approaches in teaching of Accountancy

            
        Accountancy is meant for systematically recording business transactions. A commerce student should be familiarized with the accounting discipline. Certain approaches that could be followed in teaching of accountancy are given below;

a)      The journal  approach

b)      The ledger approach

c)      The balance sheet approach

d)     The equation approach

e)      The spiral development  approach

f)       The complete cycle approach

g)      The single entry approach

The journal approach

                  This approach is purely based on the accounting cycle. This is also the traditional method of teaching accountancy. The steps to be followed in this approach while teaching accountancy are given below:

1.      Introducing the concept ‘transactions’.

2.      Introducing the debit and credit aspects together with accounting rules

3.      Analyzing the business transactions in terms of debit and credit, applying the rules.

4.      Introducing the concept’ journal and journal entries ‘

5.      Familiarizing the procedure being followed in writing the journal entries

6.      Introducing the concept ledger accounts

7.      Introducing the procedure involved in posting

8.      Balancing the ledger accounts

9.      Preparation of trial balance

10.  Introducing the concept of final accounts

11.  Preparation of trading, profit and loss account

12.  Preparation of balance sheet

The ledger approach

As per this approach, more emphasis is given to ledger accounts. This approach does not present the subject matter in a systematic way. Here the accounting proceedings starts from the ledger accounts from where the learner moves back to journals. This approach is criticized on the ground that, it is a mechanical process which fails to share with the students the purpose and the use of the routine work of keeping the accounts. Also, the probable confusions that might arise cannot be clarified. The important steps in the approach are given below:

a)      Defining the debit and credit

b)      Analyzing the transactions in terms of debit and credit

c)      Writing of debits and credits in ledger accounts

d)     Balancing ledger account

e)      Preparation of trial balance

f)       Writing journal entries using debits and credits

g)      Preparations of trading , profit and loss account

h)      Preparation of balance sheet

                            
           In this approach the students have to move back from the third stage of accounting cycle. (I.e. preparation of trading, profit and loss account and balance sheet) to the second stage of the accounting cycle (i.e. preparation of ledger accounts and trial)

c. The balance sheet approach

        
         This approach is based on the maxim whole to parts. Initially the students are given a general idea regarding the complete accounting cycle and then detailed study starts with the balance sheet. This approach is criticized because it it violates the maxim simple to complex by reversing the order. The important steps under this approach are given below. It will be advisable to perform each step on subsequent days.

1.       To start with, complete Accounting cycle is introduced.

2.       Then, a summary account of closing the income and expense account is presented.

3.       Next it is repeated. Some adjustment of inventory account also is added.

4.       Then, liabilities account is introduced after the review of previous work.

5.        Next, the teacher takes up assets account but only after review of previous work.

6.       Then, after review of previous work, some more adjustment work   is added.

7.       Now more formal statements about accounts to be maintained.

8.       Finally the scrutiny of accounts and then journalizing is introduced.

At the end, a practice set that contains all the forms contains all the forms of journals, ledgers, work sheets and statements is taken up. Students will then be asked to complete the entire cycle by working on it.

d. The equation approach.

                Accounting equation is a statement of equality between the debits and credits. It signifies that the assets of a business are always equal to the sum of the liabilities and the capital. When this relationship is shown in the equation form, it is known as ‘Accounting Equation ‘. Thus,

                Assets       =Liabilities + Capital

                Liabilities =Assets – Capital

                Capital      =Assets – Liabilities; are the accounting equations.

It is also known as balance sheet equations.

The equation approach is based on the accounting equations. The important steps in this approach is given below: Introducing accounting equations. Transactions related to

1.       Introducing the concept of increase in assets, liabilities, capital (owner’s equity), revenues and expenses with the help of a sample balance sheet.  

2.       Introducing the rules of debit and credit. Here the rules are as follow.

Nature of account                     Debit                    Credit

Assets                                          increase              decrease

Liabilities                                     decrease              increase

Owner’s equity                           decrease              increase

Revenues                                     decrease              increase

Expenses                                      increase               decrease

Thus all the transactions may be divided into the following five categories:

i.                      Transactions related to assets

ii.                   Transactions related to liabilities

iii.                  Transactions related to owner’s equity

iv.                 Transactions related to revenues

v.                   Transactions related to expenses

1.       Introducing the concept ‘Double Entry System’.

2.       Preparing  journal

3.       Preparing ledger accounts

4.       Preparing trial balance

5.       Preparing trading, profit and loss account

6.       Preparing balance sheet.

Now a days at higher secondary level, this approach is being followed.

E. The spiral development approach

In this approach the complete cycle is developed by adding some additional knowledge while repeating each step. Every time a part of   the complete cycle is re-taught and a part of it is expanded. The development of learning is just as in the spiral approach of curriculum transaction. Following are the major steps under this approach:

1.       Introducing   the concept of ‘transactions’ in a business.

2.       Transactions+ Debit and Credit Aspects.

3.       Transactions+ Debit and Credit + Journals.

4.       Transactions+ Debit and Credit + Journalising.

5.       Transactions+ Debit and Credit + Journalising + Ledger accounts.

6.       Transactions+ Debit and Credit + Journalising + Ledger accounts +Posting.

7.       Transactions+ Debit and Credit + Journalising + Ledger accounts +Posting + Balancing.

8.       Transactions+ Debit and Credit + Journalising + Ledger accounts +Posting + Balancing + Trial Balance

9.       Transactions+ Debit and Credit + Journalising + Ledger accounts +Posting + Balancing + Trial Balance + Trading, Profit and Loss Accounts.

10.   Transactions+ Debit and Credit + Journalising + Ledger accounts +Posting + Balancing + Trial Balance + Trading, Profit and Loss Account + Balance Sheet.

F. The complete cycle approach

                 This approach is a good review device and could be adopted well in remedial teaching. It requires that the entire exercise involved in the complete cycle be done on one sheet of paper in such a way that the complete picture (gestalt) is visible in its totality. This exercises repeated   for several days on different examples. If this approach is adopted it gives a thorough and complete knowledge of accounting procedures to the students. It also follows the holistic approach. Following are the major steps:

1.       Students are supplied with a typical written problem on complete cycle.

2.       The students are made to make a preliminary study of the problem.

3.       Teacher discusses with and explains to pupils the nature of the problem.

4.       Students are asked to rewrite the same problem in another sheet of paper.

5.       Their doubts may be cleared, but the ‘why’ of things   has to be kept in abeyance.

6.       Help pupils to master the basic cycle.

7.       Introduce a new concept after ensuring that the basic cycle is mastered.

8.       Repeat   the basic cycle every time while adding new concepts.

G. Single entry approach

                       In this approach record of Assets, Liabilities and Capital are maintained but no account of the sources of profit and Loss Account is maintained. In this approach an incoming asset is debited and outgoing asset is credited. An entry is made either for credit or for debit. A cash payment for purchases or expenses is always credited to cash only. In this approach the journal does not make any distinction between debit and credit. This approach is seldom used in business, but it is still used in small shops. This approach does not give a correct picture of the financial position of the business. It provides only the position of debtors and creditors.

Conclusion

                            This assignment is very essential and fruitful to know approaches of accounting. There are seven approaches are mainly used in accounting. They are journal approach, the ledger approach, the balance sheet approach, the equation approach, the spiral development approach, the complete cycle approach, the single entry approach.

References

1.      Commerce education –Dr. k.sivarajan

2.      Internet