Grade 11 Accounting Study Notes
Topics: Reconciliation, Depreciation & Fixed Assets, Partnership Accounting
1. Reconciliation Summary
Reconciliation is the process of comparing two sets of records to ensure they match and
correcting any differences.
Types of Reconciliation:
1 Bank Reconciliation: Comparing the bank statement with the business cash
records to identify differences such as outstanding deposits, outstanding cheques,
bank charges or interest.
2 Debtors Reconciliation: Comparing the Debtors Control Account with the Debtors
List to ensure customer balances are correct.
3 Creditors Reconciliation: Comparing the Creditors Control Account with the
Creditors List to verify the amounts owed to suppliers.
Importance of Reconciliation:
1 Detect errors in financial records.
2 Ensure accuracy of financial information.
3 Improve financial control.
4 Help prevent fraud.
2. Depreciation and Fixed Assets
Fixed assets are long-term assets used by a business to generate income and are not
purchased for resale.
Examples of Fixed Assets:
1 Buildings
2 Vehicles
3 Machinery
4 Equipment 5 Furniture
Depreciation is the decrease in the value of a fixed asset over time due to wear and
tear, age or obsolescence.
Methods of Depreciation:
Topics: Reconciliation, Depreciation & Fixed Assets, Partnership Accounting
1. Reconciliation Summary
Reconciliation is the process of comparing two sets of records to ensure they match and
correcting any differences.
Types of Reconciliation:
1 Bank Reconciliation: Comparing the bank statement with the business cash
records to identify differences such as outstanding deposits, outstanding cheques,
bank charges or interest.
2 Debtors Reconciliation: Comparing the Debtors Control Account with the Debtors
List to ensure customer balances are correct.
3 Creditors Reconciliation: Comparing the Creditors Control Account with the
Creditors List to verify the amounts owed to suppliers.
Importance of Reconciliation:
1 Detect errors in financial records.
2 Ensure accuracy of financial information.
3 Improve financial control.
4 Help prevent fraud.
2. Depreciation and Fixed Assets
Fixed assets are long-term assets used by a business to generate income and are not
purchased for resale.
Examples of Fixed Assets:
1 Buildings
2 Vehicles
3 Machinery
4 Equipment 5 Furniture
Depreciation is the decrease in the value of a fixed asset over time due to wear and
tear, age or obsolescence.
Methods of Depreciation:
