Summary Grade 12 Accounting Study Guide

Accounting Study Guide
IEB Matric
Priya Valla

, Table of Contents
Companies Financial Statements
Theory Stuff
Practical Stuff
Financial Statements
Theory Stuff
Analysis and Interpretation of companies
Ratios
Formula Sheet
Cash Flow Statements
Theory Stuff
Format
Cash Budget
Theory Stuff
Interpreting Debtors, Creditors and Bank Recons
Cost Accounting
Theory Stuff
Formats
VAT
Theory Stuff
Ledger Accounts:
Valuing Trading Inventories




1

, Companies Financial Statements

Theory Stuff

Limited liability Companies→ inadequacy of Sole trader + partnerships.
→ Met needs of greater security (watchdog - monitors practices of company),
limited liability and ensure continuity.

Capital of Company is divided into SHARES→ Ordinary share capital

The Companies Act

1. Non-profit Companies
➔ NPC→ Body corporates etc

2. Profit Companies :
➔ Private companies → Proprietary Limited / (Pty) Ltd→ Prohibit offer of shares to
public and is now no longer restricted to 50 shareholders
➔ Personal Liability Companies→ Incorporated / Inc. → doctors/lawyers
➔ Public Companies→ Ltd / limited
➔ State Owned Companies → SOC Ltd

Formation of a Company:
One or more persons/ an organ of state may incorporate a profit company.
A juristic person/ three or more persons may incorporate a non - profit company.

Incorporated → completing and filing a MEMORANDUM OF INCORPORATION
(MOI) and a NOTICE OF INCORPORATION

MOI:
Document that sets out rights duties and responsibilities of shareholders, directors
and others in a company.
MOI is registered after notice of incorporation is completed.

The Prospectus:
Written invitation to the public, inviting them to buy shares in exchange for cash.




2