ONLINE ASSIGNMENT

SUBMITTED TO,
Ms. Sheeja Ramadevi
Assistant Professor
Peet Memorial Training College.
Mavelikkara.

SUBMITTED BY,
Irphana. I
B-Ed, Commerce
PMTC
Mavelikkara.

APPROACHES IN TEACHING OF
ACCOUNTANCY

THE JOURNAL APPROACH

THE LEDGER APPROACH
THE BALANCE SHEET APPROACH
THE EQUATION APPROACH
THE SPIRAL DEVELOPMENT APPROACH
THE COMPLETE CYCLE APPROACH
THE SINGLE ENTRY APPROACH.

INTRODUCTION
Accountancy is meant for systematically recording business transactions.
The following are some approaches that could be followed in teaching of
accountancy are given below;

The journal approach

The ledger approach
The balance sheet approach
The equation approach
The spiral development approach
The complete cycle approach
The single entry approach.

APPROACHES IN TEACHING OF ACCOUNTANCY

THE JOURNAL APPROACH
This approach is based on the accounting cycle. This is the traditional
method of teaching Accountancy. The following are the steps while teaching
accountancy;
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

This approach gives too much importance to ledger accounts. Under this, the
accounting proceeding starts from the ledger accounts from where the learner
moves back to journals. The important steps in the approach are;
1.
2.
3.
4.
5.
6.
7.
8.

Define debit and credit.

Analyzing the transactions in terms of debits and credits.
Writing of debits and credits in ledger accounts.
Balancing ledger accounts.
Preparation of Trial Balance.
Writing journal entries using debits and credits.
Preparation of Trading, Profit and Loss Account.
Preparation of Balance Sheet.

THE BALANCE SHEET APPROACH

This approach is based on the maxim whole to parts. This approach is
criticized because it violates the maxim simple to complex by reversing the order.
The important steps under this approach are as follows;
1.
2.
3.
4.
5.

To start with, the complete Accounting Cycle is introduced.

A summary account of closing the income and expense account is presented.
Next, it is repeated. Some adjustment of inventory account also is added.
Then, liabilities account is introduced after the review of previous work.
Then, the teacher takes up Asset accounts but only after review of previous
work.
6. After the review of previous work, some more adjustment work is added.
7. Now more formal statements about accounts are maintained.
8. Finally the scrutiny of accounts and then journalizing is introduced.
At the end, a practice set that contains all the forms of Journals, Ledgers,
worksheets and statements is taken up. Students will be asked to complete the
entire cycle by working on it.

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, and

Capital

= Assets - Liabilities; are the accounting equation.

It is also known as Balance sheet equations.

The equation approach is based on the accounting equations. The important steps
in this approach are given below;
1. Introducing accounting equations.
2. Introducing the concept of increase in assets, liabilities, capital, revenues and
expenses with the help of a sample balance sheet.
3. Introducing the rules of debit and credit. Here the rules are as follows;
NATURE OF ACCOUNT
DEBIT
CREDIT
Assets
Increase
Decrease
Liabilities
Decrease
Increase
Owners Equity
Decrease
Increase
Revenues
Decrease
Increase
Expenses
Increase
Decrease
Thus all the transactions may be divided into the following five
categories;
i.
ii.
iii.
iv.

Transactions related to assets.

Transactions related to liabilities.
Transactions related to owners equity.
Transactions related to revenues.

v.
4.
5.
6.
7.
8.
9.

Transactions related to expenses.

Introducing the concept Double Entry System.
Preparing journal.
Preparing ledger accounts.
Preparing trial balance.
Preparing Trading, Profit and Loss Account.
Preparing Balance sheet.
The Equation Approach is followed at Higher Secondary Level.

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
retaught and a part of it is expanded. The development of learning is just as in the
spiral approach of curriculum transaction. The following are the major steps under
this approach;
1.
2.
3.
4.
5.

Introducing the concept of transactions in a business.

Transactions + Debit and Credit aspects.
Transactions + Debit and Credit aspects + Journals.
Transactions + Debit and Credit aspects + Journals + Journalising.
Transactions + Debit and Credit aspects + Journals + Journalising + Ledger
accounts.
6. Transactions + Debit and Credit aspects + Journals + Journalising + Ledger
accounts + Posting.
7. Transactions + Debit and Credit aspects + Journals + Journalising + Ledger
accounts + Posting + Balancing.
8. Transactions + Debit and Credit aspects + Journals + Journalising + Ledger
accounts + Posting + Balancing + Trial Balance.
9. Transactions + Debit and Credit aspects + Journals + Journalising + Ledger
accounts + Posting + Balancing + Trial Balance + Trading, Profit & Loss
Account.
10. Transactions + Debit and Credit aspects + Journals + Journalising + Ledger
accounts + Posting + Balancing + Trial Balance + Trading, Profit & Loss
Account + Balance sheet.

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 is
visible in its totality. This exercise is 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.
2.
3.
4.
5.

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

The students are made to make a preliminary study of the problem.
Teacher discusses with and explains to pupils the nature of the problem.
Students are asked to rewrite the same problem in another sheet of paper.
Their doubts may be cleared, but the why of things has to be kept in
obeyance.
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.
This approach follows the maxim whole to parts and it is very difficult to
follow.

THE SINGLE ENTRY APPROACH

In this approach record of assets, liabilities and capital are maintained

but no account of 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 financial position of
the business. It provides only the position of debtors and creditors.