How Relevant is ‘O’ Level POA to Real-Life Accounting

When Mr. Wong was still in secondary and JC school days, Mr. Wong was always interested to know how those theoretical concepts being taught in school and tuition could potentially be applied to real life scenarios. Unfortunately, Mr. Wong did not always get absolute answers. Looking back and having completed both Engineering Degree (NTU) and Accounting Degree (ACCA), Mr. Wong finally realises that the level of practicality differs between one ‘O’ Level subject and another. With at least 95% of the concepts covered in ‘O’ Level POA having direct application to real life accounting, there is no doubt that POA emerges as the most relevant and practical subject in a series of ‘O’ Level subjects.

There is a clear trend that students in Singapore are increasingly more interested in learning subjects and solving problems that they can relate to real life as compared to those which are only theoretical in nature. Our students at Mr. Wong POA Tuition are perfectly clear on how each concept they learn can be applied in real life. However, we do not want this to be exclusive. We strive to provide as much assistance as possible to all students who are pursuing ‘O’ Level POA through our edublog. Let us look at some examples on how the concepts you have learnt in POA relate to real life scenarios.

Preparation of Ledger Accounts

Preparation of ledger accounts is a sure-come-out question in ‘O’ Level POA Paper 1. The question will require you to prepare the ledger in columnar format. When the POA syllabus was revamped drastically in Year 2015 Exam, there was so much ‘hu-ha’ among ‘O’ Level POA educators. At Mr. Wong POA Tuition, we believe that it is a long-overdue update.

The biggest change in the new syllabus is moving from T-account to columnar format. Hey! There is no company, even the smallest Small and Medium Enterprises (SMEs) who is still using T-account ledger format. At least, Mr. Wong has never seen any of them in the real world anymore.

We fully support the change and it has definitely brought ‘O’ Level POA syllabus to be even more align to the real world.

Bank Reconciliation

Mr. Wong can still vividly remember the first time Mr. Wong performed bank reconciliation. It was in one of the American Multi National Corporation (US MNCs). It was many years back when Mr. Wong has just started his career in the accounting industry.

So, how does bank reconciliation carried out the real life? We compare the cash at bank ledger account to the bank statement that we received from the bank. Then, we update the cash at bank ledger account with transactions appearing in the bank statement, but not recorded in the ledger before eventually preparing bank reconciliation statement.

Is there any difference from what you have previously learnt in Chapter 7 of your textbook (All About Principles of Accounts)? Absolutely not! As long as you understand the concepts taught in POA, you can always take up a real accounting job that requires you to perform bank reconciliation after completing your much-awaited ‘O’ Level.

Allowance for Impairment of Trade Receivables

This topic is covered under Chapter 14 of the textbook. Occasionally, a small number of schools run faster than our tuition schedule – for reason that we never understand. Nevertheless, when we ask the students to share with us why they learn that particular accounting concept and how they apply it to real life scenarios, we usually get no further than basic ‘mechanical’ answer. Obviously, we have to eventually go through the concepts all over again.

One area that has been covered in a mechanical way in school is the topic on allowance for impairment of trade receivables topic. Providing an allowance is not simply a theoretical concept. This is something that must be done each year before the statutory audit commences.

Conclusion

Almost each concept, i.e. up to 95% of what you learn from ‘O’ Level POA has real life applications. If happen that your POA teacher or tutor has little or no real life experience in accounting industry, we strongly advise that you speak to uncles or aunties who are real life accounting practitioners. Mr. Wong is certain that they will be happy to share their experience with you. Of course, Mr. Wong is always ready to share the accounting insights with you as well.

As ‘pure science’ student in secondary school back then, Mr. Wong strongly believes that you have an edge over your other schoolmates who do not take POA in school as the real world revolves around business and accounting is the language of business.

Written by Mr. Wong – Principal POA Tutor of Mr. Wong POA Tuition