Accounting procedures
Learning Outcomes - Accounting Procedures
At the end of this unit students will be able to
Capital and revenue expenditure and receipts
- distinguish between and account for capital expenditure and revenue expenditure
- distinguish between and account for capital receipts and revenue receipts
- calculate and comment on the effect on profit of incorrect treatment
- calculate and comment on the effect on asset valuations of incorrect treatment.
Accounting for depreciation and disposal of fixed assets
- define depreciation
- explain the reasons for accounting for depreciatio
- name and describe the straight line (equal instalment), reducing (diminishing) balance and revaluation methods of depreciation
- prepare ledger accounts and journal entries for the provision of depreciation
- prepare ledger accounts and journal entries to record the sale of fixed assets, including the use of disposal accounts.
Other payables (Accruals) and Other receivables (Prepayments)
- recognise the importance of matching costs and revenues
- prepare ledger accounts and journal entries to record accrued and prepaid expenses
- prepare ledger accounts and journal entries to record accrued and prepaid incomes.
Bad debts and provision for doubtful debts
- understand the meaning of bad debts and bad debts recovered
- prepare ledger accounts and journal entries to record bad debts written off
- prepare ledger accounts and journal entries to record bad debts recovered
- explain the reasons for maintaining a provision for doubtful debts
- prepare ledger accounts and journal entries to record the creation of, and adjustments to, a provision for doubtful debts.
Valuation of inventory (Stock valuation)
- understand the basis of the valuation of inventory (stock) at the lower of cost and net realisable value
- prepare simple inventory (stock) valuation statements.
Revision Notes
Article Count:
5
Interactive quizzes
Article Count:
7