31. Accounts Preparation (AAT)

The content of this particular qualification includes the following:

• 31.01. The accounting system: ACCOUNTING AND THE ACCOUNTING SYSTEM, What is accounting?, Why keep accounts?, The role of the accountant, Manual and computer accounts, Keeping accounts - practical points, The stages of the accounting system, FINANCIAL DOCUMENTS, Sales and purchases - the invoice, Cash and CREDIT sales, cash and CREDIT purchases, Return of goods - the CREDIT note, Bank transactions - cheques, BACS, Faster Payments, BOOKS OF PRIME ENTRY, DOUBLE-ENTRY ACCOUNTS: THE LEDGER, Double-entry bookkeeping, Accounts, Computer accounts, Division of the ledger, Inventory records, TRIAL BALANCE, FINANCIAL STATEMENTS, Statement of profit or loss, Statement of financial position, The accounting equation.
• 31.02. Double-entry bookkeeping: DOUBLE-ENTRY ACCOUNTS, DEBITs & CREDITs, DOUBLE-ENTRY INVOLVING BANK ACCOUNT, CAPITAL ACCOUNT, NON-CURRENT ASSETS, Non-current assets & double-entry bookkeeping, EXPENSES, INCOME, OWNER'S DRAWINGS, LOANS, FURTHER TRANSACTIONS, PURCHASES & SALES, Purchases account & sales account, CREDIT PURCHASES & SALES, CREDIT transactions, CREDIT purchases, CREDIT sales, Balancing off accounts, Non-current assets bought on CREDIT, PURCHASES RETURNS & SALES RETURNS, Purchases returns, Sales returns, CARRIAGE IN & CARRIAGE OUT, SETTLEMENT DISCOUNT IN THE BOOKKEEPING SYSTEM, VAT & DOUBLE-ENTRY ACCOUNTS.
• 31.03. Balancing accounts & the trial balance: BALANCING THE ACCOUNTS, METHOD OF BALANCING ACCOUNTS, A practical point, Further examples of balancing accounts, CONTROL ACCOUNTS, Control accounts & the trial balance, EXTRACTING A TRIAL BALANCE, DEBIT & CREDIT BALANCES - GUIDELINES, DEBIT balances, CREDIT balances, IF THE TRIAL BALANCE DOESN'T BALANCE…, ERRORS NOT REVEALED BY A TRIAL BALANCE, Error of principle, Error of commission, Error of original entry, Error of omission, Reversal of entries, IMPORTANCE OF THE TRIAL BALANCE.
• 31.04. Financial statements – the extended trial balance: FINANCIAL STATEMENTS, ACCOUNTING PERIODS, FINANCIAL STATEMENTS & THE TRIAL BALANCE, EXTENDED TRIAL BALANCE - LAYOUT, DOUBLE-ENTRY BOOKKEEPING & THE FINANCIAL STATEMENTS, Purchases, sales & inventory, Expenses, Profit/loss for the year, Statement of financial position.
• 31.05. Accruals & prepayments: ACCRUAL OF EXPENSES, Journal entry, PREPAYMENT OF EXPENSES, Journal entry, ACCRUALS & PREPAYMENTS OF INCOME, Accrual of income, Prepayment of income, PRIVATE EXPENSES & GOODS FOR OWN USE, Private expenses, Goods for own use, INCOME & EXPENDITURE ACCOUNTING, Accruals principle of accounting.
• 31.06. Depreciation of non-current assets: WHAT IS DEPRECIATION?, CALCULATING DEPRECIATION, Straight-line method of depreciation, Diminishing (reducing) balance method, Straight-line & diminishing balance methods compared, BOOKKEEPING ENTRIES FOR DEPRECIATION, Journal entry, Bookkeeping accounts, DEPRECIATION & FINANCIAL STATEMENTS, Accruals & consistency principles of accounting, Statement of profit or loss, Statement of financial position, Depreciation policies of a business, DEPRECIATION: A NON-CASH EXPENSE, DISPOSAL OF NON-CURRENT ASSETS, Journal entries, PART-EXCHANGE OF NON-CURRENT ASSETS, IAS 16: PROPERTY, PLANT & EQUIPMENT.
• 31.07. Irrecoverable debts & allowance for doubtful debts: IRRECOVERABLE DEBTS & ALLOWANCE FOR DOUBTFUL DEBTS, Irrecoverable debts, Allowance for doubtful debts, General & specific allowances, A realistic approach to accounting, TREATMENT OF IRRECOVERABLE DEBTS, Journal entries, RECOVERY OF A DEBT, TREATMENT OF ALLOWANCE FOR DOUBTFUL DEBTS, Initial creation of an allowance for doubtful debts, Adjustments to allowance for doubtful debts, Increasing the allowance, Decreasing the allowance, Journal entries, IRRECOVERABLE DEBTS & ALLOWANCE FOR DOUBTFUL DEBTS IN THE EXTENDED TRIAL BALANCE, Irrecoverable debts, Recovery of a debt, Allowance for doubtful debts.
• 31.08. The rules of accounting: ACCOUNTING PRINCIPLES, Business entity, Materiality, Going concern, Accruals, Prudence, Consistency, ACCOUNTING POLICIES & CHARACTERISTICS, ACCOUNTING STANDARDS, IAS 2 Inventories, IAS 16 Property, plant & equipment, IAS 2: VALUATION OF INVENTORIES, Inventory valuation methods, Effect on profit, Calculating inventory at cost, CAPITAL EXPENDITURE & REVENUE EXPENDITURE, Capital expenditure, Revenue expenditure, Capital & revenue expenditure - the differences.
• 31.09. Accounting for capital transactions: CAPITAL TRANSACTIONS, CAPITAL EXPENDITURE & REVENUE EXPENDITURE, ACQUISITION & CONTROL OF NON-CURRENT ASSETS, Application & authorisation, Monitoring & control, The use of a non-current asset register, Disposal of non-current assets, FUNDING NON-CURRENT ASSETS, Cash purchases, Part exchange, Loans, Hire purchases, Finance leases.
• 31.10. Control accounts: DIVISION OF THE LEDGER, THE CONCEPT OF CONTROL ACCOUNTS, SALES LEDGER CONTROL ACCOUNT, Balance b/d, CREDIT sales, Returned cheques, Irrecoverable debts, Set-off entries, PURCHASES LEDGER CONTROL ACCOUNT, Balance b/d, CREDIT purchases, Set-off entries, Reconcilliation of purchases ledger control account, SET-OFF ENTRIES, SOURCES OF INFORMATION FOR CONTROL ACCOUNTS, Sales ledger control account, Purchases ledger control account, CONTROL ACCOUNTS AS AN AID TO MANAGEMENT, CONTROL ACCOUNTS & BOOKKEEPING, VALUE ADDED TAX (VAT) CONTROL ACCOUNT, Purchases, Sales returns, Cash purchases & other cash expenses, Sales, Purchases returns, Cash sales & other cash income, Balance, VAT control account in the accounting system, PREPARING RECONCILIATIONS, Sales ledger control account, Purchases ledger control account, Cash book bank columns.
• 31.11. The journal & correction of errors: USES OF THE JOURNAL, THE JOURNAL - A BOOK OF PRIME ENTRY, YEAR END TRANSFERS, Transfers to the statement of profit or loss, Closing inventory, Accruals & prepayments, Prepayment of expense, Prepayment of income, Depreciation charge on non-current assets, Irrecoverable debts, Allowance for doubtful debts, PURCHASES & SALE OF NON-CURRENT ASSETS ON CREDIT, Purchase of non-current asset, Sale of non-current asset, Disposal of non-current assets, CORRECTION OF ERRORS, Errors not revealed by a trial balance, ERROR OF PRINCIPLE, ERROR OF COMMISSION, ERROR OF ORIGINAL ENTRY, ERROR OF OMISSION, REVERSAL OF ENTRIES, ERRORS SHOWN BY THE TRIAL BALANCE: JOURNAL ENTRIES, One-sided entry, Entry duplicated on one side, nothing on the other, Unequal entries, Account balance incorrectly transferred, Suspense account, EFFECT ON PROFIT & STATEMENT OF FINANCIAL POSITION, MAKING JOURNAL ENTRIES.

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