32. Prepare Final Accounts for Sole Traders and Partnerships (AAT)

The content of this particular qualification includes the following:

• 32.01. Preparing financial statements: THE TRIAL BALANCE, Errors not revealed by a trial balance, Errors revealed by a trial balance, Limitations of a trial balance, FINANCIAL STATEMENTS, STATEMENT OF PROFIT OR LOSS, STATEMENT OF FINANCIAL POSITION, Significiance of the statement of financial position, PREPARATION OF FINANCIAL STATEMENTS FROM A TRIAL BALANCE, Double-entry transfers for income & expenses, Inventory account, Profit & drawings, Assets & liabilities, FINANCIAL STATEMENTS: POINTS TO NOTE, Assets & the order of liquidity, Adjustments to financial statements, FINANCIAL STATEMENTS: LAYOUT, FURTHER ITEMS IN FINANCIAL STATEMENTS, Carriage in, Carriage out, Sales returns, Purchases returns, Discount received, Discount allowed, SERVICE SECTOR BUSINESSES.
• 32.02. Incomplete records accounting: WHAT ARE INCOMPLETE RECORDS?, Information available to the accountant, The tools of accounting, OPENING CAPITAL, CASH BOOK SUMMARY, PURCHASES & SALES, Calculating purchases & sales, Use of control accounts, Purchases & sales - summary, VAT control account, PREPARATION OF THE FINANCIAL STATEMENTS, Statement of profit or loss, Statement of financial position, THE USE OF GROSS PROFIT MARK-UP & MARGIN.
• 32.03. Sole trader financial statements: SOLE TRADERS, Advantages & disadvantages, FINANCIAL STATEMENTS OF A SOLE TRADER, FINANCIAL STATEMENTS: THE ADJUSTMENTS, THE USE OF COST OF SALES ACCOUNT, Cost of sales account, Summary.
• 32.04. Partnership financial statements: WHAT DOES A PARTNERSHIP INVOLVE?, Advantages & disadvantages, Accounting requirements of a partnership, FINANCIAL STATEMENTS OF A PARTNERSHIP, Example of sharing profits, PARTNERSHIP AGREEMENT, Division of profits & losses between partners, Partners' salaries, Interest allowed on capital, Interest charged on partners' drwaings, CAPITAL ACCOUNTS & CURRENT ACCOUNTS, STATEMENT OF FINANCIAL POSITION, PARTNERSHIP FINANCIAL STATEMENTS FROM THE TRIAL BALANCE, PREPARING PARTNERSHIP FINANCIAL STATEMENTS.
• 32.05. Changes in partnerships: GOODWILL, Definition of goodwill, Valuation of goodwill, ADMISSION OF A NEW PARTNER, RETIREMENT OF A PARTNER, DEATH OF A PARTNER, CHANGES IN PROFIT-SHARING RATIOS, PARTNERSHIP CHANGES: SPLIT YEARS, RECORDING PARTNERSHIP CHANGES.

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