Financial Accounting: Preparing Financial Statements
Take a set of records from trial balance to a finished set of accounts. Period end adjustments, depreciation, inventory, control accounts, sole trader and partnership statements, and incomplete records.
Subsections
Read the lessons, then take the check. The check pulls in anything you struggled with earlier in the unit.
Principles and the trial balance
The framework you are working inside, the concepts examiners test in words, and how a trial balance becomes a set of statements.
- The framework and who the accounts are for8 min
- The concepts that decide the numbers9 min
- From trial balance to statements10 min
Non current assets and depreciation
The asset register, acquisitions and disposals, three depreciation methods, and the journals that record them all.
- The asset register and acquisitions8 min
- Depreciation methods and part year policies10 min
- Disposals and part exchange9 min
Period end adjustments
Accruals and prepayments, irrecoverable and doubtful debts, and inventory valued the way the standard requires.
- Accruals and prepayments in both directions9 min
- Irrecoverable and doubtful debts9 min
- Inventory: cost, net realisable value and cut off8 min
Sole traders, partnerships and incomplete records
Present a finished set of accounts, share profits between partners, and rebuild figures when the records have holes in them.
- Sole trader final accounts, presented properly9 min
- Partnership accounts and appropriation10 min
- Incomplete records: rebuilding missing figures10 min
Mixed unit review
Fifteen questions drawn from the whole unit, weighted towards the topics you have got wrong before. Nothing is flagged for revision right now.
Year end file for Marchmont Joinery
You are the accounts assistant at Halcott and Reed. Ellen Marchmont runs a joinery workshop and has sent in her ledger balances and a bundle of year end information. Your job is to work through the adjustments, agree the register, and hand a clean file to the manager for review.
How this unit is assessed
Computer based assessment, six tasks, 120 marks, computer & human marked.
| Task | Focus | Marks |
|---|---|---|
| 1. Accounting principles and concepts | Framework, concepts, ethics of accounts preparation | 15 |
| 2. Non current assets and depreciation | Asset register, acquisitions, disposals, depreciation journals | 22 |
| 3. Period end adjustments | Accruals, prepayments, doubtful debts, inventory | 20 |
| 4. Extended trial balance | Errors, suspense clearance, extension to the statements | 24 |
| 5. Financial statements | Sole trader and partnership statements from a trial balance | 24 |
| 6. Incomplete records | Mark up and margin, missing figures, control accounts | 15 |