The aim of this module is to extend the knowledge and competence acquired in year 1 financial accounting
modules. In particular, students will be introduced to accounting for partnerships, the preparation of financial
statements for single entity limited companies including the introduction of financial reporting standards, the
correction of errors using suspense accounts and the preparation of financial statements from incomplete
records.
Partnership
Preparation of partnership profit or loss account, appropriation of profits and losses (including guaranteed profit), preparation ofpartners’ current and capital accounts.
Accounting Standards
Introduction to selected accounting standards - role and use and application.
Limited Liability Companies
Introduction to limited company financial statement, components and formats. Introduction to the regulatory and conceptualframework for Financial Statements. Preparation of Financial Statements of single entity limited companies (Statement ofcomprehensive income, Statement of changes in equity, Statement of financial position) including basic adjustments, accrualsand prepayments, taxation charge and provision, depreciation methods and calculations, and issues arising from selectedaccounting standards.
Double Entry and Suspense Accounts
Nature of accounting errors, nature and use of suspense account, preparation of journals to reflect double entries required tocorrect account errors, impact of correcting journals on suspense account, impact of correcting journals on profit or loss.
Incomplete Records
Calculations required to compile a set of financial statements from cash records, prepare a basic set of financial statements from incomplete records
| Module Content & Assessment | |
|---|---|
| Assessment Breakdown | % |
| Formal Examination | 70 |
| Other Assessment(s) | 30 |