This module aims to build on the knowledge of basic accounting concepts, terminology, principles and formats acquired in Financial Accounting 1. In particular it aims to improve knowledge of accounts preparation for a range of different types of business.
Preparation of Financial Statements
Preparation of accounts for company for internal use: income statement, balance sheet, retained earnings element of SOCE.Basic division of overheads by department. Preparation of a manufacturing account. Preparation of accounts for not-for profit organisations. Understanding the use of the extended trial balance and apply this in practical situations.
Incomplete Records
Techniques used in incomplete record situations: Calculation of opening capital and profit/loss using the accounting equation; Use of control accounts and ratios to calculate missing figures; Use of cash and/or bank summaries.Spread sheet application of incomplete record techniques.
Interpretation of Accounts
Analysis of accounts and basic interpretation using ratio analysis:Profitability ratios; Working capital and efficiency ratios; Gearing ratios; Limitations of ratio analysis.
Ledger accounts
Preparing and balancing suspense accounts to deal with errors; preparing ledger accounts for PPE movements including opening balances, additions, disposals and depreciation entries.
| Module Content & Assessment | |
|---|---|
| Assessment Breakdown | % |
| Other Assessment(s) | 30 |
| Formal Examination | 70 |