This module aims to build on the knowledge acquired in Financial Accounting 1 in respect of elements of the Framework, concepts, and accounting techniques and methods It is intended that this knowledge will be applied in the preparation of accounts for a selected number of different business entities engaged in various activities.
Legal Forms of Organisation
Partnerships,types of limited company,advantages and disadvantages of limited company status, formation and legal requirements for limited companies
Introduction to Company Accounts
The financing of companies,the final accounts of companies and the profit and loss appropriation account
Bank Reconciliation Statements
Banking terminology, preparing a bank reconciliation,control of cash and bank transaction,Accounting for credit card payment
Departmental Accounts
Method of departmental account,cost apportionment and Uniform system of accounts for the lodging industry
Interpretation of Accounts
Identify and prepare key ratios from financial statements under the headings of profitability, liquidity,efficiency,capital structure and investment.Write reports interpreting the ratios calculated and analysing the financial performance of a commercial organisation.
Preparing Final Account Include Period and Adjustment
Techniques used in incomplete record situations:Prepare the final accounts of an organisation, taking into account adjustments such as depreciation, bad debts and provision, accruals and prepayments.Calculation of profit requires management to estimate a number of figures and that this can be a subjective process.
Cash Flow Statement
Distinguish between profit and cash,outline the categories of cash inflow and outflows in a business.Reconcile operating profit to operating cash flow and interpreting cash flow statement
| Module Content & Assessment | |
|---|---|
| Assessment Breakdown | % |
| Other Assessment(s) | 30 |
| Formal Examination | 70 |