Edexcel as Acconting Notes

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AS A'LEVEL ACCOUNING

UNIT 1 - THE ACCOUNTING SYSTEMS AND COSTING

Syllabus content
Unit 1 – THE ACCOUNTING SYSTEM AND COSTING 1. Principles of accounting and double entry book-keeping Content • • Role of accounting At the end of the course candidates should be able to: Record, analyse and communicate accounting information as an aid to the management of a business. Post transactions and undertake accounting processes, make end of period transfers and adjustments. Prepare ledger accounts to record the creation and maintenance of provisions for doubtful debts. Explain and apply the concepts of going concern, prudence, accruals, and consistency. Explain and apply the concepts and conventions of historic cost, materiality, money measurement, realisation and business entity. Explain the importance of accounting standards. Distinguish between capital and revenue expenditure. Explain the importance of the correct accounting treatment of capital and revenue expenditure with reference to relevant accounting concepts. Apply the correct treatment of capital and revenue expenditure to accounting scenarios. Define and account for depreciation of assets including the preparation of provision for depreciation accounts. Explain the reasons for accounting for depreciation. Explain and calculate depreciation using reducing balance, straight line and revaluation methods. Calculate the effect on profit of different methods and the effect on profit of a change in the method. Calculate profit or loss on disposal. Prepare ledger accounts to record the purchase, disposal of fixed assets and annual adjustments for depreciation.

Double-entry system



Accounting concepts and conventions



Capital and revenue



Asset depreciation

2. Control procedures Content • • Trial balance Control accounts At the end of the course candidates should be able to: Prepare a trial balance. Outline the limitations of a trial balance. Explain that control accounts are an independent check on sales and purchases ledgers. Prepare control accounts for sales and purchases ledgers. Identify and explain errors that do and do not affect the balancing of the trial balance. Make journal entries to correct errors. Prepare a suspense account. Prepare a statement of revised profit. Make corrections of errors in control accounts.



Correction of errors

TAWSIF ALAM KHAN & EMDADUL HAQUE | VERTICAL HORIZON

SOURCE BOOK | 1

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AL HORIZON | VERITCAL HORIZON | VERTICAL HORIZON | VERITCAL HORIZON | VERTICAL HORIZON | VERITCAL HORIZON | VERTICAL HORIZON | VERITCAL HORIZON | VERTICAL HORIZON | VERITCAL HORIZON | VERTICAL HORIZON | VERITCAL HORIZON | VERTICAL HORIZON | VERITCAL H

AS A'LEVEL ACCOUNING

UNIT 1 - THE ACCOUNTING SYSTEMS AND COSTING

3. Final Accounts of organizations Content • At the end of the course candidates should be able to:

Financial statements of “sole traders” Prepare statements of comprehensive income showing the gross profit and profit for the year. Year-end adjustments Make adjustments for prepaid or accrued income or expenditure. Provisions for depreciation, bad debts and provisions for doubtful debts.





Departmental accounts Prepare statements of departmental profits/losses. comprehensive income showing



Incomplete records The preparation of statements of comprehensive income and statements of financial position from incomplete records.



Partnership Prepare statements of comprehensive income and appropriation accounts. Prepare partners’ current accounts and capital accounts on a fixed or floating basis. Appropriation of profit in accordance with the Partnership Agreement. Apply the provisions of Section 24 of the Partnership Act 1890 in...
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