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Accounts
Control Accounts
Reasons why one would prepare control accounts
To prevent fraud
To check the arithmetical accuracy
To locate errors
Preparing totals of the ledger would help in preparing Financial Statements.
NOT - Correct errors
Reasons for credit balance in TRLC
Customer paid in advance/ overpayment
Customer returned goods after payment.
Why would one transfer balance from TRLC to TPLC (Jenny - Oct 21)
Jenny’s business deals with another business and he is a supplier of goods
and a purchaser of
goods from that person. (1) The balance owed to the supplier is ‘set off’
against the balance
owed by the creditor. (1) Therefore only one settlement cheque is required.
(1)
Evaluate whether preparing a TRLC ensures that the books are correct (6)
Accounts 1
Evaluate the use of control accounts
Reasons for a debit balance in TPLC
• Goods returned after payment made
• Discount received not posted
• Overpayment to creditor
• Contra from sales ledger
Depreciation
Explain the following concepts applying to depreciation on non-current
assets.
Accounts 2
Why is Straight line method suitable for all NCA
2 Reasons why Revaluation method may be more appropriate method of
Depreciation
Accounts 3
Identify if these are Revenue or capital expenditure
Explain the difference between capital expenditure and Revenue
expenditure
Explain how capital expenditure and revenue expenditure will be treated in
the financial statements.
Accounts 4
Baba Records computers in her office fixtures account. She is concerned
that each year she scraps computers that still have a significant book value.
Evaluate Baba’s current policy of including computers as her office fixtures.
Obsolete - out of date
Manufacturing
Evaluate the use of LIFO as a method of valuing the inventory of raw
materials. - Memorise it
Accounts 5
Inventory Valuation
Difference between Perpetual and periodic
2 Disadvantages of LIFO
Explain 2 advantages to the business of changing its stock valuation from
LIFO to FIFO
Accounts 6
Explain the effect on net profit if the partnership changes to LIFO method
Errors
Explain the term Suspense acc
Explain the meaning of the following terms
Accounts 7
Evaluate the use of the following in correcting errors in the ledger
*clarify use of journal
Explain the difference between accruals and money measurement
… bad debts and allowance
… Social acc and ethical acc
Accounts 8
ICT and errors
Accounts 9
