Accounting study guides

An N(A)-Level Principles of Accounts (SEAB 7086) overview of year-end adjustments and the matching principle: why we match expenses to the period they help to earn, how to adjust for accruals and prepayments, how to depreciate non-current assets by the straight-line and reducing-balance methods, and how to account for irrecoverable debts and an allowance for doubtful debts.

An N(A)-Level Principles of Accounts (SEAB 7086) overview of books of prime entry and ledgers: the source documents that prove each transaction, the sales, purchases, returns and general journals, the two-column cash book with discount columns, and how journal totals and individual entries are posted to the three ledgers.

An N(A)-Level Principles of Accounts (SEAB 7086) overview of financial analysis and ratios: the gross profit margin and profit margin, the current ratio and the quick (acid-test) ratio, and how to interpret ratios by comparison while keeping in mind the limitations of ratio analysis.

An N(A)-Level Principles of Accounts (SEAB 7086) overview of the financial statements of a sole trader: telling capital expenditure from revenue expenditure, preparing the income statement to find gross profit and profit for the year, preparing the statement of financial position with its capital section, and building both from a trial balance with year-end adjustments.

An N(A)-Level Principles of Accounts (SEAB 7086) overview of inventory valuation and bank reconciliation: valuing closing inventory at the lower of cost and net realisable value under the prudence concept, updating the cash book for items the bank recorded first, and preparing a bank reconciliation statement for unpresented cheques and uncredited deposits.

An N(A)-Level Principles of Accounts (SEAB 7086) overview of the accounting environment and the accounting equation: why businesses keep accounts and who uses them, what a sole trader is, how to classify assets, liabilities and owner's equity, and how the dual effect keeps Assets equal to Liabilities plus Owner's Equity.

An N(A)-Level Principles of Accounts (SEAB 7086) overview of the double entry recording system: classifying every account into the five elements, the rules of debit and credit under DEAD CLIC, recording transactions in T-accounts, and balancing off an account to bring down its balance.

An N(A)-Level Principles of Accounts (SEAB 7086) overview of the trial balance and the correction of errors: how to prepare a trial balance from ledger balances and what it proves, the six errors that do not affect its agreement, and how to correct errors using the general journal and a suspense account.