Email accaqueries @bpp.com fax 020 8740 2293 or phone us 020 8740 2242/2245 Learning Resource Centre regulatory framework Learn interactively BPP i-Learn/BPP Virtual Campus Module 1 Im
Trang 1Study Period 1 continued
Were you awake?
If you've been concentrating, you should be able to answer some key questions
Who are the users of financial information?
What are the main financial statements?
What are the desirable qualities of good accounting information?
Expenditure on a desk is revenue expenditure True or false?
Any problems?
Email (accaqueries @bpp.com) fax (020 8740 2293) or phone us (020 8740 2242/2245)
Learning Resource Centre
regulatory framework
Learn interactively BPP i-Learn/BPP Virtual Campus Module 1
Improve your study skills BPP's Learning to Learn
Accountancy book *
* Included within your Home Study course
If you want any of these products, visit: www.bpp.com/acca
Common Pitfalls
• Ignoring the needs of the different user groups
• Confusing capital and revenue expenditure
Trang 2Study Period 2 The accounting equation Priority = Medium
Date due:
Exam Guidance
The accounting equation may be needed for incomplete records questions (see Study Period 18)
Guidance through the Study Text
These topics are covered in Chapter 2 The accounting and business equations
1 Assets and
liabilities and the business entity
Read through carefully Definitions of assets and
liabilities; business entity convention
2 The accounting
equation (or balance sheet equation)
Work through quickly, paying particular attention to the examples
The accounting equation;
nature of capital and drawings (withdrawals on account of profit)
3 Payables and
receivables
Make sure you understand this Learn the definitions of
receivables and payables
Try Question 2 in the Exam Question Bank of your Study Text
Exam focus point
This equation will never form the basis of a whole exam question, but will form the background to most accounting problems
Trang 3Study Period 2 continued
Were you awake?
If you've been concentrating, you should be able to answer some key questions
A business is always treated separately from its owners for accounting purposes True or false?
State the accounting equation
What are drawings (withdrawals of profit) and how are they treated?
Give one example each of an asset, a liability, a receivable and a payable
Any problems?
Email (accaqueries @bpp.com) fax (020 8740 2293) or phone us (020 8740 2242/2245)
Learning Resource Centre
Test your knowledge BPP i-Pass * Session 1: Intro and the regulatory framework
Learn interactively BPP i-Learn/BPP Virtual Campus Module 1
Improve your study skills BPP's Learning to Learn Accountancy book *
* Included within your Home Study course
If you want any of these products, visit: www.bpp.com/acca
Common Pitfall
• Just learning the accounting equation, without knowing how to apply it in practice
Trang 4Study Period 3 Basic financial statements
Date due:
Exam Guidance
You will usually be asked to produce an income statement or a balance sheet for a limited
liability company (see Study Period 19) Therefore this study period is extremely important for
your future studies
Guidance through the Study Text
These topics are covered in Chapter 3 Basic financial statements
1 The balance sheet Read through carefully Layout of the balance sheet
2 The income statement Read through carefully Layout of the income statement
Exam focus point
The June 2005 exam required the preparation of a balance sheet for a limited liability company
Trang 5Study Period 3 continued
Were you awake?
If you've been concentrating, you should be able to answer some key questions
Give examples of current and non-current liabilities
What is a non-current asset?
Give examples of three current assets
Any problems?
Email (accaqueries @bpp.com) fax (020 8740 2293) or phone us (020 8740 2242/2245)
Learning Resource Centre
Test your knowledge BPP i-Pass * Session 1: Intro and the regulatory framework
Learn interactively BPP i-Learn/BPP Virtual Campus Module 2
Improve your study skills BPP's Learning to Learn Accountancy book *
* Included within your Home Study course
If you want any of these products, visit: www.bpp.com/acca
Common Pitfalls
• Failure to learn the proforma layouts of the balance sheet and income statement
• Failing to appreciate the differences between current and non-current assets, and current and non-current liabilities
Trang 6Study Period 4 Sources, records and the books of original entry
Priority = Medium
Date due:
Exam Guidance
Books of original entry form one of the bases of double entry bookkeeping and so you should
gain a thorough understanding of this topic as background knowledge for your future studies
Guidance through the Study Text
These topics are covered in Chapter 4 Sources, records and the books of original entry
1 The role of source
documents
Skim through quickly
2 The need for books
of original entry
Work through quickly
3 Sales and purchase
day books
Work through this very carefully Format of sales and
purchases day books
4 Cash books Pay particular attention to this section Format of the cash book
Try Questions 4 and 5 in the Exam Question Bank of your Study Text
Exam focus point
Books of original entry are often examined in MCQs
Trang 7Study Period 4 continued
Were you awake?
If you've been concentrating, you should be able to answer some key questions
What use are books of original entry?
List the books of original entry and the transactions recorded in each
All sales are recorded in the sales day book True or false?
What is recorded in the cash book?
Any problems?
Email (accaqueries @bpp.com) fax (020 8740 2293) or phone us (020 8740 2242/2245)
Learning Resource Centre
Test your knowledge BPP i-Pass * Session 2: Double entry, assets and liabilities
Learn interactively BPP i-Learn/BPP Virtual Campus Module 3
Improve your study skills BPP's Learning to Learn Accountancy book *
* Included within your Home Study course
If you want any of these products, visit: www.bpp.com/acca
Common Pitfall
• Using the sales and purchase day books to record all sales and purchases Only
credit sales and purchases should be recorded
Trang 8Study Periods 5 & 6 Ledger accounting and double entry Priority = High
Date due:
Exam Guidance
Double entry is an essential topic to understand for the exam For example, control accounts questions require the use of double entry in the answer Two study periods have been scheduled for this section
Guidance through the Study Text
These topics are covered in Chapter 5 Ledger accounting and double entry
1 Why do we need
ledger accounts?
Read through this quickly
2 The nominal
ledger
Skim read this section
3 Double entry
bookkeeping
Work very carefully though this section and make sure you understand the examples
The dual effect behind double entry bookkeeping: debits and credits
4 The journal Read through carefully The use of the journal
5 – 6 Skim read these sections
7 The receivables
and payables ledgers
Read this carefully Use of the receivables and payables
ledgers to show what each individual customer owes and what
is owed to each individual supplier
8 Accounting for a
sales tax
Work though this section slowly and make sure you understand the principles involved
The accountancy treatment of input and output sales tax
Try Questions 6 7 and 8 in the Exam Question Bank of your Study Text
Exam focus point
The examiner likes to test double entry principles Be prepared for questions that ask you to 'journalise' transactions to illustrate the double entry involved
Trang 9Study Periods 5 & 6 continued
Were you awake?
If you've been concentrating, you should be able to answer some key questions
What do debits and credits represent?
What is the basis of the double entry system?
Summarise the double entry for output sales tax
Summarise the double entry postings from the sales day book
Any problems?
Email (accaqueries @bpp.com) fax (020 8740 2293) or phone us (020 8740 2242/2245)
Learning Resource Centre
assets and liabilities
Learn interactively BPP i-Learn/BPP Virtual Campus Module 2
Improve your study skills BPP's Learning to Learn Accountancy book *
* Included within your Home Study course
If you want any of these products, visit: www.bpp.com/acca
Common Pitfalls
• Confusing the receivables account in the nominal ledger with the memorandum
receivables ledger (and similarly for the payables account/payables ledger)
• Not appreciating that the receivables and payables ledgers are not part of the
double entry system
• Confusing input and output sales tax
• Lack of understanding of the treatment of sales tax in the income statement and the balance sheet
Trang 10Study Period 7 From trial balance to financial statements
Priority = High
Date due:
Exam Guidance
This is very important as exams at all levels in Financial Accounting involve preparation of final accounts from the trial balance This chapter continues the fundamental principles of accounting and introduces you to the techniques you will employ in exam questions
Guidance through the Study Text
These topics are covered in Chapter 6 From trial balance to financial statements
1 The trial balance Read through this section very
carefully
How to balance off accounts and prepare a trial balance
2 The income
statement
Pay particular attention to this section
Learn the entries made to the income statement
3 The balance sheet Pay particular attention to this
section
Pay particular attention to the drawings and capital accounts
4 Balancing accounts
and preparing financial statements
Work though the questions very carefully
Make sure that you understand the answer to Question 3 and can reproduce the answer yourself without looking at the book
Try Questions 15, 19, and 20 in the Exam Question Bank of your
Study Text
Exam focus point
Most accounts preparation questions will start with a trial balance or draft statements, which need
to be adjusted for publication There are usually several MCQs on the correction of errors