1. Role of the Accountant
2. Types of Organisations
3. Sources of finance
4. Double Entry
5. Verification of Accounting Records
6. Sole trader company accounts
7. Adjustment to financial accounts
8.Capital And revenue expenditure
9. Accounting Concepts
10. Inventory valuation
11. Financia...
Day to Day transactions , checking Accuracy , Maintaining Records , Assisting Accountant with preparation of financial record
Ledger clerks
similar to Bookkeeper but ledger specific , maintaining ledgers , Ensuring people get paid on time ( purchases ) , ensuring
we get paid on time C Sales )
Financial Accountant
Management / overseeing Book keepers -
work , preparation of financial statements , ensuring concept are applied correctly .
Ensuring true and fair representation , signing off the accounts
Auditors ( independent third -
party )
Accounting procedures have been followed
IAS 's have been met in completion of accounting records
Accounts provide a true and fair representation
Financial / Management Accounting
Financial Accountant : Looks at the past and tells you how you 're performing
( external )
provides information that helps with the assessment of financial past and current performance
Management Accounting :
looks to the future which helps make business decisions
( internat )
likely to be involved in :
Planning and preparation of budgets , capital investment appraisal ,
costing and variance analysis
2. Types Of Organisations
Organisation Type Benefits Drawbacks
Sole Trader Independence Full Responsibility
Full Control Access to finance
Easy / Cheap setup unlimited liability
keep all profits
Partnership Potentially P capital consultation time delay
specialism Disagreements
shared responsibility unlimited Liability
Limited Company Limited liability cost of setup / running
Ability to raise finance Produce public financial statements
Potential status / size Potential loss of control
↳ economies of scale
2. Sources of Finance
source of Finance Benefits Drawbacks
Owners Capital Flexible provided when Insufficient funds available
needed may not be able to withdraw again
No interest C potentially ) less profits available for withdraw 1
No security needed
NO legal Documents
, source of Finance Benefits Drawbacks
Bank Loan Access to large am mounts long term financial commitment
Of cash C potentially ) security needed
Flexibility Difficult process
Easy to budget
low interest rate
Bank overdraft short term to cover
-
day High interest
to day costs security Required
can borrow whenever Bank may ask for immediate repayment
interest only paid on
am Mount borrowed
mortgage large cash long -
term commitment
Easy to budget Property as collateral
Fixed interest rate
Ordinary Shares Access to wider sources Potential loss of control
'
'
Of finance Finance never paid off
New skills and specialism shareholders last to relieve anything
Dividends do not have to incase of liquidation
be paid
Debentures no rights ownership security needed
Access to large am mounts Interest is fixed
Easy to budget
3. Double entry
source Documents
Invoice :
Request of payment , company will produce when selling an item on credit . ( sales / purchase invoice )
credit Note : when items are returned ( sales / purchase invoice )
BACS / Credit trf computerised payment transfer scheme
-
Subsldary BOOKS / BOOKS OF Prime entry
sales / Sales Return :
Invoices → sales ☐B Credit notes → sales return DB ( only items on credit )
purchase / purchase Return : Invoices → Purchase OB Credit notes → Purchase Return DB ( only items on credit )
cash Book : All cash transactions in and out , including cash eauivelanl
General Journal : Record non -
routine transactions ( introduction of Capital , Purchase / sale of non current Assets ,
error correction )
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