Introduction to Book Keeping

Worked examples (10)

• 1Identify the correct source document
• 2Calculate the invoice total with trade and cash discount
• 3Trace the document trail of a credit purchase
• 4Issue the correct document to correct an over-charge
• 5State who issues and who receives each document
• 6Identify whether each item is a primary source document
• 7Calculate the invoice total — trade discount only
• 8Calculate the cash discount and amount paid
• 9Calculate trade discount, cash discount and net cash settlement
• 10Identify the documents needed to resolve an over-delivery

Worked examples (10)

• 1Identify the correct book of original entry
• 2Enter transactions in a three-column Cash Book
• 3Calculate the petty cash reimbursement under the imprest system
• 4Record a complex transaction in the Journal
• 5State the source document and book of original entry
• 6Pick the correct book for unusual transactions
• 7Calculate the Sales Day Book total and post to the ledger
• 8Calculate the discount totals for the month
• 9Calculate the reimbursement over two months
• 10Identify which transactions belong in which book — and post them

Worked examples (9)

• 1Apply DEAD CLIC to a series of transactions
• 2Balance a T-account at month-end
• 3Identify the correct ledger division for each account
• 4Open and post a series of transactions to multiple T-accounts
• 5State Dr or Cr for each transaction effect
• 6Identify the ledger division for each account
• 7Calculate the closing balance on a customer's account
• 8Calculate the closing balance on a supplier's account
• 9Calculate the closing bank balance from a series of cash transactions

Worked examples (9)

• 1Calculate depreciation using the straight-line method
• 2Calculate depreciation using the reducing balance method
• 3Record annual depreciation in the ledger
• 4Compare straight-line and reducing balance for the same asset
• 5Identify which depreciation method is being described
• 6Recommend the most appropriate method for each asset
• 7Identify the correct treatment of depreciation in the books
• 8Calculate depreciation with a residual value
• 9Calculate the gain or loss on disposal

Worked examples (9)

• 1Write off an irrecoverable debt
• 2Create a new Provision for Doubtful Debts
• 3Adjust an existing Provision for Doubtful Debts
• 4Recover a previously written-off debt
• 5Distinguish irrecoverable debt from doubtful debt
• 6State the effect of each transaction on profit and trade receivables
• 7Identify the correct SOFP line for each item
• 8Calculate the Provision for Doubtful Debts and the change
• 9Multi-step: write off, provision and total expense

Worked examples (9)

• 1Classify each item as capital or revenue expenditure
• 2Show the effect of misclassifying capital as revenue
• 3Explain the difference between capital and revenue expenditure
• 4Determine capitalised cost of a non-current asset
• 5Classify each item as capital or revenue (extended)
• 6Identify improvement vs repair for each scenario
• 7Calculate the capitalised cost of a non-current asset
• 8Calculate the profit impact of treating capital as revenue
• 9Calculate the cost of two new assets together

Worked examples (9)

• 1Calculate an accrued expense (other payable)
• 2Calculate a prepaid expense (other receivable)
• 3Calculate income receivable at year-end
• 4Calculate income received in advance
• 5Classify each year-end item as accrual / prepayment / receivable / in advance
• 6State the SOFP line for each year-end adjustment
• 7Identify the income statement and SOFP effects of each adjustment
• 8Apply multiple adjustments to calculate the net profit
• 9Calculate rent receivable income across two periods