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Accounting 7707/22 Oct Nov 2024

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Psat Paper Lesson
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Laura Bellini

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1. Cash Book & Ledger Maintenance | Recording business transactions in a cash book, preparing a trade receivables ledger account, interpreting bank balances. 2. Capital & Profit Calculations | Computing opening and closing capital, adjusting for capital introduced and drawings, calculating annual profit. 3. Sales, Purchases & Credit Transactions | Determining total credit purchases and sales, analyzing bookkeeping costs, evaluating the need for a professional bookkeeper. 4. Provision for Doubtful Debts & Accounting Principles | Applying the prudence concept, assessing its impact on financial statements, making journal adjustments. 5. Non-Profit Organization Accounting | Preparing café income statements, maintaining a subscriptions account, compiling an income and expenditure account. 6. Company Accounting & Equity Management | Differentiating public vs. private companies, preparing a statement of changes in equity, recording share dividends. 7. Financial Position & Capital Raising Decisions | Extracting equity and reserves, evaluating funding options between issuing shares and debentures. 8. Financial Ratios & Liquidity Analysis | Calculating inventory, trade receivables, and payables turnover, assessing business liquidity and financial efficiency. 9. Credit Control & Receivables Management | Evaluating the use of a debt collection agency, suggesting alternative strategies for reducing receivables turnover. 10. Error Corrections & Accounting Adjustments | Journal entries for personal use of inventory, effects on profit and capital, rectifying financial misstatements.
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