Accruals & Prepayments In SOPL & SOFP

JessRound

Hi everyone!

I am struggling with dealing with accruals and prepayments on SOPL and SOFP on the Level 4 Financial Statements Of Limited Companies exam. I can see they often give you at least one or both to deal with in the extra information, but I am not quite sure on how to deal with them. Could someone explain please?

sjtoomer

I suggest that you go back to the Level 3 'Advanced Book-Keeping' module, which covers Accruals and Pre-Payments, and resume over how these are treated. I suggest the Kaplan learning materials.

sjtoomer

Also, you may want to look back at the Level 3 'Final Accounts Preparation' module, for how Accruals and Pre-Payments are actually put on the Financial Statements themselves.