kings cross - unit 5

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion

I have my first unit 5 session next saturday and was hoping someone could let me know rougly where i need to study up to just so im not miles behind and not understanding next week! :oops:

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:kings cross - unit 5

    hi

    i think the first chapters are about depreciation and accruals & prepayments..

    hope that helps!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:kings cross - unit 5

    We started off with revising the Accounting System, Prime document& books of prime entry and double entry book-keeping.
    Classifying items such as assets, liabilities, expenses income, drawing, Fixed assets or current assets

    It was really an exercise to ensure that we remembered foundation level, or where people had not done foundation to ensure that they were up to spead with the rest of the class.

    If you can do all that you should be able to prepare a simple Trial Balance for a sole trader. From which you will produce a Profit and Loss and Balance Sheet.

    Your tutor will then introduce you week by week to an adjustment i.e corrections. These adjustments (which include bad debts, capital introduced, accruals, prepayments etc._ are put into an adjustment column in an extended Trial Balance. By exam time you will have done losts of TB, P&L and BS.

    Then the tutor will throw a spanner in the works and you will learn about partnerships and the different format for dealing with profit. :twisted:

    It really is not that bad a unit. One step will flow into another.

    The main things to remember are:

    Bank - money in DR, Money out CR

    Debtors = DR,
    Sales = CR

    Creditors = CR
    Purchases = DR

    Accurals = CR

    If you can remember those then you can work out which column(DR/CR) in a TB everything else goes
    - you buy with cash a new vehicle
    Bank CR, Fixed Asset DR
    - you sell on credit
    Debtor Dr, Sales Cr



    On this (aat) website there are downloadable past papers with answers.

    www.osbornebooks.co.uk have some questions under the student section. If you are using their workbooks they also have simulations. They also have TEMPLATES for TB's etc which since you will be using a lot saves you having to draw them out.

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