PBKT

PBKT

Task 1
1. What
  1. Preparing a book of Prime Entry, using ANALYSIS columns
    1. Sales Day Book
      1. Sales Returns Day Book
    2. Purchase Day Book
      1. Purchase Returns Day Book
2. Hints and Tips
  1. Calculating VAT
    1. Net + 20% = Gross
    2. Gross / 6 = VAT
    3. Gross / 1.2 = Net
    4. Gross - Net = VAT
    5. Net + VAT = Gross
  2. REMEMBER - The NET = The total of the Analysed Columns
3. Common Errors
  1. 1) Mis-calculating VAT and or other figures. 2) Entering Net in the Total Column and Total in the Net columns
4. Questions
Task 2
1. What
  1. Posting from Books of Prime Entry to the Main and Subsidiary Ledgers
2. Common Errors
  1. Reversal of Entries
  2. Posting the net Amount to the control account
  3. Selecting the incorrect account names in the main and subsidiary ledgers
3. Questions
4. Hints and Tips
  1. Main Ledger = DOUBLE Entry - DEAD CLIC / PEARLS
  2. Subsidiary Ledgers = Detail for Customers or Suppliers - NO Double entry here
  3. Start with the General/Main Ledger
  4. Go from Right to left (Net to Total)
  5. Net always gets posted to the NAME of the Daybook eg Sales Returns Day Book is posted to the sales returns account
  6. Subsidiary Ledger is always posted to the same side as the control account
Task 3
1. What
  1. Entering items in to a 3 column cash book
    1. 20 Marks
    2. Total and balance the cash book
2. Common Errors
  1. Adding or subtracting the discounts from the money paid/received
  2. Inserting amounts into the incorrect columns
  3. Miscalculating the incorrect totals
3. Questions
4. Hints and Tips
  1. Discount has already been adjusted, so no need to adjust again
  2. Cheques = BANK
  3. Cash = CASH
  4. Bank balance may be overdraw - CR bigger that DR
  5. Deal with Cash sales/purchases first, these will require VAT calculation
  6. Anything for Payables or Receivables will NOT need VAT calculating
Task 4
1. What
  1. Posting from a 3-Column cash book to the Main and Subsidiary ledgers
    1. Cash book may or may not be part of the double entry system
    2. 15 Marks
2. Common Errors
  1. Reversal of enteries
  2. Posting to the Bank/Cash accounts when the cash book is part of the double entry system
  3. Selecting the wrong discount account
3. Questions
4. Hints and Tips
  1. Remember if you have Dr the cash book you will need to Cr the analysis column accounts.
  2. Discounts will need to be posted twice, once in the discounts account and then in the control account
  3. READ THE QUESTION
  4. Always think DOUBLE ENTRY, if you are Dr the bank you will need to do the opposite in the other main ledger accounts
Task 5
1. What
  1. Maintaining a Petty Cash Book and posting to the main ledger
    1. 20 Marks
2. Common Errors
  1. Not reading the question
  2. Selecting the incorrect account names
3. Questions
4. Hints and Tips
  1. The names of the accounts to post to from the petty cash book will always match the column headers
  2. Always check if there is an entry from the bank on the DR side of the PCB
  3. READ THE QUESTION - Is the PCB part of the double entry system or not?
  4. Imprest level will generally be what has been spent from the PCB
Task 6
1. What
  1. Prepare a trial balance
    1. 20 Marks
2. Common Errors
  1. Getting Paid and Received accounts the wrong way round
  2. VAT may be owed to or from, Students over look this
3. Questions
4. Hints and Tips
  1. If it is Paid, think of the double entry, CR bank therefore DR other account
  2. Owed to = Liability, Owed from Asset
  3. Use DEAD CLIC/PEARLS
Task 7
1. What
  1. Check Inv/CrNote against source documents
  2. 15 Marks
  3. Reconcile a statement to an account
  4. Calculate payments to be made to a supplier
2. Common Errors
  1. NOT READING THE QUESTION
  2. Unable to calculate VAT when Sett Disc is involved
3. Hints and Tips
  1. VAT is calculate on the LOWEST amount RECEIVABLE
  2. Remember to Read the question FULLY prior to answering the task
  3. Double check for Settlement Discount
4. Questions
Task 8
1. What
  1. Complete an invoice or credit note which will include various types of discounts
    1. 15 Marks
  2. Check receipts from customers and identify discrepancies
  3. Identify hat the purpose of a remittance advice is
2. Common Errors
  1. Forgetting to calculate discounts at the correct stage of the invoice
  2. Not checking that discounts may have been taken incorrectly
3. Hints and Tips
  1. Trade and Bulk discount calculated before net amount
  2. Settlement discount calculated on the lowest amount receivable
  3. Find out what the settlement discount terms are and check that they have been applied correctly
  4. Read the question properly, when should the invoice be raised?
4. Questions
Task 9
1. What
  1. Prepare a "T" account
  2. Prepare a statement of account to be sent to a customer
  3. 15 Marks
2. Common Erors
  1. Placing Balances on the wrong side of the T account
  2. Placing balances on both sides of the account
  3. Identifying what should appear on the statement of account
3. Hints and Tips
  1. Remember BBB, B/d goes Below Bigger side
  2. c/d = end of the time period
  3. b/d = beginning of the next period
  4. Read the question carefully, when are invoices due?
4. Questions
Task 10
1. What
  1. Understand the double entry bookkeeping system
  2. understand the Accounting Equation
  3. Understand Capital and Revenue Transactions
  4. Understand the use of Coding in accounting
  5. 15 Marks
2. Common Errors
  1. Not understanding the Accounting Equation
  2. Not understanding the difference between Capital and Revenue
3. Hints and Tips
  1. Accounting Equation = Assets - Liabilities = Capital
    1. A - L = C
      1. 200 - 50 = 150
  2. Capital = Non-Current Assets
    1. Motor Vehicle
    2. Machinery
    3. Office Equipment
  3. Revenue = Everyday Transactions
    1. Sales
    2. Purchases
    3. Expenses
4. Questions

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	Created by stephen.ainswort almost 10 years ago