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AQA AS Accounting
ACCN1: Revision notes
The accounting process:

1. Source documents: evidence that a financial transaction has taken place.
2. Day books: they are used to record day to day transactions.
3. Ledgers: these are T- accounts that are completed for all transactions.
4. Trial balance: must balance or…

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T accounts:

Dual aspect: For every credit there is a debit.

Debit Credit
o Cash o Capital
o Bank o Sales
o Rent o Returns out
o Wages o Trade Payables
o Purchases o Loans
o Fixed Assets o Discount Received
o Returns in o Payments to suppliers

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A Direct Debit is when a variable amount of money is taken from your bank account.
The account holder gives authorisation to the bank for this transaction to take place.

A Standing Order is when a fixed amount of money is taken from your bank account
when the account…

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Going concern ­ a successful business that will foresee in the future.

Liability is something that you owe.

Current liability is a debt that must be repaid within one year.
Non-current liability is a debt that will take more than one year to repay.

Liquidity- the ability of the business…

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Questions on source documents and T- accounts
1. Bought Motor Vehicles for £13,000 by cash.

What's the source document?

What are the two T- accounts?

2. Rent and Rates paid via cheque, £300

What's the source document?

What are the two T- accounts?

3. Lodged cash into bank, £150


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income statement. Brackets (around a figure) mean that it's a negative number.
****** is the cost. Stock means inventory the date tells you if it's opening or closing

P for purchases, C for carriage in, OI stand for Opening Inventory

LPR stands for less purchase returns, LCI stands for…

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Bad debt

Carriage out

Motor Vehicles

Light and heat

Other expenses

Trial balance

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Purpose of a trial balance:
a) To check the accuracy of the double entry bookkeeping system.

b) To check the arithmetic accuracy of eth D.E.B.K SYSTEM

c) To complete the final accounts for the business which are an income statement
and balance sheet

Examples of Additional adjustments on the income…

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4,000 ­ 1,800 = £6,800

4) The business owners receive a cheque for £700 from a debtor


(3,200) + 700 = (2,500)

5) Motor vehicles are depreciated by 10% per annum straight line and the residual value is


55,000 ­ 2000 / 10 = 5,300

6) The…


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