F011 - Principles of Accounting (Basics) 2.0 / 5 based on 1 rating ? AccountingASOCR Created by: Elise Akroyd-RogersCreated on: 03-04-13 15:27 The Role of Accounting Explain the need to keep accounting records for both internal and external use. Understand the role of the accountant in calculating profit and preparing financial statements and planning for decision making 1 of 5 The accounting equation Define assets, capital and liabilities 2 of 5 Double Entry Bookkeeping Prepare ledger accounts for assets and liabilities Define purchases, sales, purchase returns and sales returns Record transactions of goods Distinguish between cash and credit transactions Prepare ledger accounts for expenses and revenues Define drawings and record in the ledger accounts Balance ledger accounts (understand the importance of layout, underlining and use a ruler) Discuss the usefulness of double-entry book-keeping in providing information necessary for the preparation of financial statements 3 of 5 Trial Balance Explain the purpose of the Trial Balance in the preparation of the final accounts Understand a Trial Balance and how it it made up (you will not need to prepare one) 4 of 5 Final Accounts - Sole Trader Define cost of sales, gross profit and net profit Preparation of the Income Statement (Trading and Profit and loss account) Preparation of the Statement of Financial Position (Balance sheet) 5 of 5
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