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Higher Accounting
Higher Accounting
Higher Accounting
Higher Accounting
Higher Accounting
Higher Accounting
Higher Accounting
Higher Accounting
Higher Accounting
Higher Accounting
Higher Accounting
Higher Accounting
Higher Accounting
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Higher Accounting

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  • 1. Higher Accounting Mr Arthur
  • 2. Aims of the Lesson
    • Why do we create Accounts?
    • What does Accounting Involve?
    • Who is Interested in the Accounts of a Business?
    • Financial V Management Accounting
  • 3. Why do we Create Accounts??
    • To calculate profit or loss
    • To try and cut expenses
    • For the tax man!!
    • To work out overall value of the business
    • To work out partnership’s share
    • To check if figures are correct
    • Legal requirement
    • To budget for future planning
    • To attract shareholders
    • To work out which areas are suffering and which are prospering
  • 4. What does Accounting Involve?
    • Identifying and recording information
    • Classifying and measuring – grouping sales, costs etc
    • Communicating and explaining
  • 5. Who is Interested in Accounting Information??
    • Potential Investors
    • Shareholders
    • Bankers
    • Owners
    • Taxman
    • Members
    • Employees
  • 6. Financial Accounting
    • These accounts present a historical record of the company and are backward looking
      • Trading Profit and Loss
      • Balance Sheet
      • Income and Expenditure Account
      • Receipts and Payment Account
    • Accounts are for external purposes – shareholders, employees etc
    • Financial accounts are a legal requirement
    • These accounts are unsuitable for planning, control and decision making
  • 7. Management Accounting
    • Management Accounts are not for publication
    • Accounts provide recent, current and future estimates of performance
    • Useful for Management to develop business strategies
    • Not legally required
  • 8. Aims of the Lesson
    • Last Lesson
    • Why do we create Accounts?
    • What does Accounting Involve?
    • Who is Interested in the Accounts of a Business?
    • Financial V Management Accounting
    • Today’s Lesson
    • Documents of trade
    • The document trail
    • Research of accounting terms
  • 9. Documents of Trade
    • A business transaction occurs when goods or services are provided.
    • Cash transaction = goods are purchased and paid immediately
    • Credit transaction = goods are purchased and paid for at a later date
  • 10. The Document Trail
  • 11. Accounting Terms to Research
    • Invoice
    • Trade Discount
    • Cash Discount
    • Value Added Tax
    • Credit Note
    • Statement of Account
    • Receipts
    • Credit/Debit card
    • Dishonoured Cheque
    • Bad debt
  • 12. Structure of the Course
    • Role of Financial Accounting in business
    • Introduction to accounting standards — SSAPs and FRSs
    • Characteristics of business organisations
    • Preparation of manufacturing accounts
    • Features of ownership, funding, management, liability and control for an organisation
    • Preparation of final accounts of business organisations; sole traders; partnerships and plcs
    • Correction of errors and updating of final account figures
    • Analysis and interpretation of accounting information
    • Preparation of not-for profit final accounts
  • 13. Final Accounts – Key Terms
    • Prepayments
      • An amount paid during this financial year for the next financial year, e.g. paying in advance
    • Accruals
      • An expense which you have not managed to pay this financial year, which will spill into next year
    • Depreciation
      • This is the amount you are setting aside due to Assets reducing in value
    • Bad Debts
      • This is the amount of money you write of as you debtor is unable to pay you
    • Provision for doubtful debts
      • This is usually a percentage of your debtors for the year, Incase they cannot pay you back

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