Honours Accounting

xnightwishx

UnitedIrishman wrote:

Service firm. Same as club accounts really. Main difference's is that with a Service firm, there might be a shop as part of the firm e.g Health Shop. All you have to do is do like a Bar trading account for the shop (Sales,Purchases,Opening+Closing Stocks AND there could be expenses). No need to worry about it.They're easy enough.

I have a question or two:
Q1 - How do I start published accounts? I really can't remember the layout and I may have been absent at the time. Just a general starting point. I'll no straight away when someone says it.

Q2 - In a Tabular statement, I've never ever gotten this part.


What do I do for that?

Just put 4800 in the bank and also in the P&L. Your total at the end of the year must be the prepaid for next year. That's 2000 in the total. So in december you take out 4300. (1500+4800 + the 4300 = 2000)

UnitedIrishman

Cheers xnightwishx. This is how far I've got. Sorry bout my stupidity but what does in the Insurance Column for may? Bloody useless at this note!

fatal

UnitedIrishman wrote:

Cheers xnightwishx. This is how far I've got. Sorry bout my stupidity but what does in the Insurance Column for may? Bloody useless at this note!

you put in the TOTAL you paid in may for the insurance.............4800 and take that 4800 out of the p+l

DonaldDuck

UnitedIrishman wrote:

Cheers xnightwishx. This is how far I've got. Sorry bout my stupidity but what does in the Insurance Column for may? Bloody useless at this note!

4800 goes into insurance and out of bank in may
Then in december you get the months worth of insurance,and add to the total(resulting in 4300 in this case) and take it out of insurance and out of P/l AC

UnitedIrishman

DonaldDuck wrote:

4800 goes into insurance and out of bank in may
Then in december you get the months worth of insurance,and add to the total(resulting in 4300 in this case) and take it out of insurance and out of P/l AC

Ah cheers. Get it now. So it's..

Insurance 1500

---

4800

---

(4300)

---

2000
========================================================
Bank

---

4800

---

P+L

---

(4300)

---

If this comes up, I'd get you a pint...but that'd be a bit impossible. So a thanks will do, right?

fatal

il explain it as best as i can.......
firstly your bank is on the liability side so if you buy/pay for something it will increase the overdraft(because its on the liability side)...
you paid 4800 in insurance (which is paying for something and is increasing your overdraft) put it into bank AND in the may column for insurance.
Then it says that the insurance is paid until a certain date next year(may the 31st)............calculate how many months for next year you are paying it(4800/12x50and take it from 4800 and because you have 1500 paid at the start of the year add this onto the 4800-next years prepaid amount-this is your insurance charge for the year.So in the decemeber column put this [4800-2000(next years prepaid amount)+1500] in as minus figure in the insurance column and also it reduces your p+l aswell in december because its an expense

UnitedIrishman

fatal wrote:

il explain it as best as i can.......
firstly your bank is on the liability side so if you buy/pay for somthing anything you add on will increase the overdraft(because its on the liability side)...
you paid 4800 in insurance which is paying for something and is increasing your overdraft so put it into back AND in the may colum for insurance.
Then it says that the insurance is paid until a certain date next year............calculate how many months for next year you are paying it and take it from 4800 and because you have 1500 paid at the start of the year add this onto the 4800-next years prepaid amount and this is your insurance charge for the year.So in the decemeber column put this (4800-next years prepaid amount+1500) in as minus figure and also it reduces your p+l aswell in december because its an expense

Just edited. The brackets around the bank weren't meant to be there. Mistake.

fatal

UnitedIrishman wrote:

Just edited. The brackets around the bank weren't meant to be there. Mistake.

makes sense now????
if you can do that question you can do pretty much everyone of them.O yea il mention that is one a few years back from that has another slighty difficult workin about you owing a creditor 1800 but him accepting equipment which now has a book value of 1000....have a look at that one too and if you do that one tabular is sorted!

DonaldDuck

UnitedIrishman wrote:

Just edited. The brackets around the bank weren't meant to be there. Mistake.

I assumed you had bank in current assets,my teacher told us to switch it as its more convenient!My bad

UnitedIrishman

fatal wrote:

makes sense now????
if you can do that question you can do pretty much everyone of them.O yea il mention that is one a few years back from that has another slighty difficult workin about you owing a creditor 1800 but him accepting equipment which now has a book value of 1000....have a look at that one too and if you do that one tabular is sorted!

Yeah makes sense. Cheers to everyone for the help.

willowmegs

eep guys i'm so scared! i've only revised sole trader, marginal costing, flexible budgeting, club, and had a glance over tabular and incomplete type b! i'm so scared incase they try to catch us out and give us all yucky stuff like manufacturing?!? ahhh!!!! major cramming will begin soon.

Faerie

willowmegs wrote:

eep guys i'm so scared! i've only revised sole trader, marginal costing, flexible budgeting, club, and had a glance over tabular and incomplete type b! i'm so scared incase they try to catch us out and give us all yucky stuff like manufacturing?!? ahhh!!!! major cramming will begin soon.

Me too! I doubt Manufacturing will come up though.....hopefully!
I'm actually thinking of doing a departmental just in case!

willowmegs

We never even DID Departmental! My class is a mix of higher and ordinary and I'm the only one of the higher part doing the long question! :-|

Nerd007

whats departmental?? I haven't got a clue! Maybe we just use another word for them??

Faerie

They're another type of question 1 that has never come up in higher level. It's doubtful they'll come up (and if they do we had so better get a 100m club to balance out!) but I don't want to take any chances because we didn't do the 60m questions like revaluation and control accounts.
willowmegs there are a few examples in the book you could glance over if you're really worried and the adjustments are actually even easier than the other question 1s ; it's just getting the layout really!

Nerd007

are they on the higher level course??? i've never even heard of them before!

yes they are, they involve dividing out the expenses and games between different departments.

Faerie

Nerd007 wrote:

are they on the higher level course??? i've never even heard of them before!

Yeah they are but teachers tend to leave them out because they've never come up. I think (not certain) that they've actually come up in ordinary level.
They're easier than the other question 1s so maybe that's why they haven't come up in higher. My teacher said that it's never been officially guaranteed that they won't come up but then it's never been officially guaranteed that we get interpretation every year. He only told us about them like a month or so ago and we just did one question that he made up himself!

willowmegs

but i dont like revaluations and control accounts, hence why im sticking to q1. think im gonna go study now....

fatal

departmental will not come up...........think of the uproar that it would generate.......

UnitedIrishman

So far I've studied:
Company Final Accounts
Sole Trader Final Accounts
Marginal Costing Statement
Club/Servive Firm Accounts
Suspense (half done)
Tabular Statements
Cash Budgets
Flexible budgets

Only another 11 or so topics to go.

Oh and in Cash Budgets when it says "Purchases will equal the total sales for the following month" what exactly do you do? Is it the sales figure that you have split into Credit one month after and Cash or is it the figures given?

tweetypie

Help! Just been going through the tabular statement from the pre and am a bit confused about December and the depreciation...i have the solution but why do you put (6800) in insurance prepaid and (720) in rent.rec prepaid and how do you work them out???

UnitedIrishman

UnitedIrishman wrote:

So far I've studied:
Company Final Accounts
Sole Trader Final Accounts
Marginal Costing Statement
Club/Servive Firm Accounts
Suspense (half done)
Tabular Statements
Cash Budgets
Flexible budgets

Only another 11 or so topics to go.

Oh and in Cash Budgets when it says "Purchases will equal the total sales for the following month" what exactly do you do? Is it the sales figure that you have split into Credit one month after and Cash or is it the figures given?

that means that there is no closing stock, so you can figure out the purchases by

Sales
-Purchases
=profit

usually says profit is a percentage of sales so thats how you find purchases.

Be careful with the original opening stock though!

tweetypie

tweetypie wrote:

Help! Just been going through the tabular statement from the pre and am a bit confused about December and the depreciation...i have the solution but why do you put (6800) in insurance prepaid and (720) in rent.rec prepaid and how do you work them out???

If there is 12 months paid with 8 months left in the year, that means that 4/12 of the price paid will be for next year. this stays in the account while the rest of the figure is transferred to the P+L account.

So you mulitply the figure paid by 4/12, and put this amount as the closing balance in the statement, simply take it away from the rest of the money paid for the expense during the year to find the amount transferred to the P+L.

tweetypie

Deleted User wrote:

If there is 12 months paid with 8 months left in the year, that means that 4/12 of the price paid will be for next year. this stays in the account while the rest of the figure is transferred to the P+L account.

So you mulitply the figure paid by 4/12, and put this amount as the closing balance in the statement, simply take it away from the rest of the money paid for the expense during the year to find the amount transferred to the P+L.

Thanks a million!:) Also another question about the pre tabular..in june it says 'recieved 25000 from the issue of remaining shares'...why do you put 20000 of this into ord shares and the other 5000 into share premium?? Full of questions today!

Check how Much authorised shares you are allowed have, if the company is allowed 500,000 shares, and already has 480,000 issued, that means that the €5000 extra earned must be share premium.

tweetypie

Oh god i get that now! I am so stupid! Accounting is my worst subject as you can probably tell! Thanks for all the help!:)

Rob30888

fatal wrote:

departmental will not come up...........think of the uproar that it would generate.......

The thing is though that it's on the course, so there's nothing that can be done about it if it does come up. It's the same with all the theory last year - teachers complained, but the department just said that it is on the course.

I'll be hugely pissed off if all the adjustments are wierd tomorrow as some of the q's can take long enough even when you know exactly what you're doing, never mind worrying about something new! If they want to change it, make a new course, don't **** us up!

casanova_kid

I know, company and sole trader for question one. Incomplete, service, club(have to go over that actually), suspense, tab statement, interpretation for section2, and i know, flexible budget, marginal and product costing and stock valuation for section 3, i think i'm pretty much covered.

I think that they're also entitled to put Published Accounts as a question one.

I wouldn't mind being corrected on this.

Rob30888

Deleted User wrote:

I think that they're also entitled to put Published Accounts as a question one.

I wouldn't mind being corrected on this.

They're not. The 4 are: Manufacturing, Company, Sole Trader and Departmentaql

Rob30888

casanova_kid wrote:

I know, company and sole trader for question one. Incomplete, service, club(have to go over that actually), suspense, tab statement, interpretation for section2, and i know, flexible budget, marginal and product costing and stock valuation for section 3, i think i'm pretty much covered.

And Cash flow Must go over me question 5's and Suspense now. Do you think they'll ask the same type of Question 8 as they did last year? Or is it ok to leave it out? Might as well have a glance over it...

casanova_kid

my chart would indicate that they never ask the question two in a row. i think i might leave out cash flow, the likelihood of it coming up isn't that high and i'll be able to do the other question anyway if it does.

happydance

They asked teh incomplete records two in a row a few years ago.

DonaldDuck

happydance wrote:

They asked teh incomplete records two in a row a few years ago.

Thats why I'm going over the Type B since Type A came up last time.Just incase they come up,but they don't take long to revise

Zapp Brannigan

Oh I'm seriously fooked for this exam. I mean really! I just can't study for it cos I hate it so much. I've been learning all my RA formulae but my book doesnt have a formula for Dividend Yield, and you know when the questions asks "How long would it take a share to recoup its market value, provided current activity remains the same" or something along them lines, I haven't a clue what to do!!

Rob30888

Slurms wrote:

Oh I'm seriously fooked for this exam. I mean really! I just can't study for it cos I hate it so much. I've been learning all my RA formulae but my book doesnt have a formula for Dividend Yield, and you know when the questions asks "How long would it take a share to recoup its market value, provided current activity remains the same" or something along them lines, I haven't a clue what to do!!

If it asks that, it's Market Price Per Share over Earnings Per Share. If they ask "How long would it take a share to recoup its market value, provided current dividend payout rates remains the same" then it's MPS over Dividend Per Share.

I'm getting quite worried, this is my best subject and I haven't got a single question out all weekend :eek: It's little bastard mistakes I keep making, but if my Q1 doesn't work out tomorrow, it's gonna really throw me big time...

Zapp Brannigan

Rob30888 wrote:

If it asks that, it's Market Price Per Share over Earnings Per Share. If they ask "How long would it take a share to recoup its market value, provided current dividend payout rates remains the same" then it's MPS over Dividend Per Share

Thank you.

xnightwishx

I really can't wait until after this exam! It's my best subject yet I'm terrified that they'll do something REALLY unexpected like they did with maths and TG! We seem to have been an unlucky year when it came to optional subjects!
Do you think it's safe to leave out published accounts, incomplete (bank) and production budgets? Coz I have :S

Nerd007

me too... let's hope we're all gonna be fine! Good Luck everyone!

fatal

xnightwishx wrote:

I really can't wait until after this exam! It's my best subject yet I'm terrified that they'll do something REALLY unexpected like they did with maths and TG! We seem to have been an unlucky year when it came to optional subjects!
Do you think it's safe to leave out published accounts, incomplete (bank) and production budgets? Coz I have :S

its my of my best ones aswell..im kinda bankin and a1 for this...ive done incomplete and published but nothin in budgeting...anyway gooduck to you and everyone else...hopefully we wont need it

ThE_IVIAcIVIAIV

best of luck to everyone, im totaly screwed and im gonna fail no doubt, less than 20% in mocks and i havent done any work since then... **** i wish i paid attention now! (smacks self on the head)

tweetypie

Good luck to everyone tomorrow (it better be a feckin easy exam:D)!
XxX

willowmegs

I feel sick. I hope I passed. REALLY hope I passed. Stupid suspense and tab.