Accounting 102: Guide to Business Accounting

Accounting: Comprehensive, easy-to-follow course to boost your accounting knowledge. Ideal for start-ups - entrepreneurs
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Instructed by Christos Pittis Business / Finance
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  • Lectures 27
  • Contents Video: 3.5 hours
    Other: 5 hours
  • Skill Level Intermediate Level
  • Languages English
  • Includes Lifetime access
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    Available on iOS and Android
    Certificate of Completion
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About This Course

Published 5/2014 English

Course Description

GREAT ACHIEVEMENT!

Almost 7,000 STUDENTS in less than 6 MONTHS! ........... AND more than 52 REVIEWS and RATINGS!

Important notes:

  • Initial price is $139, but will next increase to $199 (Jan 1st 2016)
  • New lectures and updates
  • Full 30 day money-back-in-full guarantee
  • Support
  • More than 12,000 students joined my courses and 40+ FIVE star reviews

*UK GAAP. Students from countries that follow UK GAAP accounting principles can follow this course*

Why to learn Accountancy

  • To establish your own business, you need to know some basic accounting principles in order to communicate effectively with investors, suppliers and customers
  • To be better at negotiations
  • To know the best price of selling. Learn how to estimate the break-even point and at which point you can reduce the price

The aims of this course are to enable candidates to develop:

an understanding of the basic principles underlying the recording of business transactions

the ability to prepare and interpret accounts for sole traders, partnerships,non-trading organisations and limited companies

This course is suitable for candidates who are working or are preparing to work in an accounting environment maintaining financial records and preparing accounts. Also for young entrepreneurs and professionals in order to gain inside understanding for their businesses. Candidates attempting this course should have the knowledge and skills equivalent to the Level 1Book-keeping


SyllabusTopics

1. Advanced aspects of the syllabus for Level 1Book-keeping

2. Partnerships

3. Limited liability companies

4. Incomplete records

5. Manufacturing accounts

6. Stock valuation

7. Non-trading organisations

8. Control accounts

9. Suspense accounts

10. Calculation and interpretation of ratios

11. Preparation,by the use of ratios, of simple financial statements

Assessment objectives

The examination will assess the candidate's ability to:

demonstrate an understanding of the more advanced aspects of Level 1 Book-keeping

prepare accounts for a partnership in relation to its creation, the retirement of a partner, the admission of a new partner, its dissolution and its sale as a going concern

prepare final accounts for partnerships, limited companies and non-trading organisations

demonstrate how accounts are prepared for a business that has not maintained proper accounting records

prepare manufacturing accounts

demonstrate an understanding of the concept of determining stock valuation

prepare control accounts for sales and purchases

correct errors in accounts and show the use of a Suspense Account

demonstrate how to use final accounts for the purpose of the calculation and interpretation of ratios

Skills Assessed

Candidates will need to show that they can:

add,subtract,divide,multiply,calculate and use percentages and ratios

prepare journal entries and ledger accounts

present the final accounts for sole traders,partnerships, limited companies and non- trading organisations in appropriate format

analyse and interpret data

What i offer:

Recorded lessons

Teacher's powerpoint slides

Book

Solutions

Past Papers

What are the requirements?

  • Computer
  • Internet connection
  • Google chrome
  • Book-keeping Level 1 (https://www.udemy.com/book-keeping-level-1-learn-accounting-in-6-8-hours-amazing)

What am I going to get from this course?

  • Verifiable Certification of completion
  • Book
  • Solutions
  • Teachers powerpoint slides
  • past papers
  • demonstrate an understanding of the more advanced aspects of Level 1 Book-keeping
  • prepare accounts for a partnership in relation to its creation, the retirement of a partner, the admission of a new partner, its dissolution and its sale as a going concern
  • prepare final accounts for partnerships, limited companies and non-trading organisations
  • demonstrate how accounts are prepared for a business that has not maintained proper accounting records
  • prepare manufacturing accounts
  • demonstrate an understanding of the concept of determining stock valuation
  • prepare control accounts for sales and purchases
  • correct errors in accounts and show the use of a Suspense Account
  • demonstrate how to use final accounts for the purpose of the calculation and interpretation of ratios

What is the target audience?

  • Students
  • Young entrepreneurs
  • Professionals
  • Accounting staff
  • Unemployed

What you get with this course?

Not for you? No problem.
30 day money back guarantee.

Forever yours.
Lifetime access.

Learn on the go.
Desktop, iOS and Android.

Get rewarded.
Certificate of completion.

Curriculum

Introduction
Preview
11 pages
International Accounting Standards (IAS) Guidance
Preview
22 pages
168 pages

Hi friends! You can download the book and study video lectures and book in parallel. Solutions can be found in the last lecture in the answer book.

Section 1: Advance aspects of Level 1 and social clubs
10:04

Students must be able to:

1. State the significance of an accrual

2. Prepare end-of-period adjustments in expense accounts for accruals

3. State the significance of an expense prepayment

4. Prepare end-of-period adjustments in expense accounts for prepayments

5. Make adjustments for end-of-period expense accruals and expense prepayments in the Profit and Loss Account and Balance Sheet

6. Make adjustments in theTrading Account and Balance Sheet for end- of-period‘ outstanding’ purchases,i.e. goods received but invoices still awaited

7. State the significance of income accruals

8. Make end-of-period adjustments in income accounts for income accrual

9. State the significance of income prepayment

10. Make end-of-period adjustments in income accounts for income prepayment

11. Make adjustments for end-of-period income accruals and income prepayments in the Profit and Loss Account and Balance Sheet

12. Prepare the recording of 2 areas of expense within the one expense account, with distinctive balances, e.g. Rent and Rates Account

15:47

Students must be able to:

1. Prepare entries for there covery of bad debts previously written off in the year in which the bad debt is recovered

2. Prepare entries for the recovery of bad debts previously written off in the year prior to the year in which the bad debt is recovered

3. State the reason why a provision for doubtful debts is made at the financial year end

4. State the difference between a specific provision for a specific debt and a general provision for other debts

5. Prepare the Provision for Doubtful Debts Account for a number of years, and adjust the provision at the end of each financial year

6. Demonstrate the effect that a provision for doubtful debts has on the presentation of debtors on the balance sheet

13:30

Students must be able to:

1. Calculate a total sales figure for a period from opening and closing debtors,cash received from customers,bad debts written off, discounts allowed,etc.

2. Calculate a total purchases figure for a period from opening and closing creditors, cash paid to suppliers, discounts received,etc.

3. Construct expense accounts

4. Construct a trading and profit and loss account and a balance sheet from incomplete records,for a sole trader

10:10

Students must be able to:

1. Make adjustments to cash paid and received to obtain purchases and sales

2. Account for those expenses properly chargeable to the trading activity of the non-trading organisation

3. Calculate the trading profit

4. Recognise the nature and purpose of an income and expenditure account

5. Account for subscriptions received during the financial year

6. Account for subscriptions in arrears or in advance at the start of the financial year

7. Account for subscriptions in arrears or in advance at the end of the financial year

8. Account for lifetime subscriptions

9. Account for donations which are not treated as capital receipts

10. Determine appropriate expenses to be debited to the income and expenditure account

11. Calculate the balance of the income and expenditure account

12. Identify the balance as either an excess of income over expenditure (surplus) or as an excess of expenditure over income(deficit)

13. Prepare an Income&Expenditure account from a Receipts&Payments account, with adjustments

14. Present all the organisation's assets and liabilities on the balance sheet

15. Present lifetime subscriptions on the balance sheet

16. Present subscriptions in arrears and in advance at the balance sheet date on the balance sheet

16:29

Students must be able to:

1. State the significance and purpose of depreciation

2. Distinguish between different methods of depreciation; determining the effect of each method on the charge to the profit and loss account and upon the presentation of the asset on the balance sheet

3. Recognise the relationship between the type of asset and the depreciation method chosen

4. Prepare asset accounts maintained at cost

5. Determine the difference between a depreciation expense account and an account for the accumulated provision for depreciation

6. Prepare entries in the depreciation expense account including transfer to the profit and loss account at the financial year end

7. Prepare entries in the accumulated provision for depreciation account, and balance the account at each financial year end

8. Prepare an asset disposal account

9. Calculate the profit or loss on the disposal of an asset

10. Prepare entries for assets sold for cash,or traded in or exchanged for a replacement asset

Section 2: Partnerships
05:16

Students must be able to:

1. Understand the partneship company type

2. Key points

11:43

Students must be able to:

1. Describe the significance of a business partnership

2. State why an agreement may be drawn up and what it can be expected to include

3. Explain what happens where no partnership agreement exists

4. Prepare journal and ledger entries for the formation of a new partnership

5. Demonstrate how sole trader assets and liabilities become partnership assets and liabilities

6. Calculate capital introduced by a sole trader to a partnership

7. State the significance and effect of goodwill introduced,in the event of a sole trader joining the partnership

8. Explain the purpose of the personal accounts of partners i.e. capital and current accounts

9. Prepare partners' capital and current accounts in columnar format

10:47

Students must be able to:

1. Demonstrate the distinction between the partnership profit and loss account and the appropriation account

2. Demonstrate how to deal with interest on a loan made by a partner to the partnership

3. Explain the reason for allowing interest on capital and current account balances and for charging interest on drawings

4. Calculate interest on capital and current account balances and interest on drawings

5. Prepare entries for interest in the appropriation account and in partners' current accounts

6. Prepare a partnership balance sheet in horizontal or vertical format

12:59

Students must be able to:

1. Prepare a Revaluation Account

2. Make adjustments for goodwill necessary on the admission of a partner

3. Record cash and other assets and liabilities introduced by the new partner

4. Make adjustments for goodwill necessary when a change occurs in the ratio in which profits and losses are shared

5. Write off goodwill where it is not to remain as an asset in the partnership ledger

08:57

Students must be able to:

1. Prepare a Revaluation Account

2. Make adjustments for goodwill necessary on the retirement of a partner

3. Calculate amounts due to a retiring partner by cash, other assets, or by transfer to a loan account

14:34

Students must be able to:

1. Prepare a dissolution or realisation account

2. Prepare the entries in the partnership ledger for assets and/or liabilities taken over by an individual partner

3. Prepare the entries for partners' loans upon dissolution

4. Prepare the entries for the sale of partnership assets for cash

5. Prepare the entries for the collection of amounts from partnership debtors and the treatment of bad debts and discounts

6. Prepare the entries for the settlement of partnership creditors and the treatment of discounts

7. Prepare the entries for the treatment of goodwill on dissolution

8. Prepare the entries to close partners' personal accounts

9. Prepare the entries necessary to deal with outstanding debit balances on partners' personal accounts. Apply the rule in Garner v Murray

10. Prepare the entries to deal with the sale of a partnership as a going concern and the settlement of the purchase consideration whether received in cash or in securities such as shares or debentures

11. Make the transfer of securities to the partners on an agreed basis

05:47

Students must be able to:

1. Prepare a dissolution or realisation account

2. Prepare the entries in the partnership ledger for assets and/or liabilities taken over by an individual partner

3. Prepare the entries for partners' loans upon dissolution

4. Prepare the entries for the sale of partnership assets for cash

5. Prepare the entries for the collection of amounts from partnership debtors and the treatment of bad debts and discounts

6. Prepare the entries for the settlement of partnership creditors and the treatment of discounts

7. Prepare the entries for the treatment of goodwill on dissolution

8. Prepare the entries to close partners' personal accounts

9. Prepare the entries necessary to deal with outstanding debit balances on partners' personal accounts. Apply the rule in Garner v Murray

10. Prepare the entries to deal with the sale of a partnership as a going concern and the settlement of the purchase consideration whether received in cash or in securities such as shares or debentures

11. Make the transfer of securities to the partners on an agreed basis

Section 3: Production cost
12:11

Students must be able to:

1. Prepare accounts in vertical and T-account format

2. Define cost accounting terms:direct materials,direct labour,direct expense,prime cost,factory or production overhead and production cost

3. Make adjustments for the change in work in progress and show its location in the manufacturing account

4. Transfer completed production at cost

5. Transfer completed production at cost plus a margin of profit

6. Make the corresponding entry for manufacturing profit

7. Make a provision for unrealised manufacturing profit

06:12

Students must be able to:

1. Prepare accounts in vertical and T-account format

2. Define cost accounting terms:direct materials,direct labour,direct expense,prime cost,factory or production overhead and production cost

3. Make adjustments for the change in work in progress and show its location in the manufacturing account

4. Transfer completed production at cost

5. Transfer completed production at cost plus a margin of profit

6. Make the corresponding entry for manufacturing profit

7. Make a provision for unrealised manufacturing profit

Section 4: Stock Valuation, limited companies and ratios
12:18

Students must be able to:

1. Value stock when a choice has to be made between cost and net realisable value

2. Show the effect on stock valuation of goods in customers' hands, e.g. on sale or return and of customers’ goods on our premises

3. Adjust a stock valuation to the financial year end, when the physical stock taking occurs before or after the actual year end

4. Calculate the cost of goods stolen from stock

5. Calculate the loss of stock arising from fire, flood, etc

6. Record appropriate entries for an insurance claim arising from loss of, or damage to, stock

16:10

Students must be able to:

1. Distinguish between a private company (limited) and a public company (Public Limited Company, i.e.plc)

2. Explain the difference between preference share capital and ordinary share capital and the nature of the reward that each expects to receive

3. Explain the difference between authorised share capital and called up share capital

4. State the difference between share capital and loan capital

5. Differentiate between the types of loan capital e.g.debentures, loan stock,bank loan

6. Calculate loan interest and recognise that interest is a charge to the profit and loss account

7. Prepare a profit and loss account in vertical format to show the net profit of a company

8. Enter the payment of the company directors’fees and/or salaries in the profit and loss account

9. Prepare the appropriation section of the profit and loss account

10. Calculate dividends by using the nominal % for preference share capital and a monetary amount per share for ordinary share capital

11. Differentiate between an interim dividend and a recommended final dividend onordinary share capital

12. Calculate the retained profit for the year

13. Prepare a vertical balance sheet in good format

14. Differentiate between creditors falling due within one year and creditors falling due in more than one year

15. Differentiate between provisions and reserves

16. Determine what is included under the heading 'Capital and reserves'

17. State the significance of the main reserve headings, profit and loss, share premium, revaluation

18. Present the fixed assets on the balance sheet showing their cost, accumulated depreciation and net book value

19. Present an orderly presentation of current assets

20. Show the working capital or net current assets

10:46

Students must be able to:

1. Distinguish between a private company (limited) and a public company (Public Limited Company, i.e.plc)

2. Explain the difference between preference share capital and ordinary share capital and the nature of the reward that each expects to receive

3. Explain the difference between authorised share capital and called up share capital

4. State the difference between share capital and loan capital

5. Differentiate between the types of loan capital e.g.debentures, loan stock,bank loan

6. Calculate loan interest and recognise that interest is a charge to the profit and loss account

7. Prepare a profit and loss account in vertical format to show the net profit of a company

8. Enter the payment of the company directors’fees and/or salaries in the profit and loss account

9. Prepare the appropriation section of the profit and loss account

10. Calculate dividends by using the nominal % for preference share capital and a monetary amount per share for ordinary share capital

11. Differentiate between an interim dividend and a recommended final dividend onordinary share capital

12. Calculate the retained profit for the year

13. Prepare a vertical balance sheet in good format

14. Differentiate between creditors falling due within one year and creditors falling due in more than one year

15. Differentiate between provisions and reserves

16. Determine what is included under the heading 'Capital and reserves'

17. State the significance of the main reserve headings, profit and loss, share premium, revaluation

18. Present the fixed assets on the balance sheet showing their cost, accumulated depreciation and net book value

19. Present an orderly presentation of current assets

20. Show the working capital or net current assets

10:53

Students must be able to:

1. Calculate profit as a percentage of capital employed

2. Calculate ROCE where no funds are borrowed

3. Calculate ROCE where funds are borrowed

4. Calculate return on total shareholders' funds

5. Calculate return on ordinary shareholders' funds

6. Calculate return on total capital employed, i.e. including borrowed funds

7. Calculate gross profit as a percentage of sales (margin) and gross profit as a percentage of cost (markup)

8. Calculate net profit as a percentage of sales

9. Calculate net profit before interest charges as a percentage of sales

10. Understand the importance of measuring sales generated for each

£ of capital employed (investment)

11. Calculate turnover of capital employed i.e.sales divided by capital employed

12. State the importance of working capital

13. Identify the current/working capital ratio as being current assets to current liabilities or creditors falling due within one year

14. Calculate the current/working capital ratio

15. State the effect that certain transactions will have upon working capital

16. State the effect that certain transactions will have upon the current/working capital ratio

17. State the importance of liquidity to an organisation

18. Calculate the liquidity/acid test ratio

19. State the effect that given transactions will have upon liquid funds

20. State the effect that given transactions will have upon the liquidity/acid test ratio

21. State the importance of stock turnover

22. Calculate average stocks

23. Calculate annual rate of stock turnover, expressed as either number of times per year or as number of days

24. Calculate average time that goods are carried in stock

25. Calculate debtors’collection period

26. Calculate creditors’settlement period

27. Analyse and interpret the results of the above ratios

28. Prepare, by the use of ratios, simple planned financial statements, i.e. trading, profit and loss account and balance sheet

Section 5: Errors and control accounts
10:14

Students must be able to:

1. Explain different types of error

2. Determine which errors will prevent the trial balance from balancing and which errors will not

3. Correct errors in customer and supplier accounts where control accounts are not in use

4. Determine,where control accounts are in use, the effect of errors made in the sales ledger, as opposed to errors made in the sales ledger control account

5. Determine, where control accounts are in use, the effect of errors made in the purchases ledger, as opposed to errors made in the purchases ledger control account

6. Explain that the use of the suspense account is a temporary measure to balance the trial balance

7. Correct errors through the journal where the suspense account is unaffected

8. Correct errors through the journal where the suspense account is affected

80 pages

Answer book contains solutions to question found in the book

Let's summarize
08:06
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Instructor Biography

Christos Pittis, ERP Consultant, IT/Technology/Software Enthusiast, educator

ERP Consultant for more than nine years and experience as an Entrepreneur for eight years. Microsoft Certified Professional (MCP).

Teaching Accounting for more than eight (8) years.

1. Level 2 seller on Fiverr 

2. TOP 5% of most-viewed on SlideShare (year 2014) 

3. 21,000 + students at Udemy 

4. Author of two books


He is married with two children, and lives in the UK.


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