Learn the statement of financial position layout and the accounting equation, assets minus liabilities equals capital, with current and non-current assets, tangible and intangible assets, and key liabilities.

Identify and compute the SPL proforma for a 12-month accounting period by deriving gross profit from sales minus cost of goods sold, then deducting expenses to net profit.

Implement policies and procedures to present income statement and balance sheet accurately and timely for stakeholders, with controls like authorization, reconciliations, physical control, and segregation of duties.

Explore fundamental ethical principles guiding accountants, including integrity, objectivity, professional competence, due care, confidentiality, and professional behavior, and their public-interest responsibilities.

Learners will identify threats to ethical principles in accounting, including self‑interest, self‑review, advocacy, familiarity, and intimidation, and apply accruals concepts to ensure accurate year‑end reporting.

Learn to distinguish capital expenditure from revenue expenditure, calculate capitalization thresholds, and prepare non-current asset records with costs like delivery, installation, and professional fees.

Authorize capital expenditure to prevent unauthorized spending and ensure needed assets are purchased after market research, with levels from supervisor to owner and funding options like cash or loans.

Capitalize the machine cost including delivery, installation, and professional fees; classify maintenance and advertising as revenue expenditure, apply capitalization thresholds over 100, and note funding methods and VAT treatment.

Explore depreciation for non-current assets, covering straight line, reducing balance, and units of production methods, and how to spread cost over useful life with accruals and residual value.

Learn to calculate depreciation using the units of production method, charging based on actual usage with the formula number of units divided by total units times cost.

learn to depreciate assets acquired partway through the year using either full-year depreciation or pro rata month-by-month under straight-line, and to compute carrying amount and depreciation at year end.

Explore how depreciation affects financial statements, recording the depreciation charge and accumulated depreciation through double-entry bookkeeping, using straight-line method and the carrying value of non-current assets.

Explore depreciation concepts for a non-current asset, applying accruals and matching principles to different methods (straight-line, diminishing balance, units basis), calculate carrying amounts, and consider residual value.

Explore advanced bookkeeping concepts by testing knowledge on non-current assets, depreciation, and disposal mechanics, including accruals, cost removal, accumulated depreciation, sale proceeds, and part exchange.

Learn to reverse accrued expenses by debiting the accrued expense and crediting the related expense, transferring the prior year's closing to this year's opening, and updating the SFP and P&L.

Learn how prepaid expenses create a current asset on the statement of financial position and reduce expenses in the next period, illustrated by a £1,000 insurance payment for 2018.

Explore reversing prepaid expenses by offsetting opening prepaid against the SPL and crediting the SFP, with a rent example showing closing prepaid adjustments and journal entries.

Learn how to reverse accrued income by debiting income and crediting accrued income, updating the balance sheet and income statement with proper narrative adjustments.

Apply the papa ala mnemonic to open and close prepaid and accrued items, and compute expense and income impacts for the SPL and SFP using rent prepaid and commission income.

Explore how accruals, prepaid income and expenses, and double-entry journal entries affect the year-end financial position at 31 December 2018, including rent prepayments and income due.

Explore how inventories as current assets influence cost of sales and profit, apply the lower of cost and net realizable value under prudence, and record year-end closing inventory journal entry.

Learn to derive inventory cost from selling price by subtracting profit, with and without VAT, using practical illustrations for non-VAT and VAT-registered businesses.

Explore closing inventory reconciliation by comparing physical counts with computerized records, identify discrepancies from damaged, stolen, or unrecorded items, and understand common causes and adjustments.

Apply the lower of cost and net realizable value rule to inventories, compute net realizable value using selling and completion costs, and prepare closing inventory journals.

Adjust the doubtful debt allowance from opening to closing, then apply the three steps to determine whether increases are expenses in the SPL or decreases are income.

Take a knowledge test on advanced bookkeeping seven, identify that a doubtful debt adjustment affects the statement of profit and loss and the statement of financial position.

Practice calculating irrecoverable debt journal entries, recoveries, and adjustments in the sales ledger control account, updating trial balances and allowances for doubtful debt, including specific and general allowances.

Explore bank reconciliation by comparing cash book balance with the bank statement, addressing timing differences, unrecorded lodgement, unpresented cheques, standing orders, direct debits, and bank errors.

Learn to update the cash book and perform bank reconciliation by comparing debit and credit sides, handling unticked items, and reconciling outstanding lodgements and unpresented cheques to the adjusted balance.

Learn to adjust the cash book and prepare a bank reconciliation, identifying which items affect the cash book or the bank statement, using unrecorded lodgements and unpresented checks.

Reconcile cash book and bank statement by applying adjustments for unrecorded lodgement, unpresented checks, errors, and bank charges to produce a corrected balance.

Apply bank reconciliation concepts to determine debit and credit entries in the cash book and bank statement, including unpresented checks, unrecorded lodgement, and faster payments.

Explore control account reconciliations, including sales ledger control account and purchase ledger control account, and learn how to reconcile individual balances with the respective totals.

Reconcile the sales ledger with the sales ledger control account by tracing credit sales, discounts allowed, credit notes, and sales returns recorded in the sales day book.

Reconcile the supplier statement with the purchase ledger by matching invoices, credit notes, discounts, and payments to verify the balance due on the supplier's monthly statement.

Explore the prompt payment discount, an early payment incentive, and how it affects ledgers for credit sales and purchases, including discount allowed, VAT treatment, and the sales ledger control account.

Practice controller account reconciliation for the sales ledger, identify errors affecting the control and subsidiary ledgers, and make necessary adjustments to achieve balance.

Learn to record and balance sales and purchase ledger control accounts, applying discounts, returns, and contra entries, with payroll basics including HMRC liabilities.