FAC1601-Financial Accounting Reporting

Independent tuition and support for the UNISA module FAC1601 - Financial Accounting Reporting
5.0 (3 ratings) Instead of using a simple lifetime average, Udemy calculates a
course's star rating by considering a number of different factors
such as the number of ratings, the age of ratings, and the
likelihood of fraudulent ratings.
23 students enrolled
$80
Take This Course
  • Lectures 203
  • Contents Video: 17.5 hours
    Other: 6 hours
  • Skill Level Beginner Level
  • Languages English
  • Includes Lifetime access
    30 day money back guarantee!
    Available on iOS and Android
    Certificate of Completion
Wishlisted Wishlist

How taking a course works

Discover

Find online courses made by experts from around the world.

Learn

Take your courses with you and learn anywhere, anytime.

Master

Learn and practice real-world skills and achieve your goals.

About This Course

Published 7/2015 English

Course Description

This course is designed to replicate Richard Starkey's (the primary instructor) face to face classes for students studying through UNISA, specifically for the FAC1601 Module. The online version of the classes are more suited to most of our clients as the lectures are broken down into shorter sections and are available on demand - so you get to study at times that are convenient to you!

This course summarises the necessary theory for each of the study units within FAC1601, and provides you with a systematic approach to passing your exam that you will write with UNISA.

Many non UNISA students have found our FAC1502 and FAC1601 courses useful as a foundation in accounting and finance, so feel free to sign up even if you are not registered to study with UNISA.

The teaching approach is as follows:

  • You will need to download my course notes and summaries, and have them ready to make notes and perform workings while watching my lectures and tutorials;
  • I cover the theory in short, principle based lectures that are designed to teach you the theories and principles you need in the most efficient manner;
  • I then work through exam type questions with you to teach you exam technique to ensure you pass your UNISA exam.

The course is structured to be aligned with the UNISA Study Units, and should be easy to follow and complete.How long is the course?The course is designed around a UNISA semester, and therefore the course should take 10 to 13 weeks to complete depending on your weekly study time commitment. Your best chance of success is to start early in the semester and work consistently throughout a semester. Semester 1 runs from February to May, and Semester 2 runs from July to October.Final thoughts from the instructor (Richard Starkey) I truly believe that this course will be your best chance at passing this very tough module with UNISA. For those of you competing for personal development purposes, you will find this to be a great foundation course especially if you register for the FAC1502 course with us as well. Don't struggle to pass this exam on your own, join this course and let Richard and the Tabaldi Team help improve your chances of success!

What are the requirements?

  • Students studying their BCom through UNISA would have needed to complete the module FAC1502 as a foundation
  • It is important to understand the accounting equation: Assets = Equity + Liabilities
  • No additional software or resources are required, everything you need is included in this course.

What am I going to get from this course?

  • Pass your FAC1601 Accounting Exam with UNISA!
  • Account for partnerships, including changes in partners and liquidations.
  • Draft financial statements for Close Corporations
  • Understand cash flow statements
  • Perform basic financial statement analysis using financial ratios
  • Calculate tive value of money calculations including present value and future value calculations, as well as basic annuities

What is the target audience?

  • This course is specifically designed for students studying FAC1601 accounting module through University of South Africa (UNISA)
  • South African accountants and business owners may find this course useful as a foundation for understanding basics of finance

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

Section 1: INTRODUCTION,GUIDANCE AND OVERVIEW
08:03

Hi everyone, I am so excited about helping you achieve success in this module! This module has a nasty reputation as being a course killer, so if you are repeating you are not alone! If it is your first time, don't be intimidated - I will be here with you every step of the way. Watch this short video to get to know me, we are going to be spending a lot of time together over the next few weeks.

Section 2: SU 1 (A):INTRODUCTION TO THE PREPARATION OF FINANCIAL STATEMENTS
33 pages

Please download these summaries (all in pdf format) - you will need to write on the summaries and work with your mentor while working through the lectures. Please note that the layout is set as two slides per page and consists of a total of 33 pages.

04:14

Open your UNISA study guide to SU 1 and let's begin!

07:03

IFRS is the acronym for International Financial Reporting Standards.

In summary,

IFRS are a set of rules developed by the IASB to make sure that financial statements are prepared consistently for companies so that:

  • Users can compare the financial results and performance from the current year to prior years for the same company,
  • as well as making it possible for users to compare the financial position and performance of one company with another.
14:14

This video summarises the most important concepts in The Conceptual Framework for Financial Reporting.

This lecture will answer the following questions:

1. What is the Conceptual Framework?

2. What is the objective of the Conceptual Framework?

3. What are the qualitative characteristics of useful information?

4. What are the underlying assumptions for general purpose financial statements (Going Concern and Accrual Basis)

15:22

What are the elements per the conceptual framework and the related recognition criteria for the elements (assets / liabilities / equity / income and expenses)?

Asset definition (INFOGRAPHIC)
1 page
Liability definition (INFOGRAPHIC)
1 page
Measurement of the elements of financial statements (READ)
Article
Concepts of Capital and Capital Maintenance (READ)
Article
Article

Important definitions per IAS 1. You will not be tested directly on these definitions but you must read through them as they are used throughout this and future courses.

06:26

IAS 1 discusses the purpose of financial statements and what should be included in the financial statements to meet the objective of this purpose.

14:10

Do you know the structure of the Statement of Financial Position? IAS 1 prescribes the minimum content and overall structure for each of the statements.

You must learn this structure before proceeding with further studies, remember that the structure including the presentation and naming of each statement will score marks in the exam. HAVE A PEN AND PAPER READY - YOU ARE GOING TO WRITE THESE FORMATS OUT WITH RICHARD AS THERE IS NO DOWNLOADABLE VERSION. I need you to learn this properly so you can write these out easily in the exam.

13:18

Do you know the structure of the Statement of Profit or Loss and Other Comprehensive Income? IAS 1 prescribes the minimum content and overall structure for each of the statements.

You must learn this structure before proceeding with further studies!

06:00

Do you know the structure of the Statement of Changes in Equity? IAS 1 prescribes the minimum content and overall structure for each of the statements.

You must learn this structure before proceeding with further studies!

8 pages

If you desperately want a downloadable format you can download these handwritten formats that I did during lectures 12 to 14, BUT you should have written them out (REPEATEDLY) already. Please note that the layout is set as one slide per page and consists of a total of 8 slides.

Section 3: SU 1 (B): INTRODUCTION TO THE PREPARATION OF FINANCIAL STATEMENTS
8 pages

Please download these summaries (all in pdf format) on financial instruments - you will need to write on the summaries and work with your mentor while working through the lectures. Please note that the layout is set as 2 slides per page and consists of a total of 8 pages.

05:54

This course only touches on financial instruments in a very basic way. This theory will give you the basic run down of what you need to know about financial instruments to achieve the learning outcomes for FAC1601.

08:56

This course will focus on working with and accounting for financial assets that are subsequently measured at fair value through profit or loss. This may all sound a bit complex, but the good news is that the journals are straight forward and easy to learn and master!

This video works through an illustrative example with you to give you a feel for what you may be required to do in this module.

4 pages

Exercise 1.1 from the UNISA study guide.

12:29

Please attempt Exercise 1.1 part (m) from your FAC1601 study guide, do so without looking at the solution at all. Once you have made your best attempt turn to the solution and watch this video to see where it is you went wrong (if at all).

Section 4: SU 2: ESTABLISHMENT AND FINANCIAL STATEMENT OF A PARTNERSHIP
38 pages

Please download these summary notes for Study Unit 2 for working through along with your mentor. The handout consists of 76 slides, set as 2 slides per page on 38 pages.

03:27

A brief introduction to partnerships, as well as a discussion of the reasons for the formation of a partnership.

06:49

Is a partnership a separate legal entity? No,it is not a separate legal entity and is similar conceptually to a sole proprietor in that way. This video will discuss the establishment of a partnership and the partnership agreement, the dissolution of a partnership as well as the concept of partners being held jointly and severably liable for the debts of the partnership. All important concepts before you proceed with the accounting.

03:40

You were introduced to the concept of Capital Accounts in FAC1502 in the contect of Sole Proprietors. Capital Accounts are therefore familiar for you, and we then introduce the concept of Current Accounts within a partnership. Both the Capital Accounts and Current Accounts are Owners Equity and must be differentiated from loans from Partners which are liabilities. This interactive infographic will clarify these three types of account classifications as a basis for further accounting lectures on the topic.

06:15

Capital accounts must be opened for each partner to account for each partners permanent fixed investment in the partnership.

This video will teach you how to record the initial investment by the partners, as well as withdrawals from the capital accounts. Learn the journals please, you will need them!

07:40

Each partner will have a current account to account for the transactions affecting the partners interest in the current financial year, in other words for the day to day equity transactions.These transactions will include partners salaries, interest on capital account, drawings and current accounts.

Remember that a current account may have a debit or a credit balance!

03:56

Drawings accounts are used to record any drawings from the partnership, other than withdrawals of capital (those go to the Capital Accounts). Drawings are normally in the form of cash, but may include stock or partnership assets taken for personal use.

At the end of the period the balance on the drawings account is transferred to the current account of the partner.

Note that the use of a Drawings account is not compulsory, but only used if stipulated in the partnership agreement.

Reserves (READ)
Article
11:11

Remember that loan accounts are NOT part of equity. There are one of two scenarios for loan accounts:

  1. Partner lends money to the partnership - a liability for the partnership;
  2. Partnership lends money to a partner - an asset for the partnership

Please also note that interest expense and interest income are not recorded in the appropriation account, but in the profit or loss section under finance charges and other income respectively.

05:12

A brief overview of the closing accounts that will be used for partnerships. These closing accounts will all close out to R Nil balance and have the final goal of allocating profits to the partners individual equity accounts via their individual current accounts.

15:07

The Trading Account is the first closing account that you will use in partnership accounting. This account is used to close off the sales and cost of sales accounts, and will calculate gross profit before transfering GP to the Profit or Loss Account

06:39

Once you have transferred the Gross Profit from the Trading Account into the Profit or Loss Account, you must close off the other income and the other expense accounts to the profit or loss account.

The balance on the Profit and Loss Account will hopefully be a profit and be called Net Profit. We will then "appropriate" this profit to the Appropriation Account to be made available for allocation to partners.

09:10

The Appropriation Account is unique to partnership accounting. In this account we will transfer the Net Profit from the Profit or Loss Account, as well as close out the Interest on Capital Account, Current Accounts and Drawings Accounts. Any Salaries / Bonuses or Commissions allocated to Partners (addressed under the Current Account) will also be closed out to the Appropriation Account. If the partners decide to transfer a portion of profits to a reserve for the business, it is here in this closing account that we will do this transfer.

Finally, we will transfer any balance on the Appropriation Account to the individual Current Accounts of the partners, and always leave the Appropriation Account with a R Nil balance.

02:05

Remember to close out the Drawings Account to the Current Account at the end of the year.

06:14

This video then reviews the Current Account general ledger as a summary of all allocations to each of the partners.

5 pages

Illustrative download of the Statement of Profit or Loss and Other Comprehensive Income for a partnership.

Please note that interest income and interest expense are disclosed separately and we do not include the partner salaries / commission, nor interest on Partner Capital Accounts, Current Accounts or Drawings Account in the Profit or Loss section as these go straight to the Statement of Changes in Equity in the Appropriation Account.

1 page

Illustrative download of the Statement of Changes in Equity for a partnership.

Please note that partner salaries / commission, interest on Partner Capital Accounts, Current Accounts or Drawings Account are recorded in the Appropriation Account. The Appropriation Account is also used to transfer amounts to other reserves (such as the asset replacement reserve) and must always equal RNil at the end of the year as the final balance is transferred to the partners current accounts.

1 page

Illustrative download of the Statement of Financial Position for a partnership.

Very similar to the illustrative Statement you learnt in SU1, but please note that the equity component is different for a partnership and must always have a capital account and current account disclosure.

09:46

In this video Richard reads through the information and the required with you, and teaches you how to think and what to look out for while doing your first read of the question.

Please note that many of the workings and calculations for the solution are covered in this video.

11:50

In this video Richard reads through the information and the required with you, and teaches you how to think and what to look out for while doing your first read of the question.

Please note that many of the workings and calculations for the solution are covered in this video.

08:26

Richard works through the journals and the general ledger that he taught you over the last few video lectures.

Remember that the journals and the general ledger are taught in order to ensure that you are following the correct and logical thought process, and that you have a strong foundation.

It is unlikely that you will be tested directly on the journals, at the most you can use them as workings - once you are very comfortable with this section you don't have to write out the journals and sometimes not even the GL, but make sure you can if asked to!

16:54

Richard works through the journals and the general ledger that he taught you over the last few video lectures.

Remember that the journals and the general ledger are taught in order to ensure that you are following the correct and logical thought process, and that you have a strong foundation.

It is unlikely that you will be tested directly on the journals, at the most you can use them as workings - once you are very comfortable with this section you don't have to write out the journals and sometimes not even the GL, but make sure you can if asked to!

08:34

The required (part b) asked you to draft the general ledger T Accounts for both the partners Current Accounts.

This video recaps where the figures came from (the previous lecture) and then Richard draws up the Current Accounts in the general ledger.

08:14

Part a (i) of the required asks you to draft the Statement of Profit or Loss and Other Comprehensive Income. Richard draws up this statement from scratch the same way you needed to - this should help with your exam technique.

Remember, you did not need to do any journals or general ledger accounts (trading account and profit or loss account) to complete this part of the required. If you understand the flow from the individual income and expense accounts to the Trading and the Profit or Loss Accounts you could actually start straight away with the required and save time.

08:52

Part a (ii) of the required asks you to draft the Statement of Changes in Equity.

This one can be tough everyone, but the format and process is consistent so work through with Richard and then practice, practice, practice.

Note that although Richard has done the Appropriation Account in previous lectures, you don't have to for this required if it were a exam. If you understand the journals and general ledger you can take the numbers straight into this statement. Please just remember to reference to any workings or calculations that you do so that the marker can give you the marks even if you make a small error.

12:28

Part a (iii) of the required asks you to draft the Statement of Financial Position and (iv) asks for the notes.

Richard works through the UNISA solution, and spends some time specifically on the PPE note and the note on Financial Liabilities.

Section 5: SU 3: CHANGES IN THE OWNERSHIP STRUCTURE OF PARTNERSHIPS
38 pages

Please download these summaries (all in pdf format) - you will need to write on the summaries and work with your mentor while working through the lectures. Please note that the layout is set as one slide per page and consists of a total of 76 slides, printed 2 slides per page on 38 pages.

03:50

An introduction to some of the concepts underlying changes in the ownership structure of partnerships.

Remember that partnerships are not seperate legal entities and are purely based on a partnership (written or oral) between partners. Hence, if the number of partners changes either by admission of a new partner, the retirement or death of a partner - the old existing partnership is dissolved and a new partner is formed.

Practically the business of the partnership will usually continue trading and therefore we have to follow a process for accounting for this dissolution of the old partnership and opening the new partnership.

03:40

Partners will want to make sure that their equity (assets - liabilities) is a fair representation of the value of their percentage of the net assets in the partnership.

Therefore, before we start to dissolve or change the ownership percentage of a partnership we must ensure that all assets and liabilities in the partnership are recorded at their fair values.

For this purpose we use the Valuation Account.

01:57

The valuation adjustments to assets and liabiities have all been recorded in the Valuation Account.

We must now close off the Valuation Account to the Capital Account of the old existing partners in the old existing profit sharing ratio (including the retiring / dead partner).

3 pages

Extract from the UNISA study guide. No amendments have been made in Tut102 (2015) so work from the Study Guide.

14:54

Work through UNISA Study Guide exercise 3.1 - this covers steps 1 & 2 practically. Try this by yourself before watching the video. Making mistakes is an important part of the learning process!

02:04

We close off the Current Accounts for each of the partners to the individual Capital Accounts. Please remember that Current Accounts can have a debit or a credit balance!

01:22

We close off the Drawings Accounts for each of the partners to the individual Capital Accounts. No need to close the Drawings Accounts off to the Current Accounts like we did for a normal year end.

02:25

We close off any reserves (such as the Revaluation Reserve or the Asset Replacement Reserve) to the individual Capital Accounts in the old existing partners profit sharing ratios (including the retiring/deceased partner).

The partners may choose to reinstate any reserves in the new partnership.

UNISA used to include the Asset Replacement Reserve frequently, but are moving to the more modern account - the Revaluation Surplus. Same accounting process, just different names.

06:14

Upon admission of a new partner, it may become evident that the contribution of the new partner comes to a higher amount than the net assets (Assets - Liabilities all at fair value).

If this is the case, Goodwill acquired needs to be recognised for the existing partners before admitting the new partner. The calculation can be a bit tricky until you are well practised!

02:30

After the final Capital Accounts are calculated, any retiring partner (including the estate of a deceased partner) will need to be paid out. If paid out immediately it will affect bank, otherwise a loan account is created.

04:44

To dissolve the old partnership we transfer all the debit balance items (the asset accounts) to the Transferral Account, and then all the credit balance (equity and liability) accounts to the same Transferral Account.

The Transferral Account balance to zero and then the old partnership is dissolved!

04:02

We form the new partnership accounts by first recognising the capital contribution of the old partners, and then the capital contribution of the new partner.

Remember to recognise the original partners contribution (all the assets and liabilities from the old partnership) in the correct ratio in a seperate journal for each original partner entering the new partnership.

01:48

During the dissolution of the old partnership we allocated any reserve accounts (such as the Asset Replacement Reserve) back to the original partners Capital Accounts.

The partners may choose to reinstate any reserves in the new partnership - look out for this in the question as it will need to tell you specifically to do so.

06:15

Once the new partnership accounts are setup, the Capital Accounts may not be in line with the profit sharing ratios agreed for the new partnership.

If the partners choose, and the question tells you to do so, you will have to adjust the Capital Accounts and record the relevent contributions or withdrawals of cash by the partners.

11:45

This video runs through some basic fraction calculations when a new partner is admitted:

  • a. Original partners share reduction proportionately
  • b. Original partners share reduction equally
  • c. New profit sharing ratio altogether
01:40

This video runs through some basic fraction calculations when a partner retires or dies.

04:31

This video runs through some basic fraction calculations when a partner retires or dies, and another partner is admitted concurrently.

5 pages

Extract from the UNISA study guide. Please note that there has been an amendment to this question in Tut 102. The change has been that the question now references a Revaluation Surplus instead of the Asset Replacement Reserve. The accounting is the same, but the Revaluation Surplus is more relevant in modern accounting practice. Please note I still use the original question which references the Asset Replacement Reserve - you can substitute for the Revaluation Surplus account without a problem.

06:31

Richard reads through the question (exercise 3.2) information and required with you to get you started.

Please note that Tut 102 has had a minor change to this original question. In tut102 the Asset Replacement Reserve account has been changed to the Revaluation Surplus account - both are treated the same so do not let this worry you.

11:16

In this video, Richard will do the journals that he has taught you in the step by step format you have learnt.

This video covers steps 1 - 8 which involve the dissolution of the old partnership. The video is a bit longer than most of our videos (just over 28 minutes) as Richard writes the journals out by hand with you to give you a feel for the process in the exam.

If you are working from the Tut102 (2015) amended question, please exchange my account name (Asset Replacement Reserve) to the Revaluation Surplus Account.

17:34

In this video, Richard will do the journals that he has taught you in the step by step format you have learnt.

This video covers steps 1 - 8 which involve the dissolution of the old partnership. The video is a bit longer than most of our videos (just over 28 minutes) as Richard writes the journals out by hand with you to give you a feel for the process in the exam.

If you are working from the Tut102 (2015) amended question, please exchange my account name (Asset Replacement Reserve) to the Revaluation Surplus Account.

HW Ex3.2 b - Formation of the new partnership (Steps 9 - 11- Part 1) (VIDEO)
11:25
12:03

In this video, Richard will do the journals that he has taught you in the step by step format you have learnt.

This video covers steps 9 - 11 which involve the formation of the new partnership. Just a note on step 10 regarding the settlement of a retiring partner, here some basic logic needs to be applied as if there is no retiring partner (as is the case in this question), then there does not need to be any journal for a settlement via bank or loan. Look out for this in the question and read the information provided carefully.

07:53

The end game - this is what all the journals and general ledgers come to....... the financial statements.

This exercise 3.2 only asks for the Statement of Financial Position (SFP), and if you have done the journals the SFP is really easy (assuming you know the format!).

At the end of the video Richard makes a few important comments on the narration of journals if the required specifically asks for journals - NB do narrations as there are marks for them!

Section 6: SU 4:THE LIQUIDATION OF A PARTNERSHIP
29 pages

Please download these summaries (all in pdf format) for the first part of SU 4 on Simultaneous Liquidations - you will need to write on the summaries and work with your mentor while working through the lectures. Please note that the layout is set as 2 slides per page and consists of a total of 29 pages.

03:53

A high level overview and some important background to the liquidation of partnerships.

03:56

Remember, we are selling the assets and settling the liabilities in a very short period of time with a simultaneous liquidation - so all of these steps need to happen very close together.

01:48

We close off the Current Accounts for each of the partners to the individual Capital Accounts. Please remember that Current Accounts can have a debit or a credit balance!

01:31

We close off the Drawings Accounts for each of the partners to the individual Capital Accounts. No need to close the Drawings Accounts off to the Current Accounts like we did for a normal year end.

02:28

Goodwill cannot be sold upon liquidation and is therefore derecognised and the balance on the Goodwill account is transferred to the Capital Accounts of the partners in their profit sharing ratio.

02:07

We close off any reserves (such as the Asset Replacement Reserve and the Revaluation Surplus) to the individual Capital Accounts in the partners profit sharing ratios.

06:03

Close off all asset account balances (incuding negative sub accounts such as depreciation and allowance for credit losses) to the Liquidation Account. Remember to use the carrying amounts for this journal.

You will also need to transfer all liability balance account to the liquidation account.

04:26

All the partnership assets will either be sold for cash or taken over by a partner. Record this liquidation (realisation for cash) in the liquidation account, but remember that the proceeds are not likely to be the same as the carry amounts of the assets!

To state the obvious, the cash receipts will also need to be recorded in the Bank Account.

01:58

Liquidation costs are given preference over other liquidation payments which means they are paid first.

These costs will reduce the Bank Account (with a credit) and will be debited directly to the Liquidation Account.

01:56

The partnership may receive some final income or have to pay some further expenses, record these in the Bank Account and the Liquidation Account.

02:37

All the partnership liabilities will then be settled after cash has been received. Remember that this section is dealing with simultaneous liquidation so we assume that all assets are sold at once and we have sufficient cash to settle liabilities.

Look out for discounts on the creditors control account - ie you agree with suppliers to pay a discount on settlement, this will result in a cash payment that is lower than the carrying amount of creditors control.

04:15

The liquidation account must be closed off and transferred to the partners Capital Accounts in line with the profit sharing ratio.

Calculate the debit and credit sides in the Liquidation Account, and assuming the credit side is larger than the debit, you will then debit the Liquidation Account with the balancing difference, but remember to split this balancing figure between the Capital Accounts per the profit sharing ratio.

04:01

The last step in a simultaneous liquidation is to settle the partners capital accounts by making a final cash payment in line with the balances of the individual Capital Accounts.

The partnership is now liquidated and all accounting ceases.

17 pages

Please download these summaries (all in pdf format) for the second and more tested part of SU 4 on Piecemeal Liquidations - you will need to write on the summaries and work with your mentor while working through the lectures. Please note that the layout is set as 2 slides per page and consists of a total of 17 pages.

05:58

Read through this question and the information with Richard to work on your exam question reading technique.

11:33

Richard works through the solution, focussing on the steps given along with the journals and how they relate to the general ledger part of the solution.

Remember that you are not asked for the journals, but for now you must work with the journals to form a habit of thinking correctly. Once you master this process you can remove the journals and go straight to the general ledgers or whatever the required of the question is, and you will do this easily without missing anything because you will know the journals and the logical steps off by heart!

14:39

Richard works through the solution, focusing on the steps given along with the journals and how they relate to the general ledger part of the solution.

Remember that you are not asked for the journals, but for now you must work with the journals to form a habit of thinking correctly. Once you master this process you can remove the journals and go straight to the general ledgers or whatever the required of the question is, and you will do this easily without missing anything because you will know the journals and the logical steps off by heart!

07:46

Piecemeal liquidation is tested more than simultaneous liquidation, and is a bit trickier. Remember that with a piecemeal liquidation you will sell the assets piece by piece over a period of time. The tricky part is that you will first settle expenses and liabilities, but then you have to make an estimate of how much to payout to partners for interim payments before all the rest of the assets are sold.

08:01

Steps 1 to 4 are the same as they were for a simultaneous liquidation. I do introduce a new concept, namely that I summarise the general ledger and the journal movements therein in a tabular format. This is in line with UNISA and the prescribed text book. The table debits and credits being represented as positive and negative numbers is a bit tricky so pay attention to this new aspect.

05:29

Under piecemeal liquidation we do not use a liquidation account. We record the sale of the individual assets by debiting bank with the cash received (equal to the selling price) and crediting the carrying amount of the asset. These two values are generally not the same, and the resulting balancing figure (gain or loss) is taken directly to the Capital Accounts of the partners in their profit sharing ratio.

03:19

Similar in concept to the simultaneous liquidation, except that we do not use a liquidation account.

Liquidisation costs are also not always paid in cash when it comes to piecemeal liquidation so you may have to raise a creditor as well as a bank payment.

Students Who Viewed This Course Also Viewed

  • Loading
  • Loading
  • Loading

Instructor Biography

Tabaldi Accounting Education, Accounting and Financial Reporting specialists

Tabaldi Education is an organisation that specialises in Accounting and Financial Reporting training and consulting.

Our lecturing team at Tabaldi consists of a group of highly qualified Chartered Accountants who have lectured at undergraduate and postgraduate level, as well as having presented professional accounting training around the world.

Richard Starkey one of Tabaldi's leading lecturers has had years of experience lecturing and consulting for large international corporates, including the big four audit firms within South Africa. Listed companies in Europe, Africa and the Middle East. Richard is passionate about helping people master the basic principles of financial reporting, and takes an interactive journal driven approach to his lectures.

Ready to start learning?
Take This Course