Accounting 0452 Help Needed

[jaideep]

I'm giving my accounting exam this year in may-june and i just cant remember the accounting principles and i also need some help in Limited Company Accounts.

 

[Star-fire]

There are 8 accountin principles ;
1-BUSINESS ENTITY: For accounting purposes, the business is treated as completely separate from the owner of that business.The owner's personal assets, the owner;s spending etc do not appear in the accounting records of the business.
2-GOING CONCERN: Accounting always assumes that the business will continue to operate fo an indefinite period of time.
3-DUALITY: In accounting, all entries are made on the basis that for every transaction there are two aspects – a giving and a
receiving. The term double entry is used to describe how the dual aspect of all transaction is recorded.
4-REALISATION: In accounting, Profit is regarded as being earned at the time the goods or services pass to
the customer.
5-MONEY MEASUREMENT: the accounts of a business only record information which can be expressed in monetary terms. The value of good manager, a loyal workforce are of great benefit to a business but cannot be included in the accounts.
6-CONSISTENCY: In some areas of accounting, a choice of method is available, e.g. depreciation. The accounting method which is likely to give the most realistic outcome should be selected, once a certain method is chosen it should be applied consistently from year to year.
7-MATCHING: the profit is calculated by matching the revenue of the period against the costs of the same period The figures shown in the trading and profit and loss account should relate to the period of time covered by that account , it is therefore necessary to adjust the items of income and expense for amounts prepaid or accrued
8-PRUDENCE: This concept is sometimes known as conservatism. “Never anticipate a profit, but provide for all possible losses “
The accountant should be cautious and always avoid overstating profit, overvaluing assets and understating
liabilities.

 

[jaideep]

Thanks

 

[omar hazem]

I have accounting exam next 29 but I need more help in the preparing of the profit appropriation and the balance sheet of the limited companies and what is meant by limited companies??
i hope the reply soon isA

 

[omar hazem]

please in nov 11 paper 11 the last question part c the first row and part d, I need more help in answering them correct

 

[Dinuka Malith]

Hmm can anyone tell me why provision for doubtful debts is not included in the sales ledger control account?

 

[TheBaller23]

Hmm can anyone tell me why provision for doubtful debts is not included in the sales ledger control account?

Because it is an estimate of the total debtors which are feared to be ended up as a bad debt.. Bad Debts on the other hand ARE recorded as a credit balance in the total debtors a/c because it is the amount in which debtors have already been written off and act as an expense to the business..

 

[lol]

Hmm can anyone tell me why provision for doubtful debts is not included in the sales ledger control account?

Sales Ledger control account is basically a total debtors account. youre turning all the accounts in the sales (customer's) ledger into one account. we never include PDD in a customer's account, so naturally we wont do that in SLC a/c either. only transactions between a business and its customers are recorded in SLC, PDD is not a transaction its just a provision of an estimate of what the business thinks will be its bad debts for the year