Advanced Bookkeeping
What Will You Learn?
There are nine lessons to the
course and a resume of these is as follows:-
Lesson 1 :- Suspense Accounts and the use of the Journal
This lesson
introduces and explains clearly the use of the Journal with an emphasis on
the correction of errors. The operation of a Suspense Account as part of
the Double Entry Book-Keeping system is also explained.
Lesson 2 :- Introduction to Consolidated Company Accounts
Group structure,
i.e. the acquisition of one company by another, and the accounting
requirements for Consolidated Profit and Loss Accounts and Balance Sheets.
Lesson 3 :- Manufacturing Accounts
Many firms make their own finished
products through the operation of their own manufacturing process. The
relationship between different classifications of costs is explained
together with the presentation of these costs in the form of
Manufacturing, Trading and Profit and Loss Accounts.
Lesson 4 :- Partnership Accounts
Many businesses will be formed as a
Partnership. This lesson shows exactly what the Partnership Agreement
should contain. The appropriation of profits to the partners, after
adjusting for the provisions contained in the Partnership Agreement, is
also clearly and concisely explained.
Lesson 5 :- Limited Companies
Most businesses will be formed under the
Companies Act. The concept of Limited Liability is taught together with
all the requirements made by the Act. Different classes of share capital
are introduced together with an explanation of the operation of loan
capital.
Lesson 6 :- Cash Budgets and Projections
Corporate business plans are
introduced in Lesson 6. The preparation of a Cash Flow Projection is fully
covered. This is most important as almost every business which needs to
raise capital from a lending source must make a presentation in the form
of a Cash Flow Projection. Also shown is the preparation of forecast
Profit and Loss Account and Balance Sheets.
Lesson 7 :- Marginal Costing and Break Even Analysis
The relationship
between the types of cost demonstrated in Lesson 3 are expanded. The
function of costs is also explained together with the impact of their
function on the production planning process.
Break Even Analysis is
introduced to show the importance to management of knowing (a) the number
of units required to be produced and sold to break even and (b) the number
of units to be produced and sold to obtain predetermined required net
profit.
Lesson 8 :- Interpretation of Accounts and Stock Market Ratios
This shows
the student how to use ratio analysis to assess corporate financial
performance and thus determine the risk involved in a particular company.
The ratios shown in the financial press are also shown and explained in
such a manner as to allow the student to know exactly how these are
computed and the meaning of quoted ratios and yields.
Lesson 9 :- Income Tax on Trading Profits
The difference between trading
profits and those which will ultimately be assessed to income tax is shown
together with the mechanics of the preparation of the tax computation for
submission to the Inspector of Taxes. The tax rules allow for different
treatment of the assessable profits in the opening year of a business.
These are explained together with the advantages to be gained in the
application of these special provisions.
