[singhisking2k]

Hi,

I just need a few pointers how to succeed in AS Accounting as I am struggling at the moment to even get a grade. I am resitting unit 1 in May and also sitting unit 2, any revison or other tips to get through this?

Comments from all accounting students welcome .

Good luck everyone.

[A.A.T.]

You must have an excellent understanding of double-entry book-keeping (i.e. debits and credits) mainly for ACCN1 in order to be best prepared for the whole paper. For example, you can be expected to complete ledgers ('T' Accounts) representing credit sales i.e. debtors / trade payables and Sales account or credit purchases i.e. creditors / trade receivables and Purchases account. Knowing which side of each account to use are book-keeping skills. Cash discounts ould be involved as well as dishonoured payments. Double-entry also assists in understanding the trial balance since this is what is drawn up from balancing off all ledger accounts in order to produce a set of financial statements (Balance sheet and Income Statement). AQA tend to test specific aspets of this such as only asking for an Income Statement (new term for Trading and Profit and Loss Account) or maybe jut a balance sheet, where as OCR Unit 1 F001 is always the same in asking for both. Furthermore, book-keeping skills will also be utilised in making accounting adjustments at the end of the year to prepare a correct Balance Sheet and/or Income Statement. Unsuccessful adjustments will cause your balance sheet (if asked for) to have an imbalance.

Many marks are available for producing the financial statements and doing very well on this area will enable you to pass the paper (i.e. E grade). Unit 1 AQA also tests key terms to describe or explain, perhaps with an example. e.g. what a cheque is, what a dishonoured cheque, what non-current assets are / example of them, credit note, purchase invoice, cheque counterfoil etc (and more!). OCR does not examine much of this.

For AQA you should be familiar with what accounting is and what is involved for different types of busines e.g. sole traders / partnerships / Limited Companies. Also taking the perspective of different stakeholders and outlining specifically their interest in "the accounts" and "what accouning information" is of interest. I focus discussion on 'liquidity' vs 'profitability'. Yes profit is not the same as cash!

For AQA verification of accounting is essential so topics such as control accounts, bank renconciliation, trial balance balancing are topics to grasp. See my Youtube podcast on Control Accounts layout / pro-forma and a bank reconciliation answer I posted here for the last paper.

In terms of adjustments to the final accounts, you need to know how to calculate depreciation (straight line method for Unit 1 and reducing balance method for unit 2), provision (allowance) for doubtful debts (P.D.D) or "P.Diddy" :-) is also an adjustment for Unit 2. Writing off bad debts, being careful of bad debts written off (i.e. already removed from debtors) and bad debts 'to be' written off in your work, is also expected in unit 1 and 2.

Accruals and prepayment - essentialy this is adjusting cash received and paid during an accounting year in order to MATCH it with that year. Money received or paid during one acounting year may not necessarily relate to that Acounting period. Hence the terms "pre-payments" and "accruals" (still owing / outstanding).

I always say you learn acounting by doing accounting, looking at as many example questions as you can from texts and past papers. Even if you had 'the best teacher in the world' who gave you so many homework questions, for a credible grade you must become an 'independent learner' going beyond the set text getting other text books, seeking to tackle other questions relating to topics on the specifcation and drawing from the questions what you had to do to answer the question.

[singhisking2k]

Thanks for all that, im very greatful I will check out your youtube, do you have a link for this?

[A.A.T.]

(Original post by singhisking2k)
Thanks for all that, im very greatful I will check out your youtube, do you have a link for this?

http://www.youtube.com/user/profaccounting

[fourdigit]

(Original post by A.A.T.)
http://www.youtube.com/user/profaccounting

AAT speaks words of wisdom.

For the most of it I fell asleep in lectures and took the IB path.

[singhisking2k]

Great thanks, im struggling on Ratio analysis at the moment. And whats the IB paths?

[A.A.T.]

The International Baccalaureate (IB) is a recognized leader in the field of international education, encouraging students to be active learners, well-rounded...etc "and yet discouraged the arts!" www.ibo.org/

[singhisking2k]

Nice, I will hopefully be taking the BA Honours route in University followed by the ACCA course to become an qualifed chartered Accountant.