PBKT

PBKT

1. Task 1

   • What
     • Preparing a book of Prime Entry, using ANALYSIS columns
       • Sales Day Book
         • Sales Returns Day Book
       • Purchase Day Book
         • Purchase Returns Day Book
   • Hints and Tips
     • Calculating VAT
       • Net + 20% = Gross
       • Gross / 6 = VAT
       • Gross / 1.2 = Net
       • Gross - Net = VAT
       • Net + VAT = Gross
     • REMEMBER - The NET = The total of the Analysed Columns
   • Common Errors
     • 1) Mis-calculating VAT and or other figures. 2) Entering Net in the Total Column and Total in the Net columns
   • Questions

2. Task 2

   • What
     • Posting from Books of Prime Entry to the Main and Subsidiary Ledgers
   • Common Errors
     • Reversal of Entries
     • Posting the net Amount to the control account
     • Selecting the incorrect account names in the main and subsidiary ledgers
   • Questions
   • Hints and Tips
     • Main Ledger = DOUBLE Entry - DEAD CLIC / PEARLS
     • Subsidiary Ledgers = Detail for Customers or Suppliers - NO Double entry here
     • Start with the General/Main Ledger
     • Go from Right to left (Net to Total)
     • Net always gets posted to the NAME of the Daybook eg Sales Returns Day Book is posted to the sales returns account
     • Subsidiary Ledger is always posted to the same side as the control account

3. Task 3

   • What
     • Entering items in to a 3 column cash book
       • 20 Marks
       • Total and balance the cash book
   • Common Errors
     • Adding or subtracting the discounts from the money paid/received
     • Inserting amounts into the incorrect columns
     • Miscalculating the incorrect totals
   • Questions
   • Hints and Tips
     • Discount has already been adjusted, so no need to adjust again
     • Cheques = BANK
     • Cash = CASH
     • Bank balance may be overdraw - CR bigger that DR
     • Deal with Cash sales/purchases first, these will require VAT calculation
     • Anything for Payables or Receivables will NOT need VAT calculating

4. Task 4

   • What
     • Posting from a 3-Column cash book to the Main and Subsidiary ledgers
       • Cash book may or may not be part of the double entry system
       • 15 Marks
   • Common Errors
     • Reversal of enteries
     • Posting to the Bank/Cash accounts when the cash book is part of the double entry system
     • Selecting the wrong discount account
   • Questions
   • Hints and Tips
     • Remember if you have Dr the cash book you will need to Cr the analysis column accounts.
     • Discounts will need to be posted twice, once in the discounts account and then in the control account
     • READ THE QUESTION
     • Always think DOUBLE ENTRY, if you are Dr the bank you will need to do the opposite in the other main ledger accounts

5. Task 5

   • What
     • Maintaining a Petty Cash Book and posting to the main ledger
       • 20 Marks
   • Common Errors
     • Not reading the question
     • Selecting the incorrect account names
   • Questions
   • Hints and Tips
     • The names of the accounts to post to from the petty cash book will always match the column headers
     • Always check if there is an entry from the bank on the DR side of the PCB
     • READ THE QUESTION - Is the PCB part of the double entry system or not?
     • Imprest level will generally be what has been spent from the PCB

6. Task 6

   • What
     • Prepare a trial balance
       • 20 Marks
   • Common Errors
     • Getting Paid and Received accounts the wrong way round
     • VAT may be owed to or from, Students over look this
   • Questions
   • Hints and Tips
     • If it is Paid, think of the double entry, CR bank therefore DR other account
     • Owed to = Liability, Owed from Asset
     • Use DEAD CLIC/PEARLS

7. Task 7

   • What
     • Check Inv/CrNote against source documents
     • 15 Marks
     • Reconcile a statement to an account
     • Calculate payments to be made to a supplier
   • Common Errors
     • NOT READING THE QUESTION
     • Unable to calculate VAT when Sett Disc is involved
   • Hints and Tips
     • VAT is calculate on the LOWEST amount RECEIVABLE
     • Remember to Read the question FULLY prior to answering the task
     • Double check for Settlement Discount
   • Questions

8. Task 8

   • What
     • Complete an invoice or credit note which will include various types of discounts
       • 15 Marks
     • Check receipts from customers and identify discrepancies
     • Identify hat the purpose of a remittance advice is
   • Common Errors
     • Forgetting to calculate discounts at the correct stage of the invoice
     • Not checking that discounts may have been taken incorrectly
   • Hints and Tips
     • Trade and Bulk discount calculated before net amount
     • Settlement discount calculated on the lowest amount receivable
     • Find out what the settlement discount terms are and check that they have been applied correctly
     • Read the question properly, when should the invoice be raised?
   • Questions

9. Task 9

   • What
     • Prepare a "T" account
     • Prepare a statement of account to be sent to a customer
     • 15 Marks
   • Common Erors
     • Placing Balances on the wrong side of the T account
     • Placing balances on both sides of the account
     • Identifying what should appear on the statement of account
   • Hints and Tips
     • Remember BBB, B/d goes Below Bigger side
     • c/d = end of the time period
     • b/d = beginning of the next period
     • Read the question carefully, when are invoices due?
   • Questions

10. Task 10

    • What
      • Understand the double entry bookkeeping system
      • understand the Accounting Equation
      • Understand Capital and Revenue Transactions
      • Understand the use of Coding in accounting
      • 15 Marks
    • Common Errors
      • Not understanding the Accounting Equation
      • Not understanding the difference between Capital and Revenue
    • Hints and Tips
      • Accounting Equation = Assets - Liabilities = Capital
        • A - L = C
          • 200 - 50 = 150
      • Capital = Non-Current Assets
        • Motor Vehicle
        • Machinery
        • Office Equipment
      • Revenue = Everyday Transactions
        • Sales
        • Purchases
        • Expenses
    • Questions