{"product_id":"accounting-o-level-theory-and-practice","title":"105 Accounting O Level Theory and Practice","description":"\u003cp\u003e\u003c\/p\u003e\u003ch2\u003e105 Accounting O Level Theory and Practice | Read \u0026amp; Write Publications.\u003c\/h2\u003e\u003cbr\u003e\u003cstrong\u003eTABLE OF CONTENTS\u003c\/strong\u003e\u003cbr\u003e\u003ch3\u003e\n\u003cstrong\u003ePREFACE\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e(\u003c\/strong\u003e105 Accounting O Level Theory and Practice\u003cstrong\u003e)\u003c\/strong\u003e\n\u003c\/h3\u003e\u003cbr\u003e\u003ch3\u003e\u003cstrong\u003eCHAPTER 1A BOOKKEEPING AND ACCOUNTING\u003c\/strong\u003e\u003c\/h3\u003e\u003cbr\u003e\u003cstrong\u003e1A.1 BRANCHES OF ACCOUNTING\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e1 A.2 ACCOUNTING EQUATION\u003c\/strong\u003e\u003cbr\u003e1A.2.1 Assets\u003cbr\u003e1A.2.2 Liabilities\u003cbr\u003e1A.2.3 Equity\u003cbr\u003e1A.2.4 Drawings\u003cbr\u003e1A.2.5 Treatment of transactions relating to owners\u003cbr\u003e1A.2.6 The Dual Aspect Concept and the Accounting Equation\u003cbr\u003e\u003cstrong\u003e1A.3 TRANSACTION\u003c\/strong\u003e\u003cbr\u003e1A.3.1 Cash Transactions\u003cbr\u003e1A.3.2 Credit Transactions\u003cbr\u003e\u003cstrong\u003e1A.4 STATEMENT OF FINANCIAL POSITION \u003c\/strong\u003e\u003cbr\u003e1A.4.1 Statement of Financial Position (Horizontal Style)\u003cbr\u003e1A.4.2 Statement of Financial Position (Vertical Style)\u003cbr\u003e\u003cstrong\u003eREVIEW QUESTIONS\u003c\/strong\u003e\n\u003cp\u003e\u003cstrong\u003eCHAPTER 1B ACCOUNTING FOR ASSETS, LIABILITIES AND CAPITAL\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e1B.1 EVOLUTION OF BOOK KEEPING\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e1B.2 ACCOUNT\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e1B.3 ''T'' ACCOUNT\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e1B.4 RULES OF DEBIT AND CREDIT\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e1B.5 THREE-COLUMN LEDGER ACCOUNT (RUNNING BALANCE METHOD)\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e1B.6 LEDGER\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e1B.7  DOUBLE-ENTRY RELATING TO ASSETS AND LIABILITIES\u003c\/strong\u003e\u003cbr\u003e1B.7.1 EXAMPLE\u003cbr\u003e\u003cstrong\u003e1B.8 BALANCING OF AN ACCOUNT\u003c\/strong\u003e\u003cbr\u003e1B.8.1 When should accounts be balanced?\u003cbr\u003e\u003cstrong\u003e1B.9  TRIAL BALANCE\u003c\/strong\u003e\u003cbr\u003e1B.9.1 Uses of a Trial Balance\u003cbr\u003e1B.9.2 Why is it Necessary for a Trial Balance to ‘Balance’?\u003cbr\u003e1B.9.3 Trial Balance - An aid to Financial Statements\u003cbr\u003e\u003cstrong\u003e1B.10 HOW CAN LEDGER ACCOUNTS BE KEPT DIGITALLY?\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003eREVIEW QUESTIONS\u003c\/strong\u003e\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eCHAPTER 1C ACCOUNTING FOR GOODS\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e1C.1 INVENTORY OF GOODS\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e1C.2 BOOKKEEPING FOR INVENTORY OF GOODS\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e1C.3 WHY INVENTORY ACCOUNT DOES NOT INCLUDE PURCHASES AND SALES OF GOODS\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e1C.4 PURCHASES\u003c\/strong\u003e\u003cbr\u003e1C.4.1 Cash Purchases\u003cbr\u003e1C.4.2 Credit Purchases\u003cbr\u003e\u003cstrong\u003e1C.5 SALES\u003c\/strong\u003e\u003cbr\u003e1C.5.1 Cash Sales\u003cbr\u003e1C.5.2 Credit Sales\u003cbr\u003e\u003cstrong\u003e1C.6 PURCHASES RETURNS (RETURN OUTWARDS)\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e1C.7 SALES RETURNS (RETURNS INWARDS)\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e1C.8 TRADING SECTION OF INCOME STATEMENT\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e1C.9 CLOSING OF INCOMES AND EXPENSES\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e1C.10 CLOSING INVENTORY\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e1C.11 OPENING INVENTORY\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003eREVIEW QUESTIONS\u003c\/strong\u003e\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eCHAPTER 1D ACCOUNTING FOR INCOMES AND EXPENSES \u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e1D.1 INCOMES\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e1D.2 EXPENSES\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e1D.3 DOUBLE-ENTRY FOR EXPENSES AND INCOMES (REVENUES)\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e1D.4 BOOKKEEPING FOR INCOMES AND EXPENSES\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e1D.5 CALCULATION OF NET PROFIT\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e1D.6 CLOSING OF INCOMES AND EXPENSES\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003eREVIEW QUESTIONS\u003c\/strong\u003e\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eCHAPTER 2 BOOKS OF PRIME ENTRY\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e2.1 ADVANTAGES OF MAINTAINING BOOKS OF ORIGINAL ENTRY\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e2.2 COMPONENTS OF BOOKS OF ORIGINAL ENTRY\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e2.3 SALES JOURNAL\u003c\/strong\u003e\u003cbr\u003e2.3.1 Posting from the Sales Journal to the Ledger\u003cbr\u003e2.3.2 Trade Discount\u003cbr\u003e2.3.3 Sales on Credit Card\u003cbr\u003e\u003cstrong\u003e2.4 PURCHASES JOURNAL\u003c\/strong\u003e\u003cbr\u003e2.4.1 Posting from the Purchases Journal to the Ledger\u003cbr\u003e\u003cstrong\u003e2.5 RETURN INWARDS JOURNAL\u003c\/strong\u003e\u003cbr\u003e2.5.1 Posting from the Returns Inwards Journal to the Ledger\u003cbr\u003e\u003cstrong\u003e2.6 RETURN OUTWARDS JOURNAL\u003c\/strong\u003e\u003cbr\u003e2.6.1 Posting from the Returns Outwards Journal to the Ledger\u003cbr\u003e\u003cstrong\u003e2.7 GENERAL JOURNAL\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e2.8 CASH BOOK\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e2.9 PERSONAL LEDGERS\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e2.10 GENERAL LEDGER\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003eREVIEW QUESTIONS\u003c\/strong\u003e\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eCHAPTER 3 CASH BOOK \u0026amp; PERRT CASH BOOK\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e3.1 TWO-COLUMN CASH BOOK\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e3.2 FOLIO COLUMNS\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e3.3 DISHONOURED CHEQUES\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e3.4 CONTRA ENTRIES\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e3.5 BALANCING OF CASH AND BANK COLUMNS\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e3.6 CASH DISCOUNTS\u003c\/strong\u003e\u003cbr\u003e3.6.1 Why are cash discounts offered?\u003cbr\u003e\u003cstrong\u003e3.7 THREE-COLUMN CASH BOOK\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e3.8 NATURE OF DISCOUNTS COLUMNS\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e3.9 CASH BOOK IN RECENT TIMES\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e3.10 PETTY CASH \u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e3.11 PETTY CASH BOOK\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e3.12 IMPREST SYSTEM\u003c\/strong\u003e\u003cbr\u003e3.12.1 Advantages Of the imprest system\u003cbr\u003e\u003cstrong\u003e3.13 HOW T OAPPLY THE IMPREST SYSTEM\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e3.14 THE BENEFITS AND LIMITATIONS OF KEEPING CASH AT THE BUSINESS PROPERTY\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003eREVIEW QUESTIONS\u003c\/strong\u003e\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eCHAPTER 4 BANK RECONCILIATION \u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e4.1 DIFFERENCE BETWEEN BANK STATEMENT AND CASH BOOK\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e4.2 REASONS FOR DIFFERENCE BETWEEN CASH BOOK AND BANK STATEMENT BALANCE\u003c\/strong\u003e\u003cbr\u003e4.2.1 Items in the Bank Statement but not in the Cash Book\u003cbr\u003e4.2.2 Items in the Cash Book but not in the Bank Statement\u003cbr\u003e\u003cstrong\u003e4.3 BANK RECONCILIATION STATEMENT\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e4.4 STEPS FOR PREPARING A BANK RECONCILIATION STATEMENT\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e4.5 USES OF BANK RECONCILIATION STATEMENT\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e4.6 IMPACT OF DIGITAL TRANSACTIONS ON BANK RECONCILIATION\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003eREVIEW QUESTIONS\u003c\/strong\u003e\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eCHAPTER 5 ACCOUNTING FOR NON-CURRENT ASSET \u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e5.1 DEPRECIATION\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e5.2 CAUSES FOR DEPRECIATION\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e5.3 FACTORS FOR CALCULATING DEPRECIATION\u003c\/strong\u003e\u003cbr\u003e5.3.1 The Original Cost of Asset\u003cbr\u003e5.3.2 The Estimated Useful Economic Life\u003cbr\u003e5.3.3 The Approximate Residual Value\u003cbr\u003e\u003cstrong\u003e5.4 CHARACTERISTICS OF DEPRECIATION\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e5.5 METHODS FOR CALCULATING DEPRECIATION\u003c\/strong\u003e\u003cbr\u003e5.5.1 Revaluation Method\u003cbr\u003e5.5.2 Straight Line Method or Original Cost Method\u003cbr\u003e5.5.3 Reducing Balance Method\u003cbr\u003e\u003cstrong\u003e5.6 ANNUAL DEPRECIATION UNDER REDUCING BALANCE \u0026amp; STRAIGHT LINE METHODS\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e5.7 DISTINCTIVE FEATURES OF STRAIGHT LINE AND REDUCING BALANCE METHOD\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e5.8 DIFFERENCE BETWEEN DEPRECIATION AND PROVISION FOR DEPRECIATION\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e5.9 DEPRECIATION POLICIES\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e5.10 DEPRECIATION ACCOUNTING\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e5.11 DEPRECIATION AND ACCOUNTING CONCEPTS\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003eREVIEW QUESTIONS\u003c\/strong\u003e\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eCHAPTER 7 INVENTORY VALUATION\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e7.1 COST\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e7.2 NET REALISABLE VALUE\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e7.3 BASIS FOR INVENTORY VALUATION\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e7.4 INVENTORY VALUATION AND ACCOUNTING CONCEPTS\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e7.5 SEPARATE VALUATION OF INVENTORY ITEMS\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e7.6 EFFECTS OF ERRORS IN VALUING INVENTORY\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003eREVIEW QUESTIONS\u003c\/strong\u003e\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eCHAPTER 8 CAPITAL AND REVENUE EXPENDITURE AND RECEIPTS\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e8.1 TREATMENT OF CAPITAL AND REVENUE ITEMS IN FINANCIAL STATEMENT\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e8.2 DISTINCTION BETWEEN CAPITAL AND REVENUE EXPENDITURES\u003c\/strong\u003e\u003cbr\u003e8.2.1 Expenditures for Acquisition of a Non-current asset\u003cbr\u003e8.2.2 Expenditures for Improving Efficiency \/Capacity of a Non-current asset\u003cbr\u003e8.2.3 Expenditure at the Initiation of Business\u003cbr\u003e8.2.4 Expenditure on Extension of Business\u003cbr\u003e8.2.5 Expenditures to Increase the Useful Life of an Asset\u003cbr\u003e8.2.6 Expenditures of Abnormal Amounts\u003cbr\u003e\u003cstrong\u003e8.3 APPLICATION OF MATERIALITY CONCEPT\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e8.4 DIFFERENCE BETWEEN CAPITAL AND REVENUE RECEIPTS\u003c\/strong\u003e\u003cbr\u003e8.4.1 Revenue Receipts\u003cbr\u003e8.4.2 Capital Receipts\u003cbr\u003e\u003cstrong\u003e8.5 EFFECTS OF WRONG TREATMENT OF CAPITAL AND REVENUE ITEMS\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003eREVIEW QUESTIONS\u003c\/strong\u003e\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eCHAPTER 9 CORRECTION OF ERRORS\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e9.1 TYPES OF ERRORS\u003c\/strong\u003e\u003cbr\u003e9.1.1 Errors Not Affecting Agreement of Trial Balance\u003cbr\u003e9.1.2 Errors Affecting Agreement of Trial Balance\u003cbr\u003e\u003cstrong\u003e9.2 SUSPENSE ACCOUNT\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e9.3 EFFECT ON PROFIT OF CORRECTING ERRORS\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e9.4 EFFECTS ON STATEMENT OF FINANCIAL POSITION OF CORRECTING ERRORS\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003eREVIEW QUESTIONS\u003c\/strong\u003e\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eCHAPTER 10 CONTROL ACCOUNTS \u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e10.1 CONTROL ACCOUNTS IN CAMBRIDGE ORDINARY LEVEL SYLLABUS\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e10.2 THE FORMAT OF CONTROL ACCOUNTS\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e10.3 BOOKS OF PRIME ENTRY AS SOURCES OF CONTROL ACCOUNTS ENTERIES\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e10.4 CONTRA ENTRY\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e10.5 TWO BALANCES OF CONTROL ACCOUNTS\u003c\/strong\u003e\u003cbr\u003e10.5.1 Reasons for Having Two Balances of a Control Account\u003cbr\u003e10.5.2 Treatment of Two Balances in the Statement of Financial Position\u003cbr\u003e\u003cstrong\u003e10.6 BENEFITS OF OFFERING CASH DISCOUNTS\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e10.7 EFFECTS OF CHARGING INTEREST ON OVERDUE BALANCES OF CUSTOMERS\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e10.8 ADVANTAGES OR USES OF CONTROL ACCOUNTS\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e10.9 IMPACT OF DIGITAL ACCOUNTING ONN CONTROL ACCOUNTS\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003eREVIEW QUESTIONS\u003c\/strong\u003e\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eCHAPTER 11 OTHER PAYABLES AND OTHER RECEIVABLES \u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e11.1 Matching Costs and Revenues\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e11.2 Accruals\u003c\/strong\u003e\u003cbr\u003e11.2.1 Accrued Expenses (Other Payables)\u003cbr\u003e11.2.2 Accrued Incomes (Other Receivables)\u003cbr\u003e\u003cstrong\u003e11.3Prewvyments\u003c\/strong\u003e\u003cbr\u003e11.3.1 Prepaid Expenses [Other Receivables)\u003cbr\u003e11.3.2 Pre-received Incomes\/Incomes in Advance\u003cbr\u003e\u003cstrong\u003e11.4 Treatment of Opening Accruals or preravments\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e11.5 Application of Matching Concept by Using Accruals and Prepayments\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003eREVIEW QUESTIONS\u003c\/strong\u003e\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eCHAPTER 12 SOLE TRADERS\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e12.1 SOLE TRADER\u003c\/strong\u003e\u003cbr\u003e12.1.1 Advantages of Operating as a Sole Trader\u003cbr\u003e12.1.2 Disadvantages of Operating as a Sole Trader\u003cbr\u003e\u003cstrong\u003e12.2 Need for Statement of profit or loss\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e12.3 Uses of statement of profit or loss\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e12.4 Carriage Inwards\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e12.5 Carriage Outwards\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e12.6 Financial Statements - An important consideration\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e12.7 Accounting Period\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e12.8 Drawings\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e12.9 Assets\u003c\/strong\u003e\u003cbr\u003e12.9.1 Non-Current Assets\u003cbr\u003e12.9.2 Current Assets\u003cbr\u003e\u003cstrong\u003e12.10 LIABILITIES\u003c\/strong\u003e\u003cbr\u003e12.10.1 Current Liabilities\u003cbr\u003e12.10.2 Non-Current Liabilities\u003cbr\u003e\u003cstrong\u003e12.11 Cash and Accrual Basis of Accounting\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e12.12 Need for Adjustments\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e12.13 Types of Adjustments\u003c\/strong\u003e\u003cbr\u003e12.13.1 Inventory at Year-End\u003cbr\u003e12.13.2 Closing Inventory in Trial Balance\u003cbr\u003e12.13.3 Drawings by Owner\u003cbr\u003e12.13.4 Other Receivables and Payables\u003cbr\u003e12.13.5 Depreciation\u003cbr\u003e12.13.6 Irrecoverable debts\u003cbr\u003e12.13.7 Allowance for irrecoverable debts\u003cbr\u003e\u003cstrong\u003e12.14 The Versatility of Sole Trader Businesses\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e12.15 Calculation of Profits for Service Businesses\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e12.16 Calculation of Profits for a Trading and a Service Business\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003eREVIEW QUESTIONS\u003c\/strong\u003e\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eCHAPTER 13 PARTNERSHIPS\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e13.1 The Versatility of Partnerships\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e13.2 Advantages and Disadvantages of the Partnership\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e13.3 Partnership Agreement\u003c\/strong\u003e\u003cbr\u003e13.3.1 Contents of Partnership Agreement\u003cbr\u003e\u003cstrong\u003e13.4 Provision of Partnership Act 1890 in the Absence of Partnership Deed\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e13.5 Financial Statements of a Partnership\u003c\/strong\u003e\u003cbr\u003e13.5.1 Appropriations of Profit\u003cbr\u003e13.5.2 Statement of Financial Position of Partnership\u003cbr\u003e\u003cstrong\u003e13.6 Accounting Records for Partners\u003c\/strong\u003e\u003cbr\u003e13.6.1 Partners'Capital Accounts\u003cbr\u003e13.6.2 Benefits (Uses) of Having Separate Capita I Accounts\u003cbr\u003e13.6.3 Benefits (Uses) of Having Separate Current Accounts\u003cbr\u003e13.6.4 Reasons for Keeping Separate Partners' Capital and Current Account\u003cbr\u003e13.6.5 Drawings Accounts\u003cbr\u003e\u003cstrong\u003e13.7 Partners' Loan Accoun\u003c\/strong\u003et\u003cbr\u003e13.7.1 Reasons for Partners' loans in addition to Capital Accounts\u003cbr\u003e\u003cstrong\u003e13.8 Interest on Capital\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e13.9 Interest on Drawings \u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003eREVIEW QUESTIONS\u003c\/strong\u003e\u003c\/p\u003e\n\u003cp\u003eCHAPTER 14 LIMITED COMPANIES\u003cbr\u003e\u003cstrong\u003e14.1 The Need for Companies\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e14.2 The Versatility of Limited Companies\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e14.3 Advantages and Disadvantages of Forming a Limited Company\u003c\/strong\u003e\u003cbr\u003e14.3.1 Advantages of a Company\u003cbr\u003e14.3.2 Disadvantages of Forming a Limited Company\u003cbr\u003e\u003cstrong\u003e14.4 Sources of Finance for a Commny\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e14.5 Types of Shares\u003c\/strong\u003e\u003cbr\u003e14.5.1 Ordinary Shares\u003cbr\u003e14.5.2 Preference Shares\u003cbr\u003e\u003cstrong\u003e14.6 Debentures\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e14.7 Share Capital\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e14.8 Financial Statements of Limited Companies\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e14.9 Distribution of Profits\u003c\/strong\u003e\u003cbr\u003e14.9.1 Ordinary Dividend\u003cbr\u003e14.9.2 Transfer to General Reserve\u003cbr\u003e14.9.3 Retained Profits\u003cbr\u003e\u003cstrong\u003e14.10 Statementof Changes in Equity\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e14.11 Statementof Financial Position\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e14.12 A Comparison of Financial Statements of Business Organisations\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003eREVIEW QUESTIONS\u003c\/strong\u003e\u003c\/p\u003e\n\u003cp\u003eCHAPTER 15 INCOMPLETE RECORDS\u003cbr\u003e\u003cstrong\u003e15.1 The Reasons for Incomplete Records\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e15.2 Need for Premring Financial Statements from Incomplete Records\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e15.3 Calculating Profits and Losses from Changes in Capital\/Net Assets\u003c\/strong\u003e\u003cbr\u003e15.3.1 Statement of Affairs\u003cbr\u003e15.3.2 Statement to Calculate Profit or Loss\u003cbr\u003e\u003cstrong\u003e15.4 Preparation of Financial Statements from Incomplete Records\u003c\/strong\u003e\u003cbr\u003e15.4.1 Calculation of Opening Capital through Statement of Affairs\u003cbr\u003e15.4.2 Preparation of Cash\/Bank Account\u003cbr\u003e15.4.3 Calculation of Total Sales\u003cbr\u003e15.4.4 Calculation of Total Purchases\u003cbr\u003e\u003cstrong\u003e15.5 Mark-Up and Margin\u003c\/strong\u003e\u003cbr\u003e15.5.1 Use of Mark up and Margin to Calculate Missing Items in Trading Section\u003cbr\u003e15.5.2 Conversion of Mark-up into Margin\u003cbr\u003e15.5.3 Conversion of Margin into Mark-up\u003cbr\u003e\u003cstrong\u003e15.6 Calculation of Incomes\/Expenses to be shown in Statement of Profitor Loss\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e15.7 Calculation of Depreciation\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e15.8 Premring Statement of Financial Position from Incomplete Records\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e15.9 Advantages of Accounts Prepared from Incomplete Records\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e15.10 Disadvantages or Defects of Accounts Prepared from Incomplete Records\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003eREVIEW QUESTIONS\u003c\/strong\u003e\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eCHAPTER 16 CLUBS AND SOCIETIES\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e16.1 Comparison between Profit and Non-Profit Making Organisations\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e16.2 Incomes and Expenses of Clubs and Societies\u003c\/strong\u003e\u003cbr\u003e16.2.1 Incomes of Clubs and Societies\u003cbr\u003e16.2.2 Expenses of Clubs and Societies\u003cbr\u003e\u003cstrong\u003e16.3 Some Peculiar Terms of Clubs and Societies\u003c\/strong\u003e\u003cbr\u003e16.3.1 Life Subscription\u003cbr\u003e16.3.2 Legacy\u003cbr\u003e16.3.3 Gift\u003cbr\u003e16.3.4 Grants and Donations\u003cbr\u003e\u003cstrong\u003e16.4 Accounting by clubs and Societies\u003c\/strong\u003e\u003cbr\u003e16.4.1 Receipts and Payments Account\u003cbr\u003e16.4.2 Income and Expenditure Account\u003cbr\u003e16.4.3 Differences between Receipts and Payment A\/c \u0026amp; Income and Expenditure A\/c\u003cbr\u003e16.4.4 Trading Account\u003cbr\u003e16.4.5 Income and Expenses on Same Head\u003cbr\u003e\u003cstrong\u003e16.5 Calculation of Incomes\/Expenses to be shown in Statement of Profitor Loss\u003c\/strong\u003e\u003cbr\u003e16.5.1 Accounting for Subscriptions\u003cbr\u003e\u003cstrong\u003e16.6 Preparation of Financial Statements\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003eREVIEW QUESTIONS\u003c\/strong\u003e\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eCHAPTER 17 MANUFACTURING ACCOUNTS\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e17.1 Direct Costs (Prime Cost)\u003c\/strong\u003e\u003cbr\u003e17.1.1 Raw Materials Cost\u003cbr\u003e17.1.2 Direct Labour Cost\u003cbr\u003e17.1.3 Other Direct expenses\u003cbr\u003e\u003cstrong\u003e17.2Indirect Costs (Factory Overheads)\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e17.3 Purpose of Manufacturing Accounts\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e17.4 Statement of Profit or Loss \u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e17.5 Statement of Financial Position\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003eREVIEW QUESTIONS\u003c\/strong\u003e\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eCHAPTER 18 ACCOUNTING RATIOS\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e18.1 Accounting Ratios\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e18.2 Analysis of Ratios\u003c\/strong\u003e\u003cbr\u003e18.2.1 Comparing one year with another (Trend or Time Series Analysis)\u003cbr\u003e18.2.2 Comparing One Business with another Business (Inter-firm Comparison)\u003cbr\u003e\u003cstrong\u003e18.3 Demonstration of ratios\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e18.4 Profitability Ratios\u003c\/strong\u003e\u003cbr\u003e18.4.1 Gross Profit Margin\u003cbr\u003e18.4.2 Profit Margin\u003cbr\u003e18.4.3 Return on Capital Employed (ROCE)\u003cbr\u003e\u003cstrong\u003e18.5 Liquidity Ratios\u003c\/strong\u003e\u003cbr\u003e18.5.1 Current Ratio\u003cbr\u003e18.5.2 Acid Test (Liquid) Ratio\u003cbr\u003e\u003cstrong\u003e18.6 Efficiency Ratios\u003c\/strong\u003e\u003cbr\u003e18.6.1 Rate of Inventory Turnover\u003cbr\u003e18.6.2 Trade Receivables'Turnover (days)\u003cbr\u003e18.6.3 Trade payables'Turnover (days)\u003cbr\u003e\u003cstrong\u003e18.7 The Difference between Cash and Profit\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e18.8 Factors affecting the ratios of Two Businesses\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e18.9 Problems of Inter-firm Comparison \u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003eREVIEW QUESTIONS\u003c\/strong\u003e\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eCHAPTER 19 INTERESTED PARTIES\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e19.1 Owners\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e19.2 Managers\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e19.3 Employees\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e19.4 Bank\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e19.5 Investors and lenders\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e19.6 Suppliers\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e19.7 Customers\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e19.8 Government\/Tax authorities\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e19.9 Club members\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e19.10 Public\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e19.11 Environmental bodies\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003eREVIEW QUESTIONS\u003c\/strong\u003e\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eCHAPTER 20 LIMITATIONS OF ACCOUNTING STATEMENTS\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e20.1 Historical Cost\u003c\/strong\u003e\u003cbr\u003e20.1.1Over\/Understatement of Assets\u003cbr\u003e20.1.2 Inaccurate representation\u003cbr\u003e20.1.3 Inflation and Currency Fluctuations\u003cbr\u003e\u003cstrong\u003e20.2 Application of Accounting Policies\u003c\/strong\u003e\u003cbr\u003e20.2.1 Subjectivity\u003cbr\u003e20.2.2 Estimates and Judgments\u003cbr\u003e20.2.3 Manipulation Risk\u003cbr\u003e20.2.4 Lack of Comparability\u003cbr\u003e20.2.5 Inconsistencies\u003cbr\u003e\u003cstrong\u003e20.3 Non-Financial Aspects\u003c\/strong\u003e\u003cbr\u003e20.3.1 Intangible Assets\u003cbr\u003e20.3.2 External Factors\u003cbr\u003e20.3.3 Sustainability and Social Impact\u003cbr\u003e20.3.4 Incomplete Picture\u003cbr\u003e\u003cstrong\u003eREVIEW QUESTIONS\u003c\/strong\u003e\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eCHAPTER 21 ACCOUNTING CONCEPTS\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e21.1 Conventions and Concepts - An Implication\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e21.2 Business entity Concept\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e21.3 Consistency Concept\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e21.4 Duality Concept\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e21.5 Going Concern Concept\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e21.6 Historic Cost Concept\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e21.7 Materiality Concept\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e21.8 Money Measurement Concept\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e21.9 Prudence Concept\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e21.10 Realisation Concept\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e21.11 Accrual Concept\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e21.12 Matching Concept\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e21.13 Realisation, Accrual and Matching Concepts Compared\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003eREVIEW QUESTIONS\u003c\/strong\u003e\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eCHAPTER 22 ETHICAL CONSIDERATIONS\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e22.1 Ethics Relating to the Practice of Accounting\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e22.2 Professional Ethics\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e22.3 What is Ethical?\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e22.4 Fundamental Ethical Principles\u003c\/strong\u003e\u003cbr\u003e22.4.1 Integrity\u003cbr\u003e22.4.2 Objectivity and Independence\u003cbr\u003e22.4.3 Professional Competence and Due Care\u003cbr\u003e22.4.4 Confidentiality\u003cbr\u003e22.4.5 Professional Behaviour\u003cbr\u003e\u003cstrong\u003e22.5 The Problems of Poor ethics in accounting\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e22.6 Impact of ethical behaviour on stakeholders\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e22.7 Impact of ethical behaviour on society\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e22.8 Ethical Conflict\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003eREVIEW QUESTIONS\u003c\/strong\u003e\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eCHAPTER 23 TECHNOLOGY AND SUSTAINABILITY\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e23.1 The use of digital applications for accounting records\u003c\/strong\u003e\u003cbr\u003e23.1.1 Digital Applications\u003cbr\u003e23.1.2 Benefits of Digital Accounting\u003cbr\u003e\u003cstrong\u003e23.2 What is Accou nting Data?\u003c\/strong\u003e\u003cbr\u003e23.2.1 Why is Accounting Data Important?\u003cbr\u003e\u003cstrong\u003e23.3 WHY STORE ACCOU NTING DATA SAFELY AND SUSTAINABLY?\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e23.4 Risks of Not Storing Accounting Data Safely\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e23.5 Risks of Not Storing Accounting Data Sustainably\u003c\/strong\u003e\u003cbr\u003e\u003cstrong\u003e23.6 Types of Storage Systems\u003c\/strong\u003e\u003cbr\u003e23.6.1 Manual Storage Systems\u003cbr\u003e23.6.2 Data Storage Devices\u003cbr\u003e23.6.3 Cloud Storage Services\u003cbr\u003e23.6.4 Other Digital Services\u003cbr\u003eREVIEW QUESTIONS\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eSOLUTION TO ODD-NUMBERED QUESTIONS\u003c\/strong\u003e\u003c\/p\u003e\n\u003cp\u003eCHAPTER 1A-----317\u003c\/p\u003e\n\u003cp\u003eCHAPTER IB-----318\u003c\/p\u003e\n\u003cp\u003eCHAPTER 1C-----322\u003c\/p\u003e\n\u003cp\u003eCHAPTER ID-----325\u003c\/p\u003e\n\u003cp\u003eCHAPTER 2-----327\u003c\/p\u003e\n\u003cp\u003eCHAPTER 3-----331\u003c\/p\u003e\n\u003cp\u003eCHAPTER 4-----332\u003c\/p\u003e\n\u003cp\u003eCHAPTER 5-----334\u003c\/p\u003e\n\u003cp\u003eCHAPTER 6----339\u003c\/p\u003e\n\u003cp\u003eCHAPTER 7-----342\u003c\/p\u003e\n\u003cp\u003eCHAPTER 8-----343\u003c\/p\u003e\n\u003cp\u003eCHAPTER 9-----344\u003c\/p\u003e\n\u003cp\u003eCHAPTER 10-----347\u003c\/p\u003e\n\u003cp\u003eCHAPTER 11-----350\u003c\/p\u003e\n\u003cp\u003eCHAPTER 12-----350\u003c\/p\u003e\n\u003cp\u003eCHAPTER 13-----357\u003c\/p\u003e\n\u003cp\u003eCHAPTER 14-----361\u003c\/p\u003e\n\u003cp\u003eCHAPTER 15-----364\u003c\/p\u003e\n\u003cp\u003eCHAPTER 16-----367\u003c\/p\u003e\n\u003cp\u003eCHAPTER 17-----371\u003c\/p\u003e\n\u003cp\u003eCHAPTER 18-----374\u003c\/p\u003e\n\u003cp\u003eCHAPTER 19-----379\u003c\/p\u003e\n\u003cp\u003eCHAPTER 20-----379\u003c\/p\u003e\n\u003cp\u003eCHAPTER 21-----380\u003c\/p\u003e\n\u003cp\u003eCHAPTER 22-----380\u003c\/p\u003e\n\u003cp\u003eCHAPTER 23-----381\u003c\/p\u003e\n\u003cp\u003e\u003cstrong\u003eKEY TO EVEN-NUMBERED QUESTIONS                                  INDEX                                                                                                                        \u003c\/strong\u003e\u003c\/p\u003e","brand":"Read \u0026 Write","offers":[{"title":"Default Title","offer_id":47408476750069,"sku":"SKU-2","price":1960.0,"currency_code":"PKR","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0780\/4233\/3429\/files\/105-2.png?v=1765551000","url":"https:\/\/readnwrite.org\/products\/accounting-o-level-theory-and-practice","provider":"Read and Write Publications","version":"1.0","type":"link"}