AAT Level 3 FAPS study plan

Explain the dual effect of each transaction and record it in the correct ledger accounts using debits and credits

Post transactions from source documents through the books of prime entry (sales day book, purchase day book, returns books, cash book, petty cash book, journal) into the nominal ledger

Balance off ledger accounts, bring down balances and extract a trial balance that agrees

Distinguish capital from revenue expenditure and record opening entries and capital introduced for a new business

Apply a chart of accounts and coding structure to classify transactions consistently and explain why coding supports reliable reporting

Calculate and record VAT on sales and purchases, including the VAT control account and the treatment of input and output tax

Account correctly for trade discounts and settlement discounts in the receivables and payables ledgers

Prepare receivables and payables ledger control accounts and reconcile each balance to its list of ledger balances

Update the cash book from a bank statement and prepare a bank reconciliation statement listing outstanding lodgements and unpresented cheques

Differentiate timing differences from errors when reconciling a bank statement and state the correct treatment for each

Operate an imprest petty cash system, record vouchers and restore the float at the agreed amount

Investigate and correct imbalances identified through control account reconciliation

Classify errors of principle, commission, omission, original entry, reversal and compensating errors, and state whether each affects trial balance agreement

Open, use and clear a suspense account, including the initial entry where the trial balance does not agree

Write journal entries to correct each error type and post them to the ledger

Recalculate draft profit after corrections and explain the direction and amount of each profit effect

Calculate and journal accruals and prepayments for expenses and income, including opening and closing reversals

Compute depreciation under straight-line and reducing-balance methods, including part-year charges and entries on disposal of a non-current asset

Write off irrecoverable debts, adjust the allowance for doubtful debts and record the resulting charge or credit

Value closing inventory at the lower of cost and net realisable value and record the closing and opening inventory entries

Complete an extended trial balance, allocating adjustments to the statement of profit or loss and statement of financial position columns and balancing the adjusted figures

Prepare a statement of profit or loss for a sole trader from an adjusted trial balance in standard format with headings and subtotals

Prepare a statement of financial position for a sole trader, correctly classifying non-current assets, current assets, current liabilities and capital

Reconcile the opening and closing capital account of a sole trader including drawings, profit and capital introduced

Prepare a partnership appropriation account and partners' capital and current accounts, including interest on capital, interest on drawings and salary entitlements

Prepare a partnership statement of financial position including a loan from a partner and the treatment of goodwill on admission where relevant

Prepare a receipts and payments account, a subscriptions account and an income and expenditure account for a not-for-profit organisation

Prepare a statement of financial position for a not-for-profit organisation including the accumulated fund

Complete two full timed mock assessments under exam conditions and self-mark strictly against the model answers

Re-work every previously incorrect question and record a one-line rule for each error type identified

Reproduce from memory a one-page reference sheet of adjustment treatments and financial statement layouts

Re-attempt the weakest question type repeatedly until a full-mark attempt is achieved