Financial Accounting Technician Level 1 study plan

Define assets, liabilities, equity, income and expenses, and classify twenty given account names into the correct element without notes.

Write the expanded accounting equation and use it to compute the missing figure in fifteen 'solve for the unknown' scenarios covering owner capital, drawings, profit and liabilities.

Record twenty transactions as simple journal entries showing debits before credits, using correct account titles and narration lines.

Apply the double-entry rule to show how each transaction keeps the equation balanced, and state the net effect on assets, liabilities and equity for each one.

Post five journal entries to T-accounts and prove the closing balances still satisfy the accounting equation.

Trace the flow from source document to book of prime entry to ledger account for a sales invoice, a purchase invoice, a credit note received and a bank payment.

Prepare a sales day book, a purchases day book and a returns day book from a list of fifteen documents, then total and cross-cast each book.

Journalise the month-end transfer of each day book total to the nominal ledger and to the receivables and payables control accounts.

Distinguish between a journal proper, a general journal and a cash book, and select the correct book of prime entry for ten described transactions.

Identify the internal and external source documents required for ten common transactions and state who issues each one.

Journalise compound entries including payroll, accruals for wages, and transactions involving both cash and credit elements.

Post a full month of entries to a nominal ledger and extract a trial balance that balances to the penny.

Explain why a trial balance may still balance when errors exist, and list at least six error types that it will not detect.

Correct eight supplied erroneous entries using journal entries, including errors of principle, omission, commission, original entry, reversal and compensating errors.

Use a suspense account to clear an opening difference on a trial balance and show its subsequent nil balance.

Prepare a bank reconciliation from a cash book and bank statement, adjusting for unpresented cheques, uncredited lodgements, bank charges, direct debits, standing orders and dishonoured cheques.

Update the cash book for items appearing only on the bank statement and restate the corrected balance.

Reconcile a receivables control account to the sales ledger listing, treating contra entries, discounts allowed, bad debts written off and interest charged.

Reconcile a payables control account to the purchase ledger listing, treating discounts received, contra entries and returns.

Diagnose five given control account discrepancies and state the correcting entry for each.

Calculate the accrual or prepayment for six supplied expense accounts at year end and journalise each adjustment.

Adjust for accrued and prepaid income and explain the effect of each adjustment on profit and on the statement of financial position.

Record the write-off of an irrecoverable debt, then account for a subsequent recovery of a previously written-off debt.

Create and adjust an allowance for doubtful debts, including an increase and a decrease, and show the charge or credit to profit or loss.

Prepare the receivables expense working that combines bad debts written off, bad debt recovered, discounts allowed and the movement in the allowance.

Compute depreciation for three assets under straight-line and reducing-balance methods, including a mid-year acquisition.

Journalise the depreciation charge, then record the disposal of an asset with a part-year charge, accumulated depreciation and a profit or loss on disposal.

Prepare a non-current asset register extract showing cost, accumulated depreciation and carrying amount after three years.

Value closing inventory under FIFO and weighted average cost from a supplied movements schedule, and apply the lower of cost and net realisable value rule.

Reconcile cost of sales from opening inventory, purchases, returns and closing inventory, and explain the effect of an inventory valuation error on profit in two consecutive years.

Prepare a statement of profit or loss for a sole trader from a trial balance with at least five year-end adjustments applied.

Prepare a statement of financial position in good format, classifying non-current assets, current assets, current liabilities, non-current liabilities and capital.

Reconcile opening and closing capital through a statement of owner's equity showing capital introduced, drawings and profit for the year.

Compute five profitability and liquidity ratios from the completed statements and interpret each result in one sentence.

Identify three presentation errors in a supplied set of draft financial statements and state the correction for each.

Complete two full-length timed mock exams under exam conditions and mark them against the answer key without partial credit for working you cannot justify.

Re-work every question missed in the mocks to the underlying rule, and log the rule in a personal error list.

Re-drill the five weakest calculation types until each is completed correctly twice in a row without notes.

Recite the double-entry treatment for the ten adjustments most likely to be tested, from memory, in under ten minutes.

Review the personal error list the day before the exam and confirm each rule can be stated in one sentence.