LGCSE Accounting (0187) study plan
LGCSE Accounting (0187) · Give each week a clear focus.
8 weeks · About 6 hours per week
The fundamentals of accounting & Accounting principles and controls (including accounting concepts)
Define and classify the five accounting elements (assets, liabilities, capital, income, expenses) using the accounting equation
Apply double-entry rules to record increases and decreases in each class of account
Explain and distinguish the key accounting concepts (business entity, going concern, accruals, consistency, prudence, realisation, materiality)
Construct a simple trial balance from a set of double-entry transactions and confirm it balances
Your checkpoint
A one-page 'concepts + equation' reference sheet plus 10 fully worked double-entry transactions with a balancing trial balance
Sources and recording of data
Identify the source documents (invoice, credit note, debit note, receipt, petty cash voucher, bank statement) and state the purpose of each
Post transactions from source documents into the books of prime entry (sales, purchases, returns, cash book, petty cash book, journal)
Apply the imprest system to record and replenish petty cash
Distinguish between a book of prime entry and a ledger account
Your checkpoint
A completed set of books of prime entry for a 15-transaction scenario, ending with petty cash balanced under the imprest system
Sources and recording of data & Verification of accounting records
Post books of prime entry to the general and subsidiary ledgers and extract a trial balance
Prepare a bank reconciliation statement from a cash book and bank statement, correcting timing differences
Prepare a petty cash reconciliation and identify errors revealed by the trial balance
Explain the purpose of control accounts and prepare a sales ledger control account
Your checkpoint
A bank reconciliation statement and a sales ledger control account that both reconcile exactly to supporting figures
Verification of accounting records & Preparation of financial statements of sole traders
Classify errors as those affecting and not affecting trial balance agreement
Use suspense accounts and journal entries to correct errors and post correcting entries
Adjust for accruals, prepayments, depreciation, and bad/doubtful debts at year end
Prepare an adjusted trial balance from an unadjusted one
Your checkpoint
A journal of 8 corrections plus a suspense account cleared to nil and an adjusted trial balance
Preparation of financial statements of sole traders
Prepare a trading and profit and loss account (income statement) for a sole trader from an adjusted trial balance
Prepare a statement of financial position classifying current and non-current assets and liabilities
Calculate and apply cost of goods sold, gross profit margin and net profit margin within the statements
Reconcile opening and closing capital through the capital account
Your checkpoint
A complete set of sole trader financial statements from an adjusted trial balance, with capital reconciliation proven
Preparation of financial statements of partnerships and limited companies
Prepare an appropriation account for a partnership showing interest on capital, partner salaries and profit shares
Prepare partners' current and capital accounts and the partnership statement of financial position
Distinguish between share capital, share premium and retained earnings for a limited company
Prepare a company income statement and statement of financial position applying the relevant format
Your checkpoint
One partnership and one limited company set of financial statements, each with all workings shown
Analysis and interpretation of accounting information
Compute profitability, liquidity, efficiency and gearing ratios from prepared financial statements
Calculate return on capital employed and interpret what it signals about performance
Compare two years or two businesses and explain causes of ratio movements
State the limitations of ratio analysis and of historical cost statements
Your checkpoint
A ratio analysis report comparing two years of one business, with at least five ratios computed and interpreted in writing
Preparation of financial statements of sole traders & Preparation of financial statements of partnerships and limited companies & Analysis and interpretation of accounting information & Accounting principles and controls (including accounting concepts)
Complete two full-length timed practice papers under exam conditions
Diagnose recurring errors from marked practice and re-work the weakest question types
Consolidate concept definitions and control/reconciliation procedures into revision notes
Verify that every domain has been revised at least once against the syllabus checklist
Your checkpoint
Two completed timed papers with a written error log and a one-page final revision summary covering all seven domains
Milestones
Week 2: Can record any transaction from a source document into the correct book of prime entry without reference notes
Week 4: Scores at least 70% on a mixed errors, suspense and bank reconciliation exercise
Week 5: Produces a fully balanced sole trader income statement and statement of financial position unaided within 45 minutes
Week 6: Correctly prepares partnership appropriation and partners' current accounts, and a company statement of financial position
Week 8: Achieves at least 65% on both timed practice papers with no domain left unrevised