NSSCO Accounting (6143) study plan

Define and distinguish the accounting concepts and principles (going concern, accrual, consistency, prudence, business entity, matching, realisation) and give one worked example of each applied to a sole trader

Apply the accounting equation to record at least 15 transactions, showing the dual effect on assets, liabilities and capital

Classify accounts into assets, liabilities, capital, income and expenses and state the normal balance and increase/decrease side for each

Post opening entries and simple transactions from source documents to the general ledger and extract a balanced trial balance

Explain the relationship between the accounting equation and the double-entry system in writing

Identify the source document for each book of original entry and state which book records which transaction type

Record at least 20 transactions across sales day book, purchases day book, returns books, cash book and general journal

Post day book totals and individual entries to the sales, purchases and general ledgers and balance the ledgers

Prepare and explain the purpose of a trial balance and list five errors it will not reveal

Reconcile the sales ledger control account and purchases ledger control account to the list of balances

Prepare a trading account and profit and loss account for a sole trader from a trial balance, correctly classifying opening and closing inventory, carriage inwards and carriage outwards

Construct a classified balance sheet showing non-current assets, current assets, current liabilities, non-current liabilities and capital

Compute and record year-end adjustments for accruals and prepayments and show their effect on profit and the balance sheet

Calculate depreciation using straight-line and reducing-balance methods and record the asset, provision for depreciation and disposal entries

Adjust for bad debts written off and create or revise a provision for doubtful debts, showing the double entry for each

Update a three-column cash book with discount allowed and discount received and balance it at month end

Prepare a bank reconciliation statement starting from the cash book balance and reconciling to the bank statement balance, treating unpresented cheques, uncredited deposits, standing orders and bank charges

Operate an imprest petty cash system, record vouchers in the petty cash book and restore the float

Classify errors as errors of principle, omission, commission, original entry, reversal and compensating errors

Correct errors using journal entries and, where required, open and clear a suspense account

Value closing inventory using FIFO and weighted average cost and explain why the lower of cost and net realisable value is applied

Compute cost of goods sold and gross profit from opening inventory, purchases and closing inventory and explain the effect of an inventory valuation error on profit for two years

Prepare an extended trial balance or worksheet incorporating all adjustments, including depreciation, accruals, prepayments and doubtful debts

Produce a corrected profit figure after adjusting for errors found in a draft profit and loss account

Explain how each adjustment affects the capital section of the balance sheet

Prepare appropriation account and partners' current and capital accounts under both fixed and fluctuating capital methods

Record interest on capital, interest on drawings, partners' salaries and profit-sharing ratios in the correct accounts

Prepare the receipts and payments account, income and expenditure account and statement of financial position for a non-profit organisation

Reconcile a receipts and payments account to an income and expenditure account by adjusting for accruals, prepayments and non-revenue items

Distinguish between a subscription in arrears and in advance and record each correctly

Record the issue of ordinary and preference shares at par and at a premium, including application, allotment and calls, and show share capital and share premium in the balance sheet

Prepare a company statement of financial position from a trial balance including retained earnings and proposed dividends

Compute basic ratios (gross profit margin, net profit margin, return on capital employed, current ratio, inventory turnover) and interpret each in two sentences

Prepare a manufacturing account showing prime cost, factory overhead and work-in-progress adjustment, and transfer cost of production to the trading account

Distinguish product costs from period costs and classify costs as direct materials, direct labour and overhead

Complete two full timed past-paper-style papers under exam conditions and self-mark against the mark scheme

List every recurring error from weeks 1 to 7 and write the correcting rule for each

Re-derive the accounting equation, trial balance and final accounts from a blank page without notes

State the format and mark allocation expectations for each question type and plan answer time accordingly