Last updated 26th June 2007 - with notes re answers to past paper 01058.     Sorry, it's down towards the bottom of the page.

Here are my Bookkeeping Course Notes - as a couple of people on the course missed classes and liked my layout.     Updated (14/05/2007) to include Control Accounts Topic from 9th May Class

BookkeepingCourseNotes.doc             BkgDiagram1.doc - the Accounting Process Flowchart

These notes are very nearly a direct copy from what I wrote down in the lessons. I make no guarantee of their accuracy, and am aware that they lack structure and grammatical accuracy.

They are also MS Word documents rather than helpfully interactive web pages or stabilised format pdfs. I hope the formatting does not get mangled when it is opened on your PC or sent to your printer.

The transactions, book references to when we've done these before, and the Trial Balance

Expenses Ledger       Purchases Ledger       Sales Ledger       Real Acounts Ledger       Personal Acounts Ledger
Please Note - these are split completely incorrectly, so please do't use them as a guide to what goes in which ledger.     I had a brainstorm when I put these into the spreadsheet books.

Taken from lesson 10 of
Becoming a Book-keeping Professional with the IAB
International Association of Bookkeepers - Intermediate level Book-keeping and Accounts.

Answers to Question 1 - D Platt     Answers to Question 2 - P Trent

Questions 17.2 onwards, with some answers and explanations of answers
Spreadsheet answer to Question 17.6         Spreadsheet answer to Question 17.7

Question 4 solution as discused in class on 6th June

Question 1 my solution - we also started this in class on 28th March
Question 2 my solution
Question 3 my solution
Question 4 my solution.     We also did this in class on 13th June
Question 5 - the answer was in the handout, and my attempt at it gave the same answers.

Paper 90104 Question 5 my solution

Further Note to paper 90104 (2nd in bundle of past papers) - with question 4 - Greg Florimo Cash book and Working Capital, whilst I get a matching answer for the Cash Book, I don't agree their Working Capital calcualtion.
I calculate stock as 6,400 at stock taking, less 3,000 sold at a lower price, giving 6,100.
If anyone makes it 3,400 please explain to me how.

I calculate Creditors as 4,400, not the 8,800 that is listed in the answer.
The question says, at the top, that Greg wishes to pay 4,400 to Jason Robinson.
It then says, at the bottom, that this reduces his creditors by half.
Surely if 4,400 is paid off, and this halves it, there must be 4,400 left to pay - the other half, not the implied original total of 8,800.
Then I get working Capital of 11,550.
Please let me know what you get - thanks.

I disagree with the answer to Q5, with the Depreciation on the Equipment.
This uses the reducing/diminishing balance method, at 25%
Cost is given as 15,000 with provision for depreciation of 3,000.
My understanding was that this means at the start of the business year (1 Sept previous year), the Equipment had depreciated by 3,000 (the provision given), so had a net book value of 15,000 - 3,000 = 12,000.
Thus the depreciation for the current business year which you're working out would be 25% of the remaining 12,000 = 3,000.
The sample answer has 750, which is 25% of 3,000. So I'm not sure why that is given in the answer.

If you agree with my value of 3,000 you then get
total expenses = 9,715
Net Profit = 8,160
Equipment NBV = 9,000
total Fixed Assets = 15,300
Net Assets = 15,770
Capital + Net Assets = 17,010

You may also have spotted that if the cost was 15,000 the first year's depreciation would have been 3,750.     Which, on reflection, is fine, because there may be several items not all bought at the same time, so the depreciation so far doesn't have to be the stated percentage of the cost price.     upd Monday 25th; 8pm, or there abouts.
Does this mean that I have missed some subtle distinction between "Depreciation so far" and "provision", and it's only in it's first year, so the 750 is the difference?
I'll have to look in the text books and see what it says.     upd 25/6/07 8pm - nothing in the text book to suggest that Provision isn't 'total so far to start of this business period'.     So I'm now even more sure that the answer on the handout is wrong.

I disagree slightly with the answer to Q1
Surely the �660 Purchases listed in the bank account should be included on the Purchases account?
And if it isn't, why does the Trial Balance have a figure of �28,640 ?

Yet when the exercise at the end of the chapter features this, the answer at the back of the book netts them together as a single debit openign balance.
This is a bit of there are two ways of doing this, and which ever you use, it should have been the other one.
As there's no mention of why you should do it one way or the other, I think the question should indicate which way you should go.