** LC accounting 2014 - predictions , discussion, etc **

jellytots95 wrote: »

Neither has club but people are predicting that thatll come up again too

LoveLamps wrote: »

Can someone talk me through 2012 b iii???

All im covering is
Short- control, cashflow, farm, service, reval
Long - q5, service, club, suspense, cashflow
All q8

Exo wrote: »

Am I alone on this;

Sole Trader or Company (120m), between Service .. Suspense .. Cash Flow .. (Incomplete B?) (2 x 100m), and something for Costing/Budgeting (I'd be happy with the 80% prediction for now).

Would Section 2 cover me from any surprises - given Interpretation as a guaranteed question?!

Lara_15 wrote: »

Posted a big chunk of theory a few pagers back


private debt of 600 owed to cooke offset against a businsess debt of 550

Can anyone help with this, I would do it
Capital CR 600
Creditor DR 550
Discount DR 50


But the marking scheme has
Capital Cr 550
Creditor Cr 550


I dont understand why?

sallycoolgal wrote: »

tabular came up last year? its never come up 2 years in a row before

Lara_15 wrote: »

Accounting Theory

Incomplete Records

Advice- I would advise .............. to keep a detailed cash book and general ledger supported by appropriate subsidiary day books, enabling ................ to prepare an accurate trading profit and loss account and therefore avoid reliance on estimates.

Additional info available from double entry system
-Total Purchases and Sales
-Bank Balance
-Capital and Drawings
-Expenses Due and Prepaid

Suspense

Error of commission – correct amount, correct side, correct class of account, incorrect account
e.g. Entering goods sold on credit to L. O' Brien into D. O' Brien's account
Error of principle – Incorrect class of account e.g. Shop owner entering purchase of a vehicle as purchase of trading stock
Error of omission – Entry completely omitted from the books
Compensating errors - When two errors cancel each other out
Reversal of entry – Debit entry entered on credit side and vice versa

Errors that do affect the trial balance :
-One amount on DR and different amount on CR
-Mathematical/calculation errors
-Posting only one side of the double entry

Club/ Service

Special purpose P+L – used to calculate the profit on things such as raffle or lotto. Profit then goes into the income and expenditure account

Limitations of a Receipts and Payments A/c
-Does not show weather club is raising enough funds to cover costs
-Does not take into account dues and prepaids
-Does not take into account non-cash losses such as depreciation

Cash Flow

Things affecting profit but not cash
-Non cash losses such as depreciation
-Credit purchases or sales

Things affecting cash but not profit
-Capital/Drawings of cash
-Purchase or sale of Fixed asset

Accounting Standards Board
-Issues new accounting standards called financial reporting standards (FRS)
-FRS 1 (issued in 1991 revised in 1999) requires large companies to prepare a cash flow statement for each activity period
-It requires that individual cash flows should be entered under standard headings according to the activity that gives rise to them

Purpose of Cash Flow
-Shows cash inflows and outflows for the year
-Shows that profits do not always equal cash
-Aids financial planning, used to predict future cash flows

Budgeting

Cash Budget – forecast of cash inflow and outflow over a period, highlights weather enough cash will be aailable to cover future costs, gives advance knowledge to arrange an overdraft if needed
Flexible Budget – Prepared to help control and plan product levels, and to compare budgeted costs to actual costs at a certain level of activity
Capital Budget - Deals with planned capital expenditure e.g. Purchase o fixed assets
Master Budget – Summary of all budgets, includes a budgeted Manufacturing account Profit and Loss account and Balance Sheet
Adverse variance – When actual costs exceed budgeted costs
Controllable costs – can be controlled e.g. Direct labour, Administration
Uncontrollable costs – cannot be controlled e.g. Rates to local council
Principle Budgeting Factor – Limits output e.g. Sales demand, availability of labour and materials, capacity of the factory/plant
How to predict sales : take into account
-Last years sales
-Competition
-Market Research
-Trends/ Economy






accounting theory for some topics if anyone needs it, it was formatted all nice but when I copied an pasted it it went all boring sorry

Lara_15 wrote: »

no problem, theyre just the questions that seemed to come up alot so there could be bits missing!

Quick question.... am I right to say interim dividends are dividends you paid during the year, and proposed dividends are ones you plan to pay?
Im doing a cash flow and I cant get my head around why you put proposed dividends as well as interim dividends into the cash flow if you didnt pay both of them

Lara_15 wrote: »

Thank god! I just did a company account there and there was one awkward note that brought me down 15% :eek: Now I feel really disheartened because I NEED the A1 in accounting
praying for a nice paper
I dont mind what they put on it (as long as its not published or farm) as long as the questions are nice

LoveLamps wrote: »

2012 q8 b iii where are they getting sales??

Nof121 wrote: »

What are the types of q9s that can come up?