CXC CSEC Principles of Accounts (POA) exam guide: Section 6: End of Period Adjustments



CXC CSEC Principles of Accounts Exam guide: Section 6: END OF PERIOD ADJUSTMENTS

CXC CSEC Principles of Accounts Exam Guide

Section 6: END OF PERIOD ADJUSTMENTS


SPECIFIC OBJECTIVES

The students should be able to:

CONTENT
1. Explain why adjustments are to financial statements;

The reasons for adjustments;

Application of the matching /accruals concept.

2. Prepare journal entries for pre-payments and advanced revenues;

Journal entries for prepaid excuses and advanced revenues.

3. Prepare journal entries for accrued expenses and revenues;
Journal entries for accrued expenses and revenues.

 

 

4. Determine the amount of expenses or revenues  to be transferred to the Profit  and Loss Account/Income Statement;

Ledger accounts for expenses and revenues.
5. Indicate where accruals and prepayments will appear on the Balance Sheet; The treatment for prepayments and accruals on the balance sheet.

6. Distinguish between bad and doubtful debts;

The reasons for bad debts: aging debtors;

Creation of provision for doubtful debts.


7. Prepare journal entries and ledger accounts to write off bad debts and create provision for doubt debts

Accounting entries for bad and doubtful debts;

The treatment of bad and doubtful debts in the Profit and Loss Account and Balance Sheet.

 

8. Explain the nature of depreciation;           

Definition of depreciation;

Causes of depreciation;

Factors to be considered when calculating depreciation (cost, estimated useful life and scrap value)

 

9. Calculate annual depreciation expenses using straight line method and reducing balance method; Straight line method (useful formula) and reducing balance method of depreciation.


10.

Prepare journal entries and ledger accounts for provision for depreciation;

Journal entries for the provision for depreciation;

The maintenance of the provision for depreciation account;

The treatment of accumulated depreciation on the Balance Sheet;

The determination of Net Book Value (NVB).

11. Prepare Financial Statements after adjustments.

The preparation of adjusted Financial Statements.
(the use of worksheets would be helpful)

 


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nasha's picture
nasha (not verified)
love the website could be more

wish the information could go more in details.:-[

nasha's picture
romar holness (not verified)
principles of accounts

sitting poa may 2011

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