Category Archives: Accounting

Reflection from the externals

In my externals I got an excellence in my conceptual basis  and a merit in my financial statements overall I got a merit endorsement. I am slightly disappointed as my goal for level one accounting was to get an excellence endorsement. In the cash budget I accidentally added an extra 0. Which lowered my grade this year I am hoping to get an excellence endorsement and my aim is to thoroughly double check my work not just a skim check.

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Question of the day 

The business has paid $300 advertising which relates to the next year. This expense should not be reported in the income statement this year. Advertising should be decreased by $300 this year.the prepaid should be reported as a current asset prepayment in the statement of financial position. To have an accurate statement

Reflection 24th March 

The entity AJ builders received the liability a $6000 five year bank loans To purchase more tools and equipment purchased on credit in the past and has proof with a document 

The entity AJ Builders is obliged at the present time to repay the liability $6000 five year bank loan  to purchase more equipment and tools as on loan agreement before the five years is up .

In the future the entity AJ builders will pay off the liability of a five year loan to purchase more tools and equipment.By future sanctifies of assets   as each payment that is made in the future this will decrease asset in bank  on the loan agreement.