As Level Accounting Unit 2 Revision Essay

4207 Words Dec 18th, 2012 17 Pages
CRAM Exclusive
Essay Sample for more notes visit Bought to you by AS- Level Accounting Unit 2 Revision Notes Benstead Revision Notes: Types of Business Organisation: Sole Traders: Advantages:      Faster decision making Independence Quicker and cheaper to establish All profits belong to the sole trader Competitors know less about the business’s success as the accounts don’t have to be published Disadvantages:    Unlimited liability-can lose both

middle of document…

The amount owed would be added to the relevant income, in this case interest due, which would be added to Gross profit under other income. Income received in advance is included in other income added to gross profit. For example you this could happen with Rent: Only rent received for this year should be included in this year’s profit and loss account. This means that if there are any payments for the next financial year, you have to deduct the extra amount from the amount from this year in the other income section of the income statement. E.g. if a business received a total payment of £42,000 for rent in advance, and £300 of it was for the next financial year, you would include only the £39,000 in this year’s income statement under the other income section. Provisions for Doubtful DebtsUsed to record the amount written off each year and shows the total depreciation to date. Credit provision for depreciation with New Year’s amounts Debit income statement as an expense. DepreciationPurposeThe reason for recording depreciation is that it would allow the business to be prudent as the depreciation charge would be deducted from profit. This means that the loss of value of the fixed asset would be recorded. Depreciation is the loss of value of fixed assets due to: Usage/wear and tear Passage of time Depletion (Not-Complete) Obsolescence (Out of Date)

There are two main methods of depreciation:
Bought to you by Page 5
for more
CRAM Exclusive

Related Documents

  • Business and Administration Level 2 - Unit 1 Essay

    others are not put at risk. If possible, provide relevant health, safety and security policies / documents from your workplace (or place of study) to support your answer. These documents should be annotated to highlight the relevant sections. 2. Explain the purpose of following health, safety and security procedures in a business environment. The purpose is to essentially ensure that everyone is safe and not put at unnecessary risk while in a working environment. It is also in place to protect

    Words: 3506 - Pages: 15
  • Essay about Vocabulary Workshop Level E Unit 2 Answers

    buffeted 2. extant 3. chaos 4. interred 5. abhor 6. reprehensible 7. amend 8. corrosive 9. squalid 10. obviate 11. implicate 12. somber 13. waive 14. renegade 15. commodious 16. voluminous 17. discern 18. turbulent 19. vociferous 20. martinet Synonyms/Antonyms 1. buffeted 2. commodious 3. discerned 4. martinet 5. amend 6. obviates 7. vociferous 8. renegade 9. chaos 10. squalid 11. implicated 12. somber 13. abhorred 14. waive 15. corrosive 16. turbulent 17. interred

    Words: 2044 - Pages: 9
  • Business and Administration Level 2 Unit 1 Assessment Essay

    followed in a business environment for the overall organisation can consist of a source of insight into culture of target populations and also helps to maintain morale and motivation of the workforce leading to increased quality of product/output. Section 2 – Understand the purpose of health, safety and security procedures in a business environment 1. Identify employer and employee responsibilities for health, safety and security. If possible, provide relevant health, safety and security policies / documents

    Words: 3650 - Pages: 15
  • Essay on Unit 2

    Unit 2 : Working in the Science Industry Walworth Academy Science Department Course title: BTEC National Extended Diploma in Applied Science (QCF Level 2) Tutor name: Assignment : 2.3 Storing Data Ref: Learner name Start date: Deadline date: Unit : ( Credits) Scenario You run a small biomedical laboratory. you have been given the task of describing

    Words: 1270 - Pages: 6
  • Accounting Equation 2 Essay

    has instructed Ron Rivera, the head of the Accounting department for Smith Company, to report the company’s land in the company’s accounting Reports at its market value of $170,000 instead of its cost of $100,000. Smith says, “Showing the land at $170,000 will make our company look like a better investment when we try to attract new investors next month.” The Ethical situation of this scenario is that according to the Generally Accepted Accounting Principles {GAAP}, the cost principle of a company

    Words: 611 - Pages: 3
  • Essay on Accounting Unit 7

    the point of the revenue made by the company. This will be equal to the costs that will be related to getting the revenue. 6 2) Calculate the contribution per unit. 7 3) Calculate the break-even point from the information provided. 8 Conclusion 9 Bibliography 9 Reference 9 Introduction In this report for my P1 I will be explaining the management accounting concepts to a younger audience within the business people in the chosen areas, by providing them with useful advice on costing,

    Words: 3694 - Pages: 15
  • Unit 1 English exam revision Essay

    created by the examples of language you have selected Make sure your examples are:          Well-chosen and appropriate          Short and concise          Support the points you wish to make Comparing texts One of the questions in this unit will ask you compare two texts or to use the information from both texts to explain and compare what the texts have to say and how they say it Approaching your comparison Before you can write a comparison you need to read both of them carefully and

    Words: 1241 - Pages: 5
  • Pt1420 Unit 2 Essay

    Variable names are case-sensitive. 2. A variable’s name can be any legal identifier. 3. It can contain Unicode letter, Digits and Two Special Characters such as Underscore and dollar Sign. 4. Length of Variable name can be any number. 5. Its necessary to use Alphabet at the start (however we can use underscore , but do not use it ) 6. Some auto generated variables may contain ‘$‘ sign. But try to avoid using Dollar Sign. 7. White space is not permitted. 8. Special Characters are not allowed

    Words: 677 - Pages: 3
  • Essay on Customer Service Level 2

    2. Identify a range of sources where a person can find information and advice on the customer service industry, occupations and career progression.  3. In your current organisation (or one that you are familiar with), what methods of learning are available to help with career progression? 4. In your current organisation (or one that you are familiar with), what is the procedure for accessing formal learning programmes? What is the procedure if an application

    Words: 1009 - Pages: 5
  • Geography Unit 2 Essay

    the fact that this was where the river started and was formed so you do not expect to see any water, at site 2 the wetted perimeter doubles roughly and at site 3 just a little bit higher, this is due to the water collecting at the bottom and forming the river Loughton brook which ends into the river Thames Water depth the water depth at site 1 was less than a meter high and in site 2 the water depth was less than the water depth in site one, this is possible because of the rainfall not falling

    Words: 1676 - Pages: 7