Module 11

Question 1

How long are cheques valid for?

Answer 1

6 months

Question 2

What is reconciliation?

Answer 2

Adjust numbers if cashbook and bank statement aren’t the same

Question 3

Balance per cashbook reconciliation

Answer 3

Cr bank charges
Cr standing orders
Cr direct debits
Dr interest received

Debit balance if money is in

Question 4

Balance per bank statement reconciliation

Answer 4

• unpresented cheques
  + outstanding lodgements

Credit balance if money is in bank

Question 5

P+L layout

Answer 5

Income

Revenue
COS
    Opening stock +
    Purchases -
    Closing stock 
Gross profit 
Other income 

Expenses

Rent
Rates
Electric
Deprivation

Net profit

Question 6

Balance sheet layout

Answer 6

Assets
Fixed assets
(Depreciation of fixed asset)

Current assets
Stock (closing from p+l)
Trade debtors 
Bank
Cash
Prepayments 

Liabilities
Current liabilities
Trade creditors
VAT

NET CURRENT ASSETS

Long term liabilities
Loan

Capital 
Opening capital
\+ profit (p+l)
- drawings 
CLOSING CAPITAL