Index

back-ups in computerised information systems 284 and joint expenditure 293

BAGS Limited 151 loan interest, treatment of 295
bad debts 301-2 receipts 294
accounts for 304 and revenue expenditure 292
journals entries on 206 capital invested in financial statements 360
recovery of 308-9 capital structure ratios 672—3
scenarios 302 carriage 113-114
VAT relief on 235 carriage inwards/outwards 113
balance carried down 69
between benefit and cost 135 cash book 142, 160-70, 203
in double entry bookkeeping 25 bank overdrafts 169
and income statements 98-9 in bank reconciliation statements 390-1
between qualitative characteristics 135 cash discounts 164
balance brought down/carried down 69 cash paid into bank 161-2
balance-off 68 discount columns in 166-7
balancing-off accounts 66-72 division of 214—15
bank balance 393 folio columns in 163-4
bank cash books 170, 218-19 multiple column 170
bank giro credit 156-7 worked example 167-9
bank loan 154 cash discounts 164, 233
bank overdrafts in cash book 169 provision for in accounts receivable 309-10
bank reconciliation statements 390-7 cash flows 536-7
alternative approach to 393-4 importance of cash 527-9
with different closing balances 392-3 incomplete or missing figures 472—3
direct debits 395 statements of 527-39
entries in cash book 390-1 adjustments to net profit 533-5
overdrafts 395-6 depreciation 534
standing orders 394-5 doubtful debts 534
bank statements 160 profit/loss on non-current assets 535
banking system brackets, use of 533
automated payments 151-2 companies' methods 537-8
cheques 149-50 construction of 532-3
internet and mobile banking 151 details of 531-2
in twenty-first century 147-9 need for 530
base inventory 380 profit and liquidity 530-1
Bereavement Benefit 252 uses of 539
bonus shares 621 cash paid into bank 161-2
bookkeeping 8 cash purchase of inventory 46
books of original entry 141-5 cash sales
in growth of the business 141 accounting for 177-8
ledgers 141, 143 incomplete information on 473
more than one 141 of inventory 46-7
bought ledger 243 casting 423
budget 7 category method of inventory valuation 379
budgetary control 705 chart of accounts 280
budgeting 705 Cheque and Credit Clearing Company 152-3
business entity concept 129 cheque book 153
Cheque Guarantee Card 149
called-up share capital 620 cheques 149-50, 153-6
capital clearing 152-3, 157
in accounting equation 10 crossings 155-6
in double entry bookkeeping 23, 26 endorsements 156
employed in financial statements 360 features of 154-5
introduction of 11 pay-in slips 156-7
capital account system 154
in double entry bookkeeping 25-6 clearing 152-3, 157
and income statements 97—8 close off accounts 67
kinds in financial statements 360 the Cloud 266
capital calls in arrears 620 columnar day books 241-6
capital contributions in partnerships 557 advantages 246
capital expenditure 291 as collection points 246
analysis of 293 purchases 241-4
incorrect treatment of 293-4 sales 244-5

796
 Index

VAT and 235, 245-6 currency stability 136

commission error in trial balance 419, 420-1 current accounts 153
Companies Acts (1981, 1985, 2006) 617, 618, 624 in partnerships 561-2
comparability 135 current assets 16, 106
compensating error 419, 421 current liabilities 16, 107
complete reversal of entries error 420, 422 current ratio 459, 668
completeness 135
computerised information systems 277-285 data controller 285
accounting records 279-80 Data Protection Act (1998) 285
account codes 279-80 data safeguards in computerised information systems
double entry 280 282-3
flexibility 279 data loss 28
background 277-8 fraudulent manipulation 282-3
data safeguards 282-3 malicious data manipulation 283
data loss, prevention of 28 theft 282
fraudulent manipulation 282-3 data security in computerised information systems 285
malicious data manipulation 283 data subject 285
theft 282 databases,
databases, use of 284 in computerised information systems 284
MIS in see Management Information Systems back-ups 284
conceptual framework 126, 127, 622, 679-80 passwords 284
contra items 162 data security 285
control accounts 403-13 day books 142
adjustment accounts 412 columnar 241-6
benefits of 403-4 advantages 246
a caution 412 purchases 241-4
complexity in 409-10 sales 244-5
form of 406-7 VAT and 245-6
information for 405, 408 debit 57
in manual accounting system 407-8, 413 debit balance 69, 76-9
as part of double entry system 410-11 debit cards 147, 150
principles 404 debit entries, total 75-6
reconciliation of 412 debit notes
self-balancing ledgers 412 and returns outwards 195
transfers to bad debt accounts 408—9 statements 197-8
cost accounting 700 debt
approaches 703-4 in double entry bookkeeping 24, 27
absorption costing 703-4 factoring 199-200
marginal costing 704 debtors 12, 27
cost control 703 balancing-off accounts 66-9
and costs 701-3 account paid for 66-8
systems 704-5 still owe for goods 68-9
cost control 703 departmental accounts 518-23
costs 701-3 allocation of expenses 519-23
credit 57 inter-departmental transfers 523
as form of settlement 24 statement of financial position 523
purchase and sale of non-current assets on, journals use of 518-19
entries 205-6 depletion, and depreciation of non-current assets 318
purchase of inventory 45-6 depletion unit method in depreciation of non-current
sales of inventory 46-7 assets 325
credit balances, total 75-6 deposit account 153
credit cards 150-1 depreciation
payments 178 adjustments in cash flow statements 534
sales and purchases via 198-9 double entry for 329-39
credit control on sales 183 accounts for 338-9
credit entries, total 75-6 change of method 333-8
credit notes, returns inwards and 192—3 one-stage approach 338
credit sales 178-9 recording 329-31
posting to purchases ledger 187, 188 and replacement of assets 338
posting to sales ledger 179-80, 180-1 two-stage approach 338
creditors 12, 28 of non-current assets 316-26
balancing-off accounts 69-70 accounting entries at disposal of 331-3
cumulative preference shares 619 as an expense 317

797
Index

depreciationfcon^mMgd1) reducing 306-8

calculating charges 320-2 defined 303
choice of method 322 drawer 154
causes of 317-18 drawings 60-1
depletion 318 incomplete information on 473
depletion unit method 325 dual aspect concept 129
disposal of 331-3
economic factors 317-18 earnings per share (EPS) 671
land and buildings 318 economic factors in depreciation of non-current assets
machine hour method 325 317-18
physical deterioration 317 efficiency ratios 670—1
provision for 319 electronic point of sale (EPOS) system 266
assets bought and sold 323 electronic transmission of funds 270
reducing balance method 320-2 endorsements 156
revaluation method 323-5 equity, statement of changes in 623-4, 632
straight line method 320 erosion, rust, rot and decay in depreciation of
sum of years' digits method 325 non-current assets 317
tangible assets 316 error correction, journals entries of 207
time 318 errors
units of output method 326 correction of 428-31
direct credit 152 one error only 428-9
direct debits 148, 151 more than one error 430-1
in bank reconciliation statements 395 effect on profits 431-3
direct manufacturing costs 500 affecting profits 432-3
directors of public limited companies (PLCs) 618 not affecting profits 432
legal status 618 several errors 433
remuneration 622 and trial balance 427
discounts 'Errors and Omissions Excepted' 200
allowed 164 Excel 266
in cash book 166-7 exempted businesses (VAT) 226, 227
entries in general ledger 167 expenditure accounts 486, 487-90
received 165-6 extranet 265, 269
dishonoured cheques 396-7
dividend cover 671—2 factoring 106, 199-200
dividend yield 671 faithful representation 133
dividends in PLCs 618 Easter Payments System 152
double entry bookkeeping 22 financial accounting 8, 9
axioms of 23 information, users of 8-9
business worth, listing 25—6 objectives 7-8
in computerised information systems 280 see also statement of financial position
control accounts in 410-11 financial modelling 265
for depreciation see under depreciation Financial Reporting Council (FRC) 127
in existing accounts 28-9 financial reporting standards 126-7
expenses 30 Financial Reporting Standards (FRSs) 126, 128
making 36 FRS 5 (Non-current assets held for sale and
making double entries 26-8 discontinued operations) 631
not used 465-6 FRS 15 (depreciation) 318
in statement of financial position 104-5 FRS 100 (Application of Financial Reporting
for trade discounts 182-3 Requirements) 127
in petty cash book 217-18 FRS 101 (Reduced Disclosure Framework) 127
principes 22-31, 57 FRS 102 (Financial Reporting Standard applicable in
for returns inwards/outwards 196-7 the UK and Republic of Ireland) 127, 128
sale, recording 29-30 FRS 103 (Insurance contracts) 127
from sale of services 58-60 Financial Reporting Standards for Smaller Entities
transaction 22-3 (FRSSE) 127
worked examples 32-6 financial statements 118
doubtful debts adjustments 353
adjustments in cash flow statements 534 accruals
allowance for 302-308 expenses 353-4
accounting entries 303-5 income 357
and depreciation 304-5 recording 364-5
increasing 305—6 expenses account balances 356-7
reasons 302-3 covering more than one period 358-9

798
 Index

goods for own use 360 accounting entries for 580-1

prepaid expenses 354-5 new partners 579-80, 582
revenue account balances 356-7 profit-sharing ratios 576-9
covering more than one period 358-9 revaluation of 591
revenue owing at end period 355-6 withdrawal or death of partners 582
for all purposes 125-6 in public limited companies 621-2
conceptual framework 126-7 reasons for payment of 574
constraints on information 135 gross loss in income statements 92-3
currency stability 136 gross margin 457-8, 664
extended trial balances 361-3 gross pay 250
historical cost concept 126 gross profit
in manufacturing accounts in income statements 92-93
format of 501-3 as percentage of sales 457-8
manufacturing account 501-2
profit and loss 502-3 historical cost concept 126, 129, 701
trading account 502 HM Revenue and Customs
full set of 506-8 electronic documents to 270
objectives 125 electronic transmission of funds 270
objectivity 126 recording wages and salaries 255
in partnerships 560-1 FIM Revenue and Customs Guides and Notices 237
period of 352
qualitative characteristics 130—5 impersonal accounts 144
comparability 135 imprest system 215-16
completeness 135 inadequacy and depreciation of non-current assets 318
faithful representation 133 Incapacity Benefit 252
materiality 132-3 income accounts 486, 487-90
neutrality 133 income statements 91-9
prudence 133-4 and capital account 97-8
recognition of profits and gains 134-5 carriage 113—14
relevance 132 of gross profit 92-3
reliability 133-5 information needed 93-7
substance over form 133 of net profit 93
understandability 132 purpose 92
separate determination 135 returns outwards and inwards 91-9, 112-13
in services sector 361 in second year of business 114-18
single entry in 469-71 inventory 115, 116-18
subjectivity 126 trading account 118
VAT in 227 income tax 255
see also statement of financial position codes 252
first in, first out (FIFO) method of valuation of deductions 250-2
inventory 375 incomplete records or missing figures 472-3
fixed assets 16 indirect manufacturing costs 500
fixed capital accounts in partnerships 561-2 information, communicating 8
fixed costs in accounting statements 675-7 Information Commissioner's Office 285
float 215 information technology and accounting 263-73
fluctuating capital accounts in partnerships 562-3 background 263-4
folio columns 163-4 the Cloud 266
advantages 163 computerisation of 267-72
forecasting 265 large and small systems 264-7
networks 265
Garner v Murray rule 604-5 input tax, VAT as 225
gearing 672-3 inputs 225
general ledger 143, 167 inter-departmental transfers 523
general partners 556 interest on capital in partnerships 558
going concern 130, 648 interest on drawings in partnerships 559
goods for private use, VAT on 237 International Accounting Standards (IAS) 127, 128
goods on sale or return, inventory valuation of 382 IAS 1 (Presentation of financial statements) 631-2,
goodwill 678
calculating, methods of 574-5 IAS 2 (Inventories) 374
existence of 574 IAS 7 (Statement of cash flows) 530, 532, 537-8
nature of 573-4 IAS 8 (Accounting policies, changes in accounting
negative 649 estimates and errors) 678-9
in partnerships 576-83 IAS 10 (Events after Reporting Period) 681

799
Index

International Accounting Standards (\kS){continued) adjustments 209-10

IAS 16 (Property, plant and equipment) 318 bad debts 206
IAS 23 (Borrowing costs,) 318 error correction 207
IAS 26 (Impairment of Assets) 318 opening entries 207—8
IAS 31 (Financial Reporting of Interests in Joint purchase and sale on credit of non-current assets
Ventures) 549 205-6
IAS 37 (Provisions, contingent liabilities and typical uses 204
contingent assets^ 681
IAS 38 (Intangible assets) 680-1 last in, first out (LIFO) method 376
International Accounting Standards Board (IASB) 128, ledgers
622 as books of original entry 141, 143
International Accounting Standards Committee (IASC) VAT in 227
128 liabilities
International Federation of Accountants (1FAC) 634 in accounting equation 10
internet 269 in double entry bookkeeping 28
internet banking 151 incurring 11
intranet 265 payment of 13
inventory 12 limited, abbreviation of 36
cash purchase of 6 limited company
cash sales of 46-7 return of capital employed 666-7
closing 80 taking over sole proprietorship 654-6
credit purchase of 45—6 limited liability 617
credit sales of 46-7 limited liability companies 616-34
movements 43-5 need for 616-17
returns inwards/outwards 47, 48 limited liability partnerships 557
stolen, lost or destroyed 473-5 limited partnerships 556
valuation of 374-83 liquidity ratios 667-9
bases in use 379-80 Littleton, A.C. 5
and calculation of profits 377 loan note interest 622-3
category method 379 loan notes 621, 674-5
conflicts 381 local area network (LAN) 265, 269
factors affecting 380-81 long-term solvency ratios 674
goods on sale or return 382 loss 44
in inventory groups 378-9 and costs 56-7
item method 379 effect on capital 55-6
levels 383 nature of 54-5
methods 374-7 and sales 56
average cost (AVCO) 376-7, 380 special purpose for 486-7
first in, first out (FIFO) 375 loss accounts
last in, first out (LIFO) 376 appropriation account in partnerships 560
periodic valuation 380 in income statements 92
reduction to net realisable value 377-8
stocktaking 382-3 machine hour method in depreciation of non-current
work-in-progress 382 assets 325
worked example 48-9 management accounting 8, 9, 699-706
inventory control systems in MIS 280 background 699-700
inventory turnover 458-9, 670 budgeting 705
irredeemable loan note 621 and cost accounting 700
issued share capital 620 Management Information Systems (MIS) 280-2
item method of inventory valuation 379 modular integration 280-2
inventory control systems 280
job costing 704-5 purchase order processing 281-2
Jobseeker's Allowance 252 sales order processing 281
joint venture accounts 545—9 manager's commission 457
large, accounting for 546 manufacturer's recommended retail price 183
memorandum account 547 manufacturing accounts 499—9
nature of joint ventures 545—6 administration expenses 500
small, accounting for 546-9 apportionment of expenses 505-6
journals 142, 203-11 direct costs 500
as book of original entry 203-4 division of costs 499-500
examination guidance 210 financial charges 501
in examination questions 204-10 financial statements

800
 Index

format of 501-3 subscriptions, outstanding 490-1

manufacturing account 501-2
profit and loss 502-3 objectivity 126
trading account 502 obsolescence and depreciation of non-current assets 317
full set of 506-8 omission error in trial balance 419, 420
indirect costs 500 opening entries in journals 207-8
market value of goods 508—9 operating profit/loan interest ratios 674
production costs 499 ordinary shares 619
selling and distribution expenses 500 original entry, error in trial balance 420, 422
work -in-progress 504 output tax, VAT as 225
worked examples 503, 504-5 outputs 225
margin in accounting ratios 453-4, 456 overcasting 423
marginal costing 704 overdraft 154
mark-up in accounting ratios 453-4, 456
materiality 132—3 Pacioli, Luca 4, 6
Maternity Allowance 252 paid-up capital 620
measurement basis, in accounting policies 679 partly exempt businesses (VAT) 226, 227
memorandum joint venture account 547 partners 555
Microsoft Dynamics GP accounting system partnership accounts 555
265, 271 Partnership Act (1907) 556
MIS see Management Information Systems partnership books 576
missing figures partnerships
calculating 454-6 agreements 557
or incomplete records 472-3 capital contributions 557
two missing figures 473 contents of 557-59
mobile banking 151 interest on capital 558
modular integration in MIS 280-2 interest on drawings 559
inventory control systems 280 performance-related pay 559
purchase order processing 281-2 profit or loss sharing ratios
sales order processing 281 changes in 576-79
money measurement concept 129 salaries 559
multiple column cash books 170 assets, revaluation of 588-91
accounting for 589-91
National Insurance 252-3, 255 and goodwill 591
net loss in income statements 92 need for 588
net pay 250, 255 profit or loss on 589
net profit dissolution of 596-606
in income statements 92 accounting for 597-603
as percentage of sales 667 assets
net realisable value 377-8 disposal of 597
networks in information technology 265 piecemeal realisation of 605-6
neutrality 133 Garner v Murray rule 604-5
nominal accounts 144 need for 596-7
nominal ledger 144 procedure 597
non-cumulative preference shares 619 distribution of profits 559-60
non-current assets 16 financial statements 560-1
appreciation of 318-19 fixed and fluctuating capital accounts 561-3
depreciation of see under depreciation goodwill see under goodwill
held for sale 320 limited 556
nature of 316 nature of 556
purchase and sale on credit of, journal entries for need for 555—6
205-6 purchase of 648-56
in statement of financial position 106 asset value 648-9
non-current liabilities 107 business purchase account 656
non-profit organisations 485 capital reserve on 649
accumulated fund 487 goodwill on 649
donations 492 statement of financial position 564
entrance fees 492 taking over sole proprietorship 651—2
expenditure accounts 486, 487-90 where no agreement exists 563
income accounts 486, 487-90 passwords in computerised information systems 284
life membership 491-2 pay as you earn (PAYE) 249, 250
prudence concept 490-1 code numbers 252

801
payee 154 prudence concept 133-4, 490-1
pay-in slips 156-7 public companies 617
payments accounts 485—6 public limited companies (PLCs) 617
payroll accounting 249-57 conceptual framework 622
income tax deductions 250-2 directors of 618
National Insurance 252-3 director's remuneration 622
net wages/salary payable, calculations 254-5 goodwill 621-2
other deductions 253 income statements 622-3
pay 249-50 loan note interest 622-3
calculating 250 professional ethics 633
personal allowances 251 statement of financial position 624-30
recording in accounts 255—7 purchase accounts 31
Statutory Maternity Pay 252 purchase invoices
Statutory Sick Pay 254 internal check on 199
wages control account 256-7 recovering VAT paid
Pegasus accounting system 271 reduced-rate businesses 230-2
pensions 253 and standard rated businesses 230-2
performance-related pay in partnerships 559 purchase on credit of non-current assets
period costs 701-3 journals entries 205—6
personal accounts 144 purchase order processing in MIS 281-2
personal allowances 251 purchases
personal data 285 accounting for 186-8
Personal Identification Number (PIN) 147 via credit cards 198-9
petty cash book 214-18 of inventory
analytical petty cash book 216-18 for cash 46, 473
float 215 on credit 45-6
imprest system 215-16 special meaning of 50
physical deterioration and depreciation of non-current purchases account 44
assets 317 purchases day books 142, 203
plastic cards 147 columnar 241-4
possession in double entry bookkeeping 23, 24, 26 entries in 186—7
posting 163 purchases ledger 143
credit sales to purchases ledger 187, 188 posting credit sales to 187, 188
credit sales to sales ledger 179-80, 180-1 purchases ledger control account 404
preference shares 619 reconciliation of 412
presentation, in accounting policies 679 purchases returns account 45
price/earnings (P/E) ratio 671
prime costs 500 Quickbooks accounting system 271
principle, error in trial balance 419, 421
private companies 617 real accounts 144
private ledger 144 receipts accounts 485-6
process costing 704-5 recognition, in accounting policies 679
product costs 701 recognition of profits and gains 134-5
production costs 499 redeemable loan note 621
professional ethics 633 reduced rate of VAT 225
profit 44 reduced-rate businesses for VAT
as capital increase 466-8 purchase invoices 230-2
and costs 56-7 and sales invoices 228-30
effect on capital 55-6 reducing balance method in depreciation of non
errors, effect on 431-3 current assets 320-2
affecting profits 432-3 relevance 132
not affecting profits 432 reliability 133-5
several errors 433 reserves 623
nature of 54-5 residual costs in depreciation 319
with opening and closing assets and liabilities 466-8 Retirement Pension 252
when opening and closing capital not known 466 return on capital employed (ROCE) 665-7
and sales 56 return on owner's equity (ROOE) 666
special purpose for 486-7 return on shareholder's funds (ROSE) 666
profit accounts returns inwards 47, 112-13
appropriation account in partnerships 560 and credit notes 192-3
in income statements 92 and double entry 196-7
non-profit organisations 485 returns inwards account 44
profitability ratios 665-7 returns inwards day book 142, 193, 194, 203
 Index

returns outwards 48, 112-13, 203 short-term liquidity ratios 674

and debit notes 195 single entry 465-6
statements 197-8 in financial statements 469-71
and double entry 196-7 profit as capital increase 466-8
returns outwards account 45 small and medium sized entities 681-2
returns outwards day book 142, 195, 196 software 266-7
revaluation account 589 sole proprietor's book 575
revaluation method in depreciation of non-current sole proprietorship
assets 323-5 return of capital employed 665-6
revenue 54-5 taking over 650-6
from sale of services 57-8 by amalgamation 652-654
double entry for 58-60 business purchase account 656
revenue expenditure 292 by limited company 654-6
and capital expenditure 292 by partnership 651-2
incorrect treatment of 293-4 spreadsheets 264, 272-3
and joint expenditure 293 standard cost method of inventory valuation 380
loan interest, treatment of 295 standard rate of VAT 225
receipts 294 standard rated businesses for VAT 225-6, 227
recovering VAT paid 228—32
Sage accounting system 271, 278, 284 and purchase invoices 230-2
salaries in partnerships 559 and sales invoices 228—30
sale on credit of non-current assets Standing Orders 152, 394-5
journals entries 205-6 statement of changes in equity 623-4, 632
sale or return basis of inventory valuation of 382 statement of comprehensive income 632
sales statement of financial position 11-14, 103-8
accounting for 177-83 and bank balance 393
cash sales 177-8 contents of 103
credit sales 178-9 in departmental accounts 523
trade discounts 181-2 detailed presentation of 15-16
via credit cards 198-9 double entry not in 104-5
credit control 183 layout of 105-7
manufacturer's recommended retail price 183 assets 106
special meaning of 50 liabilities 107
sales accounts, double entry 31 in partnerships 564
sales day books 142, 203 for public limited companies 624-30
columnar 244-5 stocktaking and inventory valuation 382—3
entries in 179-80 and suspense accounts 428
sales invoices 178 true and fair view 631
copies of 179 statements
internal check on 199 of profit and loss 92
recovering VAT paid of returns inwards and outwards 197-8
reduced-rate businesses 228-30 Statements of Standard Accounting Practice (SSAPs)
and standard rated businesses 228-30 126, 128
sales ledger 143 on depreciation 318
posting credit sales to 179-80, 180-1 Statutory Maternity Pay 252
sales ledger control account 404 Statutory Sick Pay 254
sales order processing in MIS 281 Stock Exchange 617
sales returns account 44 stocks 10
SAP accounting system 284 straight line method in depreciation of non-current
Save as you earn (SAYE) 253 assets 320
scrip issue 621 subjectivity 126
self-balancing ledgers 412 subscriptions, outstanding 490-1
self-test questions on trial balances 79 substance over form 133
selling and distribution expenses in manufacturing sum of years' digits method in depreciation of non-
accounts 500 current assets 325
sensitivity analysis 265 suspense accounts 427-8
separate determination 135 background 434
share capital 618-20 businesses and examinations 434
shareholder ratios 671-2 and statement of financial position 428
shareholders 617
shareholder's funds/ total assets (excluding intangibles) T-accounts 29-30
ratios 674 tax codes 252
shares 617, 674-5 three-column accounts 70-72

803
Index

time and depreciation of non-current assets 318 and cash discounts 233
time interval concept 129 in columnar day books 235
timeliness 135 defined 223-4
total accounts payable account 404 exempted businesses 226
total accounts receivable account 404 on goods for private use 237
total external liabilities/shareholder's funds ratios 674 in gross amount 234
trade discounts 181-2 FIM Revenue and Customs Guides and Notices 237
no double entry for 182-3 in ledger accounts and financial statements 227
trading account 92 when no refunds for VAT paid 233-4
transactions on other items 235
elements of 22-3 owing 235
nature of 22 rates 225
recording elements of 23-2 relief on bad debts 235
transposition error in trial balance 420, 423 return forms 235—7
trial balance 75-80 standard rated businesses 225-6, 227
closing inventory 80 recovering VAT paid 228-32
errors 79, 427 unregistered businesses 226
correction of VAT account 227
one error only 428-9 zero-rated businesses 226
more than one error 430-1 variable costs in accounting statements 675-7
errors not affecting 419-23 veil of incorporation 618
casting 423
correction of 419-20, 428-31 wages control account 256-7
errors made 419-20 wear and tear and depreciation of non-current assets
self-test questions 79 317
true and fair view 631 websites 265
weighted average cost method of valuation of
UK GAAP 127 inventory 380
UK Payments Administration (UKPA) 152-3 'what if modelling 265
uncalled share capital 620 wide area network (WAN) 265, 269
undercasting 423 Widowed Mother's Allowance 252
understandability 132 Widow's Payment 252
units of output method in depreciation of non-current Widow's Pension 252
assets 326 working capital in financial statements 360
unpresented cheques 392 work-in-progress
Urgent Issue Task Force Abstracts (UITFs) 127 inventory valuation of 382
in manufacturing 504
value added tax (VAT) 36, 223-37
accounting for, methods 226-8 zero rate of VAT 225
background to 224-5 zero-rated businesses (VAT) 226, 228
on car purchases 235 recovering VAT paid 233

804