when you start with bank statement balance and finish with cashbook balance you add outstanding lodgements and deduct unpresented cheques.
I have troubles to imagine why you deduct outstanding lodgements and add unpresented cheques when you start with cashbook balance. Can you help me?
My thinking is that when I calculated cashbook balance I took unpresented cheques and outstanding lodgements into account. Unfortunately at present period I can't take into account timing differences therefore I have to ' annul' timing differences from cashbook by balancing them. Is this proper way of thinking?
thanks guys, i found the answer on my own
-- Edited by rafapak on Saturday 26th of December 2015 04:58:19 PM
-- Edited by rafapak on Saturday 26th of December 2015 05:24:52 PM
Rafal mentioned a couple of weeks back that he uses Osborn books but like yourself I've been wondering myself about the books that he is using as the terms used tend to be quite American such as dishonoured cheques and lodgements.
Whichever book(s) is/are being used I feel that its the wrong one(s) as Rafal is clearly struggling with the way that the book is teaching the subject.
Hang on a sec, lets have a look at my library and see if we can't find something thats going to be a little better.
Rafal,
I think that we need to review your reading materials.
The first choice for me is always this book which to me comes accross very clearly, is a best seller for the subject matter and even now I occassionally refer back to it :
I've looked at a few of mine that are silly prices from Amazon resellers so I've ommitted those from here. Also I've got many books that are simply no longer for sale or were never for sale (course specific texts such as OU B680 (also requires CD's. Books alone are of no use).
I could go on as I've got 8 full sized, wide floor to ceiling bookcases stuffed with books and other reference materials. There are even a few books that I've made myself using plastic insert sleeves and acquired materials from all manner of sources. However, whilst I think that you need to widen your library a little one can overdo it and end up reading nothing.
All of the books mentioned here concentrate upon mastering the basics. If you can buy all of them then you should because learning this subject is not about answering questions based on learning a book (this is not English Literature). The questions that come up in the exam may not even be mentioned in the study text that you have and may only be crptically referenced in the professional bodies syllabus. i.e. for management accounting the syllabus may just say "ratio analysis" rather than listing out all of the possible ratio's that you might be tested on.
The above texts are all bookkeeping study materials and the basic concepts of bookkeeping change little so it does not matter that they are older texts. When you start looking at financial accountancy properly use the most recent books that you can afford and nothing before 2011 as only by then had IFRS begun to settle down (ideally you would only purchase current year texts as things are still changing if at a somewhat calmer pace).
Management accountancy changes about as much as bookkeeping so older texts should be ok for that (except that professional bodies tend to keep changing their syllabuses... Then again, you should not be learning based just on a syllabus, but rather on the full subject).
Always buy the current finance act tax books. Older books are of no use to you at all and would actually damage your training.
I appreciate that you may feel that some of the above texts are below the position that you may feel that you are at in your studies but reading your recent posts I feel that you need to ensure that you have completely mastered the foundations. Not so much from the angle of understanding how to do something but rather why you do something and the effect that your actions have on the accounts.
All comes down to the old hare and tortoise analogy in that sometimes if you slow things down a little (in this case by reading many more books) you will get to where you want to be faster.
I hope that this has helped,
kindest regards,
Shaun.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
The above texts are all bookkeeping study materials and the basic concepts of bookkeeping change little so it does not matter that they are older texts. When you start looking at financial accountancy properly use the most recent books that you can afford and nothing before 2011 as only by then had IFRS begun to settle down (ideally you would only purchase current year texts as things are still changing if at a somewhat calmer pace).
Given the arrival of FRS 102 and 105, will that change things for AAT exams in 2016?
__________________
John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
I don't see why as don't AAT exams use IFRS rather than FRS?
The new FRS's are simply implemented IFRS into UK GAAP (although some differences exist such as the necessity for a Cashflow statement for micro entities).
Changes to IFRS would be predominantly around financial instruments now that the move to IFRS9 is pretty much complete (Of the other financial instrument standards, IAS39 has now gone. IAS32 and IFRS7 have both changed)
One that may effect the AAT syllabus is IFRS15 which has superseded IAS18.
Of course, Nick would be a better person to give an insight as to the machievelian intrigues of the inner circles of the AAT syllabus setting commitee and it's only my personal assumption that any changes to syllabus will be only minor.
All the best,
Shaun.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Hi Rafal
Shaun mentions this book www.amazon.co.uk/AAT-Units-Foundation-Revision-Companion/dp/0751746320/
There is also a course companion.....you can pick up both for a few quid including postage via Amazon. Both have absolutely loads of examples you can practice on. I agree with Shaun that these would be useful books if you are unable to study via distance learning with tutor support.
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
