Learn: Use accounting information and apply consistency, prudence, matching and business-entity ideas.

Key example: The owner and business are recorded separately.

Learn: Match invoices, receipts, credit notes and transactions to day books.

Key example: Credit purchases enter the purchases journal.

Learn: Apply debit and credit rules and balance ledger accounts.

Key example: Assets increase on the debit side.

Learn: Extract ledger balances and test arithmetic equality.

Key example: Total debits should equal total credits.

Learn: Record bank, cash, discounts and small payments.

Key example: The imprest system restores petty cash to a fixed float.

Learn: Reconcile timing differences and bank errors.

Key example: Unpresented cheques appear in the cash book but not yet bank statement.

Learn: Identify errors and correct entries using journals.

Key example: A suspense account temporarily holds a trial-balance difference.

Learn: Classify long-term asset spending and day-to-day expenses.

Key example: Buying machinery is capital expenditure; repairs are usually revenue.

Learn: Calculate straight-line or reducing-balance depreciation and disposal results.

Key example: Straight-line charge=(cost-residual value)/useful life.

Learn: Write off irrecoverable debts and estimate doubtful receivables.

Key example: Bad debts reduce trade receivables.

Learn: Adjust expenses and income to the correct period.

Key example: An accrued expense is owed but not yet paid.

Learn: Prepare income statements and statements of financial position.

Key example: Gross profit=sales-cost of sales.

Learn: Allocate profit using interest, salaries and profit-sharing ratios.

Key example: A partner salary is an appropriation, not an operating expense.

Learn: Calculate prime cost and production cost.

Key example: Prime cost=direct materials+direct labour+direct expenses.

Learn: Measure separate department performance and allocate common costs.

Key example: Shared rent can be apportioned by floor area.

Learn: Prepare receipts and payments, subscriptions and income statements.

Key example: Subscriptions due adjust income for the period.

Learn: Summarise receivables or payables ledger totals.

Key example: The sales ledger control account checks customer balances.

Learn: Use accounting equations and margins to reconstruct missing figures.

Key example: Closing capital=opening capital+profit+new capital-drawings.

Learn: Understand share capital, reserves, dividends and company statements.

Key example: Dividends are distributions, not business expenses.

Learn: Calculate profitability, liquidity and efficiency ratios.

Key example: Current ratio=current assets/current liabilities.