Ledger DrillBeta
Log inJoin for free

Final accounts

From a trial balance to a finished set of accounts for a sole trader, a partnership and a small company, and the principles behind them.

Hard6 of 6 modules open29 rooms
Module 1

Sole trader accounts

Turn a sole trader's trial balance into a statement of profit or loss and a statement of financial position, and see where capital and drawings fit.

  1. 1The statement of profit or loss for a sole trader8 min, hard
  2. 2How to work out gross profit and net profit10 min, hard
  3. 3The statement of financial position for a sole trader10 min, hard
  4. 4Capital, profit and drawings10 min, hard
  5. 5From a trial balance to a set of accounts12 min, hard
Recap this moduleSix questions, starting with the ones you got wrong.
Module 2

Incomplete records

How to rebuild a year's figures when the books are missing: the accounting equation, control accounts, the bank, and mark-up and margin.

  1. Missing figures from the accounting equation10 min, hardPremium
  2. Missing figures from a control account10 min, hardPremium
  3. Missing figures from the bank10 min, hardPremium
  4. Mark-up and margin: finding a missing figure10 min, hardPremium
  5. Missing inventory or drawings12 min, hardPremium
Module 3

Partnership accounts

How partners share a profit: the agreement, the appropriation account, capital and current accounts, and the partnership's statement of financial position.

  1. What a partnership agreement covers8 min, hardPremium
  2. The appropriation account10 min, hardPremium
  3. Capital accounts and current accounts10 min, hardPremium
  4. Interest on capital, interest on drawings and salaries12 min, hardPremium
  5. A partnership statement of financial position10 min, hardPremium
Module 4

Changes in a partnership

What happens in the books when a partner joins, a partner retires or the profit share changes, and why goodwill sits at the centre of each one.

  1. What goodwill is and how to value it10 min, hardPremium
  2. A new partner joins: capital and goodwill11 min, hardPremium
  3. A partner retires: what they are owed11 min, hardPremium
  4. A change in the profit share between partners10 min, hardPremium
Module 5

Limited company basics

How a company's accounts differ from a sole trader's: shares, reserves, dividends, corporation tax, and the people who read the result.

  1. Share capital and reserves10 min, hardPremium
  2. Dividends: how a company pays its owners9 min, hardPremium
  3. Corporation tax in a company's accounts9 min, hardPremium
  4. How a company's financial position is laid out10 min, hardPremium
  5. Who uses a company's accounts, and what for9 min, hardPremium
Module 6

Principles and ethics

The ideas behind every set of accounts, and the standards of behaviour expected of the people who prepare them.

  1. Going concern and accruals: the two basic ideas9 min, hardPremium
  2. Prudence and consistency9 min, hardPremium
  3. Materiality: when a figure is big enough to matter9 min, hardPremium
  4. Confidentiality and integrity9 min, hardPremium
  5. What to do when something looks wrong10 min, hardPremium