Accounting for Assets

Bank reconciliations

Reconcile the bank statement to the cash ledger and record the adjustments the books need.

Journal entries · Worksheets · Calculations · Classification · Sequencing · Simulator

Accounts receivable and the receivables ledger

Record credit sales, collections, returns and discounts and reconcile the control account.

Journal entries · Worksheets · Classification

Credit losses and the allowance method

Estimate expected credit losses with an aging schedule and record the allowance and write-offs.

Journal entries · Worksheets · Calculations · Equation analysis · Simulator · IFRS 9 (simplified approach, introduction)

Periodic and perpetual inventory systems

Record purchases and sales under both systems and compute cost of goods sold.

Journal entries · Worksheets · Calculations · Classification · Simulator · IAS 2

Inventory cost formulas: FIFO and weighted average

Value closing inventory and cost of sales under FIFO and weighted average and compare the outcomes.

Worksheets · Calculations · Classification · Concept checks · Simulator · IAS 2.25, ASC 330 (LIFO permitted under US GAAP)

Lower of cost and net realisable value

Write inventory down to net realisable value and explain when the write-down reverses.

Journal entries · Worksheets · Calculations · Concept checks · IAS 2.9, IAS 2.33

Recognising property, plant and equipment

Decide which costs are capitalised into an asset and which are expensed.

Journal entries · Calculations · Classification · Concept checks · Simulator · IAS 16.7, IAS 16.16

Depreciation methods

Build straight-line, reducing-balance and units-of-production schedules and record depreciation.

Journal entries · Worksheets · Calculations · Concept checks · Simulator · IAS 16.60–62

Disposals of property and equipment

Record a disposal and compute the gain or loss.

Journal entries · Worksheets · Calculations · Classification · Sequencing · Simulator · IAS 16.68–72

Intangible assets and amortisation

Recognise intangible assets and amortise those with finite useful lives.

Journal entries · Worksheets · Calculations · Classification · Concept checks · IAS 38

Impairment of assets

Compare carrying amount with recoverable amount and record an impairment loss.

Journal entries · Worksheets · Calculations · Classification · Concept checks · IAS 36

Investments and financial assets

Classify simple investments in debt and equity instruments and record their measurement.

Journal entries · Calculations · Classification · Concept checks · IFRS 9