Course

O Level Accounting: Entities and Analysis (7707)

Name: O Level Accounting: Entities and Analysis (7707)
Price: 1299 BDT

Every business form past the sole trader, and what the finished statements then tell you. Partnerships, companies, manufacturers, clubs and incomplete records, then the ratios, the users and the ethics.

79 lessons8h 26mEnglishPart 2 of 2

What you'll learn

Prepare appropriation and partner current accounts from an agreement
Prepare company, manufacturing and club statements in the formats 7707 marks
Recover a missing figure from incomplete records using capital or a control account
Calculate the 7707 ratios and say what a change in one of them means
Name the accounting concept a treatment rests on, and the principle an ethical decision breaks

Requirements

Double entry, the trial balance, year-end adjustments and sole-trader statements
The first course, cambridge/o-level/accounting-foundations, covers all of that

Course content

79 lessons · 8h 26m

5.2 · Partnership accounts

Turn Nadia and Tuhin's new partnership agreement into an appropriation account, then carry each partner's salary, interest and profit share into separate current and capital accounts.

0/8

Why Nadia and Tuhin need a written agreement

Tuhin puts in capital and becomes a partner. Without a written agreement, the law shares profit equally.

Preview6m 2.

The appropriation account

Salary rewards work, interest on capital rewards money, interest on drawings discourages early withdrawals. Only the residual is shared in the ratio.

Preview9m

Interest on capital and interest on drawings

Calculate both interest figures from a rate and a balance, for Nadia and Tuhin's real Year 2 numbers.

Capital accounts and current accounts

Capital stays fixed at what each partner put in. Current accounts carry every year's salary, interest, share and drawings.

Build a partner's current account

Post Nadia and Tuhin's whole Year 2 into their current accounts, then balance each one off.

The appropriation sprint

Every kind of appropriation and current-account entry, shuffled. Keep the streak going.

Exam practice: a new business

Six Paper 1 questions with the trap behind each wrong answer, then a 12-mark Paper 2 question on Arif and Bina.

10m

Rebuild partnership accounts in 6 minutes

See the complete route, rebuild its order, then schedule only the rules that need another visit.

5.3 · Limited companies: shares, dividends and retained earnings

Kalam Stationers Ltd issues shares to fund a second branch. Derive limited liability from ch08, place tax and dividends around profit for the year, and prepare the company statement of financial position.

0/9

Why Nadia and Tuhin incorporate

A partnership risks personal savings if the business fails. Derive limited liability by contrasting a company with ch08.

Preview7m 2.

What a share actually is

10,000 ordinary shares at $10 each raise $100,000 without a loan. A share is ownership, not a debt.

Preview7m

The company income statement

Trading is unchanged from a sole trader. Place tax expense and finance costs before profit for the year.

Dividends: paid by share, not by request

A company has many owners, so nobody can just draw what they like. Derive the per-share dividend.

Retained earnings: profit that stayed

Share capital and retained earnings are two separate histories of money. Only one moves every year.

The company statement of financial position

Assets and liabilities follow ch08 exactly. Only the equity section splits into three lines.

Year 5 sort: every balance at once

Fifteen balances, no particular order. Sort every one correctly on the first pass.

Limited companies: exam question

Six Paper 1 questions with the trap behind each wrong answer, then a structured Paper 2 question on Bright Learning Supplies Ltd.

Limited companies: quick revision

The chapter on one screen, one broken statement to fix, and a spaced flashcard deck to come back to.

5.4 · Manufacturing accounts

Kalam Stationers Ltd starts binding its own exercise books. Trace raw materials through prime cost, factory overhead and work in progress to cost of production, then into finished-goods cost of sales.

0/7

Why a manufacturing account exists

There is no supplier invoice for a book Kalam made itself, so the cost is built up from materials, labour and expenses.

Preview7m 2.

Factory overheads: made it, or sold it?

One electricity bill is split between the workshop and the shop, and only the workshop's share is a factory overhead.

Preview7m

Work in progress

Half-bound books at the year end carry their cost forward, the same move Chapter 7 used for closing inventory.

Cost of production, into the trading section

Cost of production replaces Purchases in the trading section, then finished goods adjusts it into cost of sales.

Four figures, four rounds

Prime cost, factory overheads, cost of production and cost of sales, each on fresh figures, timed.

Manufacturing accounts: exam question

Six Paper 1 questions with the trap behind each wrong answer, then a 14-mark Paper 2 question on Anwar Furniture Works.

Manufacturing accounts: quick revision

The chapter on one screen, one broken work in progress line to fix, and a spaced flashcard deck to come back to.

5.5 · Clubs and societies

Move from a club's cash summary to subscription income, the income and expenditure account, and the accumulated fund that replaces capital.

0/9

A club has no owner

Nadia becomes treasurer of the Mirpur Readers' Club and meets a set of books with no capital account.

Preview6m 2.

Receipts and payments account

Treat it as a cash summary that includes capital and revenue items, and nothing owed.

Preview7m

Subscriptions account

Use opening and closing arrears and advance amounts to find subscription income.

Income and expenditure account

Prepare the not-for-profit equivalent of an income statement, ending in a surplus.

The accumulated fund

Derive the not-for-profit equivalent of capital from an opening statement of affairs.

A full year at the club

Chain receipts and payments, subscriptions, income and expenditure and the fund into one worked year.

10m

The club posting sprint

Post a shuffled year of club transactions fast, without mistaking a life membership fee for income.

Clubs and societies: exam question

Six Paper 1 questions, then a 14-mark club task from subscriptions to the accumulated fund.

Clubs and societies: quick revision

The chapter on one screen, one broken entry to fix, and a spaced flashcard deck to come back to.

5.6 · Incomplete records

Reconstruct Rashed's profit, purchases and revenue from nothing but a cash notebook and a count of what his tea stall owns and owes, then judge what that limited record still proves.

0/9

Why Rashed keeps no books

Tuhin's brother Rashed runs a tea stall from a notebook, not a ledger. What that notebook still proves.

Preview6m 2.

The statement of affairs

Apply the Chapter 1 accounting equation twice, a year apart, to find Rashed's opening and closing capital.

Preview7m

Profit from the change in capital

Rearrange the capital section of the statement of financial position to solve for the one figure never recorded.

Margin and mark-up

Recover Rashed's revenue from his cost of sales, and see why a 50% mark-up is not a 50% margin.

Recovering purchases from payables

Run the Chapter 6 control account in reverse: the closing balance is known, and total purchases is missing.

Putting it together: Rashed's profit

Combine every recovered figure into an ordinary income statement, and check it against the statement of affairs.

The incomplete records sprint

Rashed's stall, one year on: the same statement-of-affairs bridge, with unfamiliar figures against the clock.

Incomplete records: exam question

Six Paper 1 questions with the trap behind each wrong answer, then a full reconstruction for Farida's grocery stall.

Incomplete records: quick revision

The chapter on one screen, one broken working to fix, and a spaced flashcard deck to come back to.

6.1-6.2 · Calculate and interpret ratios

A raw profit figure hides size. Kalam and Pencraft, profitability, liquidity and efficiency ratios, each calculated and then read for what it tells Nadia to do next.

0/9

Why one profit figure does not tell the story

Pencraft made more profit than Kalam. Predict whether that proves Pencraft is the better-run shop.

Preview6m 2.

Gross margin and net margin

Kalam's gross margin fell but net margin held steady. Derive what that combination says about pricing against running costs.

Preview8m

Return on capital employed

Is Nadia's $100,000 working harder in the shop than it would sitting in a City Bank deposit at 6%?

Current ratio and quick ratio

Paper House Ltd's bill is due. Derive why inventory, the least liquid current asset, is removed for the quick ratio.

Inventory turnover and collection periods

Stock sits for three months, customers take three months to pay, and Kalam takes four months to pay Paper House Ltd.

Kalam against Pencraft

Five ratios, one rival. Form a supported judgement on who is really doing better, not just who is bigger.

The bank manager's checklist

Six ratios, one file, three minutes. Read each one for City Bank's loan review before the meeting.

Calculate and interpret ratios: exam question

Six Paper 1 questions on ratio traps, then a structured question on Bristi Bookshop that marks calculation and interpretation separately.

Ratio analysis: quick revision

The chapter on one screen, one ROCE calculation to reorder, and a spaced flashcard deck to come back to.

6.3-6.5 · Comparison, users and limitations

Kalam against Pencraft, then Kalam against its own past. Match each user to a decision and a figure, then test both comparisons and the figures themselves for what they leave out.

0/9

Comparing Kalam and Pencraft fairly

Same trading, different depreciation method: Pencraft looks more profitable for a reason that has nothing to do with trade.

Preview7m 2.

Comparing Kalam to its own past

Revenue rose 40% after a new branch opened mid-year. Most of that is not existing customers buying more.

Preview7m

Who uses Kalam’s accounts

Owners, a bank, a supplier, an employee and the tax authority each check one figure for one decision.

Historical cost and old fittings

Shop fittings bought six years ago sit in the accounts at $24,000, far below the $90,000 they would cost today.

What the figures cannot show

Kalam and Pencraft report identical ratios, and very different staff turnover, service and reputation.

Window dressing and differing policies

A delayed supplier payment flatters Pencraft’s year-end current ratio, legally, on one date only.

Spot the flawed comparison

Three short cases, three hidden traps: a flattered ratio, a new branch, and identical ratios that hide a real risk.

Comparison, users and limitations: exam question

Two new printing shops, a real investment choice, and a structured question with explain, discuss and evaluate.

Comparison, users and limitations: quick revision

The chapter on one screen, one flawed judgement to fix, and a spaced flashcard deck to come back to.

7.1-7.3 · Concepts, ethics and technology

Name the ten accounting concepts you have already used on Kalam Stationers, face a real request to mislead a lender, and see what cloud software changes and what it cannot.

0/11

What an accounting concept really is

A hundred small calls at Kalam Stationers followed unwritten rules. This lesson names the method: fact, concept, treatment.

Preview6m 2.

Business entity and money measurement

Nadia's clinic bill, four years after her phone bill: the owner and the business are still two different people.

Preview6m

Going concern and consistency

Why the van is never valued at scrap price, and why the depreciation method cannot change with the mood of the year.

Matching and duality

An unpaid December electricity bill still belongs to December, and every entry that records it still has two sides.

Prudence and materiality

Damaged stock shown at its lower value, and a missing $2 stapler shown at no special treatment at all.

Historical cost and realisation

The fittings stay at what was paid, and Green Leaf's order counts as income the day it is made, not the day it is paid.

A request to hide a debt

City Bank must approve a loan on real figures. Make the call Tuhin has to make when Nadia asks him not to.

Technology in the books

Cloud software totals a wrong figure perfectly. The double entry did not change; the judgement calls still do.

Concept identification drill

Ten facts, shuffled across every concept in the chapter. Name the concept before you read the options.

10.

Exam practice: a new business

Six Paper 1 questions, then a 17-mark Paper 2 question joining concept choice, ethical action and a technology evaluation, on Maya Traders.

10m

11.

Concepts, ethics and technology: quick revision

The whole chapter on one screen, the ethical response in order, and a spaced flashcard deck to come back to.

About the creator

Reckonry