This website uses cookies to ensure you get the best experience on our website. Learn more

LPC Law Notes Business Law and Practice Notes

Business Accounts Diagram Notes

Updated Business Accounts Diagram Notes

Business Law and Practice Notes

Business Law and Practice

Approximately 649 pages

A collection of the best LPC BLP notes the director of Oxbridge Notes (an Oxford law graduate) could find after combing through dozens of LPC samples from outstanding students with the highest results in England and carefully evaluating each on accuracy, formatting, logical structure, spelling/grammar, conciseness and "wow-factor".

In short these are what we believe to be the strongest set of Business Law and Practice notes available in the UK this year. This collection of notes is fully updat...

The following is a more accessible plain text extract of the PDF sample above, taken from our Business Law and Practice Notes. Due to the challenges of extracting text from PDFs, it will have odd formatting:

Year end adjustments - Accruals What is an accrual? Where a business has had the benefit of something in one accounting period, but will not pay for it until the next accounting period. 1) Accrual items Electricity costs Wages 1) Accrual Items 2) Expense in Trial Balance 3) Amount of accrual 4) Expense in the P&L account 2) Expense in Trial Balance PS50,000 3) Amount of accrual PS2,000 4) Expense in P&L Account PS52,000 PS120,000 PS25,000 PS145,000 5) Balance Sheet PS2000 current liability PS25,000 current liability Location In the Trial Balance sheet What is it? It is the category of expense that the accrual falls into Location In the Trial Balance sheet What is it? It is the figure in the trial balance corresponding to the category of expense that the accrual falls into. Location In the client instructions / brief What is it? It is the sum payable that has not yet been paid. This is in return for the benefit that has been received Location In the profit and loss account What is it? As the benefit has been taken, the expenses should be enlarged to reflect that you have, under accounting rules, not yet paid for the service until the next accounting period Calculation Expense in the trial balance (2) + Amount of accrual (3) PS50,000 + PS2,000 = PS52,000 5) Entry onto the balance sheet Location In the balance sheet What is it? The amount of the accrual is entered as a current liability. As the money is due, but has not yet been paid, it is essentially a debt and therefore goes down as a liability

Buy the full version of these notes or essay plans and more in our Business Law and Practice Notes.

More Business Law And Practice Samples