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PART D: RECORDING TRANSACTIONS AND EVENTS 

 

180

 

 

BPP Tutor Toolkit Copy

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181 

C H A P T E R 

 

 

TOPIC LIST 

SYLLABUS 

REFERENCE 

1  Accruals and prepayments 

D7(a)–(e)

 

 

Accruals and 

prepayments

This chapter deals with the adjustments which may need to be made to 

the expenses in the statement of profit or loss. 

 

BPP Tutor Toolkit Copy

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PART D: RECORDING TRANSACTIONS AND EVENTS 

 

182

 

 

Study Guide 

Intellectual level 

 

 

D  Recording transactions and events 

 

 

 

7  Accruals and prepayments 

 

 

 

(a)  Understand how the matching concept applies to accruals 

and prepayments. 

K 

 

 

(b)  Identify and calculate the adjustments needed for accruals 

and prepayments in preparing financial statements. 

S 

 

 

(c)  Illustrate the process of adjusting for accruals and 

prepayments in preparing financial statements. 

S 

 

 

(d)  Prepare the journal entries and ledger entries for the 

creation of an accrual or prepayment. 

S 

 

 

(e)  Understand and identify the impact on profit and net assets 

of accruals and prepayments. 

S