AAT Course

Lesson 1 • The Accounting Equation Explained

Introduces assets, liabilities, and equity as the backbone of financial recording. Anchors all subsequent transaction analysis to this fundamental relationship.

Lesson 2 • Source Documents and Evidence

Explains invoices, receipts, and bank statements as the basis for every entry. Reinforces the audit trail concept central to professional bookkeeping.

Lesson 3 • Chart of Accounts Setup

Covers how accounts are categorised and numbered within a business system. Provides the organisational framework used throughout the course.

Lesson 4 • Accounting Concepts and Conventions

Introduces accruals, consistency, prudence, and going-concern principles. These conventions govern how all financial data is recorded and reported.

Lesson 1 • Posting to the General Ledger

Transfers journal entries into individual ledger accounts and maintains running balances. Reinforces the link between journals and the trial balance.

Lesson 2 • Cash Book and Petty Cash

Covers the dual-purpose cash book as both a journal and a ledger account. Petty cash imprest system is introduced for small expenditure control.

Lesson 3 • Preparing the Trial Balance

Extracts all ledger balances into a two-column trial balance to test arithmetic accuracy. Identifies the types of errors a trial balance can and cannot detect.

Lesson 4 • Sales and Purchase Day Books

Introduces subsidiary books for credit sales and purchases to reduce ledger clutter. Learners learn to total and post day book summaries correctly.

Lesson 1 • Suspense Accounts and Error Correction

Uses a suspense account to hold unresolved differences while errors are investigated. Covers journal corrections and their effect on the trial balance.

Lesson 2 • Payables Control Account

Mirrors the receivables process for supplier balances using purchase records. Ensures total payables agree with individual supplier account balances.

Lesson 3 • Journals for Non-Routine Transactions

Handles adjustments such as bad debt write-offs, depreciation, and accruals via journal. Reinforces the role of the journal as the correction and adjustment tool.

Lesson 4 • Bank Reconciliation Statement

Compares the cash book balance to the bank statement and explains timing differences. Learners produce a formal reconciliation statement each period.

Lesson 1 • Income Statement Construction

Calculates gross profit and net profit by organising revenue and expense accounts. Connects day-to-day recording to the periodic performance summary.

Lesson 2 • Accruals and Prepayments Adjustments

Applies period-end adjustments to match income and expenses to the correct period. Demonstrates the direct impact on both the income statement and balance sheet.

Lesson 3 • Balance Sheet Structure

Arranges assets, liabilities, and equity into a structured position statement. Learners distinguish current from non-current items and apply correct ordering.

Lesson 4 • Inventory Valuation Principles

Applies cost and net realisable value rules to closing inventory figures. Explains how inventory errors distort both profit and asset values.

Lesson 1 • Completing the Tax Return

Walks through each box of the periodic tax return using accounting records. Covers common errors, penalties, and the importance of timely submission.

Lesson 2 • Tax Registration and Thresholds

Explains when a business must register for indirect tax based on turnover thresholds. Covers voluntary registration benefits and the registration process.

Lesson 3 • Output and Input Tax Mechanics

Distinguishes tax charged on sales from tax reclaimed on purchases. Learners calculate net tax liability and identify non-reclaimable input tax.

Lesson 4 • Record-Keeping for Tax Compliance

Specifies the documents and digital records required to support a tax return. Links record-keeping obligations to audit readiness and error prevention.

Lesson 1 • Employer Remittance and Reporting

Covers the process of remitting deductions to tax authorities on schedule. Explains periodic and annual employer reporting obligations.

Lesson 2 • Statutory Deductions and Net Pay

Applies income tax and social contribution deductions to arrive at net pay. Learners use tax tables and contribution rates to calculate each deduction.

Lesson 3 • Payroll for Special Circumstances

Handles starters, leavers, statutory sick pay, and parental leave calculations. Ensures learners can manage non-routine payroll events accurately.

Lesson 4 • Payroll Records and Payslips

Produces payslips and maintains payroll journals that feed into the general ledger. Covers the legal content requirements for employee pay documentation.

Lesson 1 • Absorption and Marginal Costing

Contrasts full absorption costing with marginal costing for product pricing and profit. Learners reconcile profit differences between the two methods.

Lesson 2 • Standard Costing and Variances

Sets standard costs for materials, labour, and overheads and calculates variances. Learners interpret favourable and adverse variances for management action.

Lesson 3 • Cost Classification and Behaviour

Distinguishes fixed, variable, and semi-variable costs and their behaviour with output. Provides the cost vocabulary needed for all management accounting tasks.

Lesson 4 • Break-Even and Contribution Analysis

Uses contribution margin to calculate break-even point and margin of safety. Applies these tools to short-term pricing and output decisions.

Lesson 1 • Statement of Cash Flows

Constructs a cash flow statement using the indirect method from accrual-based accounts. Distinguishes operating, investing, and financing cash flows.

Lesson 2 • Financial Ratio Analysis

Calculates profitability, liquidity, efficiency, and gearing ratios from published statements. Learners interpret ratios in context and identify trends.

Lesson 3 • Limited Company Financial Statements

Produces an income statement and balance sheet in the format required for incorporated entities. Addresses share capital, retained earnings, and dividends.

Lesson 4 • Interpreting Results for Stakeholders

Translates ratio analysis into written commentary for investors, lenders, and management. Covers limitations of ratio analysis and qualitative factors.