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O-Level Cost of sales and other expenses

What the O-Level syllabus expects for Cost of sales and other expenses, and how to practise it.

What the syllabus expects

Explain, drawing on the relevant accounting theories, how cost of sales, other expenses and the adjustments for prepaid expenses and expenses payable are accounted for
Scope: Relevant theories: matching and accrual basis of accounting
Work out the cost of sales
Work out other expenses once prepaid expenses and expenses payable are allowed for
Write the journal entries covering cost of sales, other expenses, prepaid expenses and expenses payable
Draw up the ledger accounts for cost of sales and other expenses before any prepaid expenses and expenses payable adjustments
Read the ledger accounts for cost of sales and other expenses once prepaid expenses and expenses payable adjustments are in
Scope: Excludes preparing prepaid expenses and expenses payable ledger accounts
Work out how prepaid expenses and expenses payable affect current liabilities, current assets and the period's profit/loss
Produce a trading business's Statement of Financial Performance extract laying out cost of sales and other expenses
Produce a Statement of Financial Performance extract laying out other expenses for a service business
Produce a Statement of Financial Position extract showing prepaid expenses and expenses payable for both trading and service businesses