Monday, 13 December 2021

Christmas is around the corner






Its because of elf and safety!


Its is our sincere hope that you get a pleasant visit from Santa J.

We hope and trust you have a nice and pleasurable season and get well prepared for more productive work next year.


God’s blessings be with us all.

Monday, 6 December 2021

What is tax evasion?


What is tax evasion?

What is tax avoidance?

Who is asking? Why?

Never mind the answer, it’s all legit!

Monday, 29 November 2021

Classification of costs by behaviour




Classifying costs by behaviour requires you to classify the costs into-


-Variable costs

-Fixed costs

-Semi-variable costs

-Stepped costs



Variable costs- these are costs that vary with the level of production or activity. It is usually assumed to vary in direct proportion to production. For example, if you make twice the number of chairs then the assumption is that the amount of wood used would be doubled.


Fixed costs- these are costs that are not affected by changes in the level of production or activity, hence costs that don’t vary. For example, rent costs for a factory. It is assumed that if production increases, the factory rent cost would not be increasing based on the production volume.


Semi-variable costs- these are costs that have a fixed element and a variable element. This means that if production were to double, the cost of production will not double because of the fixed cost element in the production cost, which will remain the same. For example, the cost of electricity for the factory has a fixed element relating to lighting and a variable element relating to power used in the production line.


Stepped costs- these are costs that remain fixed up to a particular level of activity, but which rise to a higher (fixed) level, if activity goes beyond that range. For example, a firm may pay £40,000 per year to rent a factory in which they can produce up to 1 million units of product per year. However, if demand increases to more than 1 million units, a second factory may be required, in which case the cost if factory rent may step up to, say, £80,000 per year and then be constant until we want to make more than 2 million units.

Monday, 22 November 2021

What do you believe about the career path you have chosen?

 What do you believe about the career path you have chosen?

For most people this is a strange question - we rarely spend time thinking about our own beliefs. A quick answer to this is- many people think that the accounting profession is a well-paid profession, especially, when you are a qualified Accountant.


The collection of beliefs you hold about your career - is reflective in most of the choices you make.

- How much risk you are prepared to take.
- What's risky and what’s not.
- What projects and initiatives to undertake.
- What kind of resources you need to succeed in your career.
- Who to partner with, if any.
- Cooperate or compete.
- What your employers should expect from you.
- How hard you expect to work.

  And lots more….


If your belief is that the accounting profession pays well, what happens when that belief isn’t being met? You change career?

All these decisions stem from your beliefs, and it will help you to make them explicit. Once you surface those beliefs, you can start to distinguish which are useful beliefs and which are not.

- What is the benefit of a particular belief?
- Is this belief relevant to your current world
- Or is it a carry-over from some past part of life?

Believe in yourself and the career you have chosen.

Tuesday, 16 November 2021

High/Low Point Method




Splitting of semi-variable costs


Included in semi-variable costs is an element of both fixed and variable costs. In cost accounting it is important to be able to split these costs and identify the variable costs separately from the fixed costs and this is achieved by using the ‘high/low’ method.


The idea behind the application of the high/low method is that if we agree that fixed cost doesn’t change based on the activity level, that is, as you produce more units, the fixed cost will remain the same. So, where the cost changes, as activity is changing; this will be as a result of the variable costs element.


The high/low method of splitting semi-variable cost picks the total cost at two different activity levels and finds the additional cost incurred in making the additional units. The additional cost is then divided by the number of additional units made and this leads to the variable cost per unit, which is then used to calculate the total variable and fixed cost by applying the unit cost to the high or the low activity level.




Additional cost= £24715-16480= £8235

Additional units= 3150-1800= 1350

VC/ unit= £8235/1350= £6.10

Total VC, using the low point= £6.10x1800= £10980

Total FC, using the low point = £16480-10980= £5500



This will be applied to all the activity levels in the question:

2100 units x £6.10= £12,810

2600 units x £6.10= £15,860

2900 units x £6.10= £17,690

Friday, 12 November 2021

What is the definition of an accountant?

 What is the definition of an Accountant?

Someone who solves a problem you didn’t know you had in a way don’t understand

Accruals, prepayments, adjustments to accounts are all legit

I’m sure you know that!!!

I’m hope you know what accruals and prepayments are!

They are just one of those things Accountants use to confuse lay men and themselves!!!

Monday, 1 November 2021

The Trial Balance



The Trial Balance is used to check the arithmetical accuracy of the accounting entries in the ledgers after the last transaction of a trading period has been entered and before the preparation of the Final Accounts.


The Trial Balance shows the closing balances of each general ledger account on a periodic bases, so it is important to balance each ledger account correctly as these are the amounts that filter into the list of debit and credit columns in the Trial Balance. The debit and credit columns should be added up and the totals should be the same.

Question: Rama & Co Trial Balance

In order to correctly complete the trial balance, you will need to know your cost classification and you could also apply the acronym


Debit Expenses Assets Drawings / Credit Liabilities Income Capital

Answer: Rama & Co Trial Balance

Friday, 9 April 2021

In memoriam: HRH Prince Philip, Duke of Edinburgh


We pay tribute to His Royal Highness Prince Philip, Duke of Edinburgh (born on the 10th of June 1921) and died today, on the 9th of April 2021, at the age of 99.


Born in to the Greek and Danish royal family, he was exiled from Greece when he was 18 months old. After educating in France, Germany and Scotland, he joined the Royal Navy at the beginning of the second world war. He was one of the best cadets in his class, and he quickly ascended the ranks within the Navy. In October 1942, he became first lieutenant of HMS Wallace, at 21 years old one of the youngest first lieutenants in the Royal Navy. He was present in the Tokyo Bay aboard HMS Whelp when the Japanese surrendered, formally ending World War Two. Philip returned to the United Kingdom on the ship in January 1946.


Queen Elizabeth first met Philip in 1939, when she visited the Britannia Royal Naval College, where Philip was completing a term as a cadet. They began exchanging letters with each other, and the soon to be Queen fell in love. After returning from the frontline, Philip asked the King for his daughter's hand in marriage. 1 year later, in 1947, he abandoned his Greek and Danish royal titles, marrying Princess Elizabeth and becoming the Duke of Edinburgh. When Elizabeth became Queen, he became her royal consort, accompanying her to ceremonies such as the State Opening of Parliament in various countries, state dinners, and tours abroad. He is the longest-serving royal consort to any British sovereign.


He devoted much of his time to charity. Philip was patron of some 800 organisations, particularly focused on the environment, industry, sport, and education. Notable ventures included being the UK president of the World Wildlife Fund and setting up the Duke of Edinburgh award, in order to give young people "a sense of responsibility to themselves and their communities".


Prince Philip served courageously in the armed forces during the greatest threat to the nation, before devoting his time to his beloved wife, and various charitable organisations around the world. A truly great man and a great Briton- may he rest in peace.

Wednesday, 31 March 2021

Increase your productivity

Increase your productivity

An important key to long term success is your dedication to continuous improvement. This will lead to your increased productivity and a conscious awareness of the need to set clear, specific goals for each area of your life.

Take responsibility for each action and step you take and take the needed steps to achieving your goals. Utilise your inborn talents and take the needed steps one day at a time and continue moving towards your goals.

Have a clear head and make sure you are taking a step at a time and gaining more and more skills and knowledge.

Be at your best at each stage you get to in your life, be determined not to make excuses and don’t accept slack.

Tuesday, 23 March 2021

A message from the Training Place

Our hearts and our condolences go out to our students and everybody out there that has lost a loved one. We've all been through this pandemic but thankfully, we've kept our heads held high and not let it get us down. We would like our students to join in the with us, and the rest of the country, in the one minute's silence at 12 noon.

Monday, 22 March 2021

Overhead absorption rate



JTM Ltd is looking to calculate the unit cost for one of its products. It needs to calculate an overhead absorption rate to apply to each unit. The methods it is considering are:

·         direct labour hours

·         machine hours


The factory activity forecast is as below:

Machine hours

15,000 hrs

Labour hours

21,000 hrs




(i) Complete the table below to show the possible overhead absorption rates that JTM Ltd could use.


Machine hour

Labour hour

Overheads (£)






Absorption rate (£)






Machine hour

Labour hour

Overheads (£)




15,000 hrs

21,000 hrs

Absorption rate (£)



Thursday, 11 March 2021

Brain Teaser: Number Puzzle




How quick and easy is this puzzle for you?

Using the numbers below, complete these six equations (3 reading across

and 3 reading downwards). Every number is used only once.










































































Monday, 8 March 2021

Your Happiness is Important



What makes you happy and what does happiness mean to you?

Some people will believe that making people happy will lead you to being happy! Is that a myth?

There has been a lot of challenges and deem issues that so many people would have been dealing with especially as we work through several lock downs and restrictions which pose their own challenges in the midst of confusion.

Amidst all doubt, reluctance, unwillingness; it is important to seek happiness and a balance in wellness and mental health.

Take the needed first step in identifying what makes you happy in a realistic context, because there may not be any need of identifying the fact that going sky diving in Hawaii will make you happy when there may not be any way for you to get to Hawaii in this current times. So, make it realistic.

Take the needed second step in setting out a plan on how to execute your happiness.

Take the needed next step in taking action to execute your plan.

We will like to encourage you to identify, plan and execute. Take it a step at a time and move forward towards attaining happiness and be SUCCESSFUL.

Friday, 26 February 2021

Movement of money in the cash book


Lets talk some more on the movement of money in the cash book?


Dr- Receipts

Cr- Payments


When money is received the bank balance increases and when money is paid out, the bank balance reduces. J


Simple hey!!!


Lets see how you get on with this simple scenario:


·         Where there is an opening debit bank balance of £12,030 and the totals recorded in the cash book for the year ended 30 April 20X5 were:







Assuming there were no year-end adjustments, what will be the opening balance in the cash book as at 1 May 20X5?


£­­­­­­­­­­­­­­­­­­­­­_________ debit / credit



I’m sure you would have got this correct and known that it will be……..



£2,510 credit since the cash book balance does not have money left in it, so it will have a credit balance.