RISE School of Accountancy CAF-05

SELF-STUDY PLAN CAF-05

It’s the real time to get an edge our other students. For this a self-study plan is prepared for your benefit. By
following this 3 days self-study plan you will get basic know-how of the following topics:

DAY CHAPTER TOPIC

Monday (29-12-14) CHAPTER 1 Preparation of financial statements
Tuesday (30-12-14) CHAPTER 2 Statement of Cash flows
Wednesday (31-12-14) CHAPTER 7 Recognition of revenue

Following is the chapter wise approach:

Chapter 1: Preparation of financial statements

What is this topic? This topic is almost similar to final accounts topic in CAF-01. The difference is that in
CAF-01 we prepared financial statements of an individual and in this topic we will prepare
financial statements of a company. Before moving forward you must understand following
two new terms:

Dividend means drawings

Share capital means capital

Step 1 Memorize the LO #12 on my book at page # 13. Remember in company final accounts all
expenses are classified in 3 categories.
Step 2 Memorize P/L and balance sheet formats on Pg. 21 and memorize W-1 and W-3 format on
Pg. 22.
Step 3 Solve question 1 and 2 in practice set.

Chapter 2: Cash Flow

What is cash flow? Putting the figures in the format given on page # 34 of book is cash flow.
How this format will Some figures may be given in the question and some figures can be calculated as balancing
be filled? figure using the single entry approach

Step 1 Memorize the format on Pg # 34 (and W-1) of book and write it down 3 times after
memorizing (Replace the word dividend with drawings and share capital with capital).
Ignore the word tax anywhere appearing in the format.
Step 2 Solve requirement A of Q.1 and Q.2 of practice set

Chapter 7: Revenues

What is this topic? This topic guides us that when we should record the sale. A short form of this topic has
already been taught in CAF-01 that sale/revenue should be recorded at the time goods are
dispatched. Here we will further add some conditions and some more examples in case of
sale of goods and rendering of services.

Step 1 Read page 520-525

Step 2 Again read page 520-525
Step 3 Again read page 520-525
(Its not a joke)
Note: I acknowledge this fact that you may not be able to completely solve the above questions but I am
confident that you will be able to solve 60-70% portion of each question.

Good News: Those who go through this plan, they will be left with only one new topic i.e. branch accounting.

Adnan Rauf, ACA