1. Double Entry, Ledger, P/L Account and B/S
Ch 1 The Accounting Equation
Ch 2 Transaction through Double Entry
Ch 3 Purchas and Sales
Ch 4 Expens : Profit or Loss
Ch 5 Balancing Accounts : the Trial Balance
Ch 6 Trading and Profit and Loss Accounts
Ch 7 The Balance Sheet
Ch 8 Final accounts : more features
2. Cash Book and Day Book
Ch 9 The Division of the Ledger
Ch 10 Bank Facilities
Ch 11 Cash Book : two columns
Ch 12 Cash Book : three columns – cash discount
Ch 13 Day Books : Sales Day Book
Ch 14 Returns Day Books
Ch 19 Petty Cash Book : Imprest System
3. Adjustments Before Final Accounts
Ch 15 Accruals and Prepayments
Ch 16 Depreciation of Fixed Asts
Ch 17 Bad Debts and Provision for Doubtful Debts
Ch 18 Bank Reconciliation Statements
Ch 20 Capital and Revenue Expenditure
Ch 21 The Journal
Ch 22 Errors in the Accounts
Ch 23 Final Accounts and Adjustments further considered 4. Miscellaneous
Ch 24 Club and Society Accounts
Ch. 1 The Accounting Equation
A = L + OE
孕妇能吃阿胶吗Balance Sheet => at a moment in time
Format of B/S B/S at 20X3 Purcha 200 Capital 500 Cash 700 Loan 200 Creditor 200 900 900
Ch. 2 Transaction Through Double Entry
种植生姜
Ledger should include date, description and amount
Ch. 3 Purchas and Sales
Purcha : goods bought with the intention of lling them
Purcha on credit A(+)
Purcha on cash
Sales for cash A(-)
Sales on credit
Purcha return (return outward)
- Good returns to supplier
Dr Cr A(+) L(-) OE(-) A(-) L(+) OE(+) Bank May 1 Capital 5000 Purcha John 100 John (Creditor)
Purcha 100 Purcha
记叙方法Cash 100
Cash
Purcha 100 Sales Cash 420 Cash
写字怎么写Sales 420
Sales
Tom 420
Tom (Debtor)
Sales 420
Returns outward John 420
John (Creditor) Return outward 420
Sales return (return inward)
Ch. 4 Expens : profit or loss
Expen
Drawings
- not reduce directly in capital account - drawing is different from expen
Beg. Capital + Profit / Loss = End Capital
Ch. 5 Balancing accounts : the Trial Balance
Balance off the account
Nil balance => 2 sides equal, not enter in TB Trial balance => Total Dr = Total Cr
Dr Balance Cr Balance Cash Ast Debtor Purcha Return inward Expen Drawing Capital Loan Creditor Sales Return outward
Ch. 6 Trading and profit and loss accounts
Trading and P/L account => part of double entry system, B/S is not
Returns inward Tom 100 Tom (Debtor)
Return inward 420
Cash Wage 100 Wage
Cash 100
Cash Drawing 100
Drawing
Cash 100
Trial Balance of ABC at 31 May 20X3 Cash Capital Dr 1670 Cr 1670
*** Stock shown in T/B is beginning stock, NOT closing stock
Balance off Trading and P/L Account Given :
Step 1) Trading Account
Step 2) P/L Account
Step 3) Capital Account
Ch. 7 The balance sheet
A, L, OE are clod off (not part of double entry system) => simply listed in B/S
Purcha Sundries 3420 Sales
Sundries 4860 Rent Payable Sundries 500 Rent Receivable Sundries 300 Office Expen Sundries 240 Lighting Sundries 370
Advertising Sundries 410
W Trent Trading and P/L Account for the year ended 31 Dec 20X7 Purcha 3420 Gross Profit c/d 2640 6060 Sales 4860 Stock 1200 6060 Gross Profit b/d 2640 Purcha Sundries 3420 P/L 3420 Sales
P/L 4860 Sundries 4860
Stock P/L 1200
Drawing Sundries 600 Capital 600 Capital
Drawing 600 Bal c/d 3820 4420 Bal b/d 3000
Net Profit 1420
4420 Bal b/d 3820
Fixed Ast
- relatively long life in 2 – 3 yr, primary purpo is not to rell - e.g. land, building, fixture, office equipment, machine, motor
Current Ast京口北固亭怀古辛弃疾
- trading activity
- e.g. stock, debtor, cash, bank
Prentation quence
Fixed Ast Current Ast
Land and buildings Fixture and fitting Machinery Motor vehicle Stock Debtor Bank Cash
Long Term Liability
- Payable > 1 yr
Current Liability
计算机二级考试- e.g. Creditor, bank overdraft, short – term bank loan
Ch. 8 Final accounts : more features (*** IMPORTANT ***) Carriage => expen incurred in the delivery of good
Carriage inward
- purcha delivery
- normally supplier make no parate charge, but has => paid more Net Purcha = Purcha + Carriage Inward – Purcha Return Carriage outward脚下路
- deliver to customer
- charge as expen in P/L account
近水楼台的意思
Net Sales = Sales – Return Inward
Stock
COGS = Opening Stock + Purcha + Carriage Inward
– Purcha Return – Closing Stock
*** Stock appeared in TB => opening stock
Year End Procedure
- Sales, purcha, expen, drawing => clo
- Capital, stock, cash, debtor, creditor, ast => b/d
