# ACCA LEVEL 4. Sales Tax = Sales Tax % rate 20% x total amount paid Net value (100% + Sales Tax % rate)120% (100% + 20%)

Save this PDF as:

Size: px
Start display at page:

Download "ACCA LEVEL 4. Sales Tax = Sales Tax % rate 20% x total amount paid Net value (100% + Sales Tax % rate)120% (100% + 20%)"

## Transcription

1 Calculating sales tax Sales Tax calculations have to be considered in the context of adding the Sales Tax to a value exclusive of Sales Tax i.e. the net value, and also in the context of finding the Sales Tax content given a value which is inclusive of Sales Tax i.e. the gross value. The formula for calculating Sales Tax to be added to the net total of goods sold, assuming a Sales Tax rate of 20%, is: Sales Tax = total of goods net value (100%) x Sales Tax percentage rate (20%) The formula for working out Sales Tax of a Tax inclusive, assuming the rate of Sales Tax to be 20% is: Sales Tax = Sales Tax % rate 20% x total amount paid Net value (100% + Sales Tax % rate)120% (100% + 20%) Example Making sales tax calculations (assuming a Sales Tax rate of 20%) (i) Adding Sales Tax to a Net Goods Value If a product has a net price of, say \$600 and Sales Tax is to be added at standard rate then a simple calculation is required as follows: Sales Tax = \$600 x 20% = \$120 The gross price of the product is therefore \$600 + \$120 = \$720 (net price + Sales Tax = gross price). (ii) Finding the Sales Tax Content of a Gross Price Figure If the gross price was given as \$720 you can work out the Sales Tax content of the gross value as follows: \$ = \$6 x 20 = \$120 Sales tax and settlement discounts Where a settlement discount is offered for prompt settlement of an invoice the Sales Tax on the net goods value is calculated on the discounted value of the net amount, i.e. the lowest amount payable, even if the settlement discount is not taken.

2 Example Petty cash voucher The following is an example of a petty cash voucher together with the till receipt from which the voucher was prepared: The voucher should show the purpose for which the cash was paid. Details Petty Cash Voucher The date is entered by hand and is normally the date the cash is taken from the petty cash box. Date: No: May 201Y Amount \$ Vouchers should be consecutively numbered. Ideally, the vouchers are pre-printed, otherwise the numbers are entered by hand. Authorisation will normally come from the petty cashier, unless the amount paid exceeds his/her authorisation limit.. Stationery- pens, pencils and correcting fluid Sales 20% Signature: Oliver Faroux Authorised by: Diane Kelly (Petty Cashier) Oliver Faroux is the person to whom the cash was paid. Till Receipt Super Stationery Ltd \$ Qty Total Includes Sales 20% Cash Change /05/1Y

3 Net realisable value (NRV) Net realisable value is defined as the actual or estimated selling price less all further costs to completion and all costs to be incurred in marketing, selling and distribution. Comparison between cost and net realisable value should be made for each item of inventory held, with the valuation used being the lower of the two figures in each case. If it is not possible to value each inventory item separately then groups of similar inventory items within an inventory line may be valued collectively. Examples of situations where net realisable value may be less than cost include: üü üü üü üü üü Instances where a business is not to continue trading as a going concern and inventory hasto be disposed of in a liquidation sale. Where there has been a general fall in selling price. Where there has been a physical deterioration of the inventory. Obsolescence of an inventory line. An error in production or purchasing inventory (buying or making too many). Example - Valuing inventory at cost and net realisable value (1) A business trades in the following six categories of product - the Arundel, Boston, Chelsea, Derby, Exeter and Fulham. As at their financial year ended 31 March 201Y each inventory line was valued at both cost and net realisable value as follows: Inventory Line Valuation at Cost \$ Valuation at NRV \$ Arundel 27,985 56,180 Boston 12,655 4,625 Chelsea 56, ,500 Derby 29,150 59,120 Exeter 15,565 7,250 Fulham 34,165 69,100 Total 175, ,775 The closing inventory value would be recorded in the books by taking the lower of cost or net realisable value for each inventory line, viz: current assets are purchased partway through a financial year. Two options are available, these being:

4 The Full Year Basis here, in the year of acquisition (the first year of life), the date on which the non-current asset was purchased is ignored and full year s depreciation is charged irrespective of when, within the financial year, the asset was purchased. In applying the full year basis we charge no depreciation to the Income Statement in the year of disposal of a non-current asset. The Month for Month Basis here depreciation is calculated and charged to the Income Statement according to the period of time for which the non-current asset is owned each financial year. Depreciation using this basis is charged in the year of acquisition of the asset and in the year of disposal (provided in the year of disposal the asset has not already been written down to a nil residual value). The following are examples of depreciation calculations using the straight line method and reducing balance method applied on a month for month and full year basis. Examples of Depreciation Calculations Example 1 - Straight Line Method Using the Month for Month Basis The financial year of Gearboxes UK ends on 31 December. On 1 July 201V they purchase an item of workshop equipment at the cost of \$4,000. The equipment is estimated to have a useful life of 4 years to the business with a nil residual value. The policy of Gearboxes UK is to depreciate equipment by using the straight line method applied on a month for month basis. The following calculations were made in respect of depreciation of the equipment over the period of its economic life. cost \$4,000 less \$nil residual value = depreciation \$1,000 per year 4years estimated useful life Note as the equipment is being depreciated from cost to a nil residual value a percentage depreciation calculation could be applied, in this case 25% per year. However. the percentage must be applied each year to the initial cost of the item. \$ Equipment Cost (1 July 201V) 4,000 Depreciation Year 1 (31 December 201V) 500 (25% of cost 6 months) Carrying value 3,500 Depreciation Year 2 (31 December 201W) 1,000 (25% of cost 12 months) Carrying value 2,500 Depreciation Year 3 (31 December 201X) 1,000 (25% of cost 12 months) Carrying value 1,500

5 Depreciation Year 4 (31 December 201Y) 1,000 (25% of cost 12 months) Carrying value 500 Depreciation Year 5 (31 December 201Z) 500 (25% of cost 6 months) Carrying value NIL Introduction A sole trader invests funds into his/her business which is known as capital. The balance on the capital account fluctuates each year as the profits made by the business increase the capital balance, while the drawings made by the proprietor reduce the capital balance. A limited company has a different capital structure to a sole trader that consists of share capital and reserves and this lesson covers the various forms of the capital structure that could be encountered in the Financial Statements assessment. Share capital It is a requirement of law that a limited company maintains a level of permanent funding that cannot be distributed to the owners of the company. These permanent funds are known as the share capital of the company. The owners or members of the company, also known as shareholders, contribute capital by purchasing shares in the company. In this way the company is able to raise a large amount of funds from different investors rather than depending on the financial capacity of just one or a few individuals. Example Raising capital Suppose that a company wishes to raise capital of \$1,000,000. This is a large amount of money and it may therefore be difficult to obtain the funds from a small number of investors. To assist in raising this capital the company might divide this amount into 1,000,000 units of \$1 each. By doing this investors could then choose how much they wanted to invest and could then buy as many units as they wished. These units are known as shares. Each shareholder is a part owner of the company. The value of each unit is the par or nominal value of the share. Once the par value has been set by the directors of the company it does not change. It will remain at that value for the duration of the company s existence. It is important to understand that this is not necessarily the amount that is paid for the share. The par value should not be confused with the market value of the share which is the amount that the share could be bought or sold for on a recognised stock exchange. The market value of the share will change over time and is irrelevant for the company s accounts.

6 Example Statement of Comprehensive Income for Internal Use Dauphin Ltd Statement of Comprehensive Income for the year ended 31 December 20X1 \$ \$ \$ Revenue 4,736,000 Cost of sales Opening inventories 316,000 Purchases 2,744,500 3,060,500 Less: Closing inventories 289,000 2,771,500 Gross profit 1,964,500 Less: Overheads Distribution costs Distribution overheads 96,500 Salesmen salaries 42, ,000 Administrative expenses Rent, rates and insurance 320,500 Advertising 61,500 Wages and salaries 531,000 Directors remuneration 482,500 Auditors remuneration 31,000 Sundry expenses 38,500 Depreciation: Plant and machinery 34,500 Motor vehicles 15,000 1,514,500 1,653,500 Profit from operations 311,000 Finance costs 47,500 Profit before tax 263,500 Tax 63,000 Profit for the year 200,500

7 Transfer to general reserve 10, ,500 6% Preference dividend 27,000 Interim ordinary dividend 60,000 87,000 Retained earnings for the year 103,500 Retained earnings at 1 January 20X1 160,000 Retained earnings c/f 263,500 Disposal of a revalued asset Where an asset that has been revalued is subsequently sold, the profit on disposal calculation will need to take into account the balance on the revaluation reserve relating to the asset being sold. The disposal account will be debited with the non-current asset valuation and credited with the accumulated depreciation, sales proceeds and balance on the revaluation reserve account relating to the asset. The difference will be the profit or the loss on disposal. Appropriation account Example Revaluation downwards A company has sold a property that has previously been revalued. The balance on the revaluation reserve account related solely to the asset being disposed of. The following information is relevant: Original cost when the property was purchased \$80,000 Original depreciation \$1,600 per annum Carrying value at date of revaluation \$70,400 Revaluation value \$118,800 Revised depreciation \$2,700 per annum Sales proceeds \$130,000 The company has not made any transfers in respect of excess depreciation. The ledger accounts would have the following entries for transactions from the date of purchase to the disposal of the property.

8 Property Cost/valuation \$ \$ Purchase 80,000 Balance c/d 118,800 Revaluation reserve 33, ,800 Balance b/d 118,800 Disposals account 118, , ,800 Property Accumulated Depreciation \$ \$ Transfer to revaluation reserve 9,600 Depreciation charge 9,600 Disposals account 24,300 Depreciation charge 24,300 The next three lessons concentrate on producing consolidated financial statements for a group of companies consisting of a parent company and one or more subsidiary companies. Control The key to a creating a group of companies is control. A subsidiary is a company that is controlled by another company known as the parent (or holding company). The first indicator of control is the percentage number of shares (carrying voting rights) held by the investing company. A company can own shares either directly or indirectly. Direct ownership If one company owns more than 50% of the shares (carrying voting rights) in another company then there is a direct parent/ subsidiary relationship. This can be illustrated thus: Parent > 50% Subsidiary Once a company owns more than 50% of the equity shares with voting rights in another company then it can exercise control because it will have more than 50% of the voting power of that company. The above example shows a single entity group and is the only type examinable in this Unit. In reality though, group structures are more complex and when determining control through share ownership, any investments held by the subsidiary companies will also need to be considered.

9 Parent Subsidiary Subsidiary Ultimate holding company > 50% Holding company > 50% Intra-group trading It is common within a group situation that companies within the group will trade with each other. This is known as intra-group trading. Each of the companies will include the sale or purchase in its own company financial statements which is the correct procedure from the perspective of each company being a single entity. When the consolidated financial statements are prepared the intra-group transactions need to be removed because, when considered from a group perspective, they represent sales to itself. Example Intra group trading During the year ended 31 December 20X1 Quill Ltd sold goods to Ink Ltd for \$30,000. These goods had originally cost Quill Ltd \$21,000. Ink Ltd used all of the goods purchased from Quill Ltd to make sales outside the group before the end of December 20X1 so none of these goods remained in inventory. An extract from the Company Statement of Comprehensive Incomes of Quill Ltd and Ink Ltd for the year ended 31 December 20X1 is shown below. Income Statement (extract) for the year ended 31 December 20X1 Quill Ltd Ink Ltd \$000 \$000 Revenue 570, ,000 Cost of sales 234, ,000 Gross profit 336, ,000 The figures in the total column are the ones that will be included in the Consolidated Income Statement of Comprehensive Income for 31 December 20X1.

10 SELF-TEST QUESTIONS Now attempt these questions on lesson 24 and check your answers with the model answers on the VLC. QUESTION 24.1 Which one of the following is the most appropriate definition of an associate? A B C D An entity over which the investor has significant influence but which is neither a subsidiary nor a joint venture An entity, including an unincorporated entity, such as a partnership, that is controlled by another entity Shares are purchased in another entity but the relationship is not one of subsidiary or associate An entity that has one or more subsidiaries QUESTION 24.2 Which one of the following is the most appropriate definition of trade investment? A B C D An entity over which the investor has significant influence but which is neither a subsidiary nor a joint venture An entity, including an unincorporated entity, such as a partnership, that is controlled by another entity Shares are purchased in another entity but the relationship is not one of subsidiary or associate An entity that has one or more subsidiaries QUESTION 24.3 Describe the equity method of accounting for associates.

### Paper F3. Financial Accounting. Specimen Exam applicable from June 2014. Fundamentals Level Knowledge Module

Fundamentals Level Knowledge Module Financial Accounting Specimen Exam applicable from June 2014 Time allowed: 2 hours This paper is divided into two sections: Section A ALL 35 questions are compulsory

### INTERNATIONAL ACCOUNTING STANDARDS. CIE Guidance for teachers of. 7110 Principles of Accounts and. 0452 Accounting

www.xtremepapers.com INTERNATIONAL ACCOUNTING STANDARDS CIE Guidance for teachers of 7110 Principles of Accounts and 0452 Accounting 1 CONTENTS Introduction...3 Use of this document... 3 Users of financial

### FINANCIAL ACCOUNTING

FINANCIAL ACCOUNTING FORMATION 2 EXAMINATION - AUGUST 2012 NOTES: You are required to answer Question 1. You are also required to answer any three out of Questions 2 to 5. (If you provide answers to all

### january 2016 ACCOUNTING Practice Questions for gcma

january 2016 ACCOUNTING for gcma www.iqnglobal.com Accounting Question- 1 The following information was disclosed in the financial statements of Highfield Co for the year ended 31/12/2015. 2014 2015 \$

### C02-Fundamentals of financial accounting

Sample Exam Paper Question 1 The difference between an income statement and an income and expenditure account is that: A. An income and expenditure account is an international term for an Income statement.

### PART 5. External Reporting and Performance Evaluation. Statements of financial performance and position. Statement of cash flows 19

PART 5 External Reporting and Performance Evaluation Statements of financial performance and position 18 Statement of cash flows 19 Analysis and interpretation of financial statements 20 CHAPTER 18 Statements

### ACCOUNTING 1 (ACN101- M)

1 ACCOUNTING 1 (ACN101- M) STUDY UNIT 1: THE NATURE AND FUNCTION OF ACCOUNTING DEFINITION: Accounting can be defined as the orderly & systematic recording of the monetary values of financial transactions

### Teacher Resource Bank

Teacher Resource Bank GCE Accounting Other Guidance: ACCN2 Update on IAS ACCN3 Updates on IAS (July 2012). The Assessment and Qualifications Alliance (AQA) is a company limited by guarantee registered

### BUSINESS ACCOUNTS. sample documents. sourced from www.osbornebooks.co.uk

BUSINESS ACCOUNTS sample documents sourced from www.osbornebooks.co.uk Sample documents document page invoice 3 statement 4 double-entry accounts 5 cash book 6 petty cash book 7 extended trial balance

### SUGGESTED LAYOUTS FOR FINANCIAL STATEMENTS

Appendix 2 SUGGESTED LAYOUTS FOR FINANCIAL STATEMENTS These layouts are suggestions only and are not prescriptive. Other suitable alternatives which conform to the general principles of FRS 102 will be

### SEC Syllabus (2017) Accounting ACCOUNTING SEC 01

SEC SYLLABUS (2017) ACCOUNTING SEC 01 SYLLABUS 1 Accounting SEC 01 Syllabus (not available in September) Paper 1 (2hrs) + Paper II (2 hrs) The aims of the syllabus are to enable students: 1. To understand

### Trading Profit and Loss Account

Trading Profit and Loss Account Trading Account The trading account shows the income from sales and the direct costs of making those sales. It includes the balance of stocks at the start and end of the

### CHAPTER 25 ACCOUNTING FOR INTRAGROUP TRANSACTIONS

CHAPTER 25 ACCOUNTING FOR INTRAGROUP TRANSACTIONS LEARNING OBJECTIVES Upon completing this chapter readers should be able to: LO1 explain the nature of intragroup transactions; LO2 describe how and why

### Suggested Study Notes ACCA F3 Paper. Assets A Liabilities L (+Capital) C. \$ < totals must equal > \$

for F3 ACCA Examinations REVIEW OF SOME KEY FUNDALMENTALS 1 Accounting Matrix Debit Trial Balance Credit Assets A Liabilities L (+Capital) C Expenses E Gains G \$ < totals must equal > \$ Comparing assets

### CORPORATE ACCOUNTING EXERCISES (these exercises can be used as tests if teachers wish to assess elements of this topic separately)

CORPORATE ACCOUNTING EXERCISES (these exercises can be used as tests if teachers wish to assess elements of this topic separately) 1 The Trial Balance of Samcat Holdings Ltd at the end of the last financial

### Transition to International Financial Reporting Standards

Transition to International Financial Reporting Standards Topps Tiles Plc In accordance with IFRS 1, First-time adoption of International Financial Reporting Standards ( IFRS ), Topps Tiles Plc, ( Topps

### Statements MAKEorBREAK Sample Questions

Castle 2.3 Statements Got the answer? Be the first to stand with your group s flag. Got it correct? MAKE or BREAK a castle, yours or any other group s. The group with the most castles wins. Enjoy! Question

### Intermediate Stage September 2008 Examination. Financial Accounting & Reporting (FAR / 601)

Copyright Reserved Serial No Intermediate Stage September 2008 Examination Examination Date : 20 th September 2008 Number of Pages : 07 Examination Time: 9.30a:m.-12.30p:m. Number of Questions: 05 Instructions

### Accounting Technician Examination

14 Feature Article: Consolidation Procedures Intra-group Transactions Between Parent and Subsidiary (relevant to ATE Paper 7 Advanced Accounting) Teresa M H Ho Introduction This article describes and illustrates

### General Certificate of Education Advanced Level Examination June 2013

General Certificate of Education Advanced Level Examination June 2013 Accounting ACCN3 Unit 3 Further Aspects of Financial Accounting Monday 3 June 2013 9.00 am to 11.00 am For this paper you must have:

### This exam paper is in two sections. You should try to complete every task in both sections.

Exam question paper NVQ/SVQ Level 4 in Accounting Drafting Financial Statements (Accounting Practice, Industry and Commerce) (DFS) 2003 Standards Diploma in Accounting (Diploma Pathway) Drafting Financial

### SAMPLE QUESTION PAPER IN ACCOUNTANCY. Time: Three Hours Maximum Marks: 100

SAMPLE QUESTION PAPER IN ACCOUNTANCY Time: Three Hours Maximum Marks: 100 Note: The question paper is divided into two sections A and B. Attempt all questions of Section A and any one question of Section

### Financial Accounting Module 8 June Suggested Solutions

Financial Accounting Module 8 June 2010 Suggested Solutions 1 Question 1 (a) Profit & Loss appropriation account 30/04/10 33,000 Salary Johanna 12,000 Interest on capital 10% Mary 3,000 10% Johanna 2,000

GRAAD 12 NATIONAL SENIOR CERTIFICATE GRADE 12 ACCOUNTING NOVEMBER 2010 MARKS: 300 TIME: 3 hours This question paper consists of 21 pages and an answer book of 19 pages. Accounting 2 DBE/November 2010 INSTRUCTIONS

### A change of classification in presentation in financial statements is a change of accounting policy (CAP) under IAS 8.

Answers Fundamentals Level Skills Module, Paper F7 Financial Reporting December 2014 Answers Section A 1 A A change of classification in presentation in financial statements is a change of accounting policy

Advanced Financial Accounting Sample Paper 2 Questions & Suggested Solutions Page 1 of 27 INSTRUCTIONS TO CANDIDATES PLEASE READ CAREFULLY Candidates must indicate clearly whether they are answering the

### Notes to the Financial Statements For the year ended 31 December 2004

1. GENERAL The Company was incorporated in the Cayman Islands on 16 April 2003 as an exempted company with limited liability under the Companies Law (2002 Revision) of the Cayman Islands and its shares

### (a) (i) Marking Scheme: 1 mark for definition and 1 mark for example.

T A S M A N I A N Accounting C E R T I F I C A T E Subject Code ACC5C O F E D U C A T I O N Question 1 T A S M A N I A N Q U A L I F I C A T I O N S A U T H O R I T Y (a) (i) Marking Scheme: 1 mark for

### 16 BUSINESS ACCOUNTING STANDARD CONSOLIDATED FINANCIAL STATEMENTS AND INVESTMENTS IN SUBSIDIARIES I. GENERAL PROVISIONS

APPROVED by Resolution No. 10 of 10 December 2003 of the Standards Board of the Public Establishment the Institute of Accounting of the Republic of Lithuania 16 BUSINESS ACCOUNTING STANDARD CONSOLIDATED

### The Statement of Cash Flows Direct Method

23 The Statement of Cash Flows Direct Method DEMONSTRATION PROBLEM The financial statements of Bolero Corporation follow. Copyright Houghton Mifflin Company. All rights reserved. 1 Bolero Corporation Income

### 6. Show all your workings. icpar

CERTIFIED PUBLIC ACCOUNTANT FOUNDATION LEVEL 1 EXAMINATION F1.3: FINANCIAL ACCOUNTING MONDAY: 10 JUNE 2013 INSTRUCTIONS: 1. Time Allowed: 3 hours 15 minutes (15 minutes reading and 3 hours writing). 2.

### Suggested layouts for financial statements in Accounting Courses National 5 and Higher

Suggested layouts for financial statements in Accounting Courses National 5 and Higher The following suggested layouts may be used when presenting financial statements in the Accounting Courses for National

### CHAPTER 19. Statement of cash flows CONTENTS

CHAPTER 19 Statement of cash flows CONTENTS 19.1 Simple statement of cash flows 19.2 Statement of cash flows for a sole trader 19.3 Statement of cash flows for a partnership 19.4 Statement of cash flows

### School of Distance Education UNIVERSITY OF CALICUT SCHOOL OF DISTANCE EDUCATION. V Semester. (2011 Admission Onwards) OPEN COURSE

UNIVERSITY OF CALICUT SCHOOL OF DISTANCE EDUCATION V Semester (2011 Admission Onwards) OPEN COURSE (For the UG candidates with core course other than B Com) BASIC ACCOUNTING QUESTION BANK 1. The prime

### UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS International General Certificate of Secondary Education

*0018636067* UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS International General Certificate of Secondary Education ACCOUNTING 0452/13 Paper 1 October/November 2013 Candidates answer on the Question

### Level 3 Accounting, 2010

9 0 5 0 3 R 3 Level 3 Accounting, 2010 90503 Prepare financial statements for partnerships and companies Credits: Six 9.30 am Thursday 25 November 2010 RESOURCE BOOKLET Refer to this booklet to answer

### INSTITUTE OF FINANCIAL ACCOUNTANTS JUNE 2011 EXAMINATION. D1. Financial Accounting

1 INSTITUTE OF FINANCIAL ACCOUNTANTS JUNE 2011 EXAMINATION D1. Financial Accounting Instructions to candidates 1. Time allowed is 3 hours and 10 minutes, which includes 10 minutes reading time. 2. This

### STATEMENT ON FINANCIAL POSITION

STATEMENT ON FINANCIAL POSITION DESCRIPTION NOTE DAY 30.06.2013 31.12.2012 Fixed assets 218 532 221 493 214 682 Intangibles 3 583 3 057 3 033 Tangible fixed assets 2 69 812 69 272 63 027 Investment properties

### ACCOUNTING FOR AND AUDIT OF PROPERTY, PLANT AND EQUIPMENT

ACCOUNTING FOR AND AUDIT OF PROPERTY, PLANT AND EQUIPMENT PRESENTED BY SOLOMON SIMEON MANAGER: PEAK PROFESSIONAL SERVICES IN HOUSE SEMINAR SERIES NO 2 PEAK PROFESSIONAL SERVICES (CHARTERED ACCOUNTANTS)

### Q6] The process of recording financial data upto trial balance is a) Book keeping b) Classifying c) Summarising d) Analyzing

MULTIPLE CHOICE QUESTIONS ON BASIC ACCOUNTING Q1] Which accounting concept satisfy the valuation criteria A] Going concern, Realisation, Cost b) Going concern, Cost, Dual aspect c) Cost, Dual aspect, Conservatism

### Small Company Limited. Report and Accounts. 31 December 2007

Registered number 123456 Small Company Limited Report and Accounts 31 December 2007 Report and accounts Contents Page Company information 1 Directors' report 2 Accountants' report 3 Profit and loss account

### ICAP. Introduction to accounting

ICAP P Introduction to accounting First edition published by Emile Woolf International Bracknell Enterprise & Innovation Hub Ocean House, 12th Floor, The Ring Bracknell, Berkshire, RG12 1A United Kingdom

### Glossary of Accounting Terms Peter Baskerville

Glossary of Accounting Terms Peter Baskerville Account for or 'bring to account': An accounting phrase used to describe the recording of a financial transaction that is required under the generally accepted

### The early part of the article explains in detail the nature and purpose of Depreciation as a book-keeping and accounting concept.

Depreciation Editorial This months students' newsletter focuses on the concept of Depreciation a knowledge of which is essential to those studying Manual Book-Keeping Level 3 and the Level 3 Computerised

### Paper F7 (INT) Financial Reporting (International) Tuesday 14 June 2011. Fundamentals Level Skills Module

Fundamentals Level Skills Module Financial Reporting (International) Tuesday 14 June 2011 Time allowed Reading and planning: Writing: 15 minutes 3 hours ALL FIVE questions are compulsory and MUST be attempted.

### Company Accounts, Cost and Management Accounting

Company Accounts, Cost and Management Accounting Roll No : 1 : 262 Time allowed : 3 hours Maximum marks : 100 Total number of questions : 8 Total number of printed pages : 8 NOTE : All working notes should

### Summary of Significant Accounting Policies FOR THE FINANCIAL YEAR ENDED 31 MARCH 2014

46 Unless otherwise stated, the following accounting policies have been applied consistently in dealing with items which are considered material in relation to the financial statements. The Company and

### CHAPTER 8. Accounting for manufacturing CONTENTS

CHAPTER 8 Accounting for manufacturing CONTENTS 8.1 Cost of goods manufactured statement 8.2 Cost of goods sold 8.3 Statement of financial performance from closing entries 8.4 Missing data in manufacturing

### ACCOUNTING FOR MANAGERS MBA/DCC 102

Nature and scope of Accounting ACCOUNTING FOR MANAGERS MBA/DCC 102 Accounting may be regarded as an art of recording, classifying and summarizing of money transactions and events Accounting may be regarded

### Sri Lanka Accounting Standard for Small and Medium-sized Entities (SLFRS for SMEs) Illustrative Financial Statements

Sri Lanka Accounting Standard for Small and Medium-sized Entities (SLFRS for SMEs) Illustrative Financial Statements Sri Lanka Accounting Standard for Small and Medium-sized Entities Illustrative Financial

### Cambridge International Examinations Cambridge International General Certificate of Secondary Education

Cambridge International Examinations Cambridge International General Certificate of Secondary Education *0123456789* ACCOUNTING 0452/01 Paper 1 For Examination from 2014 SPECIMEN PAPER 1 hour 45 minutes

ambridge International Examinations ambridge International dvanced Subsidiary and dvanced Level OUNTING 9706/01 Paper 1 Multiple hoice For Examination from 2016 SPEIMEN PPER 1 hour *0123456789* dditional

### MARK SCHEME for the May/June 2010 question paper for the guidance of teachers 0452 ACCOUNTING. 0452/21 Paper 21, maximum raw mark 120

www.xtremepapers.com UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS International General Certificate of Secondary Education MARK SCHEME for the May/June 2010 question paper for the guidance of teachers

### FINANCIAL STATEMENTS-II

MODULE - 3 15 FINANCIAL STATEMENTS-II You have learnt that Income Statement i.e. Trading & Profit and Loss Account and Position Statement i.e., Balance Sheet are two financial statements, which are prepared

### INTRODUCTION TO ACCOUNTING STUDY TEXT

2016 INTRODUCTION TO ACCOUNTING STUDY TET ICAP P Introduction to accounting 2 nd edition published by Emile Woolf International Bracknell Enterprise & Innovation Hub Ocean House, 12th Floor, The Ring

### Consolidated Financial Results for Fiscal Year 2013 (April 1, 2013 March 31, 2014)

Consolidated Financial Results for Fiscal Year 2013 (April 1, 2013 March 31, 2014) 28/4/2014 Name of registrant: ShinMaywa Industries, Ltd. Stock Exchange Listed: Tokyo Code number: 7224 (URL: http://www.shinmaywa.co.jp

### Income Measurement and Profitability Analysis

PROFITABILITY ANALYSIS The following financial statements for Spencer Company will be used to demonstrate the calculation of the various ratios in profitability analysis. Spencer Company Comparative Balance

Cambridge International Examinations Cambridge International Advanced Subsidiary and Advanced Level *0123456789* ACCOUNTING 9706/02 Paper 2 Structured Questions For Examination from 2016 SPECIMEN PAPER

### UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS General Certificate of Education Advanced Level

*3530169038* UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS General Certificate of Education Advanced Level ACCOUNTING 9706/43 Paper 4 Problem Solving (Supplementary Topics) October/November 2012 2

### MARK SCHEME for the October/November 2010 question paper for the guidance of teachers 0452 ACCOUNTING. 0452/11 Paper 1, maximum raw mark 120

www.xtremepapers.com UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS International General Certificate of Secondary Education MARK SCHEME for the October/November 2010 question paper for the guidance

### Financial Statements Tutorial

Financial Statement Review: Financial Statements Tutorial There are four major financial statements used to communicate information to external users (creditors, investors, suppliers, etc.) - 1. Balance

### CENTURY 21 ACCOUNTING, 8e General Journal Key Terms and Definitions

CENTURY 21 ACCOUNTING, 8e General Journal Key Terms and Definitions Chapter 1 Starting A Proprietorship: Changes that Affect the Accounting Equation account: a record summarizing all the information pertaining

### MIDTERM EXAMINATION. Afaaq_tariq@yahoo.com. Fall 2009

MIDTERM EXAMINATION Afaaq_tariq@yahoo.com Fall 2009 FIN621- Financial Statement Analysis Asslam O Alikum FIN621- Financial Statement Analysis (Session 3) solved by Afaaq n Shani Bhai with reference n numerical

### ABN 17 006 852 820 PTY LTD (FORMERLY KNOWN AS AQUAMAX PTY LTD) DIRECTORS REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2015

DIRECTORS REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2015 In accordance with a resolution of the Directors dated 16 December 2015, the Directors of the Company have pleasure in reporting on the Company for

### SESSION 7 AUDIT OF NON CURRENT ASSETS AND CURRENT ASSETS

SESSION 7 AUDIT OF NON CURRENT ASSETS AND CURRENT ASSETS Learning objectives: Understanding the importance of audit of assets. explain the purpose of substantive procedures in relation to financial statements

### Changes in Consolidated Financial Statements Due to Voluntary Adoption of International Financial Reporting Standards (IFRS)

Changes in Consolidated Financial Statements Due to Voluntary Adoption of International Financial Reporting Standards () In conjunction with the voluntary adoption of International Financial Reporting

### ACCOUNTING: HOW TO GUIDE NOT JUST TEACH! This is a follow-up of the document Accounting: Do you guide or do you just teach.

Introduction ACCOUNTING: HOW TO GUIDE NOT JUST TEACH! This is a follow-up of the document Accounting: Do you guide or do you just teach. Your role in the teaching of Accounting should be to guide the learners

GRAAD 12 NATIONAL SENIOR CERTIFICATE GRADE 12 ACCOUNTING NOVEMBER 2013 MARKS: 300 TIME: 3 hours This question paper consists of 24 pages and an 18-page answer book. Accounting 2 DBE/November 2013 INSTRUCTIONS

### FINANCIAL STATEMENTS-I

14 FINANCIAL STATEMENTS-I You have learnt the meaning of the financial statements and the need to prepare these for the business organisations. You have also learnt the format of these statements and the

### PREPARING FINAL ACCOUNTS. part

15_1312MH_CH09 27/1/05 8:38 am Page 87 PREPARING part 3 FINAL ACCOUNTS 9 The final accounts of sole traders 10 Accounting principles, concepts and policies 11 Depreciation and fixed assets 12 Bad debts

### Registered No. xxxx. * Electrical Contracting Limited is a small company as defined by Section 350 of the Companies Act 2014.

(SMALL COMPANY*) DIRECTORS REPORT & FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2014 Registered No. xxxx * Electrical Contracting Limited is a small company as defined by Section 350 of the Companies Act

### UNIVERSITY OF LIMPOPO

UN I V E R SIT F LI MPOPO YO TABLE OF CONTENT Clubs Introduction 2 Ledger accounts 2. Membership fees 2.2 Entrance fees 2.3 Capital fund account 2.4 Refreshments 2.5 Affiliation fees 2.6 Honorarium 2.7

### Large Company Limited. Report and Accounts. 31 December 2009

Registered number 123456 Large Company Limited Report and Accounts 31 December 2009 Report and accounts Contents Page Company information 1 Directors' report 2 Statement of directors' responsibilities

### Jones Sample Accounts Limited. Company Registration Number: 04544332 (England and Wales) Report of the Directors and Unaudited Financial Statements

Company Registration Number: 04544332 (England and Wales) Report of the Directors and Unaudited Financial Statements Period of accounts Start date: 1st June 2008 End date: 31st May 2009 Contents of the

### Coimisiún na Scrúduithe Stáit State Examinations Commission

2007. M55 Coimisiún na Scrúduithe Stáit State Examinations Commission LEAVING CERTIFICATE EXAMINATION, 2007 A C C O U N T I N G - H I G H E R L E V E L (400 marks) This paper is divided into 3 Sections:

### Mustafa Khuwaja - CAT Finalist

1 Run through the Flashcards as often as you can during your final revision period. The day before the exam, try to go through the Flashcards again. You will be well on your way to passing your exams.

### Objective Evidence. Unit of Measurement. Accounting Period Cycle. Business Entity. Going Concern. Adequate Disclosure. Matching Expenses with Revenue

Accounting Concept: A source document is prepared for each transaction Objective Evidence Accounting Concept: Business transactions are stated in numbers that have common values; that is, using a common

### ACCOUNTANCY One mark questions 1. Final accounts with adjustments

ACCOUNTANCY One mark questions 1. Final accounts with adjustments 1. Net profit arrived from profit and loss account is transferred to 2. Closing stock is valued at cost price or whichever is less 3. Outstanding

### Level 3 Accounting Solutions Booklet. For further information contact us: Tel. +44 (0) 8707 202909 Email. enquiries@ediplc.com www.lcci.org.

Level 3 Accounting Solutions Booklet For further information contact us: Tel. +44 (0) 8707 202909 Email. enquiries@ediplc.com www.lcci.org.uk London Chamber of Commerce and Industry (LCCI) International

### CENTURY 21 ACCOUNTING, 8e General Journal Chapter Objectives

CENTURY 21 ACCOUNTING, 8e General Journal Chapter Objectives Chapter 1 Starting A Proprietorship: Changes that Affect the Accounting Equation After studying Chapter 1, you will be able to: 1. Define accounting

### EXPLANATORY NOTES. 1. Summary of accounting policies

1. Summary of accounting policies Reporting Entity Taranaki Regional Council is a regional local authority governed by the Local Government Act 2002. The Taranaki Regional Council group (TRC) consists

### (AA11) FINANCIAL ACCOUNTING BASICS

All Rights Reserved ASSOCIATION OF ACCOUNTING TECHNICIANS OF SRI LANKA AA1 EXAMINATION - JULY 2015 (AA11) FINANCIAL ACCOUNTING BASICS Instructions to candidates (Please Read Carefully): (1) Time: 02 hours.

### Jones Sample Accounts Limited. Company Registration Number: 04544332 (England and Wales) Report of the Directors and Unaudited Financial Statements

Company Registration Number: 04544332 (England and Wales) Report of the Directors and Unaudited Financial Statements Period of accounts Start date: 1st June 2009 End date: 31st May 2010 Contents of the

### MARK SCHEME for the October/November 2011 question paper for the guidance of teachers 0452 ACCOUNTING. 0452/23 Paper 2, maximum raw mark 120

www.xtremepapers.com UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS International General Certificate of Secondary Education MARK SCHEME for the October/November question paper for the guidance of

### CHAPTER 16. Non-current assets: Revaluation, disposal and other aspects CONTENTS

CHAPTER 16 Non-current assets: Revaluation, disposal and other aspects CONTENTS 16.1 Non-current asset disposals 16.2 Revaluation and disposal 16.3 Intangibles and natural resources 16.4 Goodwill and discount

### 0452 Accounting June 2008

ACCOUNTING Paper 0452/01 Multiple Choice Question Number Key Question Number Key 1 C 21 B 2 D 22 B 3 A 23 D 4 A 24 B 5 D 25 A 6 A 26 D 7 B 27 C 8 D 28 C 9 A 29 C 10 C 30 A 11 B 31 D 12 B 32 A 13 C 33 C

### MARK SCHEME for the May/June 2011 question paper for the guidance of teachers 0452 ACCOUNTING. 0452/21 Paper 2, maximum raw mark 120

www.xtremepapers.com UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS International General Certificate of Secondary Education MARK SCHEME for the May/June question paper for the guidance of teachers

### Working Capital Management Nature & Scope

Working Capital Management Nature & Scope Introduction & Definitions Components of Working Capital Significance of Working Capital Operating Cycle Types of Working Capital Net Vs Gross Working Capital

### Paper F7 (INT) Financial Reporting (International) Tuesday 14 December 2010. Fundamentals Level Skills Module

Fundamentals Level Skills Module Financial Reporting (International) Tuesday 14 December 2010 Time allowed Reading and planning: Writing: 15 minutes 3 hours ALL FIVE questions are compulsory and MUST be

### CASH FLOW STATEMENT. MODULE - 6A Analysis of Financial Statements. Cash Flow Statement. Notes

MODULE - 6A Cash Flow Statement 30 CASH FLOW STATEMENT In the previous lesson, you have learnt various types of analysis of financial statements and its tools such as comparative statements, common size

### For personal use only

STANFIELD FUNDS MANAGEMENT LIMITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION SFN Swift Wizzie Reviewed as at Reviewed as at Reviewed as at Pro forma Pro forma 31-Dec-15 31-Dec-15 31-Dec-15 adjustments

### Acal plc. Accounting policies March 2006

Acal plc Accounting policies March 2006 Basis of preparation The consolidated financial statements of Acal plc and all its subsidiaries have been prepared in accordance with International Financial Reporting

### ABN: Financial Report

CYC (SA) Unit Trust CYC (SA) Unit Trust Financial Report For the Year Ended 31 May 2012 CYC (SA) Unit Trust For the year ended 31 May 2012 Contents Page Statement by the Directors 1 Statement of Comprehensive

### FIA FA1. Recording Financial Transactions

FIA FA1 Recording Financial Transactions Chapter 1 Business transactions and documentation What is a business? Business transactions Discounts Sales tax Storage of information What is a business? Business

### UNIVERSITY OF CALICUT SCHOOL OF DISTANCE EDUCATION

UNIVERSITY OF CALICUT SCHOOL OF DISTANCE EDUCATION B Com/BBA (2011 Admn. Onwards) II SEMESTER CORE COURSE FINANCIAL ACCOUNTING QUESTION BANK 1) Outstanding expenditure is a account. a) Nominal b) Personnel

### Paper F7 (INT) Financial Reporting (International) Wednesday 5 June 2013. Fundamentals Level Skills Module

Fundamentals Level Skills Module Financial Reporting (International) Wednesday 5 June 2013 Time allowed Reading and planning: Writing: 15 minutes 3 hours ALL FIVE questions are compulsory and MUST be attempted.

### An introduction to. consolidated financial

Chapter 35 An introduction to consolidated financial statements Learning objectives After reading this chapter you should be able to: 1 explain the meaning of the key terms and concepts listed at the end

### MARK SCHEME for the October/November 2014 series 0452 ACCOUNTING. 0452/23 Paper 2, maximum raw mark 120

CAMBRIDGE INTERNATIONAL EXAMINATIONS Cambridge International General Certificate of Secondary Education MARK SCHEME for the October/November series 0452 ACCOUNTING 0452/23 Paper 2, maximum raw mark 120