Process Accounts Payable and Receivable

Size: px
Start display at page:

Download "Process Accounts Payable and Receivable"

Transcription

1 Process Accounts Payable and Receivable UNIT PURPOSE On successful completion of this unit the learner will be able to maintain financial records of a business using both manual accounting processes and computer accounting software. In order to qualify for a distinction grade, this unit (manual and computerised) must be completed within the nominated 54 hours of commencement of study. Specifically, the learner will be able to: Maintain financial journal systems Prepare bank reconciliations Maintain accounts payable and accounts receivable systems Process payments for accounts payable Prepare statements for accounts receivable Follow up outstanding accounts. This learning program provides information and exercises that are designed to help you become a proficient bookkeeper, accounts receivable clerk or accounts payable clerk. This learning program comprises the following: Manual Tasks explanations and some procedures for entering information in the accounting books practice exercises worksheets. Computerised Tasks Selected chapters in MYOB procedures textbook Handouts Competency self-assessment/trainer assessment outline Log sheets manual and computerised Student Assessment Guide TAFE NSW, Newcastle V1. 2/ of 14

2 INTRODUCTION The Need for Accounting What is Accounting? Accounting is the process of recording, classifying, interpreting, summarising and communicating information. The records of the financial activities of a business are called financial records. What is the difference between a bookkeeper and an accountant? A bookkeeper prepares financial records by transferring information from source documents to journals, posting this information to ledgers and preparing reports. An accountant summarises and analyses these financial records. Why is accounting needed? Accounting is needed so as to provide interested parties with information on the profitability and financial position of a business. Businesses are also required to keep accurate records that comply with government laws and regulation. The parties who are interested in the profitability and financial position of a business are: owners, management, creditors, investors, potential investors, government, employees, trade unions and the general public. Types of Business Enterprise In Australia you will find many different types of business that fit into the following broad categories: Primary producers: agricultural and extraction of natural resources Manufacturers: production of goods (raw to finished product) any assembling a product Wholesalers: bulk purchases from manufacturers and resale of same goods to other businesses (retailers) Retailers: buy in bulk from wholesalers and sell in smaller quantities to the general public Service businesses: sale of professional time and knowledge eg doctor, accountant, solicitor Non-profit organisation: sporting or charity organisation eg facilities for members/community Forms of business ownership All business are owned in one of the following ways: Sole trader: owned by one person, usually managed by the owner, owner provides all capital necessary to operate and maintain the business, owner enjoys the benefits of all profits and suffers the consequences of all the losses, owner has unlimited liability ie the owner is liable to the full extent of his/her personal assets to meet the debts of the business. TAFE NSW, Newcastle V1. 2/ of 14

3 Partnership: association of two or more persons, usually professional groups eg accountants, solicitors, dentists, unlimited liability in respect to the partnership debts, partnership can raise more capital and have a greater variety of skilled people involved in the running of the business. Companies: a company is a business with a separate legal identity created by law and is much more complicated to set up. Separate legal identity means it can enter contracts as a legal person and can sue or be sued as a legal person it continues to exist after the death of a member because the shares are transferable Cooperatives: formed by a number of people with a common interest eg Dairy Farmers Cooperative, St Vincent de Paul Thrift Shops. Processing information through the accounting system The main elements of the accounting system are the source documents, the journals and the ledger. These devices are used to collect and summarise financial data, which is then displayed in financial reports. You have already completed the module involved in the preparation of source documents. This was the first step in the accounting process. ACCOUNTING THEORY You now have a knowledge of types of business enterprise and the differences in business ownership. Before beginning to work in an accounting system, you will need to understand some common business terms and basic theory. Accounting terms used in a business Account: is a means of recording all relevant data to a particular person or thing eg in the Cash at Bank account would only be recorded the movement of money coming into and out of the business. Aging Accounts: the process of determining the age of a debt or how long the debt has been owing. Aging a statement tells the customer and your own accounting department how long various amounts have been owing. This is especially important to the business as it can monitor customers who are not paying their accounts promptly. Assets: items of value, OWNED by the business, for USE within the business eg Cash at Bank, Office Furniture, Office Equipment. Buying/Selling on Credit: the business will purchase/sell goods and services/assets without paying/receiving cash at the time of the transaction. Instead, the amount will be paid to the supplier/received from the customer within one month (30 days) of the date of the transaction. TAFE NSW, Newcastle V1. 2/ of 14

4 Chart of Accounts: is a complete list of accounts in the general ledger. It is a list of account titles classified and indexed according to the nature (type) of the account eg Proprietorship, Asset, Liability, Expense or Revenue. (See page 8) Credit: means to enter an amount in the credit column of the ledger card. Cross Reference: when posting from the journal to the ledger card, it is necessary to record the journal page number beside the ledger card entry and to cross reference ledger account number beside the journal entry which has been posted. Cycle Billing: staggering the preparation and sending of statements eg on a set date each month. Customers records are divided into groups (alphabetical or geographical) eg A-F sent on the 1 st day of each month, G-L sent on the 8 th day of each month, M-R sent on the 15 th day of each month and S-Z sent on the 23 rd day of each month. Debit: means to enter an amount in the debit column of the ledger card. Double-entry Accounting: is a system of recording transactions according to the accounting equation for which every debit entry must be accompanied by a corresponding credit entry of equal value. Drawings: withdrawals of cash and goods from a business by its owner. Expenses: the costs and/or losses incurred in the day-to-day running of the business eg Purchases, Wages, Advertising, Electricity, Bad Debts. Folio Number: page number eg S1 means Sales Journal page 1. General Ledger: contains details of all accounts relating to the business, except the trade debtors and trade creditors personal accounts. These accounts are represented in the general ledger by control accounts of the same name. Goods and Services Tax: It is a consumption or value added tax which will be applied at a flat rate of 10% on the sale of most goods and services. It came into effect on 1 July GST is added to the selling price of goods and services as they pass through the business supply chain until they are finally consumed. To avoid the tax cascading and multiplying through the sales process, each registered business is given a rebate of the GST they paid to their supplier when they on sell the goods. Liabilities: items of value OWED by the business, eg Bank Overdraft, Mortgage. Proprietorship: value of the owner s investment in the business. It is also known as Capital, Owner s Equity or Net Worth of the business. Purchases: trade goods bought for cash or on credit, with the intention of resale TAFE NSW, Newcastle V1. 2/ of 14

5 Revenues: the earnings or gains made during day-to-day running of the business eg Sales, Rent Receivable, Interest Receivable. Sales: trade goods sold for cash or on credit. Schedule of Creditors (Accounts Payable) Balances: the listing and totalling of outstanding balances from the Creditors Ledger. This total should agree with the balance in the Creditors (Accounts Payable) Control account in the General Ledger. Schedule of Debtors (Accounts Receivable) Balances: the listing and totalling of outstanding balances from the Debtors Ledger. This total should agree with the balance in the Debtors (Accounts Receivable) Control account in the General Ledger. Settlement Discount: a monetary reduction or deduction applicable when the account is paid and which is conditional upon the buyer paying for the goods within an agreed time. If payment is late the discount will not be allowed. Discount Allowed: allowance given by the business to trade debtors Discount Received: allowance received by the business from trade creditors Sundry Creditor: the supplier to whom the business owes money for the purchase of an asset/services (non-trade goods/services) on credit. Sundry Debtor: the customer to whom the business has sold an asset (non-trade goods) on credit. Trade Creditor: the supplier to whom the business owes money for trade goods bought on credit (Supplier or Accounts Payable). Creditors Ledger (Accounts Payable Ledger): contains all details of suppliers from whom the business has purchased goods, services on credit. Trade Debtor: the customer to whom the business has sold trade goods on credit (Customer or Accounts Receivable). Debtors Ledger (Accounts Receivable Ledger): contains all details of customers to whom the business has sold goods, services on credit. Trade Discount: a monetary reduction or deduction in the catalogue or listed price of goods given by the seller to customer who will be using a product within their line of work eg Marathon Tyres could give a Shell Garage a trade discount on tyres to be used in its line of work. TAFE NSW, Newcastle V1. 2/ of 14

6 Accounting Conventions A convention is a traditionally accepted way of doing things. Historical Record Convention: transactions are recorded at their original cost at the time of transaction. Accounting Monetary Convention: transactions are recorded at a money value (not a quantity measure). Continuity of Activity Convention: all decisions are based on the premise that the business is an ongoing concern. Accounting Period Convention: the life of a business is divided into time periods. A business is required to report to interested parties at the end of each financial year. Therefore, the accounting period of most businesses is twelve months. However, management will request financial reports more regularly than this. Accounting Entity Convention: for recording purposes, the owner of the business and the business are separate entities. Only the transactions of the business are recorded. The personal financial dealings of the proprietor (owner) are completely separate. The Accounting Entity Convention gives us a starting point. We can link it with the accounting equation. The Accounting Equation Convention: is a formula used in double-entry accounting systems which shows the relationship between proprietorship, assets and liabilities. Proprietorship (capital) is the difference between the total value of assets and the total value of external liabilities. There are three different forms of the Accounting Equation: Assets = Proprietorship + Liabilities Liabilities = Assets - Proprietorship Proprietorship = Assets - Liabilities The whole of the accounting process is based on the accounting equation. TAFE NSW, Newcastle V1. 2/ of 14

7 CHART OF ACCOUNTS 1 ASSET ACCOUNTS 4 REVENUE ACCOUNTS Current Assets 4.1 Sales 1.1 Cash at Bank 4.2 (Sales Returns) 1.2 Petty Cash 4.3 Discount Received 1.3 Accounts Receivable Control 4.4 Interest Revenue 1.4 Inventory 4.5 Rent Revenue 1.5 Sundry Debtor 4.6 Commission Revenue Prepayments Provision for Doubtful Debts Freight and Insurance Collected Dividends/Interest on Investments 4.9 Late Fees Collected Non-current Assets 1.10 Land 1.11 Buildings 1.12 Plant and Equipment 1.13 Shop Fittings (Fixtures & Fittings) 6 EXPENSE ACCOUNTS 1.13A Shop Fittings Accumulated Depreciation 1.14 Motor Vehicles 6.1 Purchases 1.14A Motor Vehicles Accumulated Depreciation 6.2 (Purchases Returns) 1.15 Office Equipment 6.3 Discount Allowed 1.15A Office Equipment Accumulated Depreciation 6.4 Advertising 1.16 Office Furniture 6.5 Bad Debts 1.16A Office Furniture Accumulated Depreciation 6.6 Bank Charges 6.7 Electricity 2 LIABILITY ACCOUNTS 6.8 General Expenses Current Liabilities 6.9 Insurance 2.1 Accounts Payable Control 6.10 Interest Expense 2.2 Bank Overdraft 6.11 Postage 2.3 Group Taxation 6.12 Rent Expense 2.4 Medical Insurance 6.13 Repairs and Maintenance 2.5 Superannuation 6.14 Stationery/Office Supplies 2.6 Sundry Creditor 6.15 Telephone 2.7 Accrued Expenses 6.16 Travel Expenses 6.17 Wages and Salaries GST Liability 6.18 Freight and Insurance Paid 2.10 GST Collected 6.19 Donations 2.11 (GST Outlaid [Paid]) 6.20 Depreciation 6.21 Printing Long-term Liabilities 6.22 Cleaning 2.15 Mortgage of an Asset 6.23 Rates 2.16 Bank Loans 6.24 Interest on Overdraft 6.25 Gas 6.26 Late Fees Paid 6.27 Other Employer Expenses 3 PROPRIETORSHIP (OWNER S EQUITY) 6.28 Doubtful Debts 3.1 Capital (Drawings) 6.30 TAFE NSW, Newcastle V1. 2/ of 14

8 THE PRINCIPLE OF DOUBLE ENTRY For every DEBIT entry recorded there must be a CREDIT entry recorded to exactly the same value. THE PROCEDURE FOR DOUBLE ENTRY ASSETS - DR Balance to increase to decrease DR CR LIABILITIES - CR Balance to increase to decrease CR DR PROPRIETORSHIP - CR Balance to increase to decrease CR DR EXPENSES - DR amounts REVENUES - CR amounts The above procedures are based on the ACCOUNTING EQUATION: ASSETS = LIABILITIES + PROPRIETORSHIP (Owner s Equity) TAFE NSW, Newcastle V1. 2/ of 14

9 THE NATURE OF TRANSACTIONS In any business, a transaction the exchange of money for money s worth of goods or services has two sides. That is, there is always someone who gives value and someone who receives value. At all times the transaction must be seen from the viewpoint of the business is the business buying or selling goods/services. The whole of the accounting process is based on the link between the accounting equation and the accounting entity convention (traditional way of doing things). The accounting entity convention (one of five used in accounting see above) states that, for the purposes of accounting, the functions and records of the business are absolutely and entirely distinct from any personal (domestic) financial dealings of the owner of the business. The accounting equation is the relationship of proprietorship (capital) to assets and liabilities based on the concept of TOTAL DEBITS = TOTAL CREDITS. Proprietorship (capital, owner s equity, net worth) is the difference between the total value of the assets and the total value of external liabilities (the debts incurred by the business, distinct from the owner s investment which is considered to be an internal liability). There are three different simple mathematical forms of the accounting equation: Proprietorship = Assets Liabilities (P = A L) or (C = A L) or Assets = Proprietorship + Liabilities (A = P + L) or (A = C + L) or Liabilities = Assets Proprietorship (L = A P) or (L = A C) TASK ONE Apply the accounting equation to the following transactions showing which two accounts are involved (based on the principle of double entry) and that A = P + L. Jane Keilar invests $180,000 in the bank under the name of her business Jane s Treasure Chest. She purchases shop premises for $120,000 cash. She buys stock for her business for $30,000 cash. She buys a delivery van for the business for $15,000 on credit. She sells $3,000 stock for cash. She buys a cash register and counters for the business for $8,000 cash. She applies to the bank and is given a mortgage of $60,000 on her shop. She sells $10,000 stock to debtors (customers) on credit. She purchases further stock for her business for $5,000 on credit. TAFE NSW, Newcastle V1. 2/ of 14

10 JANE S TREASURE CHEST (Transaction Sheet) ASSETS PROPRIETORSHIP + LIABILITIES TAFE NSW, Newcastle V1. 2/ of 14

11 TASK TWO Calculate the value of the missing items in the following accounting equations: Assets = Capital + Liabilities a $10,000? $2,000 b? $5,000 $10,000 c $15,995 $5,685? d? $11,900 $35,655 e $428,950? $300,000 f $5,675 $4,387? g $54,561 $42,312? h? $65,123 $34,510 i $5,612,312? $3,413,567 j $8,417? $1,695 TASK THREE Classify the items in the following list as either assets, liability or proprietorship: Cash at Bank... Office Furniture... A Trader (owner)... Bank Overdraft... GST Collected... Land and Premises... Barry Jones (debtor)... Stock on hand... Loan to C Chip... Ray Charles (creditor)... Motor Vehicle... Loan from D Dale... Investments... Mortgage of Premises... Premises... Petty Cash... TAFE NSW, Newcastle V1. 2/ of 14

12 TASK FOUR Complete the following transaction analysis chart: JANE S TREASURE CHEST (analysis chart) Transaction Accounts affected Amount ALPER Jane Keilar invests $180,000 in the bank account under the name of her business, Jane s Treasure Chest Jane purchases shop premises for $132,000 cash GST inclusive Increase/ Decrease DR/CR She buys stock for her business for $33,000 cash GST inclusive She buys a delivery van for the business for $16,500 on credit GST inclusive She sells $3,300 stock for cash GST inclusive She buys a cash register and counters for the business for $8,800 cash GST inclusive She applies to the bank and is given a mortgage of $60,000 on her shop She sells $11,000 stock to debtors (customers) on credit GST inclusive She purchases further stock for her business for $5,500 on credit GST inclusive TAFE NSW, Newcastle V1. 2/ of 14

13 TASK FIVE Complete the following transaction analysis chart: ALEXANDER S RAG TIME BAND (analysis chart) Transaction Accounts affected Amount ALPER Alexander invests $50,000 in the bank account under the name of his business, Alexander s Rag Time Band Alex rents shop premises for $440 cash per month GST inclusive Increase/ Decrease DR/CR He buys stock for his business for $8,800 cash GST inclusive Alex buys a motor vehicle for the business for $12,100 on credit GST inclusive He sells $3,300 stock for cash GST inclusive Alex pays wages $1000 He buys a display cabinet for the business for $1,100 cash GST inclusive He pays: (GST inclusive) Advertising $550 Insurance 220 He sells $4,400 stock to debtors (customers) on credit GST inclusive Alex purchases further stock for his business for $5,500 on credit GST inclusive TAFE NSW, Newcastle V1. 2/ of 14

14 THE JOURNAL FRAMEWORK All transactions are evidenced by some sort of written document. We call these documents source documents. The source document provides us with the necessary information to write up the journals (books of original entry). Only pertinent information is taken from the source documents for entry into the journals. Journals have three main functions: a classifying sorting documents of a like nature together, b summarising consolidating relevant information, and c means of transfer posting the information into a ledger. In the ledger we keep accounts. An account is a means of recording all relevant data relating to a particular person or thing. (See Chart of accounts for accounts listing.) The journals in a typical retail business are summarised below. Event Source document Record in Journal Post to ledger cards Sale of trade goods and assets on credit Tax Invoice issued (duplicate) Sales Return inwards of trade goods and allowances on credit Adjustment Note issued (duplicate) Sales Returns and Allowances Receipt of money (cash, cheques, credit card, eftpos) ALL OTHER TRANSACTIONS: Opening Entry Interest Receivable Interest Payable Bad Debts Correction of errors Reversal entries Omission of entries Purchase of Asset Sale of Asset Purchase of trade goods or assets on credit (Tax) Receipt (duplicate) cash register listing, bank statement VARIOUS: Tax Invoices Statements Memos Tax Invoice received (original) Cash Receipts GENERAL Purchases ACCOUNTS RECEIVBLE LEDGER (DEBTORS OR CUSTOMERS) ACCOUNTS PAYABLE LEDGER (CREDITORS OR SUPPLIERS) G E N E R A L L E D G E R Return outwards of trade goods and allowances on credit Adjustment Note received (original) Purchases Returns and Allowances All cash payments (cheque) made from the business Cheque butt Cash Payments TAFE NSW, Newcastle V1. 2/ of 14

Introduction. What is a business?

Introduction. What is a business? 1 Introduction to accounting By the end of this chapter you should be able to: define and classify businesses define accounting as a business activity state the main purpose of accounting list the qualities

More information

SOLE TRADER FINAL ACCOUNTS

SOLE TRADER FINAL ACCOUNTS 6 SOLE TRADER FINAL ACCOUNTS CASE STUDY Starting out in business Olivia Boulton used to work as a buyer of kitchen and cookware goods for a large department store in central London. She was good at her

More information

FINANCIAL STATEMENTS-II

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

More information

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

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

More information

ACCOUNTING AND BOOKKEEPING PRINCIPLES AND PRACTICE

ACCOUNTING AND BOOKKEEPING PRINCIPLES AND PRACTICE ACCOUNTING AND BOOKKEEPING PRINCIPLES AND PRACTICE Association of Accounting Technicians & David Willis www.mhhe.com/au/bookkeeping CHAPTER 1 INTRODUCTION LEARNING OUTCOME To gain background to accounting

More information

TRADING TRUST BUSINESS INFORMATION

TRADING TRUST BUSINESS INFORMATION TRADING TRUST BUSINESS INFORMATION PLEASE NOTE: The Penalties Regime came into effect on 1 April 1997. It is the taxpayer s responsibility to ensure that all information is true and correct! Has the Trust

More information

Pastel Grade 12 Accounting Study Guide

Pastel Grade 12 Accounting Study Guide Pastel Grade 12 Accounting Study Guide Table of Contents [ Lesson 1-An Introduction ]... 3 A. Types of Companies... 3 B. The Double Entry System... 5 C. Bookkeeping Cycle... 8 [ Lesson 2-Introduction to

More information

Accruals and prepayments

Accruals and prepayments 5 Accruals and prepayments this chapter covers... In the last chapter we have looked at the preparation of financial statements or final accounts using the extended trial balance, or spreadsheet, approach.

More information

Balance Sheet Accounts

Balance Sheet Accounts Page 1 of 6 Balance Sheet Accounts The Chart of Accounts is normally arranged or grouped by the Major Types of Accounts. The Balance Sheet Accounts (Assets, Liabilities, & Equity) are presented first,

More information

COMPANY / SOLE TRADER BUSINESS QUESTIONNAIRE

COMPANY / SOLE TRADER BUSINESS QUESTIONNAIRE COMPANY / SOLE TRADER BUSINESS QUESTIONNAIRE INFORMATION REQUIRED FOR COMPLETION OF FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2015 Terms of Engagement We hereby instruct Enable Business Limited

More information

ACCT1115. Review Package - Midterm SOLUTION Fall 2013

ACCT1115. Review Package - Midterm SOLUTION Fall 2013 ACCT1115 Review Package - Midterm SOLUTION Fall 2013 Part I Multiple Choice 1) How should you record the purchase of an expensive automobile? a) Decrease cash, increase assets b) Decrease cash, increase

More information

Accounting Basics. Prepared for First Year MBA

Accounting Basics. Prepared for First Year MBA Accounting Basics Prepared for First Year MBA Overview S No Particulars 01 Introduction to Accounting 02 Accounting Equation 03 Types of Transactions 04 Purchase and Sales 05 Types of Accounts 06 Golden

More information

Accounting Basics. Important Disclaimer. The Need for Accounting

Accounting Basics. Important Disclaimer. The Need for Accounting Accounting Basics Important Disclaimer Important Note: The text in this chapter is intended to clarify business-related concepts. It is not intended nor can it replace formal legal advice. Before taking

More information

B. Division of Costs The purpose of a Manufacturing Account is to ascertain Cost of Production ( ).

B. Division of Costs The purpose of a Manufacturing Account is to ascertain Cost of Production ( ). Manufacturing Accounts ( ) S5 Manufacturing Account/LWL A. Function of a Manufacturing Acccount For those businesses which deal with manufacturing products. It is common in today s business to act both

More information

PRINCIPLES OF ACCOUNTS CHAPTER 5: JOURNALS

PRINCIPLES OF ACCOUNTS CHAPTER 5: JOURNALS Page 1 Name: Index No.: Class: Sec 3 Recapitulation: A source document is a specially designed form, which provides details of a business transaction. It contains information like the date, the nature,

More information

Financial Statements Tutorial

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

More information

8 posting to general ledger accounts Learning outcomes

8 posting to general ledger accounts Learning outcomes PART ONE: TRIAL BALANCES chapter 8 posting to general ledger accounts Learning outcomes The learning outcomes for this chapter are to post journal entries for a double entry system to the general ledger

More information

BUSINESS BOOKKEEPING & ACCOUNTS STUDY GUIDE FOR MODULE ONE

BUSINESS BOOKKEEPING & ACCOUNTS STUDY GUIDE FOR MODULE ONE BUSINESS BOOKKEEPING & ACCOUNTS STUDY GUIDE FOR MODULE ONE (A full Study & Training Guide will accompany the Study or Training Manual(s) you will receive soon by airmail post.) This Study Guide - like

More information

ANNUAL BUSINESS CHECKLIST. 2011 Financial Year

ANNUAL BUSINESS CHECKLIST. 2011 Financial Year ANNUAL BUSINESS CHECKLIST 2011 Financial Year Please take the time to complete this checklist as it is a very important part of the accounting process. It helps you: Identify and provide the information

More information

CHAPTER 4. Adjusting the accounts and preparing financial statements CONTENTS

CHAPTER 4. Adjusting the accounts and preparing financial statements CONTENTS CHAPTER 4 Adjusting the accounts and preparing financial statements CONTENTS Demonstration problem 4.1 Adjusting entries and corrections 4.2 Adjusting centries and effect on financial statements 4.3 Adjusting

More information

WOOD: Business Accounting Basics, 01 CHAPTER 5. Value added tax

WOOD: Business Accounting Basics, 01 CHAPTER 5. Value added tax CHAPTER 5 Value added tax Learning objectives By the end of this chapter you should be able to: Calculate the level of VAT for inclusion on an invoice Ascertain the VAT liability of a business through

More information

MBA Financial Reporting. Financial Reporting Course Notes

MBA Financial Reporting. Financial Reporting Course Notes MBA Financial Reporting Financial Reporting Course Notes 1. Introduction to Financial Accounting Section 1: Introduction to Financial Accounting 1.1 Bookkeeping and accounting 1.1.1 Bookkeeping 1.1.2 Accounting

More information

TAX RETURN CHECKLIST 2011 INDIVIDUAL INFORMATION. INCOME Group Certificates (including pensions) Other Salary income. Termination Payments.

TAX RETURN CHECKLIST 2011 INDIVIDUAL INFORMATION. INCOME Group Certificates (including pensions) Other Salary income. Termination Payments. INDIVIDUAL INFORMATION INCOME Group Certificates (including pensions) Other Salary income Termination Payments Interest Dividends Trust and Partnership Distributions Capital Gains Rental Income Expenses

More information

Kinghan & Associates Limited Business Questionnaire/2014

Kinghan & Associates Limited Business Questionnaire/2014 Kinghan & Associates Limited Business Questionnaire/2014 Your name and address: IRD Numbers Company and individuals please.... I/We hereby instruct you to prepare my/our Financial Statements and Taxation

More information

TRADING ACCOUNT (Horizontal Format) for the year ended. Particulars. Rs.

TRADING ACCOUNT (Horizontal Format) for the year ended. Particulars. Rs. Dr. To Opening Stock To Purchases Less: Returns outwards () To Frieght & Carriage To Customs & Insurance To Wages To Gas, Water & Fuel To Factory Expenses To Royalty on Production To Cargo Expenses To

More information

QUANTUM BUSINESS HOUSE BUSINESS GUIDE 7. BUSINESS SYSTEM

QUANTUM BUSINESS HOUSE BUSINESS GUIDE 7. BUSINESS SYSTEM QUANTUM BUSINESS HOUSE BUSINESS GUIDE 7. BUSINESS SYSTEM 2 Chapter 7. Implementing Computer Based Accounting System Processing business transactions using accounting system provides accurate and reliable

More information

Learning Objectives: Quick answer key: Question # Multiple Choice True/False. 14.1 Describe the important of accounting and financial information.

Learning Objectives: Quick answer key: Question # Multiple Choice True/False. 14.1 Describe the important of accounting and financial information. 0 Learning Objectives: 14.1 Describe the important of accounting and financial information. 14.2 Differentiate between managerial and financial accounting. 14.3 Identify the six steps of the accounting

More information

PARBHU GALLAGHER PARAG LIMITED BUSINESS CHECKLIST. 2012 Financial Year

PARBHU GALLAGHER PARAG LIMITED BUSINESS CHECKLIST. 2012 Financial Year Client Name: (must be completed) PARBHU GALLAGHER PARAG LIMITED BUSINESS CHECKLIST 2012 Financial Year Please take the time to complete this checklist as it is a very important part of the accounting process.

More information

TREASURER S DIRECTIONS ACCOUNTING LIABILITIES Section A3.2 : Accounts Payable and Accrued Expenses

TREASURER S DIRECTIONS ACCOUNTING LIABILITIES Section A3.2 : Accounts Payable and Accrued Expenses TREASURER S DIRECTIONS ACCOUNTING LIABILITIES Section A3.2 : Accounts Payable and Accrued Expenses STATEMENT OF INTENT Complete and accurate information on accounts payable and accrued expenses enables

More information

End of Year Handbook. Prince. Page 1. Chartered Accountants

End of Year Handbook. Prince. Page 1. Chartered Accountants Prince Chartered Accountants End of Year Handbook RSM Prince is committed to working with our clients to provide real value, true teamwork and innovative, practical solutions, and to exceed your expectations

More information

Review of the Accounting Process THE BASIC MODEL

Review of the Accounting Process THE BASIC MODEL THE BASIC MODEL The accounting information system is designed to collect and organize data into information that is useful for stakeholders. The Accounting Equation The basic accounting equation is what

More information

Financial Statements for Manufacturing Businesses

Financial Statements for Manufacturing Businesses Management Accounting 31 Financial Statements for Manufacturing Businesses Importance of Financial Statements Accounting plays a critical role in decision-making. Accounting provides the financial framework

More information

Fundamentals of Financial Accounting

Fundamentals of Financial Accounting Fundamentals of Financial Accounting CHAPTER I Accounting in action. What is accounting? Accounting is the recording of financial transactions plus storing, sorting, retrieving, summarizing, and presenting

More information

ACCOUNTING GLOSSARY. Charities/IPCs should retain relevant documents to support their valuation.

ACCOUNTING GLOSSARY. Charities/IPCs should retain relevant documents to support their valuation. ACCOUNTING GLOSSARY S/N Accounting Terms Explanations INCOME 1. Donations Gifts to Charities/Approved Institution of A Public Character (hereinafter referred to as IPCs) comprise donations in cash and

More information

Teacher Resource Bank

Teacher Resource Bank Teacher Resource Bank GCE Accounting Other Guidance: Layouts and Formulae ACCN1: Layouts ACCN2: Layouts and Formulae ACCN4: Layouts and Formulae (Updated July 2012) The Assessment and Qualifications Alliance

More information

GBA 521 Midterm Review Dr. Markelevich

GBA 521 Midterm Review Dr. Markelevich GBA 521 Midterm Review Dr. Markelevich Multiple Choice (3 points for each question) Identify the letter of the choice that best completes the statement or answers the question. Wynn Corp. Wynn Corp. reported

More information

INTRODUCTION TO ACCOUNTING ACNT 1303 Lecture Notes. Chapter 1 The Nature of Accounting

INTRODUCTION TO ACCOUNTING ACNT 1303 Lecture Notes. Chapter 1 The Nature of Accounting INTRODUCTION TO ACCOUNTING ACNT 1303 Lecture Notes GENERAL INFORMATION FOR COMPLETING THE CLASS The following is a summary of the twelve chapters that you will be completing this semester. Be sure that

More information

A GUIDE TO KEEPING BUSINESS RECORDS

A GUIDE TO KEEPING BUSINESS RECORDS Information Pamphlet A GUIDE TO KEEPING BUSINESS RECORDS Inland Revenue Department, Hong Kong A GUIDE TO KEEPING BUSINESS RECORDS This pamphlet is issued for the general information as a introduction to

More information

Glossary of Finance & Startup Terms

Glossary of Finance & Startup Terms A B Glossary of Finance & Startup Terms Accounts payable - a record of all short-term (less than 12 months) invoices, bills and other liabilities yet to be paid. Examples of accounts payable include invoices

More information

AUDIT PLAN: RECEIVABLES

AUDIT PLAN: RECEIVABLES Audit procedures for receivables AUDIT PLAN: RECEIVABLES Completeness Agree the balance from the individual sales ledger accounts to the aged receivables listing and vice versa. Match the total of the

More information

Exam 1 chapters 1-4 Needles 10ed

Exam 1 chapters 1-4 Needles 10ed Exam 1 chapters 1-4 Needles 10ed Multiple Choice Identify the choice that best completes the statement or answers the question. 1. Which of the following is the most appropriate definition of accounting?

More information

Tax Planning Checklist

Tax Planning Checklist Tax Planning Checklist For the year ended 31 March 2014 Contents Year end tax planning checklist 1 General tips on minimising tax 4 Help us to process your records efficiently and quickly 5 Help yourself

More information

BUSINESS BUILDER 2 HOW TO PREPARE AND ANALYZE A BALANCE SHEET

BUSINESS BUILDER 2 HOW TO PREPARE AND ANALYZE A BALANCE SHEET BUSINESS BUILDER 2 HOW TO PREPARE AND ANALYZE A BALANCE SHEET zions business resource center 2 how to prepare and analyze a balance sheet Examine the concepts of assets, liabilities, and net worth in a

More information

The Double-Entry System EFFECTS OF TRANSACTIONS ON THE BALANCE SHEET. Initial Paid-in Capital. An Example Entity. Transaction 2.

The Double-Entry System EFFECTS OF TRANSACTIONS ON THE BALANCE SHEET. Initial Paid-in Capital. An Example Entity. Transaction 2. The Double-Entry System EFFECTS OF TRANSACTIONS ON THE BALANCE SHEET 2001 Richard S. Barr Transaction: Any event that affects the entity's financial position and requires recording Every accounting transaction

More information

Business Accounting. 2. A bank reconciliation statement is prepared to know the causes for the differances between:

Business Accounting. 2. A bank reconciliation statement is prepared to know the causes for the differances between: Business Accounting 1. Purchase Book records: a. All Cash Purchases b. All Credit Purchases c. Credit Purchase of goods in trade d. None of the above 2. A bank reconciliation statement is prepared to know

More information

Debits and Credits CHAPTER

Debits and Credits CHAPTER 3 CHAPTER Debits and Credits As you learned in the last chapter, accountants use the accounting equation to analyze a firm s transactions and determine the effects of those transactions on the firm s assets,

More information

ANNUAL FARMING QUESTIONNAIRE For the year ended 31 March 2015

ANNUAL FARMING QUESTIONNAIRE For the year ended 31 March 2015 ANNUAL FARMING QUESTIONNAIRE For the year ended 31 March 2015 Please complete these checklists and provide the information requested to help us prepare your Financial Statements and Tax Returns 1 Please

More information

NATIONAL CURRICULUM STATEMENT ACCOUNTING GUIDE GRADE 11-12

NATIONAL CURRICULUM STATEMENT ACCOUNTING GUIDE GRADE 11-12 NATIONAL CURRICULUM STATEMENT ACCOUNTING GUIDE GRADE 11-12 TABLE OF CONTENT The purpose of this self study guide... 2 How to use this document... 2 Accounting Equation... 3 How To Teach Accounting Equation...

More information

MARK SCHEME for the October/November 2010 question paper for the guidance of teachers 0452 ACCOUNTING. 0452/22 Paper 2, maximum raw mark 120

MARK SCHEME for the October/November 2010 question paper for the guidance of teachers 0452 ACCOUNTING. 0452/22 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 2010 question paper for the guidance

More information

Chapter 4: Accounting Records

Chapter 4: Accounting Records Chapter 4: Accounting Records Structure and terminology of Double Entry Bookkeeping The T account records the effect of transactions under one accounting aspect two opposite effects possible, e.g. inflows

More information

Paper FA1. Recording Financial Transactions FOUNDATIONS IN ACCOUNTANCY. Specimen Exam applicable from June 2014

Paper FA1. Recording Financial Transactions FOUNDATIONS IN ACCOUNTANCY. Specimen Exam applicable from June 2014 FOUNTIONS IN OUNTNY Recording Financial Transactions Specimen Exam applicable from June 2014 Time allowed: 2 hours LL 50 questions are compulsory and MUST be attempted. Paper F1 o NOT open this paper until

More information

how to prepare a cash flow statement

how to prepare a cash flow statement business builder 4 how to prepare a cash flow statement zions business resource center zions business resource center 2 how to prepare a cash flow statement A cash flow statement is important to your business

More information

M.C.A. Attempt all question of this section : Fill in. the blanks : The system of recording important transactions

M.C.A. Attempt all question of this section : Fill in. the blanks : The system of recording important transactions j 1111111111111 M.C.A (SEM J) QDD SEMESTER THEORY EXA.\lINATION 2009-10 ACCOUNTING & FINANCIAL MA~AGEMENT Attempt all question of this section : Fill in. the blanks : (a) The system of recording important

More information

Vol. 1, Chapter 3 - Accounting Adjustments

Vol. 1, Chapter 3 - Accounting Adjustments Vol. 1, Chapter 3 - Accounting Adjustments Problem 1 1. ($20,000 2,000) 48 = $375 per month 2. Jan. 31 Depreciation Expense $375 Accumulated Depreciation Van $375 To record depreciation expense for January

More information

ANNUAL RECORDS CHECKLIST. 2014 Financial Year

ANNUAL RECORDS CHECKLIST. 2014 Financial Year ANNUAL RECORDS CHECKLIST 2014 Financial Year The checklist is in several parts as detailed below. Please complete all of the required sections. The other sections only need to be completed if they apply

More information

Ipx!up!hfu!uif Dsfeju!zpv!Eftfswf

Ipx!up!hfu!uif Dsfeju!zpv!Eftfswf Ipx!up!hfu!uif Dsfeju!zpv!Eftfswf Credit is the lifeblood of South Louisiana business, especially for the smaller firm. It helps the small business owner get started, obtain equipment, build inventory,

More information

C&I LOAN EVALUATION UNDERWRITING GUIDELINES. A Whitepaper

C&I LOAN EVALUATION UNDERWRITING GUIDELINES. A Whitepaper C&I LOAN EVALUATION & UNDERWRITING A Whitepaper C&I Lending Commercial and Industrial, or C&I Lending, has long been a cornerstone product for many successful banking institutions. Also known as working

More information

NATIONAL OPEN UNIVERSITY OF NINGERIA SCHOOL OF MANAGEMENT SCIENCE COURSE CODE: MBA 812 COURSE TITLE: INTRODUCTION TO ACCOUNTING

NATIONAL OPEN UNIVERSITY OF NINGERIA SCHOOL OF MANAGEMENT SCIENCE COURSE CODE: MBA 812 COURSE TITLE: INTRODUCTION TO ACCOUNTING NATIONAL OPEN UNIVERSITY OF NINGERIA SCHOOL OF MANAGEMENT SCIENCE COURSE CODE: MBA 812 COURSE TITLE: INTRODUCTION TO ACCOUNTING 1 COURSE DEVELOPMENT MBA 812 INTRODUCTION TO ACCOUNTING Course Developer/Unit

More information

2007 ANNUAL ACCOUNTS QUESTIONNAIRE Financial year ended 1 April 2006 to 31 March 2007

2007 ANNUAL ACCOUNTS QUESTIONNAIRE Financial year ended 1 April 2006 to 31 March 2007 Business Name Main Contact Email Mobile Phone Please check the list below to ensure you have provided all the applicable information and return this completed questionnaire with your records. Incomplete

More information

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

UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS International General Certificate of Secondary Education ACCOUNTING www.xtremepapers.com UNIVERSITY OF MRIGE INTERNTIONL EXMINTIONS International General ertificate of Secondary Education OUNTING 0452/01 Paper 1 Multiple hoice May/June 2005 dditional Materials: Multiple

More information

7 Accounting for Sales and Accounts Receivable

7 Accounting for Sales and Accounts Receivable 7-1 McGraw-Hill 2009 The McGraw-Hill Companies, Inc. All rights reserved. Chapter 7 Accounting for Sales and Accounts Receivable Section 1: Merchandise Sales Section Objectives 1. Record credit sales in

More information

Authored for ENMU Tutoring Services. By Jessica Huff

Authored for ENMU Tutoring Services. By Jessica Huff By Jessica Huff The standard accounting equation is Assets=Liabilities + Stockholders Equity. Depending on which item someone is looking at will determine what the normal balance is. The normal balance

More information

Transaction Analysis SPOTLIGHT. 2 Chapter 40878 Page 53 09/25/07 jhr APPLE COMPUTER, INC.

Transaction Analysis SPOTLIGHT. 2 Chapter 40878 Page 53 09/25/07 jhr APPLE COMPUTER, INC. 2 Chapter 40878 9/25/07 3:18 PM Page 53 2 Transaction Analysis 2 Chapter 40878 Page 53 09/25/07 jhr SPOTLIGHT APPLE COMPUTER, INC. How do you manage your music library? You may use Apple Computer s itunes,

More information

PROFESSOR S NAME ACC 255 FALL 2011 COVER SHEET FOR COMPREHENSIVE PROBLEM 2 (CHAPTERS 2, 5-8)

PROFESSOR S NAME ACC 255 FALL 2011 COVER SHEET FOR COMPREHENSIVE PROBLEM 2 (CHAPTERS 2, 5-8) COMPREHENSIVE PROBLEM 2 (CHAPTERS 2, 5-8) Page 137 NAME ANSWER KEY PROFESSOR S NAME SECTION SCORE ACC 255 FALL 2011 COVER SHEET FOR COMPREHENSIVE PROBLEM 2 (CHAPTERS 2, 5-8) INSTRUCTIONS: COMPLETE ALL

More information

GROUP 1. BASIC FINANCING. 10. CAPITAL 100. Capital stock 103. Uncalled subscribed capital receivable 108. Treasury stock

GROUP 1. BASIC FINANCING. 10. CAPITAL 100. Capital stock 103. Uncalled subscribed capital receivable 108. Treasury stock GROUP 1. BASIC FINANCING 10. CAPITAL 100. Capital stock 103. Uncalled subscribed capital receivable 108. Treasury stock 11. RESERVES AND OTHER EQUITY INSTRUMENTS 110. Additional paid-in capital 111. Other

More information

Cash in bank checking account $22,500 U.S. treasury bills 5,000 Cash on hand 1,350 Undeposited customer checks 1,840 Total $30,690 Requirement 2

Cash in bank checking account $22,500 U.S. treasury bills 5,000 Cash on hand 1,350 Undeposited customer checks 1,840 Total $30,690 Requirement 2 Chapter 7 Solutions EXERCISES Exercise 7 2 Cash and cash equivalents includes: Cash in bank checking account $22,500 U.S. treasury bills 5,000 Cash on hand 1,350 Undeposited customer checks 1,840 Total

More information

MARK SCHEME for the May/June 2011 question paper for the guidance of teachers 0452 ACCOUNTING. 0452/11 Paper 1, maximum raw mark 120

MARK SCHEME for the May/June 2011 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 May/June 2011 question paper for the guidance of teachers

More information

SHIRE OF CARNARVON POLICY

SHIRE OF CARNARVON POLICY SHIRE OF CARNARVON POLICY POLICY NO C010 POLICY SIGNIFICANT ACCOUNTING POLICIES RESPONSIBLE DIRECTORATE CORPORATE COUNCIL ADOPTION Date: 27.5.14 Resolution No. FC 5/5/14 REVIEWED/MODIFIED Date: Resolution

More information

Midterm Fall 2012 Solution

Midterm Fall 2012 Solution Midterm Fall 2012 Solution Instructions: 1) Answers for the multiple-choice questions must be recorded on the UW answer card. All other questions must be answered in the space provided on the examination

More information

ANNUAL SMALL BUSINESS / PERSONAL QUESTIONNAIRE CHECKLIST 31 MARCH 2014

ANNUAL SMALL BUSINESS / PERSONAL QUESTIONNAIRE CHECKLIST 31 MARCH 2014 81 Cashmere Road PO Box 28-132 Christchurch 8242 Phone: (03) 337 0076 Mobile: 027 220 6299 Email: cyril@childs.co.nz Website: www.childs.co.nz Name: Balance Date: 31 March 2014 ANNUAL SMALL BUSINESS /

More information

a. $ 65,000. b. $ 80,000. c. $130,000. d. $145,000.

a. $ 65,000. b. $ 80,000. c. $130,000. d. $145,000. 注 意 1. 本 試 題 卷 共 50 題, 總 分 100 分 第 01-15 題, 每 題 1.75 分, 合 計 26.25 分 ; 第 16-35 題, 每 題 2 分, 合 計 40 分 ; 第 36-50 題, 每 題 2.25 分, 合 計 33.75 答 錯 不 倒 扣 2. 請 將 答 案 按 試 題 題 號, 依 序 填 入 答 案 卡 1.FastForward had cash

More information

POLICY MANUAL. Financial Management Significant Accounting Policies (July 2015)

POLICY MANUAL. Financial Management Significant Accounting Policies (July 2015) POLICY 1. Objective To adopt Full Accrual Accounting and all other applicable Accounting Standards. 2. Local Government Reference Local Government Act 1995 Local Government (Financial Management) Regulations

More information

STATEMENT BY A VENDOR OF A SMALL BUSINESS Estate Agents Act 1980 Section 52

STATEMENT BY A VENDOR OF A SMALL BUSINESS Estate Agents Act 1980 Section 52 STATEMENT BY A VENDOR OF A SMALL BUSINESS Estate Agents Act 1980 Section 52 Form 2, Regulation 7, Estate Agents (General, Accounts and Audit) Regulations 2008 Introduction For the purposes of Section 52

More information

BUSINESS PLAN. for. Name: Address: Date:

BUSINESS PLAN. for. Name: Address: Date: BUSINESS PLAN for Name: Address: Date: Executive Summary Last part to write! Brief / Concise / Relevant Tailor to audience Key messages / paragraphs Introduction / Description Benefits Market Research

More information

Preparation and Presentation of Accounts from Incomplete Records

Preparation and Presentation of Accounts from Incomplete Records AG 1 Issued March 1984 Accounting Guideline 1 Preparation and Presentation of Accounts from Incomplete Records AG 1 COPYRIGHT Copyright 2008 Hong Kong Institute of Certified Public Accountants This Accounting

More information

Actions required from you Please complete the questionnaire and provide the information below:

Actions required from you Please complete the questionnaire and provide the information below: NAME:... Questionnaire for DAIRY FARMING financial statements and taxation return for the Year Ended 2011 Please answer all questions, then sign the terms of engagement and authority at the back, and telephone

More information

Financial Accounting: Assets FA 2 Module 6. Handouts. Current financial assets And current liabilities. Presented by: Laura Dallas, CGA

Financial Accounting: Assets FA 2 Module 6. Handouts. Current financial assets And current liabilities. Presented by: Laura Dallas, CGA Accounting: Assets FA 2 Module 6 Handouts Current financial assets And current liabilities Presented by: Laura Dallas, CGA Note: this information is prepared from the best information I have available

More information

MOTOR VEHICLE ACCIDENTS FUND

MOTOR VEHICLE ACCIDENTS FUND Republic of Namibia AUDIT REPORT ON THE ACCOUNTS OF THE MOTOR VEHICLE ACCIDENTS FUND FOR THE FINANCIAL YEAR ENDED 31 MARCH 2005 2005 Published by authority Price (Vat excluded): N$ 26.21 Report no: 363

More information

FP5 SIGNIFICANT ACCOUNTING POLICIES - BUDGET

FP5 SIGNIFICANT ACCOUNTING POLICIES - BUDGET FP5 SIGNIFICANT ACCOUNTING POLICIES - BUDGET Adopted: Audit Committee 20 June 2013 Committee Decision No. 10 Audit Committee Minutes endorsed by Council OMC 18 July 2013 Council Decision No. 2753 AASB

More information

KPMG course for accounting professional Course design

KPMG course for accounting professional Course design KPMG IN INDIA KPMG course for accounting professional Course design Description of Modules of KPMG course in general accounting Part 1 To provide an understanding of: What to record? When to record? How

More information

COUNCIL FOR THE INDIAN SCHOOL CERTIFICATE EXAMINATIONS P-35,36, Sector VI, Pushp Vihar, New Delhi-110017 NEW DELHI ISC ACCOUNTS

COUNCIL FOR THE INDIAN SCHOOL CERTIFICATE EXAMINATIONS P-35,36, Sector VI, Pushp Vihar, New Delhi-110017 NEW DELHI ISC ACCOUNTS COUNCIL FOR THE INDIAN SCHOOL CERTIFICATE EXAMINATIONS P-35,36, Sector VI, Pushp Vihar, New Delhi-110017 NEW DELHI ISC ACCOUNTS Guidelines pertaining to Revised Schedule VI of Part I & II of Companies

More information

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

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

More information

Chapter. Working capital

Chapter. Working capital Chapter 10 Working capital 1 10.1 Working capital Working capital is the capital available for conducting the day-to-day operations of the business and consists of current assets and current liabilities.

More information

Accounting Self Study Guide for Staff of Micro Finance Institutions

Accounting Self Study Guide for Staff of Micro Finance Institutions Accounting Self Study Guide for Staff of Micro Finance Institutions LESSON 2 The Balance Sheet OBJECTIVES The purpose of this lesson is to introduce the Balance Sheet and explain its components: Assets,

More information

UNCONTROLLED IF PRINTED ACCOUNTING POLICY

UNCONTROLLED IF PRINTED ACCOUNTING POLICY UNCONTROLLED IF PRINTED NAVY CANTEENS ACCOUNTING POLICY Applicability: This procedure is applicable to all RANCCB directors and Navy Canteens, managers and staff in all Navy Canteens business units. Legislation:

More information

SUBJECT: ACCOUNTING GRADE 11 CHAPTER: PARTNERSHIPS LESSON: PARTNERSHIPS CONCEPTS LESSON OVERVIEW (KNOWLEDGE AREAS) LESSON. 1. Kinds of partners:

SUBJECT: ACCOUNTING GRADE 11 CHAPTER: PARTNERSHIPS LESSON: PARTNERSHIPS CONCEPTS LESSON OVERVIEW (KNOWLEDGE AREAS) LESSON. 1. Kinds of partners: SUBJECT: ACCOUNTING GRADE 11 CHAPTER: PARTNERSHIPS LESSON: PARTNERSHIPS CONCEPTS LESSON OVERVIEW (KNOWLEDGE AREAS) LESSON 1. Introduction 2. Partnership concepts 3. Recording of entries for partnerships

More information

A = L + OE. Transaction 1 Assets = Liabilitites + Owners equity + 1,000,000 Cash + 1,000,000 Common stock

A = L + OE. Transaction 1 Assets = Liabilitites + Owners equity + 1,000,000 Cash + 1,000,000 Common stock FINANCIAL STATEMENT ANALYSIS Henry Jarva Aalto University, Spring 2015 Student name: EXERCISE 1. Provide journal entries for Transactions 5 8, Adjusting Entries 2 7, and prepare Exhibit 1. 2. Calculate

More information

ACCOUNTANCY HIGHER SECONDARY SECOND YEAR VOLUME I. Untouchability is a Sin Untouchability is a Crime Untouchability is Inhuman

ACCOUNTANCY HIGHER SECONDARY SECOND YEAR VOLUME I. Untouchability is a Sin Untouchability is a Crime Untouchability is Inhuman ACCOUNTANCY HIGHER SECONDARY SECOND YEAR VOLUME I Untouchability is a Sin Untouchability is a Crime Untouchability is Inhuman TAMILNADU TEXTBOOK CORPORATION College Road, Chennai - 600 006. Government

More information

EXPLANATORY NOTES. 1. Summary of accounting policies

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

More information

Understanding Basic Financial Statements

Understanding Basic Financial Statements Understanding Basic Financial Statements During the accounting cycle, the accounting system is used to track, organize and record the financial transactions of an organization. At the close of each period,

More information

Before You Start a Business A Basic Checklist

Before You Start a Business A Basic Checklist Before You Start a Business A Basic Checklist The following is a list of questions that every entrepreneur should answer before going into business. These questions are all yes or no answers. There is

More information

UNDERSTANDING WHERE YOU STAND. A Simple Guide to Your Company s Financial Statements

UNDERSTANDING WHERE YOU STAND. A Simple Guide to Your Company s Financial Statements UNDERSTANDING WHERE YOU STAND A Simple Guide to Your Company s Financial Statements Contents INTRODUCTION One statement cannot diagnose your company s financial health. Put several statements together

More information

ACCT 652 Accounting. Review of last week. Should you always take discounts? 5/17/15. ACCT652 Week 4 1

ACCT 652 Accounting. Review of last week. Should you always take discounts? 5/17/15. ACCT652 Week 4 1 ACCT 652 Accounting Week 4 Special Journals, Cash, and Internal Controls Some slides Times Mirror Higher Education Division, Inc. Used by permission Michael D. Kinsman, Ph.D. Review of last week Some highlights

More information

Factoring and Invoice Discounting A Discussion Document from Pegasus Funding Resources

Factoring and Invoice Discounting A Discussion Document from Pegasus Funding Resources Factoring and Invoice Discounting A Discussion Document from Pegasus Funding Resources What is Invoice Finance? Many businesses these days can be well run and fundamentally sound, yet constantly suffer

More information

FINANCE POLICY POLICY NO F.6 SIGNIFICANT ACCOUNTING POLICIES. FILE NUMBER FIN 2 ADOPTION DATE 13 June 2002

FINANCE POLICY POLICY NO F.6 SIGNIFICANT ACCOUNTING POLICIES. FILE NUMBER FIN 2 ADOPTION DATE 13 June 2002 POLICY NO F.6 POLICY SUBJECT FILE NUMBER FIN 2 ADOPTION DATE 13 June 2002 Shire of Toodyay Policy Manual FINANCE POLICY SIGNIFICANT ACCOUNTING POLICIES LAST REVIEW 22 July 2014 (Council Resolution No 201/07/14)

More information

Veideretti Cabinets, Incorporated

Veideretti Cabinets, Incorporated Veideretti Cabinets, Incorporated 2 nd Web-Based Edition Transactions for June 24-30, And the June 30 th Bank Reconciliation Page 1 TRANSACTIONS FOR JUNE 24-26 June 24: Paying an expense A $120 check (30429)

More information

THE BASICS OF FACTORING. A Guide to Understanding Accounts Receivable Financing

THE BASICS OF FACTORING. A Guide to Understanding Accounts Receivable Financing THE BASICS OF FACTORING A Guide to Understanding Accounts Receivable Financing The Basics of Factoring Table of Contents What is Factoring?.. 1 Benefits of Factoring 4 What Types of Businesses Utilize

More information

ANNUAL QUESTIONNAIRE BUSINESS 2015

ANNUAL QUESTIONNAIRE BUSINESS 2015 ANNUAL QUESTIONNAIRE BUSINESS 2015 NAME ADDRESS PHONE NUMBER FAX NUMBER MOBILE NUMBER EMAIL ADDRESS YEAR ENDED Please amend/complete the above information if incorrect or not completed TERMS OF ENGAGEMENT

More information

5. Provisions for decrease in value of marketable securities (-)

5. Provisions for decrease in value of marketable securities (-) Balance sheet ASSETS I. CURRENT ASSETS A. Liquid Assets: 1. Cash. 2. Cheques received. 3. Banks. 4. Cheques given and payment orders (-). 5. Other liquid assets. B. Marketable Securities: 1. Share certificates.

More information

Financial management of not-for-profit organisations

Financial management of not-for-profit organisations Financial management of not-for-profit organisations November 2009 This guide was prepared by Jan Barned, financial management trainer, with the assistance of CPA Australia. CPA Australia wishes to acknowledge

More information