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Revaluation Method This method is used where it is not practical, or is difficult, to keep detailed records of certain types of non-current assets Materiality concept. Usually such non current assets includes many small value items and they are easily broken , damaged or lost and have to be regularly replaced. Note: Business can record its value as expense if such items value is insignificant.

A method of depreciation is chosen by a company because of its policy on depreciation and ensuring that the consistency concept is applied when preparing accounts. Why SLM is used for leasehold assets and buildings. The straight-line method is where the same amount of the cost of the asset is written off each year.

It is appropriate in the case of an asset that remains in the business over a long period of time and loses value slowly, for example assets such as buildings that generate profit over many years. The straight-line method involves spreading the depreciable amount evenly over the estimated useful life of the asset. Using this method, the depreciation is the same figure each year, which suggests that the asset is being used up at an even rate.

The reducing balance applies a constant percentage to the gradually carrying amount balance so that the amount of depreciation expense diminishes over the useful life of the asset. The amount written off is high in early years and reduces each year until written off.

This method is appropriate in the case of an asset which loses most of its value in the years immediately after purchase e. The general principle of providing depreciation is based on the matching concept. Can a business reduce rates of depreciation? This may increase profit and assets in short term but this change would not help profit in long term as lower depreciation charge means higher losses on disposal.

Land and companies are allowed to revalue them. In order to handle this, we should just Debit: Asset 15 Cause it was already at 60 and we want to make it 75 Provision for Depn. A relatively simpler case would be where there is no provision for depreciation. Like e. Advantages of control accounts 1. Control accounts can be used to provide totals of debtors and creditors readily. It is less time consuming than adding together all the debtors or creditors balances from the sales and purchases ledgers.

Control accounts can be used to identify errors. It identifies the ledger or ledgers in which errors have been made when there is a difference in trial balance. Control accounts acts as a deterrent against fraud. Segregation of duties helps in the prevention of fraud because members of staff who complete the control accounts are not involved in completing the sales ledger.

Reasons for a debit balance brought down in the creditor accounts 1. Overpayment of amount due Cash discount not deducted before payment made Returned goods after payment of amount due Payment made to creditor in advance Reasons for having a credit balance in sales ledger control account 1. Overpayment of amount due by a debtor Cash discount not deducted by debtor before payment made Goods returned by debtor after payment of amount due Payment made in advance by debtor Limitations of control account 1.

Control account do not identify which ledger account may contain an error 2. Some types of errors are not revealed by control account such as errors of omission, errors of commission, compensating errors and errors of original entry. Such errors will normally be discovered when preparing a trial balance, However, it should be noted that the trial balance has a serious limitation in that it does not detect all errors.

Hence we can say that there are two categories of errors: 1. Errors not affecting trial balance 2. Errors affecting trial balance Errors not affecting the trial balance These are errors that will not be detected by the trial balance since the total of both columns will be the same.

Below is a list of such errors: Errors Definition and examples 1. Error of omission The error arises when a transaction has not been recorded at all in the books, that is, no entries have been made. It has been completely omitted from both accounts. Error of Commission This is where an entry has been made in a wrong account which belongs to the same category of the account where the entry should have been made. It usually arises with personal and real accounts.

Error of principle This error occurs when a transaction has been recorded in a wrong account. However, the wrong account and the correct account where the entry should have been recorded must be different categories.

For example instead of recording in a real account, the entry has been made in a nominal account. Error if original entry This error occurs when a wrong amount has been used for recording a transaction. The amount of the corresponding entries refer to the two entries of the same transaction. Error of reversal of It arises when the account which should have been debited, has entries actually been credited and the other account which should have been credited, has been debited.

This means that both entries are on the wrong side. Compensating error The error arises where there are at least two errors. One error on the debit side cancels out another error of the same amount on the credit side or two errors of the same amount on the same side 21 cancels out each other. Errors affecting the trial balance: These are errors that will be detected by the trial balance since the total of both columns will not be the same.

Below is a list of such errors: 1. Error of Single Entry The error occurs when only one of the two entries of a transaction has been recorded, either the debit entry or the credit entry has been made.

Error of two debits or This errors occurs when the two entries of a transaction have been two credits recorded on the same side instead of one entry on the debit side and the second corresponding entry on the credit side.

Error of three entries This error occurs when three entries have been made for a single transaction. All the entries can be on the same side or two of them may be on the debit side and one on the credit side or vide versa. Error of different This error occurs when the amount of a debit entry differs from the amount for amount of its corresponding credit entry. Arithmetical error 6.

Listing error This error occurs when an amount has been wrongly calculated. It usually occurs when computing the totals of subsidiary books or when balancing of accounts. Listing error is an error arising when transferring a ledger balance to the trial balance, it does not arise when recording a transaction. Listing error may also arise in the ledger where the correct balance has been brought forward on the wrong side or a wrong amount brought forward on the correct side.

Quite often the importance and uses of the suspense account is not properly understood. The following issues are important aspects relating the suspense account. When the totals of the trial balance disagree, the difference has to be calculated and entered on the trial balance.

The difference is listed in the column where there is a shortage by writing suspense next to it. It will be on the debit side it the total on the credit side is lower shortage on credit side. The suspense account must contain entries for only those errors that affect the trial balance. Errors not affecting trial balance must not be recorded corrected in the suspense account. Guidelines for correction of errors 1. All errors are corrected by means of a journal. This is because it would provide an explanation of the error corrected.

Therefore identity the transaction and write the correct double entry. Next compare the correct entry with the error made or entries recorded. This will allow you to identify which one of the twelve errors it is. Here you have to bear in mind that whenever no information is provided about one of the two corresponding entries which have been made, it means that the entry has been made correctly.

This is a general principle which stems from the fact that if something is wrong the examiner has to inform us about the mistake otherwise we have to assume it is correct. In any case we cannot assume that something is wrong since this will give rise to different assumptions from different students!

Once you have identified the type of error made, this will let you know whether an entry in the suspense account is required or not. To start the correction, locate in which account or accounts the error has occurred. For example if the wrong entry appears on the debit side, then to cancel it, record on the credit side. If an amount is overstated on the credit side then to decrease it record on the excess on the debit side. However if the amount is understated then to correct it you have to record on the same side.

For example if the amount recorded on the credit side is understand, then record the shortage on the credit side itself. After cancelling the wrong entry, next you may be required to record the correct entry which should have been made. Finally make any entries in suspense account if it is error affecting trial balance Guidelines for correction of figures in trial balance or Statement of financial position Items with Correcting entry on Journal Effect on Amount Debit Balance Entry on debit side Increase Debit Balance Entry on credit side Decrease Credit balance Entry on debit side Decrease Credit balance Entry on credit side Increase As an example, assume that the item corrected is capital.

Capital account has a credit balance. If a correcting entry has been recorded on the credit side of the capital account, this would increase the balance of capital whereas if the correcting entry is on the debit side, this would decrease the balance of capital. Guidelines for correction of profit 1. Ascertain whether the error corrected has an impact on profit or not by checking if the item being corrected appears in income statement.

Profit is affected and must be corrected only if it is an item appearing in income statement such as sales, purchases return inwards, return outwards, inventory, discount received and expenses. Items which do not appear in income statement will not affect profit such as trade receivables trade payables, bank etc.

Methods of cost determination for inventory valuation 1. First in first out FIFO 2. Hence the cost of the remaining units will be calculated using the price s of the latest batch of batches bought.

Under the perpetual basis the cost of inventory is updated each time goods are received and issued using and inventory card. Under the periodic basis the cost of inventory is calculated once in time, for example at the end of the financial year only. The units in inventory are multiplied by the prices s of latest batch or batches bought during the year. It is worthwhile to know that under FIFO, the cost of inventory will always be the same whether the perpetual basis or the periodic basis is being used.

The method of calculating the average price depends on the basis being used. There are two basis namely perpetual basis and the periodic basis. Under the basis a new average cost is not calculated, the previously calculated average cost itself is used to compute the cost of inventories.

Advantages of FIFO 1. It is easy to calculate the cost of closing inventory. It is realistic since it is based on the assumption that inventories are issued in the order in which they are actually received. Cost of closing inventory is based on prices most recently paid. Disadvantages of FIFO 1. The price at which inventory is issued to production is likely to be out of date. When the prices of inventory rise, the FIFO method values the inventory at the highest prices latest prices.

This would reduce cost of sales and increase sales and this may lead to paying more tax. Advantages of AVCO 1. Variations in the pricing of materials to different jobs are minimized. Average has the effect of smoothing out the cost of production and cost of sales hence rendering profits of different periods more comparable.

The cost of inventory will be fairly close to its actual cost. It is difficult to calculate the average cost. The average cost does not exist in practice.

Sometimes it may happen that the physical inventory count and valuation cannot take place at the end of the financial year and is therefore carried out a few days later. However, for the purpose of preparing financial statement we need the value of inventory at the end of financial year. Hence the value of inventory obtained after the end of the financial year has to be adjusted for transactions that have taken place between the end of the financial year and the date on which the inventory take has been carried out.

Goods sent on a sale or return basis It is a system used in practice whereby goods are being issued to another business on the condition that if they are not sold by a particular date have to be returned.

In substance therefore the goods being issued represents neither a sale for the business sending the good nor a purchase for the business receiving the goods. However if the goods are sold by the receiver before the date of return, then it should be recorded as a sale by the issuer and a purchase by the receiver.

In addition the goods remain the property of the issuer and should be included in its inventory unless they have been sold by the receiver. The receiver should not include the goods in its inventory. The basis can also be used to issue goods to private individuals and the goods issued should not be recorded as a sale until the person informs the business that he accepts the goods.

When goods are send nothing is recorded, just a memorandum is kept. These goods should not be included in sales and should be included in closing stock since they belong to us. Calculation of Sales revenue Revenue sales. Prepare a cash account to obtain a missing information as balancing figure A cash account contains enormous information.

Most soletraders keeps only a cash account which serves as the basis for preparing their financial statements. Certain questions on incomplete records require preparation of a cash account to obtain a missing item as balancing figure. Below is summary of a cash account highlighting the various information that can be derived as balancing figure.

Soletraders usually relies on the bank statement to prepare their bank account. As with a cash account, the bank account also can reveal missing items as balancing figure. Below is summary of a bank account highlighting the range of information that can be derived as a balancing figure. Helps in preparation of Trial Balance 2. Helps in preparation of Financial Statements 3. Less Chances of Errors 4. Less Chances of Frauds 5.

Improves the Accuracy of Accounting Records Detailed analysis if business do not keep full double entry system If a sole trader does not keep adequate records then the business may not have records of the transactions, then the business will be unaware of the total sales and purchases in a period.

This may result in it not having records of its stockholdings which could result in it and running out of certain lines of stock. Therefore, being unable to meet customer demand, this could result in the loss of future business. This may lead to debtors not paying their accounts, which could lead to bad debts and hence less profit and cash flow difficulties.

The business may not have a record of creditors, which could lead to the business not paying the amounts owed to its suppliers. This could lead to suppliers refusing to supply further goods and this could eventually lead to the failure of the business.

The business may not have records of expenses that have been paid or those which are owed; therefore it will not have any control of these, which may lead to overspending on expenses and, therefore, cash flow difficulties. The business will be unable to prepare a trial balance and final accounts and, therefore, be unable to calculate how much profit or loss it has made in a period. If the business cannot provide details of its profits banks will be reluctant to loan it money, as there is no adequate record of its ability to repay the money.

It will also not have adequate records for HMRC to calculate the taxation due, which could lead to fines. The risk of errors and fraud will increase if transactions are not recorded and this could be difficult to trace 32 Introduction to Financial Statements of Companies A company is a business organization which is owned by shareholders but managed by a board of directors. Unlike soletraders and partnerships, a company is an incorporated business, that is, it has a legal identity of its own; hence the shareholders have limited liability.

The capital of a company is divided into units of small denomination. One of the units into which the capital of a company is divided is called a share. A share is an amount of investment in a company evidenced by a share certificate. Authorized share capital Authorized capital is the maximum amount of share capital a company is allowed to issue Issued Capital The amount of capital actually required be issued to shareholders and this is known as the issued share capital.

Called up capital Called-up capital is the total amount of capital a company has requested from its shareholders. Paid up Capital Paid-up capital is that part of the called up capital for which a company has actually received the money from its shareholders. Shareholders fund The total of issued share capital and the reserves is known as the shareholders fund Participating preference shares are shares that are entitled are entitled to participate in the distribution of the residential profit of the company.

Residual profit is the profit remaining after paying preference dividend and a certain percentage of ordinary dividend. Non-participating preference share will not receive any part of the residual profit being distributed.

Redeembale preference shares are shares that have been issued with the intention of being repurchased at a specific date in the future whereas non redeemable share are issued without such intention. Redeemable preference shares are to be classified as a non current liability it will be redeemed after one year. Public Issue This is normal issue of shares to general public. A company can issue shares to public to raise more capital , this is done at the market price.

Public issues have higher cost of issue this means the company has to incur high expenses when issuing the shares I. The main advantage of issuing shares is that no interest has to be paid on it and the company only have to provide a return when they actually make profits. Rights issue is made in proportion to shareholdings so as not to after the proportion of shares held by each shareholder after the issue. A rights issue also can be made either at par at a premium.

The following entries are made to record a right issue. Unlike public issue and rights issue, which can be made at a premium, bonus issue, is made at par only and no cash is received from shareholders. A bonus issue is simply a book adjustment whereby the reserves of the company are being converted into ordinary share capital.

A bonus issue reduces the reserves of a company. If the latter is un-sufficient, then the revenue reserves should be used use general reserve before retained earnings. It has a signaling effect and gives a positive sign to the market that company believes in its long-term growth story. Keep existing shareholders happy and may be attractive to potential investors.

The cost of administering a Bonus Share Plan is more than that of paying a cash dividend. This cost can add up over the years if the company keeps on issuing bonus shares. By issuing bonus shares the share price will be diluted and trading in the shares of the company will increase Debenture Debenture is a medium to long-term debt instrument used by large companies to borrow money, at a fixed rate of interest.

Characteristics of debentures 1. Debenture holders are entitled to a fixed rate of interest not dividend Debenture interest must be paid even if the company is making losses.

The debenture holders have priority for being reimbursed on liquidation of the company. The debenture holders are not entitled to voting rights. Revenue is net revenue, that is, sales revenue less return inwards.

Cost of sales would include all expenses incurred in bringing the goods to their present location and conditions. The calculation of cost of sales would take into account opening inventory, purchases, return outwards, carriage inwards, custom duty and closing inventory. Note that only the amount of cost of sales will be shown in the income statement, the details have to be shown in workings. Other income would include rental income, profit on disposal and royalties income.

Distribution costs are expenses incurred directly on making sales whereas administrative expenses are those relating to general administrative activities The following table attempts to provide a useful classification of distribution cost and Administrative expenses.

Investment income consists of interest income and dividend received. Finance charges would include interest on overdraft, interest on loan, debenture interest as well as redeemable preference share dividend. A Layout of the statement of changes in equity is shown below.

Statement of charges in Equity for the year ended´┐Ż.. Control of the company will not be changed because the preference shareholders do not possess voting rights in the company.

The dividends that are paid to the preference shareholders are fixed unlike the ordinary shareholders. Preference share are an alternative to borrowing from a bank because the assets of the company will not be required for security unlike a bank loan. By issuing preference shares the company is attracting a wider range of investors especially those who want lower risks because the preference share pays a fixed rate of interest and is paid before the equity holders dividends.

Preference shares are debt capital and will increase the gearing ratio of the company. Preference shareholders have preferential rights over the company assets in case of winding up of the company unlike the equity. If the preference shares are cumulative this could place a financial burden on the company because the dividends would have to be paid when profits are available unlike dividends to the equity holders. If the company issued redeemable preference shares then the company would have to repay the share capital to the shareholders at a given time which could cause a cash flow problem.

Difference Between ordinary and preference shares Preference Shares Receive a fixed rate of dividend They do not usually carry voting rights Ordinary shares Dividend may vary according to profits They usually carry voting rights Capital is returned before the ordinary share capital in a winding up. Ordinary shares are the last to be repaid in a winding up. Differences between preference shares and debentures Preference shares receive a fixed rate of dividend Preference shareholders are members of the company Preference shares are part of the capital of the company Preference shareholders are repaid after the debenture holders in the event of the company being wound up.

Debentures receive a fixed rate of interest. Debenture holders are not members of the company. Debentures are long term loans. Reserve Reserves are one of the most notable appropriations of profits. Companies create reserves so they can be ready to face any contingencies in near future. Reserves in a company can be divided into two broad categories ´┐Ż one is capital reserve and another is revenue reserve.

The purpose of capital reserve is to prepare the company for any unforeseen events like inflation, instability, need to expand the business, or to get into a new and urgent project. As an example, we can talk about revaluation reserve and share premium. Share Premium Share premium is a non-distributable reserve.

Usually the companies are not allowed to use the share premium for payment of dividends to the shareholders and to set off the operating losses. Purpose of share Premium 1. It can also be used to issue bonus shares to the shareholders. The costs and expenses relating to issuance of new shares can also be paid from the share premium. It can also be used to write off company formation expenses. It can be used to pay premium on the redemption of debentures.

Revenue Reserve Revenue reserve is created from the net profit companies make out of their own operations. Companies create revenue reserve to quickly expand the business. And revenue reserve also helps the companies to source their capital from their own internal profits. As an example, we can talk about retained earnings and general reserve.

General Reserve General Reserve is amount set aside from the retained profit to assist in expansion and other purposes of the company. There are two types of partners namely a limited partner and an unlimited or general partner. A limited partner is once whose liability is limited, that is, in case of bankruptcy of the partnership. Partnership Deed When a group of person is about to start a partnership, it is advisable that they prepare a partnership deed.

The partnership deed is an agreement containing the rules and regulations that will govern the business. It can be a verbal or written agreement, but it is preferable to have it on paper so as to avoid any misunderstanding between partners. The following would normally be included in a partnership deed: 1. Any salary, bonus or commission payable to the partners.

Any interest payable on any loan by a partner to the partnership. The profit and loss sharing ratio. Rules for the admission and retirement of partners In the absence of a partnership deed, Section 24 of Partnership Act will govern the situation and contains the following provisions: 1.

No salary is payable to partners. Profits and losses are to be shared equally. Types of Capital Account 1. When we have a fixed capital account, we need to have a current account which will contain all the other items related to the partners as shown below.

Show the amount of drawings compared with the share of profit. Facilitate the calculation of interest on drawings. A xx Mr. B xx xx Less Appropriations Interest on capital: Mr. A XXX Mr. B XXX Mr. A Dr balance - minus X Mr. New partner would bring extra capital into the partnership, this would allow the business to expand and grow and possibly diversify into new areas leading to increased profit and cash flow.

The partners would be able to share the workload, decision making and responsibilities, this could reduce stress on the partners. Having more partners would also provide more cover for sickness and holidays, which would reduce the pressure on partners at these times. New partner reputation could bring additional customers to the business helping to increase the size of the business Revaluation Whenever there is a change in a partnership, partners are allowed to revalue their assets.

This is done to make the situation fair for all parties. Since the values on the statement of financial position might be different from the market so any gain or loss is first adjusted between the old partners for this purpose, they make a revaluation account.

In case of admission of new partner revaluation helps to assess true and fair value of assets and liabilities and as a result actual worth of investment of each partner. Likewise in case of retirement of an existing partner, revaluation become necessary to find out the real and fair value of investment of retiring partner. In revaluation account we simply record the gains or losses on each asset due to revaluation. Whenever there is a change in partnership, we need to adjust for goodwill, so that the old partners benefit and get the credit of the efforts they have done to make good reputation of the business.

If the business has generated goodwill in the past, then it is only that the old partners are given credit for goodwill in their profit sharing scheme. An incoming partner must compensate the existing partners for his acquired share of goodwill in addition to his capital investment whereas an outgoing partner receives his share of goodwill in addition to capital. The adjustment is done in the capital accounts , where we first create the goodwill in the old profit sharing ratio thus giving credit to the old partners , and then we right it off always in the new ratio so that the partner who is gaining stake in the business actually pays for it.

Reasons to writing off goodwill As goodwill has no objective value matter of opinion so it cannot be sold individually unless business is subject to sale. So writing off goodwill enables to show true and fair value of business assets. This must be written off against the capital account balances of the partners in their new profit sharing ratios.

Completion of a project for which the partnership was formed Expiry of the agreed term of the partnership if it was for pre-determined period. Death or retirement of all partners or all except one partner Disagreements between all the partners Formation of a limited company to take care of the partnership business.

When the partnership business is no longer profitable. Increase gross profit e. Increase other income e. Increase sales volume by more seasonal sales promotions. It shows whether the business has sufficient current assets to meet its current liabilities.

Full Book Notes. Latest Pairing Schemes. Solved Assignments. Chapterwise Tests. Multiple Choice Questions. Updated Guess Papers. Cambridge Books Hodder Education 3.

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If a transaction or activity cannot be measured in terms of money, such things cannot find a place in the accounting records. However, the type of unit of money i. The important assumption here is that money is a stable measure in the same way as Kg is a stable measure for weight.

Employees are residual claimants of the profits of the business, i. Who among the following would be interested in a company's financial information for the sake of resource allocation, formulation of taxation policies and investigation of corporate crimes?

What does the accounting assumption 'reporting entity' mean? What does the accounting assumption 'historical cost' mean?

The concept of double entry system b. The content of a Balance Sheet c. The Accounting equation d. The effect of a transaction on the accounting equation Double Entry System: Double entry is a simple yet powerful concept each and every one of a company's transactions will result in an amount recorded into at least two of the accounts in the accounting system. Every transaction has two fold aspects, i.

Then at the end of the year, try to track what the business has earned or what the business has lost to be given to its owner John or the investor. The first transaction that John will record for his company is his personal investment of Rs. The two accounts involved are Cash and Vehicles or Delivery Equipment.

On December 2 when John contacts an insurance agent regarding insurance coverage for the vehicle quick Parcel just purchased.

The agent informs him that Rs. John immediately writes a cheque for Rs. Prepaid Insurance an asset account reported on the balance sheet and Insurance Expense an expense account reported on the income statement. On December 3,a customer gives Quick Parcel a cheque for Rs. On December 3 the company gets its second customer-a local company that needs to have 50 parcels delivered immediately. John's price of Rs. The only expense incurred by Direct Delivery so far was a fee to a temporary help agency for a person to help Joe deliver parcels on December 3.

The temp agency fee is Rs. In accounting jargon, you debit the asset account. To decrease an asset account balance you credit the account, that is, you enter the amount on the right side. Just as liabilities and stockholders' equity are on the right side or credit side of the accounting equation,to increase the balance in a liability or stockholders' equity account, you put more on the right side of the account.

In accounting jargon, you credit the liability or the equity account. To decrease a liability or equity, you debit the account, that is, you enter the amount on the left side of the account. Transaction No. Both of these accounts are balance sheet accounts. There are no revenues because no delivery fees were earned by the company, and there were no expenses.

On December 2 John contacts an insurance agent regarding insurance coverage for the vehicle Quick Parcel just purchased. On December 3, a customer gives Quick Parcel a cheque for Rs.

The only expense incurred by Direct Delivery so far was a fee to a temporary help agency for a person to help John deliver parcels on December 3. Since the Rs. At the end of each month, when Rs. Which among the following do not qualify as assets?

What are the accounts affected by 'Received payment for goods supplied'? Cash, inventories, buildings, machines, etc. The meaning of Income and Expenses in an Income Statement b. The difference between profit and cash c.

Preparation of an Income Statement d. The relationship between Balance sheet and Income Statement Income Statement: Income statement will show how profitable a business has been during the time interval. The reporting of profitability involves two things: the amount that was earned revenues and the expenses necessary to earn the revenues. The revenues are recorded when they are earned, not when the company receives the money accrual basis of accounting.

Recording revenues when they are earned is the result of one of the basic accounting principles known as the revenue recognition principle. For example, if John delivers 1, parcels in December for Rs. He sends invoices to his clients for these fees and his terms require that his clients must pay by January Even though his clients won't be paying Direct Delivery until January 10, the accrual basis of accounting requires that the Rs.

After expenses are matched with these revenues, the income statement for December will show just how profitable the company was in delivering parcels in December. When John receives the Rs. This Rs. The December income statement should show expenses incurred during December regardless of when the company actually paid for the expenses. For example, if John hires someone to help him with December deliveries and John agrees to pay him Rs.

The actual date that the Rs. What matters is when the work was done´┐Żwhen the expense was incurred´┐Żand in this case, the work was done in December. The Rs. This matching principle is very important in measuring just how profitable a company was during a given time period. Other expenses to be matched with December's revenues would be such things as gas for the delivery van and advertising spots. One simple yet important point: an income statement, does not report the cash coming in´┐Ż rather, its purpose is to 1 Report the revenues earned by the company's efforts during the period, and 2 Report the expenses incurred by the company during the same period.

The purpose of the income statement is to show a company's profitability during a specific period of time. The difference or "net" between the revenues and expenses for Quick Parcel is often referred to as the bottom line and it is labelled as either Net Income or Net Loss. As you know, if the company's has something, it belongs to someone. Could you have made a simpler way to report what a company is worth and who is owed what?

We shall explore the possibilities as we interact in our class room sessions. What is the effect of the transaction - 'Rent paid for commercial space'? Select the most appropriate account title for this item: Salaries accrued for the past month.

Trade Receivables account records: a salaries accrued b cash receipts c purchases and sales of goods d credit sales and collections 5. The business completed the following transactions during the month: a Ria invested in the business, Rs 10, The amounts are due to be received next month.

Statement of Profit and Loss Rs. False b ; 2. Government d 3. Shareholders a 4. Separation of owners' business transactions from their personal transactions b 5. Valuation of entity's assets at cost of acquisition c 6. Historical cost a Module 2 1. Bank loan a 2. Office expense a 3. Projected Budget c 4. Asset items b Module 3 1. Machinery c 3. Salaries payable a 4. Credit sales and collections d 5.

Close Menu O Level. Computer Science. Pakistan Studies. Modern History. Additional Maths. Business Studies. A Level. English Literature. O Level. About Accounting : The Cambridge International AS and A Level Accounting syllabus enables learners to apply their accounting knowledge and understanding in order to analyse and present information, give reasoned explanations, and make judgements and recommendations.

How do I download this notes? Where are the A2 notes? I need notes for accounting A2 level. Where are you from??? I teach. I need notes for A2 Accounting can someone help. I see error in loading for dropbox. Dearest apologies.

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Cambridge A Level Accounting - 1.23 Adjustments to Financial Statements - mySecondTeacher

WebDownload `a` Level Accounting - H Randall Type: PDF Date: October Size: MB This document was uploaded by user and they confirmed that they have the . WebDownload `a` Level Accounting - H Randall. Type: PDF. Date: October Size: MB. This document was uploaded by user and they confirmed that they have the permission to share it. If you are author or own the copyright of this book, please report to us by using this DMCA report form. Report DMCA. WebNov 26, ?´┐Ż?CFI's Principles of Accounting book is free, available for anyone to download as a PDF. Read about bookkeeping, accounting principles, financial statements, with 66 pages of lessons and tutorials. From general transaction recording conventions to the full accounting cycle and finally to important accounts, the book.