12/28/2020

TOPIC LIST
WEEK 1
COMPANY FINANCIAL STATEMENTS ✓ The trial balance

✓ Balancing off ledger accounts

UK US ✓ Preparing the statement of profit or loss

IFRS GAAP GAAP ✓ Preparing the statement of financial position

✓ Preparing basic financial statements

✓ The extended trial balance (ETB)

Dr. HaLinh Nguyen – School of Accounting & Auditing Dr. HaLinh Nguyen – School of Accounting & Auditing

TYPES OF BUSINESS BUSINESS ENTITY CONCEPT

Sole traders Partnerships Limited liability

companies 2. Legal position aspect:
who work two or more people
for themselves decided to share the incorporate to take - Sole trader: no legal separation
risks and rewards advantage of “limited
- Partnerships: no legal distinction
liability” for their owners
- Company (limited liability): quite
1. Accounting aspect:
separate from its owners
- A business is a separate entity
from its owner
- It is called entity concept (the
convention adopted by
accountants)

Dr. HaLinh Nguyen – School of Accounting & Auditing Dr. HaLinh Nguyen – School of Accounting & Auditing

COMPANY FINANCIAL STATEMENTS

GENERAL JOURNAL LEDGER
Presentation: summaries of accumulated data
Date Date
BUSINESS Journalising Posting
DOCUMENTS Set of FSs required (IAS 1)
✓ Statement of Profit or Loss &
other comprehensive income

✓ Statement of Financial Position

TRIAL BALANCE ✓ Statement of Cash Flows

XXX
ADJUSTING WORK
SHEETS
FINANCIAL ✓ Statement of Changes in Equity
XXX ENTRIES STATEMENTS
✓ Notes for financial statements
XXX

XXX

Dr. HaLinh Nguyen – School of Accounting & Auditing Dr. HaLinh Nguyen – School of Accounting & Auditing

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INTERNATIONAL TERM UK GAAP TERM

• Statement of profit or loss • Profit and loss account
• Statement of financial position • Balance sheet
• Non-current asset • Fixed asset
• Carrying amount • Net book value
• Inventories • Stock
• Receivables • Debtors
• Irrecoverable debt • Bad debt THE TRIAL BALANCE
• Irrecoverable debt expense • Bad and doubtful debts expense
• Allowance for irrecoverable debts • Allowance for doubtful debts
• Retained earnings • Retained profits (reserve)
• Payables • Creditors
• Non-current liabilities • Creditors: amounts falling due after more
than one year
• Current liabilities
• Revenue • Creditors: amounts falling due in less
than one year
• Finance costs
• Turnover
• Interest payable
Dr. HaLinh Nguyen – School of Accounting & Auditing Dr. HaLinh Nguyen – School of Accounting & Auditing

TRIAL BALANCE TRIAL BALANCE

as at …..of Ron Knuckle’s account

ACCOUNTS DEBIT CREDIT

✓ A list of nominal ledger
account balances shown in
Cash at bank
Capital
Bank loan
6,500
7,000
1,000
EXERCISE 1
debit and credit columns at a
Purchases 5,000
point in time
Trade payables 0
Rent 3,500
Shop fittings 2,000
✓ If double entry principles
Sales 12,500
have been correctly applied
Trade receivables 0
throughout the period, total Bank loan 100
credit balances will equal interest
Other expenses 1,900
total debit balances and so
Drawings 1,500
the totals will balance
Total 20,500 20,500
Dr. HaLinh Nguyen – School of Accounting & Auditing Dr. HaLinh Nguyen – School of Accounting & Auditing

EXERCISE - JERRY COMPANY 1st March, Jerry Company start a

business: depositing ₤ 20,000 in a bank
No. 1- 1st March, Jerry Company start a business: depositing ₤ 20,000 in a bank account (capital was raised partly from
account (capital was raised partly from the owner ₤ 6,000 and from borrowing ₤
14,000) the owner ₤ 6,000 and from borrowing ₤
No. 2- 2nd March, bought a motor van for ₤ 5,000, paying by cheque 14,000) ₤ ₤
No. 3- 3rd March, bought inventories (goods to be sold) on one month’s credit for
₤ 3,000
No. 4- 4th March, repaid ₤ 2,000 of the amount borrowed to the lender, by cheque

No. 5- 6th March, owner introduced another ₤ 4,000 into the business bank account

No. 6- 7 th March, sold all of the inventory for ₤5,000 & received a cheque
immediately from the customer for this amount
Closing inventory = 0
Dr. HaLinh Nguyen – School of Accounting & Auditing Dr. HaLinh Nguyen – School of Accounting & Auditing

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2nd March, bought a motor van for 3rd March, bought inventories (goods to
₤ 5,000, paying by cheque be sold) on one month’s credit for ₤ 3,000

₤ ₤ ₤ ₤

Dr. HaLinh Nguyen – School of Accounting & Auditing Dr. HaLinh Nguyen – School of Accounting & Auditing

4th March, repaid ₤ 2,000 of the amount 6th March, owner introduced another
borrowed to the lender, by cheque ₤ 4,000 into the business bank account

₤ ₤ ₤ ₤

+Dr. “Cash” 4,000

Cr. “Capital” 4,000

Dr. HaLinh Nguyen – School of Accounting & Auditing Dr. HaLinh Nguyen – School of Accounting & Auditing

POSTING TO T- ACCOUNTS
7th March, sold all of the inventory for
CASH
₤5,000 & received a cheque ₤
immediately from the customer for this 1st Mar Capital 6,000
amount ₤ ₤

CAPITAL
₤
1st Mar Cash 6,000

BORROWINGS
₤

Dr. HaLinh Nguyen – School of Accounting & Auditing Dr. HaLinh Nguyen – School of Accounting & Auditing

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Dr. HaLinh Nguyen – School of Accounting & Auditing Dr. HaLinh Nguyen – School of Accounting & Auditing

BALANCING OFF TRIAL BALANCE

Listing the Debit & Credit balances
CASH AT BANK
LEDGERS BALANCE
₤ ₤ (Account titles)
1 st Mar Balance b/d 0
DR. (₤) CR. (₤)
1st Mar Equity 6,000 2nd Mar Motor Van 5,000 1. Cash
2. Motor Van
1st Mar Borrowing 14,000 4th Mar Borrowing 2,000
3. Purchases
6 th Mar Equity 4,000
4. Capital
7 th Mar Equity 5,000 6 th Mar Balance c/d 22,000 5. Borrowings
6. Trade payables
29,000 29,000
7. Sales
7 th Mar Balance b/d 22,000 TOTAL

Dr. HaLinh Nguyen – School of Accounting & Auditing Dr. HaLinh Nguyen – School of Accounting & Auditing

Jerry Company
STATEMENT OF FINANCIAL POSITION
as at 7 March
ASSETS ₤
PROFIT ??? DISCUSSION 1
- Motor van
- Inventories
Jerry Company
- Cash at bank
STATEMENT OF PROFIT OR LOSS
Total From 1st – 7th March What would have been the effect on The statement of
₤
EQUITY & LIABILITIES financial position & The statement of profit or loss if
- Sales revenue
- Equity 10,000 + (5,000 – 3,000) - Cost of goods sold
the inventory had been sold on 7th March for ₤1,000
- Liabilities – borrowings - Profit
- Liabilities – trade payables rather than ₤ 5,000 ?
Total equity and liabilities

Dr. HaLinh Nguyen – School of Accounting & Auditing Dr. HaLinh Nguyen – School of Accounting & Auditing

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TRIAL BALANCE
As at 31 .3.20X7
Balance
£
Bank loan 12,000
Cash at bank 11,700
Capital 13,000
Rent 1,880 A
MAKING ADJUSTMENTS Trade payables 11,200 registered
Purchases 12,400
the
AFTER INITIAL TRIAL BALANCE WORKED
Sales 34,600
Other payables 1,620 ledger
EXAMPLES (P123) Trade receivables 12,000
Bank loan interest 1,400
Other expenses 11,020
Non-current assets 22,020
On 31 .3.X7 the business made the following transactions after the balances listed above
had been calculated.
1. Bought materials for £1,000, half for cash and half on credit.
2. Made sales of £1,040, £800 of which were on credit
3. Paid wages to shop assistants of £260 in cash.
Draw up a trial balance showing the balances as at the end of 31 .3.X7.
Dr. HaLinh Nguyen – School of Accounting & Auditing

TRIAL BALANCE TRIAL BALANCE

As at 31 .3.20X7
As at 31 .3.20X7
Debit Credit WORKED
Dr. Cr. Dr. Cr. Dr. Cr.
£ £ EXAMPLES (P123)
£ £ £ £ £ £
Bank loan 12,000 Bank loan 12,000
A A
Cash at bank 11,700 Cash at bank 11,700
registered registered
Capital 13,000
the
Capital 13,000 the
Rent 1,880
WORKED Rent 1,880
Trade payables 11,200 ledger ledger
EXAMPLES (P123) Trade payables 11,200
Purchases 12,400
Purchases 12,400
Sales 34,600
Sales 34,600
Other payables 1,620
Other payables 1,620
Trade receivables 12,000
Trade receivables 12,000
Bank loan interest 1,400
Bank loan interest 1,400
Other expenses 11,020
Other expenses 11,020
Non-current assets 22,020
Non-current assets 22,020
72,420 72,420
Refer to Section 1, page 123 72,420 72,420

THE EXTENDED TRIAL BALANCE

Ledger balance Revised trial Statement of P & L Statement of FP BALANCING OFF LEDGER ACCOUNT
balance
£ £ £ £ £ £
CASH AT BANK
Bank loan 12,000
₤ ₤
Cash at bank 11,180
Capital 13,000
1 st Mar Balance b/d 0
Rent 1,880
1st Mar Equity 6,000 2nd Mar Motor Van 5,000
Trade payables 11,700
Purchases 13,400 1st Mar Borrowing 14,000 4th Mar Borrowing 2,000
Sales 35,640
6 th Mar Equity 4,000
Other payables 1,620
Trade receivables 12,800 6 th Mar Balance c/d 17,000
Bank loan interest 1,400
Other expenses 11,280 24,000 24,000
Non-current assets 22,020
7 th Mar Balance b/d 17,000
Profit for the year
73,960 73,960 Dr. HaLinh Nguyen – School of Accounting & Auditing

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PREPARING
THE STATEMENT
OF PROFIT OR LOSS

INTRODUCTION TO FINANCIAL STATEMENTS

PREPARING THE PROFIT & LOSS LEDGER ACCOUNT
STATEMENT OF PROFIT OR LOSS ✓ Create a new ledger account in the nominal ledger: The profit &
loss ledger account
STATEMENT OF FINANCIAL POSITION
✓ Identify the ledger accounts which relate to income & expense:
Purchases, rent, sales, bank loan interest and other expenses
✓ Transfer these balances to the P & L ledger account
✓ The balance on the P & L ledger account is the profit for the
period

Dr. HaLinh Nguyen – School of Accounting & Auditing Dr. HaLinh Nguyen – School of Accounting & Auditing

TRIAL BALANCE
PREPARING as at …..of Ron Knuckle’s account
ACCOUNTS DEBIT CREDIT
THE STATEMENT
Cash at bank 6,500
OF FINANCIAL POSITION Capital 7,000
✓ Identify the ledger accounts
Bank loan 1,000
which relate to income &
Purchases 5,000
expense:
Trade payables 0
✓ Accounts: cash, capital, bank loan, trade payables, NCA and trade
Rent 3,500
receivables accounts to balance off Purchases, rent, sales, bank loan
Shop fittings 2,000
interest and other expenses
✓ These accounts represent assets, capital and liabilities of the Sales 12,500
business (not income and expenses) so their balances are carried Trade receivables 0
Bank loan interest 100
down in the accounting records of the business. This means that
Other expense 1,900
they become opening balances brought down for the next reporting
Drawings 1,500
period. Total 20,500 20,500

Dr. HaLinh Nguyen – School of Accounting & Auditing Dr. HaLinh Nguyen – School of Accounting & Auditing

PURCHASES P&L ACCOUNT SALES P&L ACCOUNT

5,000 12,500 (1) 5,000 (5) 12,500
(2) 3,500
RENT
(3) 100 Drawings
3,500 CAPITAL
(4) 1,900 7,000
1,500

LOAN INTEREST
100
12,500 12,500
OTHER EXPENSES

?
1,900

Dr. HaLinh Nguyen – School of Accounting & Auditing

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Draw up Ron Knuckle’s statement of financial position

Draw up Ron Knuckle’s statement of profit or loss at end of the first trading period
for the first trading period

£ £ ASSETS
INTERACTIVE INTERACTIVE
QUESTION 1 Revenue /Sales 12,500 QUESTION 2 Non- Current Assets 2,000
Less: Cost of Sales (5,000) Current Assets
(Purchases) Cash at bank 6,500
Gross profit 7,500
Total Assets 8,500
Less Expenses:
CAPITAL & LIABILITIES
Rent 3,500
Capital 7,500
Bank loan interest 100
Non-current Liabilities
Other expenses 1,900 (5,500)
Bank loan 1,000
Profit for the year 2,000
Total Capital and Liabilities 8,500

Refer to Section 3, page 127 Dr. HaLinh Nguyen – School of Accounting & Auditing
Refer to Section 3, page 129 Dr. HaLinh Nguyen – School of Accounting & Auditing

PREPARING FINANCIAL STATEMENTS

WORKED Refer to Section 5, page 129

EXAMPLES (P129)

1. A business is established with capital of ₤ 2,000 paid by the owner

BASIC FINANCIAL STATEMENTS into a business bank account, which has an overdraft facility. During the
first year’s trading, the following transactions occurred:
2. Purchases of goods for resale, on credit ₤ 4,300
3. Payment to credit suppliers 3,600
4. Sales, all on credit 5,800
5. Receipts from credit customers 3,200
6. NCA purchased for cash 1,500
7. Other expenses, all paid in cash 900

Dr. HaLinh Nguyen – School of Accounting & Auditing Dr. HaLinh Nguyen – School of Accounting & Auditing

Requirement: POSTING TO T- ACCOUNTS

Prepare nominal ledger accounts, a statement of P/L for the year and a
statement of financial position as at the end of the year
1. Dr. Cash 2,000 6. Dr. NCA 1,500
Cr. Capital 2,000 Cr. Cash 1,500

2. Dr. Purchases 4,300

Cr. Trade payables 4,300 7. Dr. Other expenses 900
Cr. Cash 900

3. Dr. Trade payables 3,600

Cr. Cash 3,600

4. Dr. Trade receivables 5,800

Cr. Sales 5,800

5. Dr. Cash 3,200

Cr. Trade receivables 3,200
Dr. HaLinh Nguyen – School of Accounting & Auditing Dr. HaLinh Nguyen – School of Accounting & Auditing

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BALANCING OFF LEDGER ACCOUNT

Refer to Section 5, page 130
CASH AT BANK
₤ ₤ TRIAL BALANCE
Balance b/d 0
Debit Credit
Trade
Capital 2,000 3,600 payables 1. Cash at bank 800
Trade 2. Capital 2,000
3,200 1,500 NCA
receivables 3. Trade payables 700
900 Other EX 4. Purchases 4,300
5. NCA 1,500
6. Sales 5,800
7. Trade receivables 2,600
8. Other expenses 900
9,300 9,300
Dr. HaLinh Nguyen – School of Accounting & Auditing Dr. HaLinh Nguyen – School of Accounting & Auditing

STATEMENT OF PROFIT OR LOSS

P&L ACCOUNT
Sales - STATEMENT
Purchases 4,300 5,800 Sales Cost of sales (purchases) - OF FINANCIAL POSTION
Other expenses 900 Gross profit - ASSETS
CAPITAL Expenses - Non-current assets -
Profit for the year - Current assets
2,000 Cash
Trade receivables -
Total assets -
CAPITAL & LIABILITIES
Capital
At start of period -
Profit for period -
At end of period -
Current liabilities
Bank overdraft -
Trade payables - -
Total capital & liabilities -
Dr. HaLinh Nguyen – School of Accounting & Auditing Dr. HaLinh Nguyen – School of Accounting & Auditing

INTERACTIVE SALES
P&L ACCOUNT
QUESTION 3 Inventory
Refer to Section 5, page 133 (1) 8,000 8,000
COGS
2,000
(2) 2,000 (4) 1,800
Polly had the following transactions in her first year of (1) 8,000
(4) 1,800
trading as a beauty the rapist visiting clients at home.
(3) 4,300 (5) 4,500 (5) 4,500
1) 1.1.X1 Opened a bank account with £400. Took out bank loan
for £5,000, and agreed an over draft limit of the same amount (6) 900
Polly’s PURCHASES
Prepare 2) 1.1.X1 Bought car for £2,500 cash. Insured it for £300 cash. (7) 2,600
ledger accounts Bought other equipment for £1,500, and consumable items for 4,300 (3) 4,300 8,000 8,000
including a P & L £500, both on credit
ledger account, and 3) During year: Charged customers £15,945, all on credit.
CAPITAL
draw up a statement 4) During year: Purchased further consumables for £3,690 on EXPENSES
of P & L and SOFP credit, and diesel for car for £650 in cash. Bal.b/d 2,000
900 (6) 900 Bal.c/d 4,600
in respect of her 5) During year: Took £1,250 in cash from ATMs for herself (7) 2,600
first year of trading. 6) By end of year: Received £12,935 from customers and paid
4,600 4,600
£3,250 to suppliers
Bal.b/d 4,600

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TRIAL BALANCE

EXERCISES FOR PRACTICES EXAMPLE 1

Dr. HaLinh Nguyen – School of Accounting & Auditing Dr. HaLinh Nguyen – School of Accounting & Auditing

TRIAL BALANCE EXAMPLE 1 After one month John’s income statement

John’s Trial Balance at the end of first month trading
ACCOUNTS DR CR
£ £
Capital 200,000 Revenue 10,000
Bank Account 55,300 Less: Cost of Sales (Purchases) (11,600)
Mortgage 200,000
Property 300,000 Gross loss (1,600)
Fixtures & Fittings 20,000
Purchases 11,600 Expense Less Expenses:
Accounts Payable 15,000 Business insurance 2,000
Cash account 1,940
Business rates 8,000
Motor Vehicle 20,000
Sales 10,000 Income Electricity 200
Accounts receivable 1,000 Wages & Salaries 4,700
Wages & salaries 4,700 Expense
Cleaning materials 200 Expense Motor expenses 60
Motor expenses 60 Expense Cleaning materials 200
Business insurance 2,000 Expense
Business rates 8,000 Expense
Total Expense (15,160)
Electricity 200 Expense Net Loss (16,760)
TOTAL 425,000 425,000 Note: Opening inventory &Dr.
closing inventory equal zero
HaLinh Nguyen – School of Accounting & Auditing

John’s Trial Balance John’s Statement of Financial Position (demonstration Only)

ASSETS
ACCOUNTS DR CR Non- Current Assets
Capital 200,000 Capital Property 300,000
Bank Account 55,300 C Asset
Fixtures & Fittings 20,000
Mortgage 200,000 NC Liab
Motor Vehicle 20,000
Property 300,000 NC Asset
340,000
Fixtures & Fittings 20,000 NC Asset
Current Assets
Purchases 11,600 Expense
Receivables 1,000
Accounts Payable 15,000 C Liab
Bank Balance 55,300
Cash account 1,940 C Asset
Cash 1,940
Motor Vehicle 20,000 NC Asset
Sales 10,000 Income 58,240

Accounts receivable 1,000 C Liab Total Assets 398,240

Wages & salaries 4,700 Expense CAPITAL & LIABILITIES
Cleaning materials 200 Expense Capital 200,000
Motor expenses 60 Expense Net Loss (16,760)
Business insurance 2,000 Expense 183,240
Business rates 8,000 Expense Non-current Liabilities/Mortgage 200,000
Electricity 200 Expense Current Liabilities/Accounts payable 15,000
TOTAL 425,000 425,000 Total Capital and Liabilities 398,240
Dr. HaLinh Nguyen – School of Accounting & Auditing Dr. HaLinh Nguyen – School of Accounting & Auditing

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STATEMENT OF PROFIT/LOSS Better – Price Stores

LAYOUT Statement of profit/loss
for the month end 31, Oct 2017
How to ₤
TRIAL BALANCE calculate??? - Sales revenue 232,000
- Cost of sales (154,000)
- Gross profit 78,000

EXAMPLE 2 1 - Salaries & Wages

Rent and rates
(24,500)
(14,200)
Heat and light (7,500)
Telephone & postage (1,200)
Insurance (1,000)
2 Motor vehicle running expenses
Depreciation – fixture and fittings
(3,400)
(1,000)
Depreciation – motor van (600)
- Operating profit 24,600

3 - Interest received from investments

- Interest on borrowings
2,000
(1,100)
- Profit for the year 25,500
Dr. HaLinh Nguyen – School of Accounting & Auditing Dr. HaLinh Nguyen – School of Accounting & Auditing

PREPAID EXPENSE
1 + _ = 2 (prepayment)

OPENING PURCHASED SOLD CLOSING Paid 12-month contract for car insurance
₤ 12,000 from 1st Jan to 31st Dec, 2017 by cash
Goods available for sale CASH

Cost of goods sold

Dr. HaLinh Nguyen – School of Accounting & Auditing Dr. HaLinh Nguyen – School of Accounting & Auditing

Factors in Computing Depreciation

3 DEPRECIATION

Initial Cost - Residual Value

(Salvage Value)
= Depreciable Cost

Useful Life

Depreciation is the process of allocating the cost of a plant asset

to expense in the accounting periods benefiting from its use. Periodic Depreciation
Expense
Dr. HaLinh Nguyen – School of Accounting & Auditing Dr. HaLinh Nguyen – School of Accounting & Auditing

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STRAIGHT-LINE ₤ 38,000 – ₤ 2,000

Original Cost.....…… ₤ 38,000 =
3 years
Useful Life in years….3 years
Useful Life in units…. 18,000 = ₤ 12,000 annually TRIAL BALANCE
Salvage Value ₤ 2,000
= ₤ 1,000 monthly EXAMPLE 3
₤ 12,000
= 32 % per year
₤ 38,000

Dr Cr

Depreciation expense ₤ 1,000

Accumulated depreciation ₤ 1,000

Dr. HaLinh Nguyen – School of Accounting & Auditing Dr. HaLinh Nguyen – School of Accounting & Auditing

Statement of profit or loss

DISCUSSION 2
for the year end 30, April 2017
The following information relates to the activities of H & S ₤ ₤
Retailers for the year ended 30, April 2017 - Sales revenue 97,400
H & S RETAILERS
₤ - Cost of sales - -
Opening inventories 4,000 -
- Motor vehicle running expenses 1,200
Purchases 68,350 -
- Closing inventory 3,000
Closing inventory (3,000) (69,350)
- Rent and rates payable 5,000
- Gross profit 28,050
- Motor vans – cost less depreciation 6,300
Prepare an income statement for - Operating expenses:
- Annual depreciation – motor vans 1,500
- Heat and light 900 the year ended 30, April 2017 Salaries & Wages 10,400
Rent and rates 5,000
- Telephone & postage 450 (Hint: Not all items listed should
- Sales revenue 97,400 Heat and light 900
appear on this statement) Telephone & postage 450
- Goods purchased 68,350
Insurance 750
- Insurance 750
Motor vehicle running expenses 1,200
- Loan interest payable 620
Depreciation – motor van 1,500 (20,200)
- Balance at bank 4,780
- Operating profit 7,850
- Salaries and wages 10,400
- Opening inventory 4,000
- Loan interest (620)
- Profit for the year 7,230
Dr. HaLinh Nguyen – School of Accounting & Auditing Dr. HaLinh Nguyen – School of Accounting & Auditing

TRIAL BALANCE at 31, Dec, 2018 of A. Moore

EX 7.1 (p82) ACCOUNTS DEBIT CREDIT
Sales 190,576
Purchases 119,832

TRIAL BALANCE Salaries

Motor expenses
56,527
2,416
Requirement:
Rent 1,894
Financial statements
EXAMPLE 4 (SOFP, SOPL)
Insurance
General expenses
372
85
Premises 95,420
Motor vehicles 16,594
Accounts receivable 26,740
Accounts payable 16,524
Cash at bank 16,519
Cash in hand 342
Drawings 8,425
Capital 138,066
Totals 345,166 345,166
Dr. HaLinh Nguyen – School of Accounting & Auditing Dr. HaLinh Nguyen – School of Accounting & Auditing

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1. Opening inventory: 10,000

Closing inventory: 12,408 1 WORKING 1:

2. 24- month Insurance contract was signed from

1st Jan, 2018. It has taken effect since the signed
date
3. Premises have 20-year useful life and 10 years
for motor vehicles, no residual value.
Depreciation should be calculated for the whole
year
Dr. HaLinh Nguyen – School of Accounting & Auditing Dr. HaLinh Nguyen – School of Accounting & Auditing

WORKING 3:
2 WORKING 2: 3

Dr. HaLinh Nguyen – School of Accounting & Auditing Dr. HaLinh Nguyen – School of Accounting & Auditing

ASSETS £ £
STATEMENT OF PROFIT OR LOSS A.Moore’s Statement Non- Current Assets
For the year ended 31, Dec, 1018
of Financial Position Premises
£ £ Accumulated depreciation, Premises
as at 31, Dec, 2018
Sales Motor Vehicle
Less: Cost of goods sold Accumulated depreciation, Motor Vehicles
Opening
Current Assets
Purchases
Closing inventory Inventory

Gross Profit Accounts receivable

Less: Expenses Prepaid insurance

Salaries Bạnk

Motor expenses Cash in hand

Rent Total Assets

Insurance CAPITAL & LIABILITIES
Capital Balance at 1.1.2018
Depreciation expense (Premises)
Add Net profit
Depreciation expense (Motor Vehicles)
Less Drawings
General expense
Current Liabilities/Accounts payable
Net Profit
Total Capital and Liabilities
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ASSETS £ £
EXPENSE P&L ACCOUNT REVENUE
A.Moore’s Statement Non- Current Assets
of Financial Position Premises

as at 31, Dec, 2018 Depreciation, Premises

Motor Vehicle
Depreciation, Motor Vehicles
Current Assets
COGS
Inventory
Accounts receivable
Prepaid insurance
Bạnk CAPITAL
Cash in hand WITHDRAW
Total Assets
CAPITAL & LIABILITIES
Capital Balance at 1.1.2018
Add Net profit
Less Drawings
Current Liabilities/Accounts payable
Total Capital and Liabilities
Dr. HaLinh Nguyen – School of Accounting & Auditing Dr. HaLinh Nguyen – School of Accounting & Auditing

THE END

Dr. HaLinh Nguyen – School of Accounting & Auditing

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