Accounting Structure Flashcards
How to display and calculate cost of goods ( for income statements)
Opening stock
+ purchases
- return out
+ carriage in
- closing stock
How to work out and display net sales ( for income statement)
Sales
-return in
How to work out and display gross profit ( for income statement)
Net sales
- cost of goods
How to work out net profit ( for income statement)
Gross profit
+ other income ( e.g discount received , rent received)
- total expenses
= Net profit
Examples of expenses
Wages , rates , heating and lighting, advertising, ,general expenses , rent , telephone , marketing costs , insurance
How to work out equity (for statement of financial position)
Equity = assets - liabilities
How to work out total assets ( for statement of financial position)
Non current assets + current assets
How to work out total equity ( for statement financial position )
Equity
+net profit
-drawings
How to work out total liabilities ( for statement financial position )
Current liabilities + non current liabilities
How to work out total equity & liabilities ( for statement financial position )
Total equity + total liabilities
Examples of current assets
Stock , debtors , VAT , bank , cash , closing stock , trade receivables
Example of non current assets?
Vehicle, shop fittings , premises , machinery, insurance relating to the use of asset , maintenance costs, repairs , running costs- e.g petrol,, oils and lubricants for motor vehicles , staff training tin use of assets and like machinery of computers/ software
Example of current liabilities
Creditors
Example of long term liabilities
Bank loan
How to display a financial statement
- Non current assets
- Total non-current assets
- Current Asset
- Total current assets
- Total assets ( total non current + total current assets)
- Equity and liabilities
- Total Equity
- Current liabilities
- Long term liabilities
- Total liabilities
- Total Equity & liabilities (total liabilities + total equity)
