Formulae Flashcards
What is included in the balance of capital?
Capital + profits - drawings
How do you calculate net assets?
Net assets = assets - liabilities
How do you calculate net current assets?
Net current assets = net assets - net liabilities
What is the accounting equation?
Assets = capital (capital + profit - drawings) + liabilities
How do you calculate profit (using the accounting equation)?
Profit = assets - liabilities - capital - drawings
How do you calculate gross profit?
Gross Profit = revenue - cost of sales
How do you calculate profit for the year?
Profit for the year = Gross profit - Expenses
How do you calculate gross pay?
Gross pay = Net Py + PAYE + EES NI + EEs Pension
Net pay is paid to employee, deductions are sent straight to HMRC
What is an employer’s total payroll cost?
Total payroll costs = Gross pay + EERS NI + EERS pension
How do you calculate Cost of Sales?
Cost of Sales = Opening inventory + Purchases - Closing inventory
How do you calculate the expenses figure in the financial statements?
Expenses = TB figure + closing accrual expense - closing prepayment expense
How do you calculate the retained earnings figure in the financial statements?
Retained earnings = TB figure + profit for the year - dividends paid in year - dividends payable in year - bonus shares
How do you calculate an asset’s net realisable value?
NRV = selling price - modification costs - selling and distribution costs
How do you calculate the average unit cost (in AVCO)?
Average cost = Total cost / number of units
How do you work out an asset’s carrying amount/NBV?
NBV = Cost of asset -accumulated depreciation
How do you calculate accumulated depreciation?
Accumulated depreciation = cost of asset - carrying amount
How do you calculate SL depreciation charge for the year?
SL Depreciation charge for the year = (cost - residual value) / useful life
How do you calculate RB depreciation charge for the year?
RB Depreciation = NBV x depreciation rate
How do you calculate an impairment loss?
Impairment loss = carrying amount (NBV) - recoverable amount
How do you calculate the gross value of a company?
Gross value of a company = net value + goodwill
How do you calculate goodwill arising on an acquisition?
Goodwill arising on an acquisition = purchase price - fair price
How do you calculate taxation payable in a cash flow?
Taxation payable = opening payable + expense - closing payable
How do you calculate depreciation in a cash flow?
Depreciation = opening balance - accumulated depreciation eliminated on disposal - closing balance
How do you calculate the purchase of assets balance in a cash flow?
Purchase of an asset = opening balance - cost of disposals + cost of additions - closing balance
