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
