IMPORTANT Flashcards
Format for classfied income statement
INCOME
Sales
Discount Allowed
Net Sales
Less cost of sales(first line)
cartage in
Dis received in second line a+total on 3rd line
add other income
gross profit
less other exepsnes
Selling and distrivution
genreral and adminstirative
financial
profit for period
Format for balance sheet
Current assets
non current assets
total assets
current liabilties
non current liabbilties
total liabilties
net assets
Equity
owner capital
add profit/loss from income statement
(drawings)
where is cartage put and disc received?
Cartage in on left and disc received in middle
What is prfot/loss account items?
Profit/loss acount involves all expenses and income accounts
4 thing assessed by banks for risk? CCLG
liquidity
collateral
guarantor
credit history
2 things assessed by bank for return?
interest rates
futre business dealings
if the business is return products to another business. Gst credits get credits
acc pay 110
gst credits 10
hair prducts 100
if some1 retunrs busineess to u debit gst payable
What is contained in a trial balance
trial balance is just ledgers accounts
What is debtor and creditor
Debtor Acc Rec
Creditor Acc Pay
Less cost of sales+cartage in
they are expenses so 1st column
Discount received is Add other income and 2nd line because OF DC ADELER
Sales returns were in income statement?
sales return will go w sales and dis allowed
