incomplete records Flashcards
The statement of affairs formula
Total assets – Total liabilities = Capital
mark up
Gross profit ÷ Cost of sales x 100
Profit in relation to revenue
Profit for the year ÷ Sales revenue x 100
Inventory turnover
Cost of sales ÷ Average inventory
Average inventory
Average inventory = (Opening inventory + Closing inventory) ÷ 2
SALES LEDGER CONTROL ACCOUNT - debit
b/d
interest charged to receivables
credit sales
SALES LEDGER CONTROL ACCOUNT - credit
money received from credit customers
returns in
discount allowed
irrecoverable debt
contras with the payables ledger
balance c/d
PURCHASE LEDGER CONTROL ACCOUNT - debit
money paid to credit suppliers
returns out
discount received
contas with receivables ledger
c/d
PURCHASE LEDGER CONTROL ACCOUNT - credit
b/d
interest charged by payables
credit purchases
cash account - debit
b/d
cash sales (takings)
cash account - credit
cash expenses
cash banked
cash stolen
cash drawings
c/d
Straight line depreciation
(Cost – Residual value) ÷ number of years
Reducing balance depreciation
Net book value x the stated percentage
Profit or loss on disposal of non-current assets
Disposal proceeds – Net book value
expense account - debit
prepayment b/d
bank
accrual c/d
