Sole Trader Adjustments Flashcards
1
Q
Straight line dep’n 1
A
(Cost - residual value) / years
2
Q
Straight line dep’n 2
A
Cost X %
3
Q
Net book value
A
NCA @ cost - accumulated dep’n
4
Q
Reducing balance dep’n
A
NBV X %
5
Q
Cost of sales
A
OI + purch - purch returns + carriage in - CI
6
Q
Gross profit
A
Revenue - cost of sales
7
Q
PFY
A
Gross profit + income - expenses
8
Q
Accrual of income
A
Income paid + accrued amount
9
Q
Accrual of expense
A
Expense paid + accrued amount
10
Q
Prepayment of income
A
Income paid - prepaid amount
11
Q
Prepayment of expense
A
Expense paid - prepaid amount
12
Q
Net realisable value
A
New selling price - any selling costs
13
Q
Profit or loss on disposal
A
NBV - sale proceeds
