topic 2 Flashcards
accounting eq, double entry and vat
what is the accounting eq
asset = liability + capital
equity =
assets - liabilty
eq for sells goods for cash
dr cash cr sales
profit for the period
net asset = cap bf + cap intro+ profit - drawing
at the end of the financial year a sole trader has total assets = 58800
total lia = 16500 and cap bf = 50500 and cap intro =0 and drawing =12700
what is the profit
4500
books of prime entry
sales day book, sales return
purchase day book, purchase return book
cash book, petty cash book
journal
types of ledgers
recievables
payables
general
AED? LIC?
AED debit increase
LIC credit increase
capital paid into bank by owner
dr bank cr capital
vat aka?
sales tax
100 transfered from bank to petty cash
dr petty cash cr bank
output tax> input
liability
how to calc VAT in exam
price x 20/120
if its excluding VAT
price x 20/100
