things to remember for FINACC

• Realisation T-Account

  
  

  Debit:

  asset @CP

  
  

  Credit:

  full dep of of asset

  Bank(RV of trade in)
• O/B

  +net purchases

  +other costs

  -withdrawals

  -normal loss(only with perpetual)

  -C/B

  =COS
• Closing off inventory

  perpetual

  Inventory: purchase returns

  Sales: sale returns + discount allowed

  COS: discount received

  periodic

  Purchases: purchase returns +discount received

  Sales: Sales returns+ discount allowed

  COS: (cos formula)
• -sales+

  +sales returns-

  +purchases-
• R amount x want/have
• Depreciable amount:

  CP-RV
• carrying amount:

  CP- Acc deprectiation
• +deprectiation-

  -accumulated depreciation+
• Balance : ALE

  Zero: inc, exp, withdrawals, cc
• Income statement: "should be"

  Sales

  less Cost of sales

  = gross profit

  +other income
• Balance sheet: Adj

  Assets:

  Non-current

  Current

  Liabilities and equity:

  Capital

  Opening balance

  Profit/loss for the year

  -withdrawals

  +capital contributions

  Liabilities

  non current

  current
• Expense I movement in ACLD I income
• Accrued income: asset

  Accrued expense: liability

  Prepaid expense: asset

  Income received in advance: liability
• VAT control account
• VAT

  Debit: receivable (purchases)

  Credit: payable (sales)
• in advance: add

  Owing: subtract
• income statement should reflect the current year(12 months)