RMIT

UNIVERSITY
MlL12116
Lnglneerlng and LnLerprlse
An lnLroducuon Lo Accounung
Lxample 1.
PC1CxluLS MlnL8AL u?LS
www.rmit.edu.au
uavld Saunders
Week 5
0
RMIT
UNIVERSITY
Cvervlew
1hls example wlll demonsLraLe Lhe 8alance
SheeL and how lL records changes Lo Lhe
nances of Lhe company
8alance sheeL remalns 8alanced"
vlz: AsseLs = Llablllues
( and ln Lhe Ledger AccounLs
ueblLs = CredlLs )
A slmple roL SLaLemenL ls demonsLraLed
1
RMIT
UNIVERSITY
PC1CxluLS MlnL8AL u?LS
8alance SheeL*
PC1CxluLS MlnL8AL u?LS
1he sLarL-up
CaplLallses wlLh $30 mllllon from 3 lnvesLors.
2
01/07/2012
!""#$" !&'()$ *+,-+.+/#" !&'()$
Cash 10 000 000 CaplLal 30 000 000
8ank 8al. 20 000 000
30 000 000 30 000 000
* 1hls example ls based on Lhe example ln CLu
MacMlllan, lndla llnance SLaLemenLs and Accounung rlnclples"
RMIT
UNIVERSITY
PC1CxluLS MlnL8AL u?LS
8alance SheeL
urchases 1lLanlum Cxlde (as SLock) (spoL buy)
3
4/08/2012
!""#$" !&'()$ *+,-+.+/#" !&'()$
Cash 4 000 000 CaplLal 30 000 000
8ank 8al. 20 000 000
SLock 6 000 000
30 000 000 30 000 000
RMIT
UNIVERSITY
PC1CxluLS MlnL8AL u?LS
8alance SheeL
Cn-sells $4m 1lLanlum Cxlde (SLock) Lo nLA8 WPl1L LLd for $3m
(proLs held ln Lhe Company)
4
06/08/2012
!""#$" !&'()$ *+,-+.+/#" !&'()$
Cash 9 000 000 CaplLal 30 000 000
8ank 8al. 20 000 000 roL 1 000 000
SLock 2 000 000
31 000 000 31 000 000
RMIT
UNIVERSITY
PC1CxluLS MlnL8AL u?LS
8alance SheeL
urchases Copper CarbonaLe processor
8ulldlng $8m lanL $ 10m
5
8/08/2012
!""#$" !&'()$ *+,-+.+/#" !&'()$
Cash 9 000 000 CaplLal 30 000 000
8ank 8al. 2 000 000 roLs 1 000 000
SLock 2 000 000
8ulldlng 8 000 000
lanL 10 000 000
31 000 000 31 000 000
RMIT
UNIVERSITY
PC1CxluLS MlnL8AL u?LS
8alance SheeL
urchases lron Cxlde from 8Lu CCP8L CPLMlCALS LLd on credlL
- $3m (30 days credlL)
6
20/08/2012
!""#$" !&'()$ *+,-+.+/#" !&'()$
Cash 9 000 000 CaplLal 30 000 000
8ank 8al. 2 000 000 roL 1 000 000
SLock 2 000 000 8ed Cchre 30
day credlL
3 000 000
8ulldlng 8 000 000
lanL 10 000 000
8aw MaLerlal 3 000 000
34 000 000 34 000 00
RMIT
UNIVERSITY
PC1CxluLS MlnL8AL u?LS
8alance SheeL
negouaLes addluonal $10m nance from Lx1LnuLu C8An1S
Ly LLd [ 9 p.a. lnLeresL.
7
23/08/2012
!""#$" !&'()$ *+,-+.+/#" !&'()$
Cash 9 000 000 CaplLal 30 000 000
8ank 8al. 12 000 000 roL 1 000 000
SLock 2 000 000 8ed Cchre 30d Cr 3 000 000
8ulldlng 8 000 000 LxLended CranLs
[ 9 Cr.
10 000 000
lanL 10 000 00
8aw MaLerlal 3 000 00
44 000 000 44 000 000
RMIT
UNIVERSITY
PC1CxluLS MlnL8AL u?LS
8alance SheeL
Sells remalnlng sLock of 1lLanlum Cxlde ($2m) Lo 88lCP1 WPl1L
LLd for $2 600 00 on 43 days credlL .. roL of $600 000
8
27/08/2012
!""#$" !&'()$ *+,-+.+/#" !&'()$
Cash 9 000 000 CaplLal 30 000 000
8ank 8al. 12 000 000 roLs 1 600 000
SLock 0 000 000 8ed Cchre 30d Cr 3 000 000
8ulldlng 8 000 000 LxLended CranLs
[ 9 Cr
10 000 000
lanL 10 000 000
8aw MaLerlal 3 000 000
8rlghL WhlLe ur. 2 600 000
44 600 000 44 600 000
RMIT
UNIVERSITY
PC1CxluLS MlnL8AL u?LS
Lxpenses SheeL
$1 600 000 ls Lhe 01'"" 21'3$4 PC1CxluLS lncurs expenses Lo
generaLe Lhelr proL (for Lhe monLh of AugusL).
9
30/08/2012
562#)"#" !&'()$
Salarles 300 000
Cmce renL 100 000
LlecLrlclLy 20 000
Cmce Supplles 20 000
LnLerLalnmenL 30 000
1elco, posLage 10 000
Mlsc Lxpenses 20 000
7'$,. 562#)"#" 899 999
RMIT
UNIVERSITY
PC1CxluLS MlnL8AL u?LS
8alance SheeL
Showlng neL proL as aL 30/08/2012 Lxpenses from cash holdlngs.
10
30/08/2012
!""#$" !&'()$ *+,-+.+/#" !&'()$
Cash 8 300 000 CaplLal 30 000 000
8ank 8al. 12 000 000 roLs 1 100 000
SLock 0 000 000 8ed Cchre 30d Cr 3 000 000
8ulldlng 8 000 000 LxLended CranLs
[ 9 Cr
10 000 000
lanL 10 000 000
8aw MaLerlal 3 000 000
8rlghL WhlLe ur 2 600 000
44 100 000 44 100 000
RMIT
UNIVERSITY
PC1CxluLS MlnL8AL u?LS
8alance SheeL
Showlng neL proL as aL 30/08/2012 Lxpenses from cash holdlngs.
11
30/08/2012
!""#$" !&'()$ *+,-+.+/#" !&'()$
Cash 8 300 000 CaplLal 30 000 000
8ank 8al. 12 000 000 roLs 1 100 000
SLock 0 000 000 8ed Cchre 30d Cr 3 000 000
8ulldlng 8 000 000 LxLended CranLs
[ 9 Cr
10 000 000
lanL 10 000 000
8aw MaLerlal 3 000 000
8rlghL WhlLe ur 2 600 000
44 100 000 44 100 000
RMIT
UNIVERSITY
PC1CxluLS MlnL8AL u?LS
roL SLaLemenL
12
30/08/2012
562#)"#" !&'()$ :#;#)(# !&'()$
CosL of producL
sold
6 000 000 Sales 8evenue 7 600 000
<1'"" =1'3$ > ?99 999
7 600 000 7 600 000
8uslness Lxpenses
AugusL
300 000
@#$ =1'3$ > >99 999
RMIT
UNIVERSITY
PC1CxluLS MlnL8AL u?LS
8alance SheeL
13
We won'L dlscuss whaL happens nexL monLh ln
PC1CxluLS when Lhe $3 000 000 ls pald Lo
8Lu CCP8L (30 days credlL) eLc and Lhe rsL
lnLeresL paymenLs are made Lo Lx1LnuLu
C8An1S LLd.
LeL's have a look aL anoLher slmple example of
accounung. (Lxample 2 follows)
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UNIVERSITY
Summary
1he 8alance SheeL
osslble comblnauons of accounung
Lransacuons LhaL would be on Lhe 8alance SheeL.
lncrease ln LlablllLy followed by lncrease ln AsseL
uecrease ln LlablllLy followed by decrease ln AsseL
lncrease ln one LlablllLy followed by decrease ln
anoLher LlablllLy
lncrease ln one AsseL followed by decrease ln
anoLher AsseL
14
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UNIVERSITY
8eference
15
Cnllne Lxecuuve uevelopmenL rogramme
llnance SLaLemenLs and Accounung rlnclples"
MacMlllan, lndla
hup://www.develop.emacmlllan.com/llLd/
maLerlal/dlrecureeaccesshpage/fnfe/
ch1_summary.hLml