AcCA O Pa 3 pop alassMAte

71/0920Associaluon popers
Dat

4 fp-teve)
e Chantved
Coxtfiel 2 Mandalby Select 2
Accoun tan.
SBL 4 hr) out of 4
SBP A AA
APM
EPsM AT
(Begove 1 level AFM
papes.)
Total
36 mo nh PER manes- leo
Pas
mere-50
FA hinancial Accountinq
Mce)
No -

ve mar king

(2hr+oacise)/ Day
FINANCIAL ActoUNTING.
V l a sinantial
Me hod reportE Statimen
fhanual
ftnanuial
Pertormance eoAmamte
aouaines Pesition
us ine: Any etono mic acti tnanual
with he primary motve q transactrors
making pofrt
 Exte o
intwme over
ependituse At any givem point
n tme
Pofit:- Pincipu
Le IN COME EYpENDIrURE nf
Aseb Capial+ Liabi itee
Eypendi r e Tn come Less
oto20
Asseb A present econornit relouxe Lwhih
finantial Statmen (Sct of epov Cen qenerale 2conomic bene a:{
the entityas a xesul
Contaolled "by
A) Sta tEment ef Finantial
Positon. (SoFP ante Sol
&Loss (SopL Teadin (adesy pout veni
b) Staement of Pait
tatmen Cash Fles SoCF Pan thod tconomit Pesburw: leomodi ties hat has the
d) Satentnt e Charges in Equily(coCe) Ceo poe Capatils togenerate fuue economi
Dutlosurc Nos (Netes of Accounb) beneta
xcsivel tCeropanies
Cenol LE comes w/ ith Dwnedship o
a)stFP hrough an agrament
hut all asse owned by the bwnes &
Asseb: Lond, Buldings, Patn, Machincmy ete.
tabiities twncd by th dusin es al a
partwas point et ime Non-Caurrent
Crrimt.
G1o 3 temponnk
wnia con be Loheh oyotta be used ned
ConvertA ints Carn be hed the by ent:y fo
Asse Capi aty iaties within aettw menths
12 we re than a penod
Lia brbies Hiqhlybly iquidable.
12 months (Acounting Period)|
Eqwity Not so Wqutdab le.
LLiabilbius ertenal
warrd aInventosy
evners Trad Re ceivables Tangible tangible
Cash Cash tquivalenz LN- A«e N-cAueb
Shot-m inves tem en
 classmAte
Date-
Page
Current
Ass e held fv re- Sale pu poies er to Toungible N-t A«elG Aselz which hawe physical
Ihven
be tused in pao duc Con euence
Cepuuhy
rclaslera, Ccmputr ave
invent
Inngible N-C Asek: A set whieh do not have a
Jor manufactwn ing b s nes, inven wy tncludt phaysica eu n t e
Yaw matena Kpatent,copynight, tvademak
CAor in pmqves cense, romaui'se, quwlas
int'shed qeocds bnoodwil Purchasad geodwill. (TAs 3s)
Trade Receivabl (An aftevekhect of credit sale) Lnternall Purhased
(consndered as
Caadit sale Selling qeods wouk upfont payment erad.
ntangeLle non-curent
Thcy are osek ot h e burines as a reslt op ane.
Repatation,
redit &ale. Thur Owed ta the
an amount Parcbased geodwitt,
rand vale > The extva amt
b sints w catekaan4 Pwrhased band votue, acenmpam
Purchamd vepu ation- wiWing p
Debtor: I nd my mony to someone hat person be 1Cr a aPte
wes m mond CA chante ot deduthng all the u'althes tnm
manipu lahon sta nda) asset cmpany t L
wnile byeng taquisi hon)
Sundry debtor I'm sellinq one
o nny nen-Curren fhe v pecuve
ont Cempan
2 rmonts
Tqa my pay mant ony aftt
Liabii A presenobuqaTon as a tonsequerte
For nose 2
monhs hat omno unt of t pasteven that ses ult in
htni C s unde
Sundy deblsv anstes ot etononic asatteon n tutwre.
e s owWe
yOuDun.
 classinAte
Aueb - Labrtties +Capital
Accouninq Equalon
Liabiiti Jn accoun ting trms, he buuinen & z Own
ae uo dilfernt
OJe nitlesuneu lntity
CurYentL Non-wr Yent L Contep
Bank ovo- draft, em oans, Debontues.
Long- SOFP lut of alL aseb & iabilhies at a peint otr
invemtoris n ther
Bills payabe. XYZ LEd. hasto, 0o0 woyth
Tsad' pkHabe, Accruas, at ys end
te
Tox buables busnesThe total tedit sale made during
To be Se ttlA To be sett lud in maye 35,000 - They ve n o m - Cumrent
year w a s
than 4 accountng Theer Credit purchae
in apeniod of pevi.
a s es worth 100,Ooo
2 movths announed. s 20, 00 The twmpomy terk oa
ban won u 250o|= No am Ount LWere
J7t20d2 rad et transacthora.
alolEquityCaprta&) p a d ur Yeceivied as pat ut
Tha i the fist ycar uf operations of Abc
Ce
u n d investea hy the ewner of he buaines Calculal aquii nanuial yean end
ino the busiie
2.9.. Tvtal Ltabilt.
interest n an entiy Sn.- tauly- Tola0 Aeses -
ü) Tt u the restdual,amountafter dedutting4
a iabiibs from aMel Asez Amt Lbiities Amt.
Equily-Toe TRllhiuClo* lnvem
Trade
es $1o,ooo- TrdL payable
Bonk ocn
20,ovol-
42,5oc-
d u a petal iobit one busines Re Ceivable 35, 00o
waN ds owndS
N-C Assez 100, ooo
Ne
Lialiuty , 5co-
Isole troders hip k pantnoAship Capita
Net Asset - 1450o 0-
n Companies equ ybetomes 3hares > shane
Capital Equi 145,ouo * 22,50o 2,5 cc/-|
 lssmat
pct2
pog-
eolution' O Logical Appvvach.
veceivables at the
Fed had tade
stating o
250001- Dur ing the ( Apt 0x) OponingTrade Payable
50, D00
finant'al yea o Trade P Payable O0, 00D
yeM, Fed ade additional cedit aale opf uring20X5)
25O00- CreditCs omexs had r d Net Trade Payable
aid 5,o001. durtng the yeaM Cash Pald w credit
Spp l e s Ooo*
Caleulali he clasing
brade valus f
veivable Ko be sheudn as Cnent asse
(Oxub p 120,000, I40, ooD
To SCFP as a 3| Dec. 2o15 To,op w a s cad (prehase &
kJot eedit prchase
Smty Cr edtt prchase remeii , c o o
Soln: Auetz Amk iabilities Amt. in rade payable.)
nna4 Trade Deceivabl 25,00
Tn 015)h 25, 000 rade payable 3 Mar aox 6 140, coom
dalional Credktgla
Idwn n 20152 Undi
Total Toivable 50, 0o0
Cu rent Liebilulq as trade payable in soFP
Cah Reutved 55,000 aS a 3 Mam h 20x 6 :
jmCardit-
CushomeS 15,0oof
Cosing Trade Re cuivabee e(b SOPL
3st Dec 201I5 5 , oo0/-
Xist of all intome qenealcd and all expenses
incuhed olwringpted o Lume
Trada Payable al1 Apv 20X
50 000
Trade Payahle a 31. Ma 20x 6
Lntome'Incease in asels ov decrease in
Total cah paid s tredat 3upP ding 20,
4 o o00 icoeli Ly
which in un inereases
e Cauiy,e hor han Capilal invested b
ine uding 1v, Do owned
Cah
Crorit Purchaue unq 20X5 200
ODD
 ASSMAte
Dale
Cest inwartd by busines
during
Expentes Detrease un aet or nt. peid|
in Dedble Entu
i a bili whith will result in
deereeue in , dthe Bhan ntrease in Azet, EzpensesDebi (D
(Decrease Credit
Capifalwithdrawn by he Dwne.
: Rent, erpenses depreuaho finanu test ntrease in uabiul, inome & capital Czedit
Selling k disbibuuon eapense eli CCR
Revenue ntome qyemexated bythe om the A AE 1 De
a Owrnes inveated f10, o00 into LICT Ce
novmal tewse of bustunes the busincs
o a compute retailer, income qeneralal
Think fyvm
by 3eling_Compulex ts3evenue Cash 1 CA«) De Caxh 1o, oo0 Dusine Perspectüc
Capital 1 C Capilal 10, 000
o educational insütuuons, foe
olecd is xeNenue
b) Car purehased at a cost 4000 by paung
Finantua Yearn Accounung ummedialz Cash
Yer
Dk
the he period to which Fs a Purchased- A«et t 5DO O
e prpa
Pepard
Payjing immedialz- Aset C 5O00
E is hoYmally 12 month Ud cah
YE + I day Took bark Loan of 6coo
1Sept t Aug
OX0 bank loan Liabil:g 1 Ce 6o00
20X Bank
Cash/Bank Asel ank
Ys
1YE
Maxch
I8 Feb
&ox4
 elassmate
Dafe
Page-
dy Paid twages of
wages paid txpense TDe. 1200. h
Ce 1200
2. Cash Can
Bant
Inven Dy puachased (A«di t) De
) lecticity bill due for sco- h)
T Bil0 Payable (Liablby ) Ce
Cvedit sale 250o|-
Gash sal lOco- i) Purchasek a/e (Axett) D
D I500
purthased inventon on tredis LOoo Cah Paidd c L) Ce
pur chas matniel worth 4 15o | - ytadh Epense al
Scld ca 2000 X veteived cash Car a (Aet ) C 3000
Re ceived C&n om cxedit uslomes: Casb Teuived (Asak A) De 3000
A)raid a redit suPpies
Br.nk Loon interttdue ko 1oo=
SLectriity
eBui dut u Payable: LiabiliyT C
500. 00-
2ctnut Enpense T De 5oo. 0
PCredit sale (A«et i) (. 500
D
Taad Roivable (Acet 1) De 200
 clAS Le
Dole
Are Rocorded
How TTansaclions
Sales Day Book
Asoated tsansa cluons SourQ doCumen Rocords
invontes only Credlit sa les
(inihially re corded) Purchases Lay Book
Beok ok prime entr
Records only credit purchase
(Calgorue)
Ledged , 7ial Balance: N Petty Cash Book
Ceetoae
Records Small miscellaneous enpenses
Summems e )
transachons
inanual s taloroemts.
SoFP sOpL Z Tousnal
Records transactions twhich do not fit tin any
Beck of Prime Entxy oTher
book of prme enti
TEh Cash Book earYear end adjustmen
Retords only cash ian sacion8 Corre clon o enrers ole
Big Cemp. have usthes se4gegaien a9
Teuptb.& ah payment book
G Jalb goods ei cash Purchases bckurn-(Acun outwahd
Purchae noods pwr chased
hom s upplies will be Acliun ed
Ihcludes both ogoods fo Cah
iqid cash hans aclons back either b'o oh ehfece dehkec
mee the
or il does not
as bank lan Spe cuftta lon
sacions w ST
 elassmate
Date.
Page,
9fbuincas has 9et lage me pur chase sselt C De penses C e .
einn 2 bE Sepenalely deco rded pening B.L
Book
Rur dhases Ke lann Day
Sales Retunn ( Retwrn Shward )
-
eing
T St the Ciuslome reurns Che goods the
Compans SoldL
i eeor ded in sales relurn day beok in Liabiliy Ce. De ntome CA Da. Captal
larqe busineses
Bal
Ledger
Cletn CCeing
Trans acuons Bal
ahe Caligorued krombook ok Bal
prne enty tnlo goñeral /nominal Lodger:
ieneial ledget includes all pain uiple accoun The cash balance ek aPs Company at / Tan 2oxt
was /o0O During the montb, 0 ¥s Co. puachased
o a bus in e
goods om Suppluers woaTh 25oo with
Prinuipl af Jon Current aset ale upkont Cah paymen GPS
paid ways
ncome a/c fooo dwing the month
The Co. seceveo Aental hcome of
Expense ac Sold goo ds lo Cus lome for cash
Capital a/e 3 3500
(alculale Cash balance at 31: Jan: 2ox/
kiabeliby afe
 C MAte
De Asse
pening Brl. looo
olune, hey Can lask inlo sale memoranolum
oods prchased veceevable
cdgen kut of balance / Traole
klagoa paid Ledyea
ontal in ceme $/500
Receiyed geed 35 00 Trade Re cei'vable Ledger Conbrol Ak
Y Csltmer
pening Bal. Trrecoverable oleht eapene
$6O O 3 500
TClosing
Balalheee 2500 Creolat Sales Sales Re tarn
terest changed
verdue am B
on
Cenba with trade payable .
Caeh receiived rom tuslomes
Control Accoun Duhonowred Ckeqeue
When a credit sale happens nominal Closing Balante
Ledgers are atfe cled
)Trade receivabLe Ledaer contrel a/c
)Sales a/c Oponing Balante 7olal amt owed to business
7rade re ceu' va bles ledger control ajc. by crediE cuslom eas he shrt ok e
I shows The T67AL_amt. owJed by periool
Cusomes lo Che b utns
pastular powt st lume Closing Balante It s the lol amuunt owed
tu lo busines by ca edlit cusLomes aend e
h po.2t of hom tnal/ qeneral Jeolg the peiocd
th. busineu wonts lo
Cnch ullomit at a
knowhow m.
owu parucular poin
 chssMte
Total sale made
oclit Sale on
caedit je khen a buuihes
,
Irretovera ble oleht enpense '-
twith.crelaecesving pfront pau.
Conktms that a n amount owed by
a
ent
Cus(omer, du sing the pertod
trom will
Cuslomen i irreoverab le, the busines
ok the r e ceu vable ameunt o l
a
wna
Soterest en Overodue mt 7hà à he
he inos
T chatgel b
autstard ble balant
Cnp ense n SoPL
Thu tn relkro redu tes 7RLCA
hc du odali 7his wrll reLult nafli,
1
everall iotrease Lo receivabe amt. Sales Relho- Groedls sold on credit u reluaned
i the cuslomes has o pay oullandngl back o thu redu cing lhe
brsihers,
amount plus intrest ) TRLCA
Sales Reliuen
Dut cnewt ed chegue -
kWhen creolt cuslomne CR
CR Trade Receivables ledger tontrol a/e
Poys in Chegut the chegue does n
clear, he amt, is s tll ou ed o bwtnen Cash Received from Creelit Caslomer twill Teduce
i t n Creal eds Teceivables. TRLCA
Reuipt ek Cheque of f200 Conba with Trade Payakle:
De. ash/Bonk 00 2 Aicth.
CA. 7ocle
Ane 15 Acth
tneeta Álso Ah
Receivable LCA 900
Check u not
cloared
They agreed lo set okf l s o Contra
De Trode receivahlo In acyustment
Net eke
Anela pays djith ftoo:
 Contrai k/hen a busines
Cuulome
both culoma
J o n e s Co. p rep ares monthly decet'vables/Nov
and
Stupplu'ed kor anothet blwun es, anu at aocs
o or ood
payab los ledge contro/ åccoun
Common balances buwed balances existed cn the entibes
will be Sel ohf
a Ch following
oecord
This u Called Con Tra adlyustmont. De
TRLCA $54,O0Do
TPLCA 43, ooo C
A owes 250 lo B. PBowes f/so A the hollotwing transaclns
tradethere s
During the year,
Dusing
f rom A s perspecuve, a
ook lace.
payahle 350 trode ze
cervo ble of f5o i Creolit sale 25, 00o
Both ksono same huinen B) hey twill enta Cash Sals 34,ooo
tnlo an agveement o sel ohk common balane (l) Credut purchases f77, ooo
o 3150 he remaining f100(050-/50) wrll Cash purchases 9,ooo
will have a Credit salu relum 1 , oO
be setlled betwande
trade payable of f/oo will have a vi)Csedit purchase Telivon 3ooo
recevable o ro0 vi Amt recuved krom Credit cuslomers a , ooo
viui) Dehonoured cheques 500
R8/lac32 TradePayables hedqer Centrol alc in)Amt paid o caedit suppkerr -f 74, 0o
)Carh distount reeived ooo
D Ce ai) dyecoverable elh l wnttem ohb t4oo0
TPLCA (Liability)
pening Bal. n) Jnnease in allowante lao00
Crecl i n reut charged en
Cees bomers
Purchase Retum CYedit purchase Kiv) Contre Setlemen oo
Cash paid to seppliess nt Callulol the balan tes On 1RLCA & TPLCA
rost charged,
Ovexue bal.
Contha w! receivable a o Ner. 20oS
Discount veteived
Clotng Lal.
 Aset )
Trade ecervable kedges Controt Account.
Paa&culaars Partiuulars.
Openng Bal ance 54,000 CashSalei-
Credit S ales 51,ooo Credit Sale relivn
Durenured cheg ue l,
Srtirut chasged
5o0
Amteceived Crdt
Cus tomex m 34a, ose
en cusbmers bal. lreeoverable
1,4oodbt wntlen o
Contra SetilemenbG
a578ct
3ob 9coo
COosing Balance
306 9

Trode Payable kcdger Contvol Alc. (iabii)

Portnlrs
Crcdit Purchase Partiulors
3000 pening Balone 43, oe
Return 77, oe

Ant pcid to supp liea 7h o0o

CTeditPuschases
Coh de ccunt re cei ved oo
Cento Sottlement &O0
79 &O0
Clnsing Polnce. 40, doo
ao, Ooo