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New PDF release: Accounting for Business Studies

By Aneirin Sion Owen

ISBN-10: 0080489958

ISBN-13: 9780080489957

ISBN-10: 0750658347

ISBN-13: 9780750658348

Companies are complicated, and, for this reason, lecturers face a tricky activity constructing scholars' realizing of the way they paintings, in particular within the international context. Accounting for company stories is helping lecturers concentrate on smooth advertisement matters and integrates accounting into company and administration stories. This ebook comprises: * A enterprise viewpoint instead of an accounting standpoint * e-business, together with case experiences * Globalisation, together with case reports * company talents, like interpretation, research and verbal exchange * IT built-in into particular enterprise occasions * comprises versions akin to Porter's 5 Forces, provide Chain, Product existence Cycle * A company point of view instead of an accounting point of view * e-business and globalisation, together with case stories * enterprise talents, like interpretation, research and conversation

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You may have been tempted by profit. Profit is owed to the owner so it is, in fact, a liability. The answer is petty cash which, being a type of cash, must be an asset. 3 Expenses Wages is a good example of an expense. The answer cannot be purchases, because a company cannot buy people to sell at a profit. 4 Debtors If a debtor settles an outstanding account, the amount the company is owed must decrease. 5 Creditors Credit purchases always leads to creditors. If a company buys goods, and does not pay immediately, it owes the supplier for the goods.

2. Prepare a trial balance up to 30th March 20X0 (see the pro forma below). 3. Calculate the gross profit for the month of March (assume stock is zero). 4. Calculate the net profit for March. Tip: Gross profit ¼ sales less purchases Net profit ¼ gross profit less expenses 43 Accounting for Business Studies Mr. H. Bean Winesellers continued Pro Forma Ref. Type Income Expenditure Assets Liabilities Sales Other Purchases Expenses Equip. Stock Debtors Cash Capital Creditors 1 Start up 5000 5000 2 Cash purchase 200 3 Credit purchase 1200 4 Cash sale 800 5 Credit sale 1200 6 Rent 7 Cash register 8 Wages 9 Purchase credit À200 1200 800 1200 À955 955 1200 1200 À780 780 5920 10 Cash from debtors 11 Purchase credit 12 Payment creditors 13 Cash purchase 14 Credit purchase 15 Cash sale 16 Credit sale 17 Payment creditors 18 Cash from debtors 5920 À1200 1200 1650 1650 À750 À750 Total Profit START HERE Mr.

Stock adjustment; . Depreciation adjustment; . The transfer of profit to capital. Introduction I f a company is making a profit, capital will increase year on year. At the end of every financial year businesses need to know: . How much profit has been earned during the year; . The particular assets and liabilities of the business; . The amount of capital invested in the business. Importance of YEAs To calculate these, three special year end procedures have to be carried out, as follows: . Stock count, .

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Accounting for Business Studies by Aneirin Sion Owen

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