Tiếng Anh chuyên ngành kế toán tài chính

LESSON 1 THE ACCOUNGTING EQUATION AND TRANSACTIONS THROUGH ‘DOUBLE ENTRY’ Trường ĐH Mở Hà Nội Trung tâm E Learning NỘI DUNG ÔN TẬP MÔN TACN KẾ TOÁN 1 (AC10) PHẦN 1 NỘI DUNG ÔN TẬP 1 Tóm tắt kiến thức mỗi bài 2 Bài tập mẫu PHẦN 2 BÀI TẬP THỰC HÀNH Tài liệu ôn tập Học liệu điện tử đã cung cấp ở lớp học trên LMS Bài giảng trực tuyến V class PHẦN 1 NỘI DUNG ÔN TẬP LESSON 1 THE ACCOUNTING EQUATION AND TRANSACTIONS THROUGH ‘DOUBLE ENTRY’ SUMMARY 1 The accounting equation Assets = Capital + Liabilities.

Trường ĐH Mở Hà Nội

Trung tâm E-Learning

NỘI DUNG ÔN TẬP MÔN: TACN KẾ TOÁN 1 (AC10)

PHẦN 1: NỘI DUNG ÔN TẬP

1.Tóm tắt kiến thức mỗi bài

2.Bài tập mẫu

PHẦN 2: BÀI TẬP THỰC HÀNH

 Tài liệu ôn tập:

- Học liệu điện tử đã cung cấp ở lớp học trên LMS

- Bài giảng trực tuyến

- V-class

PHẦN 1: NỘI DUNG ÔN TẬP

LESSON 1: THE ACCOUNTING EQUATION AND

TRANSACTIONS THROUGH ‘DOUBLE ENTRY’

SUMMARY

1 The accounting equation

Assets = Capital + Liabilities

2 Double-entry rules

Transaction effect Double-entry rule

Assets an increase Debit

3 Important points to remember from this lesson:

1 Book-keeping is the process of recording financial transactions in the books of abusiness

2 The accounting equation is Assets = Capital + Liabilities

3 Both sides of the accounting equation must always be equal

4 The accounting equation is expressed in the balance sheet, so the balance sheet shouldalways balance, i.e totals of both sides must be the same

5 The double entry system records transactions into a set of accounts show the doubleeffect of every transaction

6 An account is a separate record for each asset, liability and capital

7 The left-hand side of the ‘T’ accounts is called the debit side and the right-hand side iscalled the credit side

8 There are specific double entry rules for assets, liabilities and capital to show theirincreases and decreases.

9 There must be a debit entry and a corresponding credit entry of the same value (andvice-versa) for every transaction

10 Entries in accounts must show the date, description and the amount for eachtransaction

EXERCISES

Exercise 1:

Draw up the following table In the right-hand columns you should enter the names

of the accounts which are to be debited and credited respectively.

A Bought office furniture for cash

B Sold goods on credit to T Rich

C Bought motor vehicle on credit from L Wolfson & Co

D A debtor, R Price, pays the business by cheque

E The owner puts a further amount into the business by

Aug 1 Started business with £6,000 in the bank

“ 6 Bought a motor vehicle on credit from Elstead Garage for £2,800

“ 15 Purchased goods by cheque £420

“ 23 Bought office equipment on credit from Logmore & Sons for £370

Exercise 1:

A Bought office furniture for cash office

furniture

Cash

C Bought motor vehicle on credit from L Wolfson

& Co

motor vehicle

L Wolfson

& Co

D A debtor, R Price, pays the business by cheque Bank R Price

E The owner puts a further amount into the

business by cheque

F Paid by cheque for the motor vehicle bought

from L Wolfson & Co

L Wolfson

& Co

Bank

Explanations

Transaction effect Book-keeping action

A Increase of asset: office furniture

Decrease of asset: cash

debit office furniture accountcredit Cash account

B Increase of asset: debtor T Rich

Decrease of asset: goods

debit T Rich a/ccredit Cash a/c

C Increase of asset: motor vehicle

Increase of liability: creditor L Wolfson &

Co

debit motor vehicle a/ccredit L Wolfson & Co a/c

D Increase of asset: Cash

Decrease of asset: debtor R Price

debit cash a/ccredit R Price a/c

E Increase of asset: Cash at bank

Decrease of asset: Cash at bank

debit L Wolfson & Co a/c

credit Bank a/c

Exercise 2:

Aug 1 Increase of asset: Cash at bank

Aug 6 Increase of asset: motor vehicle

Increase of liability: creditor Elstead

Aug 6 Motor vehicle 2,800

Aug 15 Increase of asset: goods

Decrease of asset: Bank

Aug 23 Increase of asset: office equipment

Increase of Liability: Logmore & Sons

Dr office equipment £370

Cr Logmore & Sons £370

Office equipment

Aug 23 Logmore & Sons 370

Logmore & Sons

Aug 23 Office equipment 370

Aug 29 Decrease of Liability: Elstead Garage

Decrease of asset: Bank

Dr Elstead Garage £2,800

Cr Bank £2,800

Elstead Garage

LESSON 2: PURCHASES, SALES AND EXPENSES

SUMMARY

1 The purchases account is used to record the purchases of stock while the returnsinwards account is used to record goods returned by the business’s customers

account is used to record goods returned to suppliers by the business

are considered as purchases The purchases of other assets is not considered aspurchases

goods that were bought with the intention to resell

by cash or by cheque (bank)

not an expense of the business

EXERCISES

Exercise 1:

Record the following in appropriate accounts, using the rules of double entry.

Year 4

April 1 L Timms started in business with £5,000 in the bank

“ 3 Bought office equipment for £370 by cheque

“ 5 Paid rent by cheque £260

“ 8 Purchased goods on credit £420 from A Smart

“ 11 Returned goods to A Smart £35

“ 14 Drew from bank for office cash £130

“ 15 Paid wages in cash £115

“ 18 Sold goods on credit to R Squire £175

“ 24 Sold goods for cheque £85

Exercise 2:

You are required to enter the following transactions in the books of M O’Ryan:

Year 4

Aug 1 Started in business with £7,000 in the bank

“ 2 Paid rent by cheque £280

“ 5 Purchased goods on credit £520 from R Lester

“ 12 Returned goods to R Lester £45

“ 15 Sold goods on credit to D Langford £265

“ 19 M O’Ryan withdrew from bank for private use £160

“ 22 D Langford returned goods £30

“ 24 Drew from bank for office cash £240

“ 26 Paid R Lester by cheque the amount owing

“ 28 Received cheque £100 on account from D Langford

“ 30 Paid wages in cash £160

“ 31 Bought office equipment by cheque £215

Exercise 1:

* April 1 Transaction effect Book-keeping action

Increase of asset: Cash at bank debit Bank a/c £5,000 Increase of Capital credit capital a/c £5,000

* April 3 Transaction effect Book-keeping action

Increase of asset: office equipment debit office equipment a/c £370 Decrease of asset: Cash at bank credit Bank a/c £370

April 3 office equipment 370

* April 5 Transaction effect Book-keeping action

Increase of expense: Rent debit Rent a/c £260 Decrease of asset: Cash at bank credit Bank a/c £260

* April 8 Transaction effect Book-keeping action

Increase of asset: Goods for resale debit Purchases a/c £420

Increase of Liabilities: Creditor A Smart credit A Smart a/c £420

* April 11 Transaction effect Book-keeping action

Decrease of asset: Returns Outwards credit Returns Outwards a/c £35Decrease of Liabilities: Creditor A Smart debit A Smart a/c £35

April 11 Returns Outwards 35

* April 14 Transaction effect Book-keeping action

Decrease of asset: Cash at bank credit Bank a/c £130 Increase of asset: Cash in office debit Cash a/c £130

* April 15 Transaction effect Book-keeping action

Decrease of asset: Cash credit Cash a/c £115 Increase of expense: Wages debit Wages a/c £115

Wages

Cash

Year 4 £

* April 18 Transaction effect Book-keeping action

Decrease of asset: Goods credit Sales a/c £175 Increase of asset: Debtor R Squire debit R Squire a/c £175

* April 24 Transaction effect Book-keeping action

Decrease of asset: Goods credit Sales a/c £85 Increase of asset: Cash at bank debit Bank a/c £85

LESSON 3: BALANCING ACCOUNTS; THE DIVISION

OF THE LEDGER & BANK FACILITIESSUMMARY

1 Ledger accounts are usually balanced once a month When both sides of an accountare equal, the account is cloded off by writing in the totals

2. An account has a debit balance when the opening balance is on the debit side Thiswill occur where the total of the debit side is greater than the total of the credit side

3. An account has a credit balance when the opening balance is on the credit side Thiswill occur where the total of the credit side is greater than the total of the debit side

4. The running balance format of account is based upon the same double entry principle

as “T” accounts and shows the balance of the account after each transaction

5 The ledger is divided into separate ledgers, each of which records a certain type oftransaction

6 Accounts are classified to identify the nature of the entries they contain, e.g personalaccounts

7 The two main types of accounts are current accounts and deposit accounts Currentaccounts do not normally earn interest while deposit accounts do

8 Credit transfer, standing order and direct debit are methods of making paymentdirectly through the banking system

Cash

LESSON 4: THE TRIAL BALANCE; TRADING AND PROFIT/LOSS ACCOUNTS AND THE BALANCE

SHEET: MORE FEATURES

SUMMARY

1. The trading and Profit & Loss account is used to calculate profit (or Loss) for aspecific period of time, usually a year It has two sections: the trading account and theprofit & Loss account

2 Returns inwards is deducted from sales in the trading account

3. Returns outwards is deducted from purchases in the trading accounts

4. Carriage inwards is the cost of transporting goods from duppliers into the business It

is added to purchases in the trading account

5. Carriage outwards is the cost of delivering goods to customers It is shown as anexpense in the profit and loss account

6.Gross profit is the amount by which sales exceed cost of goods sold If cost of goodssold is more than sales this is a gross loss Gross profit/ loss is calculated in the tradingaccount

7.Net profit is the amount by which the gross profit or loss, plus any revenue other thansales, exceeds total operating expenses incurred during the period Where expensesincurred exceed the gross profit or loss, plus other revenues, this is a net loss Net profit/loss is calculated in the profit and loss account

8.The trading and profit & Loss account is part of the double entry system

9.To show the effect of profit/loss on capital, the net profit is transferred to the capitalaccount on the credit side Drawings are also transferred to the capital account on thedebit side

10. Net current asset is the difference between current assets and current liabilities

11. The balance sheet is not part of double entry system

12. The balance sheet show assets on the left-hand side and capital and liabilities on theright hand side

13. Assets are grouped as fixed assets or current assets Fixed assets are listed indescending order of permanence and current assets are listed in increasing order of

14.Liabilities are grouped as either long-term liabilities or current liabilities Currentliabilities are those that are due for payment within one year and long-term liabilities arethose amounts payable in more than one year.

Exercise 1:

At 31 August Year 4, F Flinton had accounts balances as below:

Stock at 1 September Year 3 £2,520

2 Draw up a trading and profit and loss account in case Closing stock is at £2,120

3 Draw up a complete balance sheet for F Flinton at 31 August Year 4

Exercise 2:

At 30 June Year 5, A Dobbs had accounts balances as below:

Stock at 1 July Year 4 £2,620

2 Draw up a trading and profit and loss account in case Closing stock is at £1,870

3 Draw up a complete balance sheet for A Dobbs at 30 June Year 5

Opening stock 2,520 Sales 45,220

Purchases 20,400 less Returns inwards 1,055

- Returns outwards 930 19,470

21,990

Opening stock 2,620 Sales 67,310

Purchases 22,500 less Returns inwards 1,080

LESSON 5: CASH BOOK: TWO COLUMNS AND THREE

COLUMNS

SUMMARY

1 The cash book is a combination of the cash accont and the bank account It showscolumns for cash and bank on both sides

2. The cash book is a book of original entry and also part of the double entry records

3. A cash discount is given to encourage prompt payment Discount received anddiscount allowed are cash discounts

4. Discount received is an income and discount allowed is an expense

5. The three-column cash book incorporates columns for discount allowed and discountreceived on either side The discount columns are not part of the double entry

6. Discount columns are totalled at the end of the month

The following are his transactions for the month of June year 3

June 3 Received a cheque of £1,350 from D Pole in full settlement of debt of

£1,365

“ 5 Cash sales £3,300; banked the same day a third of that amount

“ 7 Withdrew £110 cash for his private use

“ 11 Withdrew £420 from bank to make cash in office

“ 12 Cash sale £1,660, in which £660 was received in cash

“ 16 Sent cheque £1,023 to C Hill in settlement of a debt of £1,051

“ 23 Paid £412 in cash to A Dobbs in settlement of a debt of £420

“ 29 Received £317 in cash from E Lawler in settlement of a debt of £325

The following are his transactions for the month of May year 4

May 3 Received a cheque of £1, 200 from A Smart in full settlement of debt of

£1,212

“ 5 Cash sales £2,200; banked the same day a half of that amount

“ 12 Cash sale £1,410, in which £410 was received in cash

“ 16 Sent cheque £1,023 to T Merry in settlement of a debt of £1,041

“ 27 Paid £442 in cash to A Dobbs in settlement of a debt of £450

Bank(£)

Date Account

name

Discountreceived(£)

Cash(£)

Bank(£)

Bank(£)

Date Account

name

Discountreceived(£)

Cash(£)

Bank(£)

LESSON 6: DAY BOOKS: SALES AND RETURNS DAY

BOOKS

SUMMARY

1 Cash sales and purchases are not entered in the day books

2 When goods are sold on credit , the seller sends an invoice to the buyer; to the seller it

is a sales invoice and to the buyer it is a purchases invoice

3 A trade discount is a reduction in the list prices of goods; trade discount is notrecorded in the accounts Cash discount is recorded in the accounts

4 The sales and purchases day books are not part of the double entry system; they arejust a listing of the credit transactions for the month

5 The returns day books are not a part of the double entry system; they are just a listing

of the returns inwards and outwards for the month

Exercise 1:

From the following details you are required to

a enter the transactions in the sales and returns inwards day books;

b post the items to the relevant accounts in the sales ledger; and

c record the transfer to accounts in the general ledger at the end of the month

Year 2

Sep 2 Credit sales to F Bloom £236

“ 4 Credit sales to T Francesa £370

“ 7 Goods returned to us by F Bloom £56

“ 14 Credit sales to T Francesa £284

“ 25 Goods returned to us by T Francesa £24

Exercise 2:

From the following details you are required to

a) enter the transactions in the purchases, sales, returns outwards and returns inwardsday books;

b) post the items to the relevant accounts in the purchase and sales ledgers; andc) record the transfer to accounts in the general ledger at the end of the month

Year 8

Jan 1 Credit sale to K Devine at list price of £320, subject to 10% trade discount

“ 3 Credit purchase from S Letts at list price of £530, subject to 15% tradediscount

“ 6 K Devine returned to us goods bought on Jan 1 with a list price of £50

“ 9 Credit sale to P Starkey at list price of £360, subject to 15% trade discount

“ 12 Returned to S Letts goods bought on Jan 3 with a list price of £60

“ 15 Credit sale to K Devine at list price of £260, subject to 10% trade discount

“ 18 Credit purchase from P Boyle £80

“ 26 Returned goods to P Boyle £17