Advanced financial accounting - Lecture 3: Single entry (Conversion method)

Advanced financial accounting - Lecture 3: Single entry (Conversion method). The main topics covered in this chapter include: necessary documents required in conversion method; cash book; total debtors account; total creditors account; statement of affairs relating to opening date; year end adjustment;... Please refer to the lecture for details!

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Discount allowedBad debts 

Sales return Closing balance

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Owner’s equity/Net  Assets (Balancing  figure)

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It includes various adjustments relating to previous year.   

Company Name  Income Statement  For the year ended ­­­­­­­

Purchase xxx 

Cash  xxx

Receipts  Amount  Payment  Amount 

Cash purchases  xxx

Decrease in Creditors Amount  Increase in Creditors Amount 

Credit purchase  xxx

Closing stock information is available at year end  balance sheet.

Cash Account &  Year end 

adjustment  

1. Incomes based on cash

2. Incomes relating to payables 

3. Incomes relating to fixed assets

Discount received 

Journal Entry  Creditors xxx         Income xxx

Profit on disposal of an Assets.