ACCA考试《F3财务会计》讲义辅导26
ACCA考试《F3财务会计》讲义辅导25
ACCA考试《F3财务会计》讲义辅导25本文由高顿ACCA整理发布，转载请注明出处16.3 Rights issue and bonus issue●Rights issue:The offer of new shares to existing shareholders in proportion to their present shareholding at a stated share price ( normally below market values)The advantages are:- A rights issue is the cheapest way for a company to raise finance through the issuing of further shares.- A right issue to existing shareholding has a greater chance of success compared with a share issue to the public.The disadvantages are:- A right issue is more expensive than issuing debt.- It may not be successful in raising the funds required.A right issue is accounted for in the same way as a normal share issue.●Bonus issue:The issue of new shares to existing shareholders in proportion to their existing shareholding. No cash is received from a bonus issue.The advantages are:- issued share capital is divided into a large number of shares, thus making the market value of each share less, and so more marketable.- Issued share capital is brought more into line with assets employed in the company.The disadvantages are:- the admin costs of making the bonus issue.As no cash is received from the bonus issue, the issues must be funded from reserves. Any reserves can be used, though a non-distributable reserve such as the share premium account would be used in preference to reserves which can be distributed.Dr. Share premium Nominal value(Or other reserves)Cr. Share capital Nominal valueExample: Rich T is a limited liability company with 200,000 25c shares in issue. At 1 January the balance on the share premium account is $75,000. The following transactions occur in the year ended 31 December 2006:31 January There is a fully taken-up 2 for 5rights issue. The issue price is $1.80.12 August There is a 1 for 10 bonus issue made using the share premium account.What are the balances on the share capital and share premium accounts on 31 December 2006?SC SP$000$000A.308111B.7784C. 15493D.77192Solution:Statement of financial position$Capital reservesShare capital- 25c ordinary shares77,000 Share premium 192,000Accumulative profit XWorking:Rights issued：(200,000/5) x 2 = 80,000 new sharesProceeds: 80,000 x 1.80 = 144,000Nominal value：80,000 x 25c = 20,000更多ACCA资讯请关注高顿ACCA官网：。
ACCA考试《F3财务会计》讲义辅导1
ACCA考试《F3财务会计》讲义辅导1本文由高顿ACCA整理发布，转载请注明出处10.3 From trial balance to financial statementsExample:The trial balance of Tyndall at 31 May 20x6 is as follows:Trial balance of Tyndall at 31 May 20x6$$Capital account15,258Drawings by proprietor5,970Purchases73,010Return inwards1,076Return outwards3,720 Discounts1,870965 Credit sales96,520 Cash sales30,296 Customs duty11,760Carriage inwards2,930Carriage outwards1,762Salesman’s commission711Salesman’s salary3,970Office salaries7,207Bank charges980Loan interest450Light and heat2,653Sundry expenses2,100Rent3,315Insurance4,000Printing and postage2,103Advertising1,044Irrecoverable debts1,791Allowance for receivables437 Inventory7,650Receivables10,760Payables7,411 Cash at bank2,634Cash in hand75New delivery van (less trade-in) 2,200Motor expense986Furniture and equipment:Cost8,000Depreciation at 1 June 20x52,400Old delivery van:Cost2,000Depreciation at 1 June 20x51,000Loan account at 9%(repayable in five years)______ 5,000163,007 163,007The following information is relevant:1.Closing inventory has been valued for accounts purpose ta $8,490.2.The motor van was sold on 31 August 20x5 and traded in against the cost of a new van.The trade-in price was $1,400 and the cost of the new van was $3,600.No entries have yet been made for this transaction apart from debiting the $2,200 cash paid to the NewDelivery van account.3.Straight- line depreciation is to be provided on a monthly basis at the following annualrates:Motor vans 25%Furniture and equipment10%4.Past experience indicates that an allowance for receivables should be made equivalent to 5% if the closing receivables.5.An accrual of $372 is required in respect of light and heat.6.A quarter’s rent to 30 June 20x6 amounting to $900 was paid on 2 April20x6.InsuranceFor the year to 31 March 20x7 amounting to $1,680 was paid on 16 April.Prepare an income statement and a balance sheet for the year ended 31 May 20x6.Solution:Step 1 InventoryThe closing inventory figure of $8,490 must be included in the financial statement.The accounting journal is:Dr. Inventory (B/S)$8,490Cr. Inventory ( Cost of sales in I/S) $8,490Step 2 Non-current assets and depreciationAs well as calculating the depreciation for the year, we must also deal with the part-exchangeof the van during the year.Depreciation of van from 1 June 20x5 to 31 August 20x5:Cost $2,000 x 25% x 3/12 = $125Disposal of van:The van has been part-exchanged against the cost of a new van.The trade-in value of $1,400 is equivalent to the disposal proceeds of the van. The new vanhas a total cost of $3,600 consisting of $1,400 trade-in allowance and $2,200 cash.The double entry to record the disposal is:Dr. Delivery van accumulated depreciation account ($1,000+125) $1,125Dr. New delivery van cost account1,400Cr. Delivery van cost account$2,000Cr. Profit on sale of asset$525This can be shown in the disposal account as follows:Don’t forget to add on the depreciation for the first three months of the year when you arecalculating the profit on disposal.Note that this question specifically requires monthly depreciation. Some questions may statethat there is no depreciation in the year of acquisition or year of disposal of an asset. Makesure you read the question carefully.Depreciation of van from 1 September 20x5 to 31 May 20x6:Cost $3,600 x 25% x 9/12= $675The total depreciation for the year for delivery vans is $800.Depreciation on furniture and equipment:Cost $8,000 x 10% = $800.Step 3 Irrecoverable debtsThe TB shows us that:●$1,791 has been written off in the year for irrecoverable debts and●The balance on the allowance for receivables is $437.The closing allowance should be 5% of closing receivables.$ 10,760 x 5% = $538The charge to the income statement is the movement between the opening and closing allowance.$538 - $437 = $101 increase in the allowance which is debited to the income statement.The double entry to record this transaction is:Dr. Irrecoverable debts expense $101Cr. Allowance for receivables$101The charge in the income statement for irrecoverable debts will amount to $1,892 including the debt already written off ($1,791 + $101).Step 4 Light and heat$372 needs to be accrued for light and heat expenses. The double entry is:Dr. Light and heat expense $372Cr. Current liability$372This journal entry ensures that the business has recorded all of its expenses in the period.Step 5 RentThe rent has been paid in advance and part of the payment relates to the next accounting period. This must be taken out of expenses for the current period and shown in the balance sheet as a prepayment.Rent prepaid ( 1/3 x $900) = $300Step 6 InsuranceInsurance has also been paid in advance and must be adjusted.Insurance prepaid 10/12 x $1,680 = $1,400Step 7 Prepare the income statement and balance sheet更多ACCA资讯请关注高顿ACCA官网：。
ACCA考试《F3财务会计》讲义辅导19
ACCA考试《F3财务会计》讲义辅导19本文由高顿ACCA整理发布，转载请注明出处14.4 Material errors (IAS 8)A.errors discovered during the current period which relate to a prior period may arise through:- mathematical mistakes- mistakes in the application of accounting policies- misinterpretation of facts- oversight- fraudB.adjustment- Most of the time, these errors can be corrected through net profit or loss for the current period.- The amount of the correction of the material error that relates to prior periods should be reported by adjusting the opening balance of related retained earnings.- This treatment means that the financial statements should appear as if the material error had been corrected in the period it was made.C.Disclosure policy1)Nature of the material error2)Amount of the correction for the current period and for each prior period presented.3)Amount of the correction relating to periods prior to those included in the comparative information.4)The fact that comparative information has been restated or that it is impracticable to do so.Example:What is a journal used for?A.To correct errorsB.To correct errors and post unusual transactionsC.To correct errors and clear suspense accountD.To make adjustments to the double entryAnswer D:Although A, B and C are correct as far as they go, they donot cover everything.D is the most comprehensive answer.Example:Sales returns of $460 have inadvertently been posted to the purchase returns, although theCorrect entry has been made to the accounts receivables control. A suspense account needs to be set for how much?A.$ 460 DebitB.$ 460 CreditC.$ 920 DebitD.$ 920 CreditAnswer CThe sales returns of $460 have been credited to accounts receivables and also $460 had been credited to purchase returns. Therefore the trial balance needs a debit of 2 x $460 = $920 to balance.更多ACCA资讯请关注高顿ACCA官网：。
ACCAF3考试重要知识点和考点梳理
ACCA F3考试重要知识点和考点梳理考察形式1.选择题：2’*35=70’。
包括文字题和计算题。
2.大题：15’*2=30’。
通常是编制两张报表，即SFP，P&L，CFS，CSFP，CP&L，四选二，但是，报表题目也可能以小题的形式出现在选择题，即考查编制报表时的各个working。
知识梳理及重要考点F3，financial accounting, 整本教材的编制顺序，遵照账务处理顺序，如下所示：Chapter1-4：介绍财务会计基础知识。
（1）会计做账主体为企业，即business。
（2）Sole trader, partnership和Limited liabilitycompany各自的特点。
（3）Financial accounting和management accounting的区别。
（4）Accounting equation（5）7种book of prime entry（6）会计5要素及做账原则，即借贷方表示增/减。
（7）Balancing and closing of T accountChapter5-13：常见账户的会计处理，即double entry。
（1） Chapter 5：Returns, discounts and sales tax。
本章主要考查trade discount和early settlement discount的会计处理及这两种折扣情况下如何计算sales tax，即均以折扣后的净值作为计税基础。
而sales revenue的金额，对于trade discount，以折扣后净值确认，对于early settlementdiscount则以折扣前的总数确认；sales tax liability的计算，即output tax减去input tax。
（2）Chapter 6：Inventory。
本章主要考查valuation of inventory，即lower of cost and NRV；adjustment of openingand closing inventory。
F3-Chapter 1
ACCA ACCA 特许公认会计师公会F3-Financial Accountting主讲老师：Martin Wang一、课程介绍总共26章，财务会计的入门课程，全面讲解财务会计的理念与基础知识。
后续课程有F7&P2。
一、课程介绍二、考试介绍时间：2014年6月10日下午15点考试：2小时形式：全英文，选择题（每题2分），50分及格 2013年12月考试通过率：57%备考时间：14周授课计划：6+2复习计划：。
三、学习方法建议1、课后复习2、相关习题3、制定好学习及复习计划，打好基础，前紧后松不慌张。
4、考前模拟，练好考试状态；考试时仔细审题章节目录CONTENTS PAGE02 The main financial statements 03 Nature of FR Chapter1 Context & purposes of FR01 The purpose of financial reporting04 Users 05 Governance一、学习目标•Define financial reporting and understand the nature, principles and scope of financial reporting.•Identify and define the different business entities of: sole trader, partnership and limited liability company and recognise the legal differences between them. •Identify the advantages and disadvantages of operating as each of the three types of business entity.•Identify the users of financial statements and state and differentiate between their information needs.•Understand and identify the purpose of each of the main financial statements. •Define and identify assets, liabilities, equity, revenue and expenses.一、学习目标(Continued)•Explain what is meant by governance specifically in the context of the preparation of financial statements.•Describe the duties and responsibilities of directors and other parties covering the preparation of financial statements.二、知识结构第1章What is a business?•A business of whatever size or nature exist to make a profit.Types of business entity•Sole traders – refers to ownership, sole traders can have employees •Partnerships– two or more people working together to earn profits •Limited liability company – owners have liability limited to the amount they pay for their shares•A limited liability company has a separate legal identity from its owners. •Advantages and disadvantages of the above types of businesses.•Financial reporting is a way of recording, analysing and summarising financial data.•Financial data is the name given to the actual transactions carried out by a business eg sales of goods.•Financial data is recorded in the book's of prime entry. •Transactions are analysed in the books of prime entry and the totals are posted to the ledger accounts.•The transactions are summarised in the financial statements.认识财务报表：资产负债表认识财务报表：利润表•Asset = Liability + Equity•Sales revenue – Cost= Profit•Closing equity=opening equity+sales-cost(expense) •Asset+cost(expense)=Liability + Equity+sales•The statement of financial position is a list of all the assets owned and all the liabilities owed by a business at a particular date.•An asset is a resource controlled by an entity as a result of past events and from which future economic benefits are expected to flow to the entity.•A liability is a present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits.•Equity is the residual interest in the assets of the entity after deducting all its liabilities.—Always headed ‘as at’, for the date of the statement of financial position.—Non-current assets - assets held and used in the business over the long-term (i.e. more than one year).—Current assets - not non-current assets! Conventionally listed in increasing order of liquidity (i.e. closeness of assets to cash).The statement of financial position is a snapshot of the business at one point in time.•An income statement is a record of income generated and expenditure incurred over a given period.•Income is increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other than those relating to contributions from equity participants.•Expenses are decreases in economic benefits during the accounting period in the form of outflows or depletions of assets or incurrences of liabilities that result in decreases in equity, other than those relating to distributions to equity participants.An income statement for a sole trader will have the following key features:— Headed up with the period for which the income and expenses are being included.— The top part is the trading account which records sales, less cost of sales, to arrive at the gross profit.— Expenses (rent, electricity, wages and salaries etc) are deducted from the gross profit to arrive at the profit for the year.Profit is the excess of total income over total expenditure.Users of Financial Statements •Managers of the company •Shareholders of the company •Trade contacts•Providers of finance to the company •Taxation authorities •Employees of the company •Financial analysts and advisors •Government and their agencies •The publicFinancial accounting and management accounting•Financial accounting and management accounting are different: •Financial Accounting is mainly a method of reporting the financial performance and financial position of a business.•Management Accounting is a mgt info sys which analyses data to provide info asa basis for managerial action.GovernanceThe system by which companies and other entities are directed and controlled .DirectorsMain aim – to create wealth for shareholders.Have a duty of care to show reasonable competence; may have to indemnify the company against loss caused by their negligence.Are in a fiduciary position in relation to the company which means that they must act honestly in what they consider to be the best interests of the company and in good faith.Are responsible for the preparation of the financial statements of the company.让我们一起为明天拼搏……感谢您选择高顿财经. 本章结束！。
ACCA考试《F3财务会计》讲义辅导22
ACCA考试《F3财务会计》讲义辅导22本文由高顿ACCA整理发布，转载请注明出处15.3 Reconstruction of financial statementsWhere limited financial information has been kept, it is possible to reconstruct the financial statements in full.The technique:●Use of ledger accounts to find a balancing figure●Use of cost structure (ratios)Using ledger accounts to find missing figures (the balancing figure approach)It is used in Ledger accounts: i.e.- Receivables- Payables- Cash at bank(hand)to find missing figures in the relevant ledger account factors.●Sales(Receivables) ledger control accountExample:Suppose that opening receivables for B Rubble’s business are $30,000. There have been total receipts from customers of $55,000 of which $15,000 relates to cash sales and $40,000 relates to receipts from receivables. Discounts allowed in the year totaled $3,000 and closing receivables were $37,000.What are total sales for the year?A.$65,000B.$50,000C.$47,000D.$62,000Solution: is ASales = Credit sales + Cash sales= 50,000 + 15,000= 65,000●Purchase (payables) ledger control accountThe opening payables of Dick Dastard-Lee’s business are $15,000. Total payments made to suppliers during the year were $14,000. Discounts received were $500 and closing payables were $13,000.What are total purchases for the year?A.$16,500B.$16,000C.$12,000D.$12,500Solution is D●Cash in hand (bank) accountOn Jan 1 20x9, Simon’s bank account is overdrawn by $1,367. Payments in the year totaled$8,536 and on 31 December the closing balance is $2,227. What are total receipts for the year?A.12,900B.14,900C.13,100D.12,13000:22:54.Solution is DUsing cost structure to find missing figuresIn some instances insufficient information is given to reconstruct both control accounts in full.Two types of cost structure may be used:●Gross profit margin●Mark-upGross profit can be expressed as a percentage of either sales or cost of sales:●Gross profit margin = (Gross profit/ sales) * 100%●Mark up = ( Gross profit / COGS) *100%Example 1:Pad has sales of $1,000, Cost of Sales is 800, Gross profit is 200.The gross profit margin is 200/1000 = 20%The mark up is 200/800 = 25%Example 2:Jack Spratt provides the following information about his business: Margin20%Sales$100,000Opening inventory$10,000Purchases$82,000Closing inventory after fire$3,000What is the cost of inventory lost in the fire?A.$12,000B.$9,000C.$69,000D.$5,667Solution: B(Sales – COGS)/ Sales = 20%(100,000 – COGS)/100,000 = 20%COGS = 80,000Opening Inventory + Purchase – Closing Inventory = COGS10,000 + 82,000 – Closing inventory = 80,000Closing inventory = 12,00012,000-3,000= 9,000更多ACCA资讯请关注高顿ACCA官网：。
ACCA考试《F3财务会计》辅导
ACCA考试《F3财务会计》辅导本文由高顿ACCA整理发布，转载请注明出处17.2 Format of a Statement of cash flowsStandard headingsIAS7 requires a Statement of cash flows to be presented using standard headings:(1)Cash flows from operating activities(2)Cash flows from investing activities(3)Cash flows from financing activitiesProforma Statement of cash flowsStatement of cash flows for the period ended…$000$000Cash flows from operating activitiesCash generated from operation2,550Interest paid (270)Preference dividends paid (300)Income taxes paid(420)Net cash from operating activities1,560Cash flows from investing activitiesPurchase of property, plant and equipment(900)Proceeds of sale of equipment20Interest received200Dividend received200Net cash used in investing activities (480)Cash flows from financing activitiesEquity dividend paid(200)Proceeds from issuance of share capital1,210Repayment of loans(2,000)Net cash used in financing activities (990)Net increase in cash and cash equivalent90Cash and cash equivalent at the beginning of the period120Cash and cash equivalent at the end of the period210Key points:- Operating activities: are the principal revenue-generating activities of the business.- Investing activities: are cash spent on non-current assets, proceeds of sale ofnon-current assets and income from investment.- Financing activities: include the proceeds of issue of shares and long-termBorrowing made or repaid.- Cash: included deposits and overdrafts that are repayable on demand.- Cash equivalents: are short term, highly liquid and risk free investments that can be easily converted into known amounts of cash, such as term deposits and government bonds.更多ACCA资讯请关注高顿ACCA官网：。
ACCA考试《F3财务会计》讲义辅导6
ACCA考试《F3财务会计》讲义辅导6本文由高顿ACCA整理发布，转载请注明出处11.5 Ledger accounts and the division of the ledgerThe general ledger contains all accounts or a summary of all accounts necessary toproduce the trial balance and financial statement.The accounts receivable ledger contains an account for each credit customer to show how much each one owes; An account to summarize this information, the Sales Ledger control account, is normally contained within the general ledger.The accounts payable ledger contains an account for each credit supplier to show howmuch they are owed; An account to summarize the information, the purchase ledger control account, is normally the case that the control accounts form part of the double entry.Where there are individual accounts in a receivables or payables ledger and a control account in the general ledger, only one can form part of the double entry system. The other exists for memorandum purposes. It is normally the case that the control accounts form part of the double entry.更多ACCA资讯请关注高顿ACCA官网：。
ACCA考试《F3财务会计》讲义辅导30
ACCA考试《F3财务会计》讲义辅导30本文由高顿ACCA整理发布，转载请注明出处Session 17 Statement of cash flowsMain Contents:1.Need for a statement of cash flows2.Format of cash flow statement3.Cash generated from operations4.Cash from financing activities5.Cash from investing activities17.1 The need for a Statement of cash flows●Profit and liquidity:Profit reported in the Income Statement is calculated using the accrual concept.The profit for the year represents the increase in the net assets during the year, but it does not represent the increase in cash. It may be “tied up” in other assets, e.g.- NCA may have been purchased.- There may be an increase amount of receivables.- There may be increased investment in inventory.- The liabilities may have decreased.Important to know:- How much profit a business is making.Equally important to know:- How much cash is generating.- How the cash is being used.●The benefits of a Statement of cash flows:It helps to:- Provide additional information on business activities- Assess the current liquidity of the business- Allow the user to see the major types of cash flows and out of the business- Estimate future cash flows- Determine cash flows generated from trading transactions rather than other cash flows●The drawbacks of a Statement of cash flows:- Statement of cash flows is backward looking. Users of the accounts are particularly interested in the future.- No interpretation of the Statement of cash flows is provided within the accounts. Users are required to draw their own conclusions as to the relevance of the figures contained within it.- Non-cash transactions are not highlighted on the face of the Statement of cash flows. These are of interest to users as they will impact future cash flows.更多ACCA资讯请关注高顿ACCA官网：。
ACCA F3
Course Notes 2016 Exams September 15 – June 17 ACCAPaper F3 - 双语讲义Financial Accounting财务会计Tutor details171 Introduction to accounting1 IntroductionK EY TERMAccounting is the process of recording, analysing, summarising and communicating financialinformation.The objective of financial reportingTo provide information about the financial position, performance and changes in financialposition of an enterprise that is useful to a wide range of users in making economicdecisions.Financial Statements consist of:Statement of Financial Position (or the Balance Sheet)Statement of Profit or Loss and Other Comprehensive Income (or the Income Statement)Statement of Cash FlowsAll of these will be covered in more detail later.171会计简介1 简介关键术语会计指记录、分析、汇总和传达财务信息的过程。
财务报告目标提供与企业财务状况、经营成果和财务状况变动等有关的信息，有助于财务会计报告使用者作出经济决策。
财务报表包括：财务状况表（或资产负债表）损益和其他综合收益表（或利润表）现金流量表下文将进行详细讲解。
特许公认会计师(ACCA) F3财务会计考试讲义
Session 1☆Types of business entityA business can be organized in one of the several ways:●Sole trader – a business owned and operated by one person.The simple form of business is the sole trader. This is owned and managed by one person, although there might be any number of employees. A sole trader is fully personally liable for any losses that the business might make.●Partnership – a business owned and operated by two or more people.A partnership is a business owned jointly by a number of partners. The partners are jointly and severely liable for any losses that the business might make.（Traditionally the big accounting firms have been partnerships, although some are converting their status to limited liability companies.）●Limited Liability Company– a business owned by many people and operated by many （ though not necessarily the same） people. Companies are owned by shareholders. Shareholders are also known as members. As a group, they elect the directors who run the business. Companies are always limited companies.In summary, types of business entity should be differentiated in Ownership; Operation right and Liability for the business to undertake.For all three types of entity, the money put up by the individual, the partners or the shareholders, is referred to as the business capital. In the case of a company, this capital is divided into shares.☆Business Transactions: Main types of business transactions for a business include:●Purchase of inventory for resale●Sal es of goods●Purchase of non-current assets●Payment of expenses●Introduction of new capital to the business●Withdrawal of funds from the business by the owner☆Cash and credit transactions:Cash transactions: the buyer pays for the item immediately or possibly in advance.Credit transactions: the buyer does not have to pay for the item on receipt, but is allowed some time （ a credit period） before having to make the payment.☆Definition of accountingRecording : transactions must be recorded as they occur in order to provide up-to-date information for management.Summarizing: the transactions for a period are summarized in order to provide information about the company to interested parties.☆Types of accountingFinancial accounting vs management accountingFinancial accounting Cost and management accountingPurpose Record financialtransactionsInformation of costof operationsLegal requirement Limited liability company,by law, prepare financialaccountsNo legal requirementto prepare managementaccountsMain user External InternalTime At the end of period regularlyInformation historic historic and forecast☆Users of financial statementsAccounting reports users include:●Management: Need information about the co mpany’s financial situation as it is currently and it is expected to be in the future. This is to enable them to manage the business efficiently and to make effective decisions.●Investors:The providers of risk, capital and their advisers are concerned with the risk inherent in, and return provided by, their investments. They need information to helpthem determine whether they should buy, hold or sell.●Trade payables/ Suppliers: Suppliers and other trade payables. Suppliers and other trade payables are interested in information that enables them to determine whether amounts owing to them will be paid when due. Trade payables are likely to be interested in an enterprise over a shorter period than lenders unless they are dependent upon the continuance of an enterprise as a major customer.●Shareholders: Shareholders are also interested in market value of shares as well as information which enables them to assess the ability of the enterprise to pay dividends.●Lenders: Lenders are interested in information that enables them to determine whether their loans, and the interest attaching to them, will be paid when due.●Customers: Customers have an interest in information about the continuance of an enterprise, especially when they have a long term involvement with or are dependent on, the enterprise.●Government and their agencies:Governments are their agencies are interested in the allocation of resources and, therefore, the activities of enterprises. They also require information in order to regulate the activities of enterprises, determine taxation policies and as the basis for national income and similar statistics.●Employees: Employees and their representative groups are interested in information about the stability and profitability of their employers. They are also interested in information which enables them to assess the ability of the enterprise to prove remuneration, retirement benefits and employment opportunities.●General public:Enterprises affect members of the public in an variety of ways. For example, enterprises may make a substantial contribution to the local economy in many ways including the number of people they employ and their patronage of local suppliers. Financial statements may assist the public by providing information about the trends and recent developments in the prosperity of the enterprise and the range of its activities.☆The business entity conceptThe business entity concept●States that financial accounting information relates only to the activities of the business entity and not to the activities of its owner.●The business entity is treated as separate from its owners.Session 8 Irrecoverable debts and allowancesMain contents:1.Irrecoverable debts2.Allowance for receivables3.Accounting for irrecoverable debts and receivable allowances8.1 Irrecoverable debts●Trade receivables:A trade receivable is a customer who owes money to the business as a result of buying goods or service on credit.●Accruals concept:The accruals concept requires a sale to be included in the ledger accounts at the time that it is made.Credit sales are claimed when the sale is invoiced.The double entry at theinvoice date will be:Dr. Cr.Receivables xxSales xxWhen the customer eventually settles the invoice the double entry will be:Dr. Cr.Cash xxReceivables xxProblems: collecting the amounts owing from customersReasons: bankruptcy, fraud or disputes●Prudence concept:The prudence concept requires some adjustment to reflect the actual or potential loss arising from unpaid debts.●Irrecoverable debt:A debt which is considered to be uncollectible.- Highly unlikely that the amount owed will be received.- Written off by writing it out of the ledger accounts completely.●Accounting for irrecoverable debts- It is prudent to remove the irrecoverable debts from the accounts and to charge the amount as an expense for irrecoverable debts to the I.S.- The original sales remains in the accounts as this did actually take place.Dr.Irrecoverable debts expense xxCr.Receivables control account xxExample:Arctic Co.have total accounts receivable at the end of their accounting period of $45,000.Of these it is discovered that one, Mr.X who woes $790, has been declared bankruptcy, and another who gave his name as Mr.Jones has totally disappeared owing Arctic Co.$1,240.Write up the ledger accounts to reflect the writing off these debts as irrecoverable.Solution:Dr.Irrecoverable debts expense 2,030Cr.Receivables control account 2,030●Accounting for irrecoverable debts recoveredIrrecoverable debts are receivedWhen an irrecoverable debt is recovered, the accounting entry is:Dr.Cash xxCr.Irrecoverable debt expense xxExample:At 1 October 20x6 a business had total outstanding debts of $8,600.During the year to 30 September 20x7: Credit sales amounted to $44,000; Payments from various debtors amounted to $49,000; Two debts, for $180 and $420（both including sales tax）were declared irrecoverable.After the debts was written off, the payment is received before the end of the period, now what journal entry to prepare for the recovery of payment?Dr.Cash 600Cr.Irrecoverable debt expense 6008.2 An allowance for receivables:●Allowance for receivables is an estimate of the percentage of debts which are not expected to be paid.（a）When an allowance is first made, the amount of this initial allowance is charged as an expense in the income statement, for the period in which the allowance is created.（b）When an allowance already exists, but is subsequently increased in size, the amount of the increase in allowance is charged as an expense in the income statement, for the period in which the increased allowance is made.（c）When an allowance already exists, but is subsequently reduced in size, the amount of the decrease in allowance is credited back to the income statement, for the period in which the increased allowance is made.The value of trade receivable in the statement of financial position must be shown after deducting the allowance for receivables.Example:A business has trade receivables outstanding at 30 June 20x5 and decided to create 5% allowances for receivables.（a）In the income statement, the newly created allowance of $2,500 （5% x 50,000 = 2,500）will be shown as an expense.（b）In the statement of financial position, trade accounts receivables will be shownas: $Total receivables 50,000Less: allowance for receivables （2,500）47,5008.3 Accounting for irrecoverable debts and receivable allowances●Irrecoverable debts written off- When the irrecoverable debts are written off, the double entry might be:Dr.Irrecoverable debtsCr.Receivable control account- When an irrecoverable debt is subsequently received, the accounting entries are: Dr.CashCr.Irrecoverable debts●Allowance for receivables（a）Open up an allowance accountDr.Irrecoverable debts account （expense）Cr.Allowance for receivables（b）In subsequent years- calculate the new allowance required- compare it with the existing balance on the allowance account- calculate increase or decrease required（only a movement in the allowance is charged to the I.S.）（i）If a higher allowance is required:Dr.Irrecoverable debts expenseCr.Allowance for receivables（ii）If a lower allowance is required:Dr.Allowance for receivablesCr.Irrecoverable debts expenseExample:A has total receivables outstanding at 31 December 20x2 of $28,000.He believes that about 1% of these balances will not be collected and wishes to make an appropriate allowance.Before now, he has not made any allowance for receivables at all.On 31 December 20x3, his trade accounts receivable amount to $40,000.His experience during the year has convinced him that an allowance of 5% should be made.Required: What accounting entries should he make?Solution:At 31 December 20x2,Allowance required= 1% x 28,000 = $280Dr.Irrecoverable debts expense 280Cr.Allowance for receivables 280In SFPReceivables ledger balances 28,000Less: allowances for receivables 28027,720At 31 December 20x3Allowance required now（ 5% x 40,000）2,000Existing allowance （280）Additional allowance required 1,720The double entry will be:Dr.Irrecoverable debts expense 1,720Cr.Allowance for receivables 1,720In SFPReceivables ledger balances 40,000Less: allowance for receivables （2,000）38,000Example 2:Irrecoverable debts are $5,000.Trade accounts receivable at the year end are $120,000.If an allowance for receivables of 5% is required, what are the irrecoverable debts in the income statement?A.$5,000B.$11,000C.$6,000D.$10,750Solution: B120,000 X 5% = 6,000$6000+ $5,000 = $11,000P.S.: The irrecoverable debt expense to be included in I/S should include:Irrecoverable debt written off xx+ Allowance （ movement ）for receivables xx= Total irrecoverable debt expense charged to I/SSession 2☆Financial Statements include:- a statement of financial position at the end of the period- a statement of comprehensive income for the period- a statement of changes in equity for the period- statement of cash flows for the period- notes, comprising a summary of accounting policies and other explanatory notesThe statement of financial position:Statement of Financial Position: showing the financial position of a business at a point of time.The Vertical format of the SFP: （Statement of Financial Position as at 31 December 2007）●The top half of the balance sheet shows the assets of the business.●The bottom hal f of the balance sheet shows the capital and liabilities of the business.A Statement of financial position at the end of the period （Balance Sheet）:W XangBalance Sheet as at December 31 20X6Payable 1,700Total 8,390The horizontal format of the SFP: （Statement of Financial Position as at 31 December 2007）●The left half of the balance sheet shows the assets of the business.●The right half of the balance sheet shows the capital and liabilities of the business.W XangStatement of Financial Position as at 31 December 20x6$ $ $ $ Non-current assets Non-current liabilities1,000Motor van 2,400 Trade payable1,7002,400 Total liabilities2,700Capital accountCurrent assets Balance at 1 January 20X6 4,200Inventory 2,390 Add net profit for year 3,450Trade receivables 1,680 Increase in capital 1,000Cash at bank 1,704 8,650Cash in hand 56 Less: Drawing for year -2,960Total current assets5,990 5,690Total assets8,390 Total capital and liabilities8,390☆The accounting equationFinancial accounting is based upon a very simple idea:The amount of resources supplied by the owner is called capital. The actual resources that are then in the business are called assets. Usually, people other than the owner have supplied some, of the assets, for example, a supplier supplies stock of goods on credit. The business is said to owe a liability towards these suppliers. The following accounting equation always holds true:The accounting equation:ASSETS = PROPRITOR’S CAPITAL + LIABILITIES- Any point in time, the assets of the business will be equal to its liabilities plus the capital of the business;- Assets less liabilities equal the capital of the business, which is known as net assets.- Each and every transaction that the business makes or enters into has twoaspects to it and have a double effect on the business and the accountingequation. This is known as the duality concept.Duality concept:Each and every transaction that the business makes or enters into has two aspects to it and has a double effect on the business and the accounting equations. This is known as duality concept.Illustration:1）. Carl sets up in business by opening a coffee shop –Carl’s Coffee. He puts $5,000 into a business bank account.The opening accounting equation is:Assets （Cash in bank）= Capital + Liabilities（$5,000） = （$5,000） + （$0）2）. Carl buys furniture （chairs and tables） for the shop for $1,500, paying the supplier out of the business bank account.The accounting equation after this transaction is:Assets Capital + Liabilties（ Cash in bank $3,500） = （$5,000）（$0）（Furniture $ 1,500）3）. Now Carl spends a further $2,000 to buy coffee-making equipment and $800 on crockery and cutlery, paying cash out of the business bank account.The accounting equation after this transaction is:Assets Capital + Liabilties（Cash in Bank $700）= （$5,000）（$0）（Equipment $2,000）（Fitting & Fixture $800）（Furniture $1,500）4）. Carl persuades his bank to lend $1,000 to develop the business. The bank loan is accounted for as a liability of the business.The accounting equation is now as follows:Assets Capital + Liabilties（Cash in Bank $1,700） = （$5,000）（$1,000）（Equipment $2,000）（ Fitting & Fixture $800）（Furniture $ 1,500）5）. Carl now buys coffee, tea, milk, sugar, biscuits and cakes for $700, and pays in cash from the business bank account.The accounting equation is now as follows:Assets Capital + Liabilties（Inventory $700） = （$5,000）（$1,000）（Equipment $2,000）（Fitting & Fixture $800）（Furniture $1,500）（Cash in Bank $ 1,000）6）. In his first day of trading, Carl uses up $650 of his inventory, and makes sales totaling $1,050. All his sales are in cash.The accounting equation at the end of the day is as follows:Assets Capital + Liabilities（Inventory $50） = （Beginning $5,000）（$1,000）（Equipment $2,000）（ Profit $400）（Fitting & Fixture $800）（Furniture $1,500）（ Cash in bank $2,050）☆Classification of Assets and LiabilitiesAssets: An asset is something owned or controlled by the business that will result in future economic benefits to the business. （ an inflow of cash or other assets.）Such as:Current assets:are assets owned by the business with the intention of turning them into cash within one year （accounting period）.This definition allows inventory or receivables to quality as current assets, even if they may not be realized into cash within 12 months.Non-current asset:is an asset held for and used in operation（rather than for selling to customer）, with a view to earning income or making profits from its use, for over more than one year （ accounting period）.Liability: is something owed by the business to someone else.Current liability: These include the debts of the business that are repayable within the next 12 months.Non-current liabilities: are liabilities that do not need to be settled for at least one year. （excluding the current portion of the debt）Capital:Capital is a type of liability. It represents the owner’s net investment in the business. Capital appears as a credit balance on the balance sheet.Assets –Liabilities = PROPRIETOR’S CAPITALNet Assets =（ Total ）Assets –（Total） LiabilitiesCapital （at SFP date） = Capital introduced + Profit – DrawingsDrawing: Drawings are any amounts taken out of the business by the owner for their own personal use. Drawings will reduce the capital balance reported on the balance sheet.Include:●Money taken out of the business●Goods taken for personal use●Personal expenses paid by the businessIncome statement☆Financial Statements include:- a statement of financial position at the end of the period- a statement of comprehensive income for the period- a statement of changes in equity for the period- statement of cash flows for the period- notes, comprising a summary of accounting policies and other explanatory notes The statement of financial position:Statement of Financial Position: showing the financial position of a business at a point of time.The Vertical format of the SFP: （Statement of Financial Position as at 31 December 2007）●The top half of the balance sheet shows the assets of the business.●The bottom half of the balance sheet shows the capital and liabilities of the business.A Statement of financial position at the end of the period （Balance Sheet）:☆Income statement:Mr. W XangIncome statement for the year ended 31 December 20X6●Showing the financial performance of a business over a period of time.●Reports revenue and expenses for the period.●T he sales revenue shows the income from goods sold in the year●The cost of buying the goods sold must be deducted from the revenue●The current year’s sales will include goods bought in the previous year, so this opening inventory must be added to the current year’s purchases.●Some of this year’s purchases will be unsold at 31/12/20x6 and this closing inventory must be deducted from purchases to be set off against next year’s sales.●The first part gives gross profit. The second part gives net prof it.The I.S. prepared following the accruals concept.Accrual concept:●Income and expenses are recorded in the I.S. as they are earned / incurred regardless of whether cash has been received/ paid.（Sales revenue: income from goods sold in the year, regardless of whether those goods have been paid for.）☆Relationship between a statement of financial position and a statement of income●The balance sheets are not isolated statements, they are linked over time withthe income statement●As the business records a profit in the income statement, that profit is added tothe capital section of the balance sheet, along with any capital introduced. Cash taken out of the business by the proprietor, called drawings, is deducted.Illustration – the accounting equation:The transactions:Day 1 Avon commences business introduction $1,000 cash.Day 2 Buys a motor car for $400 cash.Day 3 Buys inventory for $200 cash.Day 4 Sells all the goods bought on Day 3 for $300 cash.Day 5 Buys inventory for $400 on credit.SFP at the end of each day’s transactions:Solution:Day 1 Assets （Cash $1,000） = Capital （$1,000） + Liabilities （$0）Day 2 Assets （Motor $400） = Capital （$1,000） + Liabilities （$0）（Cash $600）Day 3 Assets （ Inventory $200） = Capital（$1,000） + Liabilities （$0）（Motor $400）（Cash $400）Day 4 Assets （ Motor$ 400） = Capital + Liabilities （$0）（Cash $700）（Beginning$1,000）（Profit $100）Day 5 Assets （Inventory $ 400） = Capital + Liabilities（ Motor$ 400）（Beginning$1,000）（$400）（Cash $700）（Profit $100）AvonStatement of Financial Position as at end of Day 5Example:Continuing from the illustration above, prepare the SFP at the end of each day after accounting for the transactions below:Day 6 Sells half of the goods bought on Day 5 on credit for $250.Day 7 Pays $200 to his supplier.Day 8 Receives $100 from a customer.Day 9 Proprietor draws $75 in cash.Day 10 Pays rent of $40 in cash.Day 11 Receives a loan of $600 repayable in two years.Day 12 Pays cash of $30 for insurance.Your starting point is the SFP at the end of Day 5, from the illustration above.Prepare: SFP at the end of Day 12I.S. for the first 12 days of trading.Solution:Day 6 Assets （Inventory $ 200） = Capital + Liabilities （ Motor$ 400）（Beginning$1,000）（$400）（Cash $700）（Profit $150）（A/Receivable$250）Day 7 Assets （Inventory $ 200） = Capital + Liabilities （ Motor$ 400）（Beginning$1,000）（$200）（Cash $500）（Profit $150）（A/Receivable$250）Day 8 Assets （Inventory $ 200） = Capital + Liabilities （ Motor$ 400）（Beginning$1,000）（$200）（Cash $600）（Profit $150）（A/Receivable$150）Day 9 Assets （Inventory $ 200） = Capital + Liabilities （ Motor$ 400）（Beginning$1,000）（$200）（Cash $525）（Profit $150）（A/Receivable$150）（Drawing $75）Day 10 Assets （Inventory $ 200） = Capital + Liabilities （ Motor$ 400）（Beginning$1,000）（$200）（Cash $485）（Profit $110）（A/Receivable$150）（Drawing $75）Day 11 Assets （Inventory $ 200） = Capital + Liabilities （ Motor$ 400）（Beginning$1,000）（$200）（Cash $1,085）（Profit $110）（$600）（A/Receivable$150）（Drawing $75）Day 12 Assets （Inventory $ 200） = Capital + Liabilities （ Motor$ 400）（Beginning$1,000）（$200）（Cash $1,055）（Profit $80 ）（$600）（A/Receivable$150）（Drawing $75）AvonStatement of Financial Position as at end of Day 12Session 3 Double entry bookkeeping☆The duality concept and double entry bookkeepingDuality concept: each and every transaction has a double effect on the business and the accounting equations.（A= C + L）Rules of double entry bookkeeping:● Each time a trans action is recorded, both effects must be taken into account.● These two effects are equal and opposite such that the accounting equation will always prove correct.Assets – Liabilities = Capital● Traditionally, one effect is referred to as the debi t side （ Dr.） and the other as the credit side of the entry （Cr.）☆Ledger accounts, debits and creditsLedger account:● transactions are recorded in the relevant ledger accounts. There is a ledgeraccount for each asset, liability, revenue and ex penses’ item, and for the owner’scapital.● Each account has two sides: the debit and credit sides.● The duality concept means that each transaction will affect two ledger accounts● One account will be debited and the other credited● Whether an entry is to debit or credit side of an account depend on the types of account and the transaction.☆IN ARRIVING AT RULE FOR DEBIT AND CREDIT, AN ASSUMPTION ISMADE THAT ASSETS ARE OF A DEBIT NATURE.☆Debit entries record Credit entries recordIncrease in Increase inExpense LiabilityAsset IncomeDrawings CapitalRules: treat the transactions as if all performed by cash.（Cash in--- Debit; Cash out --- Credit）Using T- accountT-accounts are frequently used to simplify the thought process behind recording complex transactions. Using T-accounts, the accountant or bookkeeper can analyze the effects to individual accounts and the impact the transactions have on account balances.Steps to record a transaction:1.Identify the two items that are affected.2.Consider whether they are being increased of decreased.3.Decide whether each account should be debited or credited.4.Check that a debit entry and a credit entry have been made and they are both for the same account.☆Recording cash transactionsCash transactions:Payment is made or received immediately.Cheque payments or receipts are classed as cash transactions.Double entry involves the bank ledger:A debit entry is where funds are receivedA credit entry is where funds are paid out.Example: Show the following transactions in ledger accounts:1.Kamran pays $80 for rent by cheque.2.Kamran sells goods for $230 cash which he banks.3.He then takes $70 out of the business for his personal living expenses.4.Kamran sells more goods for cash, receiving $3,400Solution:1.Dr. Rent expense 80Cr. Cash in bank 802.Dr. Cash in bank 230Cr. Sales 2303.Dr. Drawing 70Cr. Cash in bank 704.Dr. Cash in bank 3,400Cr. Sales 3,400☆Recording credit sales and purchasesCredit sales and purchases:● are transactions where goods or services change hands immediately● payment is not made or received until some time in the future.Receivables and payables:● Money that a business is owed is accounted for in the receivables ledger● Money that a business owes is accounted for in the payables ledger.Example:Norris notes down the following transactions that happened to Avon in June.1.Sell goods for $250 – the customer will pay in a month.2.Pay $50 petrol for the delivery van.3.Buy $170 goods for resale on credit.4.Buy another $40 goods for resale, paying cash.5.Buy a new computer for the business for $800.Record these transactions using ledger accounts.Solution:1.Dr. Trade receivables 250Cr. Sales 2502.Dr. Petrol Expense 50Cr. Cash in bank 503.Dr. Purchase 170Cr. Trade payables 1704.Dr. Purchase 40Cr. Cash in bank 405.Dr. Computer 800Cr. Cash in bank 800● Perpetual and Periodic inventory systemDetailed record of inventory movement in and out of the business can be a very tediousand inefficient process. Such a system of keeping stock records is known as the perpetual system.In a retail business with high stock turnover （i.e. the inventory move very fast）it is almost impossible to keep detailed records of every item of stock that is received and sold, and to recognize the profit on sale of very single item of stock, in such circumstance, the periodic inventory system is applied.In other words, the inventory account remains stagnant through out the entire period.An inventory count is performed at the end of the accounting period to determine the inventory held on hand.Profit is established by taking sales less cost of goods sold, whereCost of goods sold = Beginning inventory + Purchasing – Ending inventory☆Recording sales and purchase returnsOriginally a credit transaction Originally a cash transactionSales return （returns inwards）Dr. Sales returnsCr. ReceivablesDr. Sales returnsCr. CashPurchase return （return outwards）Dr. PayblesCr. Purchases returnsDr. CashCr. Purchases returnsExample:For each of the following, state the double entry required to record the transaction in the accounts:1.Alfie makes a sale for $600 and the customer promises to pay in the future.2.Alfie then buys goods from his supplier, Kamen, for $500 on credit.3.Alfie sent goods of $100 back to Kamen.4.A cash customer returned $20 goods to Alfie for a refund.Solution:1.Dr. Trade receivable 600Cr. Sales 600。
ACCA考试《F3财务会计》讲义辅导25
ACCA考试《F3财务会计》讲义辅导25本文由高顿ACCA整理发布，转载请注明出处16.3 Rights issue and bonus issue●Rights issue:The offer of new shares to existing shareholders in proportion to their present shareholding at a stated share price ( normally below market values)The advantages are:- A rights issue is the cheapest way for a company to raise finance through the issuing of further shares.- A right issue to existing shareholding has a greater chance of success compared with a share issue to the public.The disadvantages are:- A right issue is more expensive than issuing debt.- It may not be successful in raising the funds required.A right issue is accounted for in the same way as a normal share issue.●Bonus issue:The issue of new shares to existing shareholders in proportion to their existing shareholding. No cash is received from a bonus issue.The advantages are:- issued share capital is divided into a large number of shares, thus making the market value of each share less, and so more marketable.- Issued share capital is brought more into line with assets employed in the company.The disadvantages are:- the admin costs of making the bonus issue.As no cash is received from the bonus issue, the issues must be funded from reserves. Any reserves can be used, though a non-distributable reserve such as the share premium account would be used in preference to reserves which can be distributed.Dr. Share premium Nominal value(Or other reserves)Cr. Share capital Nominal valueExample: Rich T is a limited liability company with 200,000 25c shares in issue. At 1 January the balance on the share premium account is $75,000. The following transactions occur in the year ended 31 December 2006:31 January There is a fully taken-up 2 for 5rights issue. The issue price is $1.80.12 August There is a 1 for 10 bonus issue made using the share premium account.What are the balances on the share capital and share premium accounts on 31 December 2006?SC SP$000$000A.308111B.7784C. 15493D.77192Solution:Statement of financial position$Capital reservesShare capital- 25c ordinary shares77,000 Share premium 192,000Accumulative profit XWorking:Rights issued：(200,000/5) x 2 = 80,000 new sharesProceeds: 80,000 x 1.80 = 144,000Nominal value：80,000 x 25c = 20,000更多ACCA资讯请关注高顿ACCA官网：。