《新财务英语教程.pptx》由会员分享，可在线阅读，更多相关《新财务英语教程.pptx（533页珍藏版）》请在taowenge.com淘文阁网|工程机械CAD图纸|机械工程制图|CAD装配图下载|SolidWorks_CaTia_CAD_UG_PROE_设计图分享下载上搜索。
1、Businesses and Types of AccountingChapter 1Chapter 3Basis of Accounting and Credit TransactionsCopyright 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.Topics Covered 3.1 Credit Transactions Double Entry 3.2
2、 Quick Summary of This ChapterCopyright 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.3.1 Credit Transactions Double Entry How to account for credit transactions? Take Johnson example in the last chapter.Co
3、pyright 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.Transaction 1: Johnson purchases goods on credit for $5,000. The accounting treatment: Dr Purchases $5,000 (to increase the “purchased goods” at cost) C
4、r Trade payables $5,000 (to increase the amount owed or liability to the supplier)Copyright 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.Transaction 2: Johnson sells goods for $6,000 to customers on credit
5、. The accounting treatment: Dr Trade receivables $6,000 (to increase the asset receivable here by $6,000) Cr Sales revenue $6,000 (to increase sales revenue by $6,000)Copyright 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGra
6、w-Hill Education.Transaction 3: Johnson settles $1,000 liability owed to the credit supplier. The accounting treatment: Dr Trade payables $1,000 (to decrease the money owed to the supplier) Cr Cash $1,000 (to decrease the cash asset value)Copyright 2017 McGraw-Hill Education. All rights reserved. No
7、 reproduction or distribution without the prior written consent of McGraw-Hill Education.Transaction 4: Johnson receives $5,000 cash from the credit customer. The accounting treatment: Dr Cash $5,000 (to increase the asset by $5,000) Cr Trade receivables $5,000 (to reduce the asset by $5,000)Copyrig
8、ht 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.Transaction 5: Johnson returned goods costing $200 to a supplier. The accounting treatment: Dr Trade payables $200 (to decrease the liability owed to the sup
9、plier) Cr Purchases $200 (to return the goods to the supplier, hence, to reduce purchases costs)Copyright 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.Transaction 6: Johnson receives goods returned by a cu
10、stomer. The transaction value is $100. The accounting treatment: Dr Sales revenue $100 (to decrease the sales revenue of $100) Cr Trade receivables $100 (to decrease the asset of $100)Copyright 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written
11、 consent of McGraw-Hill Education.3.2 Quick Summary of This Chapter In an increase in trade receivables asset because of a credit sale, we debit it. In an increase in trade payables liability because of a credit purchase, we credit it. For goods returned from a credit customer, we debit sales revenu
12、e and credit the trade receivables to cancel the sale. For goods returned to the credit supplier, we debit trade payables liability and credit purchases, to cancel the purchases.Chapter 4 Basis of Ledger AccountCopyright 2017 McGraw-Hill Education. All rights reserved. No reproduction or distributio
13、n without the prior written consent of McGraw-Hill Education.Topics Covered 4.1 What Are Ledger Accounts? 4.2 Ledger Accounts for Cash Transactions 4.3 Ledger Accounts for Credit Transactions 4.4 Balancing a Ledger Account 4.5 Quick Summary of This ChapterCopyright 2017 McGraw-Hill Education. All ri
14、ghts reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.4.1 What Are Ledger Accounts? Ledger accounts or T accounts are accounts summarising each business transaction. These accounts have a T shape.Copyright 2017 McGraw-Hill Education. All rights res
15、erved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.4.2 Ledger Accounts for Cash Transactions Go back to the previous Johnson example. The first transaction: Johnson started up a restaurant as a sole trader business by paying $30,000 into a business bank
16、 account. The accounting treatment: Dr Cash$30,000 Cr Capital$30,000Copyright 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.The ledger or T account for this transaction:Step 1: The name of the account.Copyr
17、ight 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Step 2: Write the Debit or Dr on the left-hand side of the account with Credit or Cr on the right-hand side.Copyright 2017 McGraw-Hill Education. All righ
18、ts reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Step 3: Read the debit side of the transaction first, and then record the debit side of the transaction on the corresponding account. Write the monetary value first, and then write the credit sid
19、e on the same account. Copyright 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Step 4: Read the credit side of the transaction, then record the credit side of the transaction on the corresponding account.
20、Record the monetary value first, then write the debit side on the same account. Copyright 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.4.2.1 A Complete Ledger Account1.The title of the account is a name th
21、at represents the nature of the transaction.2.The date column records the date of the transaction.3.The details column records the title of the other account that holds the second part of the dual effect4.The folio column records a reference to the source of information. This column is not always in
22、cluded within a ledger account.5.The amount column summarises the monetary value of the transaction.Copyright 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.4.2.2 Steps to Prepare a Ledger Account Step 1: Ac
23、count name. Step 2: Debit on the left-hand side and credit on the right-hand side. Step 3: Read the debit side, with monetary value, and then the credit side of the transaction in the same account. Step 4: Read the credit side, with monetary value, and then the debit side of the transaction in the s
24、ame account.Copyright 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. The second transaction: Johnson purchased a van for deliveries by writing a cheque for $3,000.The accounting treatment:Dr Van $3,000Cr Ca
25、sh $3,000Copyright 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.Step 1: Step 2:Copyright 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent o
26、f McGraw-Hill Education. Step 3: Step 4:Copyright 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. A summary of T accounts for transaction 2:Cash accountDr Cr $ $Capital30,000Van3,000Van accountDr Cr $ $Cash3
27、,000Van3,000Copyright 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. The third transaction: Johnson used a cheque for $1,000 to purchase goods for resale. The accounting treatment: Dr Purchases$1,000 Cr Cas
28、h$1,000Copyright 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.Purchases accountDr Cr $ Cash1,000 Copyright 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
29、 written consent of McGraw-Hill Education. The fourth transaction: Johnson paid the rental fee in cash for $800. The accounting treatment: Dr Rents$800 Cr Cash$800Copyright 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hi
30、ll Education.Rents accountDr Cr $ Cash800,00 Copyright 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. The fifth transaction: Johnson sold goods for cash of $2,000. The accounting treatment: Dr Cash$2,000 Cr
31、 Sales revenue$2,000Copyright 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.Sales revenue accountDr Cr $ Cash2,000Cash accountDr Cr $ $Capital30,000Van3,000Sales2,000Purchases1,000 Rent800,00Copyright 2017
32、McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. The sixth transaction: Johnson took $200 cash for his personal expenses. The accounting treatment: Dr Drawings$200 Cr Cash$200Copyright 2017 McGraw-Hill Education.
33、All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.Drawings accountDr Cr $ Cash200 Cash accountDr Cr $ $Capital30,000Van3,000Sales2,000Purchases1,000 Rental800 Drawings200Copyright 2017 McGraw-Hill Education. All rights reserved. No reprod
34、uction or distribution without the prior written consent of McGraw-Hill Education.4.3 Ledger Accounts for Credit Transactions Transaction 1: Johnson purchased goods on credit for $5,000. The accounting treatment: Dr Purchases$5,000 Cr Trade payables$5,000Copyright 2017 McGraw-Hill Education. All rig
35、hts reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. The ledger or T account for this transaction:Trade Payables accountDr Cr $ Purchases5,000Purchases accountDr Cr $ Payable5,000 Copyright 2017 McGraw-Hill Education. All rights reserved. No repro
36、duction or distribution without the prior written consent of McGraw-Hill Education.Purchases accountDr Cr $ Cash1,000 Payable5,000 Payables accountDr Cr $ Purchases5,000Copyright 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McG
37、raw-Hill Education. Transaction 2: Johnson sold goods for $6,000 to customers on credit. The accounting treatment: Dr Trade receivables$6,000 Cr Sales revenue$6,000Copyright 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-H
38、ill Education.Trade receivables accountDr Cr $ Sales6,000 Sales revenue accountDr Cr $ Cash2,000 Receivable6,000Copyright 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Transaction 3: Johnson has settled $1
39、,000 liability owed to a credit supplier. The accounting treatment: Dr Trade payables$1,000 Cr Cash$1,000Copyright 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.Payable accountDr Cr $ $Cash1,000Purchases5,0
40、00Copyright 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Transaction 4: Johnson received $5,000 cash from a credit customer. The accounting treatment: Dr Cash$5,000 Cr Trade receivables$5,000Copyright 201
41、7 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.Cash accountDr Cr $ $Capital30,000Van3,000Sales2,000Purchases1,000Receivable5,000Rental800 Drawings200 Payable1,000Trade receivables accountDr Cr $ $Sales6,000Cash
42、5,000Copyright 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Transaction 5: Johnson returned goods costing $200 to the credit supplier. The accounting treatment: Dr Trade payables$200 Cr Purchases$200Copyr
43、ight 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.Trade payable accountDr Cr $ $Cash1,000Purchases5,000Purchases200 Purchases accountDr Cr $ $Cash1,000Trade Payables200Payable5,000 Copyright 2017 McGraw-Hi
44、ll Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Transaction 6: Johnson received goods returned by a credit customer. The transaction value is $100. The accounting treatment: Dr Sales revenue$100 Cr Trade receivables$100Co
45、pyright 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.Trade receivables accountDr Cr $ $Sales6,000Cash5,000 Sales100Sales revenue accountDr Cr $ $Trade receivables100Cash5,000 Sales100Copyright 2017 McGraw-
46、Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.4.4 Balancing a Ledger Account Steps to balance a ledger or T account : Step 1: Enter the total debit and credit sides in the T account. Step 2: Decide which side is higher
47、 and choose the higher. Step 3: For the side that does not add up to this total, the difference is called balance carried down/forward, or bal c/d or bal c/f. Step 4: The balance brought down (bal b/d) will appear on the opposite side below the totals.Copyright 2017 McGraw-Hill Education. All rights
48、 reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.4.4.1 Balancing Ledger Accounts for Elements in the Statement of Financial Position From the previous example Johnson. Step 1: Step 2:Capital accountDr Cr $ Bank30,000 Total = 30,000Capital accountD
49、r Cr $ $ Bank30,000Total =30,000Total = 30,000Copyright 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Step 3: Use the abbreviation for balance carried forward as bal c/f or balance carried down as bal c/d:
50、 Capital accountDr Cr $ $Balance carried forward30,000Bank30,000Total =30,000Total = 30,000Capital accountDr Cr $ $bal c/d30,000Bank30,000Total =30,000Total = 30,000Capital accountDr Cr $ $bal c/f30,000Bank30,000Total =30,000Total = 30,000orCopyright 2017 McGraw-Hill Education. All rights reserved.