Duality
Owner contributes cash to start the business
Dr Bank, Cr Capital
Duality
all transactions affect at least two accounts
Interest on Loan
Income Statement
Calculate the Capital figure
Cash at Bank $15,000
Vehicle $35,000
Loan $20,000
$30,000
Capital of New Zealand
Wellington
Owner withdraws cash from the business
Dr Drawings, Cr Bank
The finances of the owner and the business are key separate
Depreciation of Vehicle
Income Statement
Calculate net assets
Cash at Bank $18,000
Furniture $15,000
Creditors $11,000
$22,000
Current leader for the Coleman Medal
Jeremy Cameron
Credit sale
Dr Debtors, Cr Sales
Going Concern
Statement of Changes in Equity
Calculate working capital ratio
Cash at Bank $18,000
Furniture $15,000
Creditors $11,000
1.64:1
Capital of Vietnam
Hanoi
The business repays a creditor
Dr Creditor, Cr Bank
The original purchase price of an asset is used
Historical Cost
Profit
Income Statement and Statement of Changes in Equity
Calculate straight-line depreciation
Equipment purchased for $15,000 with a life of 6 years and a residual value of $3,000
$2,000
Current value of the Australian Dollar against the USD
65c
Business buys a vehicle, paying a deposit with the rest on credit
Dr Vehicle, Cr Bank, Cr Creditors
Accounting Period
the life of the business is divided into arbitrary time periods
Accumulated Depreciation of Furniture
Balance Sheet
Calculate the number of t-shirts that need to be sold per month to make $500 profit
Rent $1000 and Wages $800 per month
Per shirt costs - material $5, printing $2
Selling price $15
289 t-shirts
Name the sport these Australian teams play
Matildas, Diamonds, Dolphins, Stingers, Kookaburras
Soccer, Netball, Swimming, Water Polo, Hockey