Classifications
Cash at Bank is an example
What is an asset
Increase sales by $200 and cash by $200
What is a sale for $200
Rent received and interest received are in this section
What is Other Revenue?
Contains land and cash at bank
What is assets?
Applicable figures include this
What is GST?
Sales is an example
What is a revenue
Increase interest expenses by $50 and decrease cash at bank by $50
What is being charged interest for $50
What is other expenses (or finance expenses)?
Contains accounts payable
What is liabilities?
Selling a machine would go in this section
What is investing activities?
Interest Paid is an example
What is an expense?
Increase interest expense by $20 and accounts receivable by $20
What is charging a customer $20 interest?
What is net profit (or net loss)?
Account form, narrative and working capital
What are formats of the SOPL?
What is financing activities?
Drawings is an example
What is owner's equity?
Increase Cash at Bank by $20 000 and Loan by $20 000
What is takes out a loan for $20 000?
This section has sales, sales returns and cost of goods sold
What is Cost of Sales?
Should be equal to each other
What is net assets and total owner's equity?
This section somewhat matches the SOPL
What is operating activities?
Accounts payable are an example.
What is a liability?
Increase capital by $10 000 and motor vehicle by $10 000
What is the owner introduces a $10 000 motor vehicle to the business?
The name for sales minus sales returns
What is net sales?
Total assets minus total liabilities BUT not owner's equity
What is net assets?
Final figure should match
What is cash at bank + cash equivalents?