Conceptually Speaking
Duality
Every transaction effects at least two accounts or TA = TEq
GJ Entry for a stock loss
Dr Stock Loss
Cr Stock Control
Cash Budget extract
October Purchases $14,000
November Purchases $23,000
Purchases are paid in the month in which they are paid to take advantage of a 4% discount.
How much was paid in November?
$22,080
Service will not have COGS.
What is the main ingredient of guacamole?
avocado
Faithful Representation
financial reports are complete, error free and without bias
Classify Allowance for Doubtful Debts
negative Current Asset
Calculate break-even point
-Selling Price $950
-Fixed Costs $130,000
-Cost Price $175
-Delivery expense $5
169 units
GJ entry
The owner contributes a van to the business
Dr Van
Cr Capital
What was the winning margin in the 2025 AFL grand final?
47 points
Accrual Accounting
Revenue is recorded when earned and expense when incurred, regardless of cash movement
The balance of the Advertising account is $240. What was the transaction on balance day?
Dr Prepaid Advertising $80, Cr Advertising $80
There was $80 of advertising remaining of balance day.
Cashflow Statement preparation
Salaries expense $100,000 for the year
> Salaries Owing 2024 $5,000
>Salaries Owing 2025 $10,000
$95,000
Debtors turnover is 46 days for a coffee machine business, the industry average is 30 days. Interpret
concerning as it takes 50% longer to sell the coffee machine stock
Where did Ms Pettinger and Ms Rayson worked together?
Pembroke School
Limitation of Monetary Unit
•The value of money is not constant over time
•no adjustment for inflation
intangible assets
exchange rate and costs
What was the transaction on balance day?
DR Interest Revenue Receivable $250
Cr Interest Revenue $250
On balance day, the business had earnt $250 which had not yet been received.
Trial Balance extract 30 June
Rent expense $50,000
Additional info
>$4,500 of the rent is prepaid for July
Calculate the two account balances
Rent expense $45,500
Prepaid Rent $4,500
Buying a vehicle and new machinery for cash would be classified how on a Cashflow Statement?
Outflows in Investing Activities
Who sings the current hit Man I Need?
Olivia Dean
Limitation of Consistency
•It is possible that, in changing circumstances, the method applied in a previous period is no longer the most suitable method; eg a change to depreciation methods
Name the GJ entries
On balance day, $400 of revenue had been received but not year earned. It was originally recorded as Revenue.
DR Revenue
CR Unearned Revenue
New cabinets were purchased for $1800 on 1 January. It is decided to depreciate them on cost at 20%. Calculate the depreciation figure on 30 June.
$180
Explain the term 'lower of net or realisable value'
This is used for valuing inventory if the selling price is likely to be less than the historical cost.
The cashflow shows a net inflow of $40,00 for the year but profit was $120,000, explain why these are not the same using examples.
Profit calculated Revenue less Expense, both cash and non-cash.
Cash position calculated cash inflows less cash outlflows
Examples