TIẾNG ANH CHUYÊN NGÀNH I A is someone who owes you money after you sell him/ her on credit debtor A is someone to whom you owe money after you buy on credit Creditor A general term for amounts owing to persons other than the owner is According to double-entry rules, if an asset increases, According to double-entry rules, if a liability decreases, ‘Balance sheet’ is Book-keeping entries relating to Purchases Returns are: Liabilities asset account will be debited Liability account will be debited a type of financial statement credit Returns Outwards account & debit supplier’s (creditor’s) account debit purchases account & credit supplier’s (creditor’s) account debit Cash/ Bank account & credit Sales account Book-keeping entries relating to Credit Purchase are: Book-keeping entries relating to Cash Sales are: Book-keeping entries relating to Cash Purchases are: debit purchases account & credit Cash/ Bank account Book-keeping entries relating to Credit Sales are: debit customer’s (debtor’s) account & credit sales account Các mục ghi sổ liên quan đến Bán hàng tín dụng là: Book-keeping entries relating to Payment to creditor are: debit creditor’s account & credit bank/ cash account Book-keeping entries relating to Sales Returns are: debit Returns Inwards account & credit debtor’s account Book-keeping entries relating to Payment received from debtor are: debit bank/ cash account & credit debtor’s account the amount of the owner’s stake in the business ‘Capital’ is Calculate Gross Profit from the following details: Cost of goods sold: £15,200; Sales £23,700, Returns Inwards £1,420 Calculate Net Profit from the following details: Gross profit: £12,400; Expenses £7,550, Commission £420 Calculate Net Profit from the following details: Gross profit: £12,000; Rent payable: £1,500; Rent receivable: £420; Wages: £1,210; Insurance: £300; office expenses: £420; travelling expenses: £270 Calculate the total of Assets from the following details: £7,080 £5,270 £8,720 Tham khảo: (Net profit = Gross profit + other incomes (rent receivable)) – Expenses: see II.1-L4) £39,460 Fixed assets: Furniture and fittings: £12,000; Motor vehicle: £7,000 £19,000 - Current assets: Stock £2,200, Debtors: £1,850, Cash: £ 3,410, Bank: £13,000 Calculate Current Liabilities from the following details: Fixed assets: £53,000; Current assets: £28,500; Capital: £ 66,500; Long-term liabilities: £8,300 £6,700 Tham khảo: (see III-L4: Format of Balance sheet: Total of Assets = Capital + Liabilities (long-term liabilities + current liabilities) TIẾNG ANH CHUYÊN NGÀNH I Calculate the Fixed Assets from the following details: Total of assets: £73,600; Stock £2,200, Debtors: £2,800, Cash: £ 3,240, Bank: £21,300 Calculate Net profit from the following details: Total of Capital at the end of period: £62,000; capital at the beginning of period: £48,000; Drawings: £2,420 How is ‘Carriage inwards’ treated in final accounts? £44,060 Tham khảo: (see III-L4: Fixed assets = Total of Assets Current assets (stock, debtor, cash, bank)) £16,420 Carriage inwards is deducted in the amount of Purchases Carriage outwards is added into expense column How is ‘Carriage Outwards’ treated in final accounts? In the following transaction: ‘The owner puts a further amount into the business by cheque’, which account is debited and which account is credited? In the accounting equation, In the transaction ‘wages of £40 are paid in cash’, which entries are correct? debit bank account & credit capital account In the transaction, ‘Goods sold for £210 on credit to T Smith’, which entries are correct? Dr T Smith £210 & Cr Sales £210 The two sides will always be equal to one another Dr wages account £40 & Cr Cash account £40 (Trong giao dịch, Hàng hóa bán với giá 210 bảng cho khoản tín dụng cho T Smith, mục đúng?) The capital equation is: The word in the heading of the balance sheet is linked to the idea of the snapshot photograph T-type Ledger accounts has the following format: Assets less liabilities equals capital At two-sided account with debit side on the left and credit side on the right ‘‘Expenses’ is the costs of running a business and ‘Drawings’ is withdrawals from a business by the owner for his private use The main difference between ‘Expenses’ and ‘Drawings’ is that The term ‘account’ means a record of transactions by category (purchases, for example), or by person or organization Thuật ngữ ‘tài khoản có nghĩa ghi giao dịch theo danh mục (ví dụ mua hàng), theo người tổ chức The term ‘Drawings’ means withdrawals from a business by the owner for the owner’s private use: in cash or goods/ services Thuật ngữ Bản vẽ có nghĩa The term ‘Transaction on credit’ means taking an ownership of an asset now, but paying for it at later stage £25 Dr The account ‘T Dove’ has transactions during May, Year 4, including debit entries with £150 & £80 and credit entries with £170 and £35 How much is the balance of this account at the end of May, Year 4? The account ‘Bank’ has transactions during July, Year £1,590 Dr TIẾNG ANH CHUYÊN NGÀNH I 4, including debit entries with £2,000 and credit entries with £170 and £240 How much is the balance of this account at the end of July, Year 4? The account ‘T Smith’ has transactions during July, Year 4, including debit entries with £50 & £80 and credit entries with £170 and £230 How much is the balance of this account at the end of July, Year 4? The difference between current account and deposit account is that current account is used for banking and withdrawal of money, and in deposit account withdrawals will be The formula for Cost of goods sold is: £270 Cr regular/ infrequent Opening stock+Purchases+Carriage inwardsReturns outwards-Closing stock is a general term for activities of the business Ledger is used to record creditor accounts transactions Purchases Cash book standing order is used to record Cash & Bank accounts is direct transfer between bank accounts, involving fixed accounts at regular intervals is a direct means of transferring money through the bank systems, which is initiated by the paying party account is used for regular banking and withdrawal of money accounts cover various income and expense accounts, e.g sales, wages, etc accounts cover asset accounts such as premises, motor vehicles, etc accounts are individual accounts of debtors and creditors Ledger is used to record debtor accounts credit transfer current nominal Real personal Sales means a charge paid by the firm to carrier for delivering goods to customers: Cost of distribution You are presented with the following data: Assets 13,970 Capital 2,934 Liabilities 11,576 What comment would you make? Which item below is not an asset? Which item below is not an expense? (Mục khơng phí?) carriage outwards Which account below may have either debit balance or credit balance? Which account below only has credit balance? Which account below only has credit balance? Which account below only has debit balance? Which account below is not close off to Trading account? Bank Which account below is close off to Trading account? Which account below is close off to Profit and Loss Carriage Inwards Purchases the two sides are not equal One figure must be incorrect Creditor rent receivable (Tiền cho thuê trụ sở) Sales creditor Cash Carriage outwards TIẾNG ANH CHUYÊN NGÀNH I account? Carriage Outwards Where balances are carried forward from one page to the next, ‘balance ’ would appear at the bottom of one page and ‘balance .’ at the top of the next page types of personal accounts include capital, supplier, customer, and You can calculate profit in ‘Trading account’ You can calculate profit in ‘Profit and Loss account’ c/f – b/f drawings Gross Net Income Expense From the transaction below: ‘The business owed L Turner £2,000 for the goods bought from May 20th Year By paying by cheque within a specified time (May 23, Year 2), the business can receive a cash discount of 5%’ What entries in the cash book are necessary for this transaction? From the transaction below: ‘A Smith owed the business £1,800 for the goods sold to him & he paid his debt within required time; hence 3% cash discount was given to him’ What kind of discount is it? Cr Discount received £100 & Cr Bank £1,900 From the transaction below: ‘A Smith owed the business £1,800 for the goods sold to him & he paid his debt within required time; hence 3% cash discount was given to him’ How much cash discount was given to him? £54 From the transaction below: ‘A Smith owed the business £1,800 for the goods sold to him & he paid his debt within required time; hence 3% cash discount was given to him’ How much did A Smith actually pay? £1,746 From the transaction below: ‘A Smith owed the business £1,500 for the goods sold to him on May 10, Year The terms of sale allow for 3% cash discount for payment within days On May 15, Year 2, A Smith paid his debt by cheque.’ What entries in the cash book are necessary for this transaction? Dr Discount allowed £45 & Dr Bank £1,455 From the transaction below: ‘You owed A John, a creditor £2,000 for the goods bought from him & You paid your debt within required time; hence 3% cash discount was received’ How much did you have to pay? £1,940 From the transaction below: ‘You owed A John, a creditor £60 discount allowed (See example II.1 – L5: Discount = £1,800 x 3% = £54) TIẾNG ANH CHUYÊN NGÀNH I £2,000 for the goods bought from him & you paid your debt within required time; hence 3% cash discount was received’ How much cash discount did you received? (See example II.1 – L5: Discount = £2,000 x3% = £60) In the transaction below: ‘You owed A John, a creditor for the goods bought from him & you paid your debt within required time; hence A John gave you cash discount’ What kind of discount is it? discount received In the transaction: ‘Cash sale £1,410, in which £410 was received in cash’ What entries in the Cash book are done? In the transaction: ‘Withdrew £420 from bank to make cash in office’ What entries in the Cash book are done? Nếu vụ án không thuộc thẩm quyền Tòa án phải trả hồ sơ cho Viện kiểm sát In the transaction: ‘Paid £442 in cash to A Dobbs in settlement of a debt of £450’ What entries in the Cash book are done? In the transaction: ‘Received a cheque of £1,200 from A Smart in full settlement of debt of £1,212’ What entries in the Cash book are done? When you received money from debtors who pay their debts within required time, the discount you give him is called is an amount received from creditors when paying them within required time The total of discount received column in the cash book will be transferred to Ledger Dr Cash £410 & Dr Bank £1,000 Sales Day book is used for …… …… is the Source document for Credit Sales is indicated in the invoice From Sales Day book, detail is transferred promptly to debtor’s account in From Sales Day book, detail is transferred monthly to Sales account in Credit sales Invoice Both Trade discount and Cash discount Sales Ledger is indicated in the invoice and recorded in the accounts From the transaction below: ‘Credit sale to P Starkey at list price of £360, subject to 15% trade discount’ How much will be recorded into accounts? From the transaction: ‘K Devine returns to us goods with a list price of £150 No discount was previously made.’ In what accounts will it be recorded? From the transaction: ‘Credit purchase from A John at list price of £880, subject to 20% trade discount’ How much discount will the business receive? Cash discount Cr Bank £420 & Dr Cash £420 (See exercise 1-L5: Asset (Cash) increase: Dr Cash a/c & Asset (Bank) decrease: Cr Bank a/c: Cr Discount received £8 & Cr Cash £442 Dr Discount allowed £12 & Dr Bank £1,200 discount allowed discount received General General Ledger £306 £360 Dr Returns Inwards £150 & Cr K Devine £150 £176 (revise II.2 – L6: £880 x 20% = £176) TIẾNG ANH CHUYÊN NGÀNH I From the transaction: ‘Credit purchase from S Letts at list price of £250, subject to 10% trade discount; then return goods to S Letts at list price £40’ How much will the business record in Return Outwards account? £40 £4 £36 Returns Inwards Day book; Dr Purchases a/c & Cr S Letts From the transaction: ‘Return goods to S Letts at list price £40’ In what Day book and what accounts will it be recorded? Returns Outwards Day book; Dr S Letts a/c & Cr Returns Outwards a/c The following detail appears in the Purchases Day Book: T Smith a/c in Purchases Ledger; Purchases a/c in General Ledger ‘T Smith56/637£656’ To what accounts & Ledgers will this detail be transferred? From Sales Day book, detail is transferred promptly to account in Sales Ledger From the transaction: ‘Credit purchase from A John at list price of £880, subject to 20% trade discount’ How much will the business record into Day book? From the transaction: ‘Credit purchase from S Letts at list price of £250, subject to 10% trade discount’ In what Day book and what accounts will it be recorded & How much will it be recorded? Debtor’s From the transaction below: ‘Credit sale to P Starkey at list price of £360, subject to 15% trade discount’ How much discount will be given to P Starkey? From the transaction: ‘Credit purchase from S Letts at list price of £250, subject to 10% trade discount; then return goods to S Letts at list price £40’ How much will the business finally owe S Letts? From the transaction: ‘S Smart –a debtor returned goods to the business’ In what accounts & what ledger will it be recorded? The invoice gives details of From the transaction below: ‘The business owed L Turner £2,000 for the goods bought from May 20th Year By paying by cheque within a specified time (May 23, Year 2), the business can receive a cash discount of 5%’ What entries in the cash book are necessary for this transaction? From the transaction below: ‘A Smith owed the business £1,800 for the goods sold to him & he paid his debt within required time; hence 3% cash discount was given to him’ What kind of discount is it? £54 From the transaction below: ‘A Smith owed the business £1,800 for the goods sold to him & he paid his debt £54 £704 Purchases Day book; Dr Purchases £225 ; Cr S Letts £225 Purchases Day book; Dr Purchases £250 ; Cr S Letts £250 £189 Dr Returns Inwards a/c in General Ledger & Cr S Smart a/c in Sales Ledger Both Trade discount and Cash discount Cr Discount received £100 & Cr Bank £1,900 discount allowed TIẾNG ANH CHUYÊN NGÀNH I within required time; hence 3% cash discount was given to him’ How much cash discount was given to him? (See example II.1 – L5: Discount = £1,800 x 3% = £54) From the transaction below: ‘A Smith owed the business £1,800 for the goods sold to him & he paid his debt within required time; hence 3% cash discount was given to him’ How much did A Smith actually pay? £1,746 From the transaction below: ‘A Smith owed the business £1,500 for the goods sold to him on May 10, Year The terms of sale allow for 3% cash discount for payment within days On May 15, Year 2, A Smith paid his debt by cheque.’ What entries in the cash book are necessary for this transaction? Dr Discount allowed £45 & Dr Bank £1,455 From the transaction below: ‘You owed A John, a creditor £2,000 for the goods bought from him & You paid your debt within required time; hence 3% cash discount was received’ How much did you have to pay? £1,940 From the transaction below: ‘You owed A John, a creditor £2,000 for the goods bought from him & you paid your debt within required time; hence 3% cash discount was received’ How much cash discount did you received? £60 (See example II.1 – L5: Discount = £2,000 x3% = £60) In the transaction below: ‘You owed A John, a creditor for the goods bought from him & you paid your debt within required time; hence A John gave you cash discount’ What kind of discount is it? discount received In the transaction: ‘Cash sale £1,410, in which £410 was received in cash’ What entries in the Cash book are done? In the transaction: ‘Withdrew £420 from bank to make cash in office’ What entries in the Cash book are done? Nếu vụ án không thuộc thẩm quyền Tòa án phải trả hồ sơ cho Viện kiểm sát In the transaction: ‘Paid £442 in cash to A Dobbs in settlement of a debt of £450’ What entries in the Cash book are done? In the transaction: ‘Received a cheque of £1,200 from A Smart in full settlement of debt of £1,212’ What entries in the Cash book are done? When you received money from debtors who pay their debts within required time, the discount you give him is called is an amount received from creditors when paying them within required time Dr Cash £410 & Dr Bank £1,000 Cr Bank £420 & Dr Cash £420 (See exercise 1-L5: Asset (Cash) increase: Dr Cash a/c & Asset (Bank) decrease: Cr Bank a/c: Cr Discount received £8 & Cr Cash £442 Dr Discount allowed £12 & Dr Bank £1,200 discount allowed discount received TIẾNG ANH CHUYÊN NGÀNH I The total of discount received column in the cash book will be transferred to Ledger General Sales Day book is used for …… …… is the Source document for Credit Sales is indicated in the invoice From Sales Day book, detail is transferred promptly to debtor’s account in From Sales Day book, detail is transferred monthly to Sales account in Credit sales Invoice Both Trade discount and Cash discount Sales Ledger is indicated in the invoice and recorded in the accounts From the transaction below: ‘Credit sale to P Starkey at list price of £360, subject to 15% trade discount’ How much will be recorded into accounts? From the transaction: ‘K Devine returns to us goods with a list price of £150 No discount was previously made.’ In what accounts will it be recorded? From the transaction: ‘Credit purchase from A John at list price of £880, subject to 20% trade discount’ How much discount will the business receive? From the transaction: ‘Credit purchase from S Letts at list price of £250, subject to 10% trade discount; then return goods to S Letts at list price £40’ How much will the business record in Return Outwards account? From the transaction: ‘Return goods to S Letts at list price £40’ In what Day book and what accounts will it be recorded? Cash discount General Ledger £306 £360 Dr Returns Inwards £150 & Cr K Devine £150 £176 (revise II.2 – L6: £880 x 20% = £176) £4 £36 Returns Inwards Day book; Dr Purchases a/c & Cr S Letts Returns Outwards Day book; Dr S Letts a/c & Cr Returns Outwards a/c The following detail appears in the Purchases Day Book: T Smith a/c in Purchases Ledger; Purchases a/c in General Ledger ‘T Smith56/637£656’ To what accounts & Ledgers will this detail be transferred? From Sales Day book, detail is transferred promptly to account in Sales Ledger From the transaction: ‘Credit purchase from A John at list price of £880, subject to 20% trade discount’ How much will the business record into Day book? From the transaction: ‘Credit purchase from S Letts at list price of £250, subject to 10% trade discount’ In what Day book and what accounts will it be recorded & How much will it be recorded? Debtor’s From the transaction below: ‘Credit sale to P Starkey at list price of £360, subject to 15% trade discount’ How much discount will be given to P Starkey? £54 £704 Purchases Day book; Dr Purchases £225 ; Cr S Letts £225 Purchases Day book; Dr Purchases £250 ; Cr S Letts £250 TIẾNG ANH CHUYÊN NGÀNH I From the transaction: ‘Credit purchase from S Letts at list price of £250, subject to 10% trade discount; then return goods to S Letts at list price £40’ How much will the business finally owe S Letts? From the transaction: ‘S Smart –a debtor returned goods to the business’ In what accounts & what ledger will it be recorded? The invoice gives details of Book-keeping entries relating to Payment to creditor are: £189 [(£250-10%)-(£40-10%)]= £189 Dr Returns Inwards a/c in General Ledger & Cr S Smart a/c in Sales Ledger Both Trade discount and Cash discount debit creditor’s account & credit bank/ cash account £5,270 Calculate Net Profit from the following details: Gross profit: £12,400; Expenses £7,550, Commission £420 (Net profit = Gross profit + other incomes – Expenses: see II.1-L4) £1,690 Dr The account ‘Bank’ has transactions during July, Year 4, including debit entries with £5,000 and credit entries with £170 and £240 How much is the balance of this account at the end of July, Year 4? £1,590 Dr £1,690 Cr T-type Ledger accounts has the following format: two-sided account with debit side on the left and credit side on the right In the transaction ‘wages of £40 are paid in cash’, which entries are correct? Cr wages account £40 & Cr Cash account £40 Dr wages account £40 & Cr Cash account £40 Cr wages account £40 & Dr Cash account £40 Liabilities Debtor loan A is someone who owes you money after you sell him/ her on credit Which item below is not an asset? Creditor £25 Dr The account ‘T Dove’ has transactions during May, Year 4, including debit entries with £150 & £80 and credit entries with £170 and £35 How much is the balance of this account at the end of May, Year 4? Book-keeping entries relating to Credit Purchase are: debit purchases account & debit supplier’s (creditor’s) account debit purchases account & credit supplier’s (creditor’s) account means a charge paid by the firm to carrier for delivering goods to customers: Cost of distribution Which account below is close off to Profit and Loss account? carriage outwards Where balances are carried forward from one page to the next, ‘balance ’ would appear at the bottom of one page and ‘balance .’ at the top of the next page c/f – b/f Purchases Carriage Outwards Sales TIẾNG ANH CHUYÊN NGÀNH I 10 ... Inwards 15 0 & Cr K Devine 15 0 17 6 (revise II.2 – L6: £880 x 20% = 17 6) TIẾNG ANH CHUYÊN NGÀNH I From the transaction: ‘Credit purchase from S Letts at list price of £250, subject to 10 % trade... you have to pay? 1, 940 From the transaction below: ‘You owed A John, a creditor £60 discount allowed (See example II .1 – L5: Discount = 1, 800 x 3% = £54) TIẾNG ANH CHUYÊN NGÀNH I £2,000 for... received 10 0 & Cr Bank 1, 900 discount allowed TIẾNG ANH CHUYÊN NGÀNH I within required time; hence 3% cash discount was given to him’ How much cash discount was given to him? (See example II .1 –