Showing posts with label Accounting. Show all posts
Showing posts with label Accounting. Show all posts
Thursday, April 25, 2019
Monday, April 1, 2019
Accounting Journal Entries
Lecture on Journal Entries: This is Part 2 of 2 videos. Please check each of the transactions very carefully. Hopefully this video will be helpful for you. In the second part few more transactions will be uploaded.
Practice: Financial Transactions for January 2019
01/01/19 Mr. Z invested 50,000 in the business
02/01/19 Purchase of factory machinery worth 20,000 by issuing a
Note payable after 3 months
03/01/19 Purchase of inventories for cash 5,000
10/01/19 Sale of finished goods for cash 4,000 and on credit 2,000
13/01/19 Receipt of cash 1,000 on credit sale
8/01/19 Logistics company has submitted a bill worth 250 for shipping expenses
23/01/19 Partial payment of 2,000 for inventory purchased on credit
28/01/19 Wages, utilities, and rent paid in cash 1,000, 400, 600 respectively
30/01/19 Payment of annual insurance premium 10,000
31/01/19 Mr. Z withdrew 1,500 cash from the business for personal use
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Friday, March 29, 2019
Accounting Journal Entries
Lecture on Journal Entries. This is Part 1 of 2 videos. Please check each of the transactions very carefully. Hopefully this video will be helpful for you. In the second part few more transactions will be uploaded.
XYZ Inc.
Practice: Financial Transactions for January 2019
01/01/19 Mr. Z invested 50,000 in the business
02/01/19 Purchase of factory machinery worth 20,000 by issuing a
Note payable after 3 months
03/01/19 Purchase of inventories for cash 5,000
10/01/19 Sale of finished goods for cash 4,000 and on credit 2,000
13/01/19 Receipt of cash 1,000 on credit sale
8/01/19 Logistics company has submitted a bill worth 250 for shipping expenses
23/01/19 Partial payment of 2,000 for inventory purchased on credit
28/01/19 Wages, utilities, and rent paid in cash 1,000, 400, 600 respectively
30/01/19 Payment of annual insurance premium 10,000
31/01/19 Mr. Z withdrew 1,500 cash from the business for personal use
Solutions will be provided in Part 2 of this lecture video.
Find links to the comprehensive problems on Journal
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Sunday, March 3, 2019
Economic Entity Principle or Business Entity Assumption
- Recording of financial transactions of business entity should be kept separate from the owner’s personal financial transaction recording.
- The transaction should not be mixed.
- Asset, Liabilities, Cash transaction, Bank accounts should be kept separate.
- This should be maintained strictly as owner and business entity pays TAX separately.
The economic Entity principle is also known as business entity assumption.
Inventories
IAS 2 – Inventories
- Explain the requirements of how to account for different kind of inventories and which expenses should be recognized.
- • It requires to value the inventory at the lower of cost and estimated selling price less selling costs for each separate item or product (Net realizable value).
- • The cost of inventory includes all the costs of getting the item to the current location
- · It shows methods to value inventory.
- First in, first out (FIFO)
- Weighted average method
- The cost involved in the inventory:
- · Purchase Cost (including taxes)
- · Transport
- · Handling
- · Translation cost (Fixed and variable manufacturing overhead)
Cost should be avoided:
· Administrative overheads unrelated to production
· Selling costs
· Storage costs
· Abnormal waste
· Foreign exchange differences arising directly on the recent acquisition of inventories invoiced in a foreign currency
· Interest cost when inventories are purchased with deferred settlement terms.
Tags: inventories, inventory, IAS 2, IAS-2 inventories,
Ref: www.iasplus.com, www.ifrs.org
