Acca f3 financial accounting formulas CHAPTER # 05 LEDGER ACCOUNTS AND DOUBLE ENTRY

ACCOUNTING EQUATIONS ASSETS LIABILITIES ASSETS = OPENING CAPITAL + NET PROFIT DRAWINGS + LIABILITIES IN OTHER FORM CLOSING CAP = PROFIT DRAWINGS OPENING CAPITAL + FRESH CAPITAL + NET = CAPITAL + LIABILITIES

OPENING CAPITAL + NET PROFIT DRAWINGS +

CHAPTER # 07 SALESTAX

FOR CALCULATION OF SALES TAX AMOUNT SELLING PRICE IS INCLUSIVE SALES TAX X 100 + % SELLING PRICE IS EXCLUSIVE SALES TAX X 100 %

CHAPTER # 11 ACCRUALS & PREPAYMENTS

DR OPENING BALANCE DUE CLOSING BALANCE ADVANCE INCOME (I/S) DR OPENING EXPENSE ADVANCE CLOSING EXPENSES DUE EXPENSES OPENING EXPENSES DUE CLOSING EXPENSES ADVANCE CR INCOME CR OPENING BALANCE ADVANCE CASH RECEIVED D.T.Y CLOSING BALANCE INCOME DUE

CASH PAID FOR EXPENSES

EXPENSES F.T.Y

CHAPTER # 14 CONTROL ACCOUNT

ACCOUNTS RECEIVABLES A/C OPENING (DR) BALANCE OPENING (CR) BALANCE CREDIT SALES (INVOICE ISSUE/ CASH/CHEQUE RECEIVED RAISED) CHEQUES DISHONOURED DISCOUNT ALLOWED REFUND PAID TO CUSTOMERS SALES RETURN (CREDIT NOTES ISSUED) BAD DEBTS A/R BALANCE SETOFF WITH A/P (A/R CONTRA WITH A/P) CLOSING (CR) BALANCE CLOSING (DR) BALANCE ACCOUNTS PAYABLES A/C OPENING DR BALANCE OPENING CR BALANCE CASH / CHEQUE PAID CREDIT PURCHASE (INVOICE RECEIVED) DISCOUNT RECEIVED PURCHASE RETURN (CREDIT NOTE RECEIVED) A/P BALANCE SETOFF WITH A/R (A/P CONTRA WITH A/R) CLOSING CR BALANCE CLOSING DR BALANCE

CONTROL ACCOUNT RECONCILIATION SCHEDULE

A) BOOK OF ORIGINAL ENTRY

ERRORS A) WRONG RECORDING B) WRONG CASTING AMENDMENTS CONTROL A/C & LIST CONTROL A/C

B) GENERAL LEDGER (CONTROL A/C)

ERRORS A) WRONG POSTING B) WRONG CASTING AMENDMENTS CONTROL A/C CONTROL A/C

C) SUBSIDIARY LEDGER (INDIVIDUAL A/C)

ERRORS A) WRONG POSTING B) WRONG CASTING AMENDMENTS LIST LIST

D) LIST OF INDIVIDUALS A/C ERRORS A) WRONG LISTING B) WRONG CASTING AMENDMENTS LIST LIST

ESTABLISHING COST OF SALES SINCE OPENING INVENTORY PLUS PURCHASES LESS CLOSING INVENTORY EQUALS THE COST OF GOOD SOLD THE COST OF GOOD SOLD PLUS CLOSING INVENTORY LESS OPENING INVENTORY EQUALS PURCHASES X X (X) X X X (X) X

THEN

CHAPTER # 26 INTERPRETATION OF FINANCIAL STATEMENTS

CAPITAL EMPLOYED LIABILITIES LIABILITIES) RETURN ON CAPITAL EMLOYED RETURN ON EQUITY DIVIDEND = PROFIT BEFORE INTEREST & TAX CAPITAL EMPLOYED = PROFIT AFTER TAX 7 PREFERENCE = SHAREHOLDER EQUITY + LONG TERM

( OR TOTAL ASSETS LESS CURRENTS

EQUITY SHAREHPLDER FUNDS

IN OTHER FORM PROFIT MARGIN X PBIT X ASSET TURN OVER SALES = = ROCE PBIT

SALES EMPLOYED

CAPITAL EMPLOYED

CAPITAL

DEBT RATIOS

= TOTAL DEBTS TOTAL ASSETS = TOTAL LONG TERM EQUITY SHARE HOLDER EQUITY + TOTAL LONG X

GEARING RATIOS 100% T.DEBT LEVERAGE 100%

SHAREHOLDERS EQUITY TOTAL ASSETS CURRENT LIABILITIES

INTEREST COVER

PROFIT BEFORE INTEREST & TAX INTEREST CHARGE

LIQUIDITY RATIO & WORKING CAPITAL RATIOS INCLUDES CURRENT RATIOS , QUICK RATIOS , RECEIVABLES COLLECTION RATIOS, PAYABLES RATIOS & INVENTORY TURNOVER RATIOS.

CURRENT RATIOS

CURRENT ASSETS CURRENT LIABILTIES = CURRENTS ASSETS LESS INVENTORY CURRENT LIABILTIES X 365

QUICK RATIOS

A/C RECEIVABLES COLLECTION = TRADE RECEIVABLES DAYS PERIODS CREDIT SALES

PAYABLES PAYMENTS PERIOD = TRADE A/C PAYABLES X 365 DAYS PURCHASES INVENTORY TURNOVER= PERIOD INVENTORY COST OF SALES X 365 DAYS