Single Entry and Incomplete Record 單式記帳

What is Double Entry System? (複式記帳) Every transaction affects TWO items. Each entry is made TWICE.

Account Account

Do small shops use Double Entry System? Why? No! Don’t know how to do Costly 成本高

What would happen if …. accounting records will be destroyed

Learning Objectives Calculate profits from single entry system Calculate goods stolen or lost by fire Calculate closing stock after balance sheet date

Methods

Calculating Profit by using Statement of Affairs 運用清理式資產負債表計算利潤 Find Profit / Loss from the balances of Capital 利用期初資本及期末資本計算純利 / 虧損

期初資本 期末資本 Balance Sheet Capital Balance at year start Add: Net Profit $ Capital 期初資本 Balance at year start 1 000 Add: Additional Capital 500 1 500 Add: Net Profit 800 2 300 Less: Drawings 300 期末資本 Balance at year end 2 000

Opening Capital Additional Capital Drawings Net Profit = Closing Capital

Net Profit = Closing Capital Drawings Additional Capital Opening Capital

How to find Opening Capital ? Closing Capital ?

Remember? Assets Liabilities Capital

Capital Assets Liabilities

Preparation of Statement of Affairs It is used to find the opening & closing capitals. Then, Net Profit could be calculated.

Total Debtors & Total Creditors In this chapter --total debtors a/c is used to find the amount of Credit Sales. -- total creditors a/c is used to find the amount of Credit Purchases.

Mark-up & Margin Mark-up 加成 Profit shown as a percentage of cost

Mark-up & Margin Margin 毛利 Profit shown as a percentage of selling price Profit Sales

Goods Stolen or Lost by Fire Value of the stolen / destroyed goods should be calculated for an insurance claim or tax purpose.

Calculation of Stock Loss Method 1: Statement Idea:

? Burglary: 28 May 2000 Margin 25% Stock 31/3/00 1/4/00 – 28/5/00 Purchases $3 000 ? Stock 31/3/00 $4 500 1/4/00 – 28/5/00 Sales $8 000

Calculation of Value of Stock Stolen on 28 May 2000 $ $ Stock at cost at 31 March 2000 4 500 Add: Purchases for the period 3 000 8000 x 25% 7 500 Less: Cost of Goods Sold Sales for the period 8 000 Less: Profit Loading 2 000 6 000 Stock Stolen on 28 May 2000 1 500