1. Single Entry and Incomplete Record
單式記帳

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

3. Account
Account

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

5. What would happen if ….
accounting
records
will be
destroyed

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

7. Methods

8. 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

9. 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

10. Opening Capital
Additional Capital
Drawings
Net Profit =
Closing Capital

11. Net Profit =
Closing Capital
Drawings
Additional Capital
Opening Capital

12. How to find
Opening Capital ?
Closing Capital ?

13. Remember?
Assets
Liabilities
Capital

14. Capital
Assets
Liabilities

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

16. 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.

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

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

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

20. Calculation of Stock Loss
Method 1: Statement
Idea:

21. ? 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

22. 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