2012最新ACCA考试-F3管理会计讲义Session 2

2012最新ACCA考试-F3管理会计讲义Session 2

Session 2

☆Financial Statements include:
　　- a statement of financial position at the end of the period
　　- a statement of comprehensive income for the period
　　- a statement of changes in equity for the period
　　- statement of cash flows for the period
　　- notes, comprising a summary of accounting policies and other explanatory notes

　　The statement of financial position:
　　Statement of Financial Position: showing the financial position of a business at a point of time.
　　The Vertical format of the SFP: （Statement of Financial Position as at 31 December 2007）
　　●The top half of the balance sheet shows the assets of the business.
　　●The bottom half of the balance sheet shows the capital and liabilities of the business.
　　A Statement of financial position at the end of the period （Balance Sheet）:

　　W Xang
　　 Balance Sheet as at December 31 20X6
　        $        $
Non – current assets        　        　
Motor Van        　        2,400
Current assets        　        　
Inventory        2,390        　
Trade receivables        1,840        　
Cash at bank        1,704        　
Cash in hand        56        　
　        　        5,990
Total assets        　        8,390
　        　        　
　        $        $
Capital account        　        　
Balance at 1 January 20X6        4,200        　
Add net profit for year        3,450        　
Increase in capital        1,000        　
　        8,650        　
Less: Drawing for year         （2,960）        　
　        　        5,690
　        　        　
Non – current liabilities        　        1,000
Current liabilities        　        　
Payable        　        1,700
Total         　        8,390
　　The horizontal format of the SFP: （Statement of Financial Position as at 31 December 2007）
　　●The left half of the balance sheet shows the assets of the business.
　　●The right half of the balance sheet shows the capital and liabilities of the business.
　　W Xang
　　 Statement of Financial Position as at 31 December 20x6
　        $        $         　        $        $
Non-current assets        　        　        Non-current liabilities        　        1,000
Motor van        　        2,400         Trade payable        　        　1,700
　        　        2,400         Total liabilities        　        　2,700
　        　        　        Capital account        　        　
Current assets        　        　        Balance at 1 January 20X6        4,200         　
Inventory        2,390         　        Add net profit for year        3,450         　
Trade receivables        1,680         　        Increase in capital        1,000         　
Cash at bank        1,704         　        　        8,650         　
Cash in hand        56         　        Less: Drawing for year        -2,960         　
Total current assets        　        5,990        　        　        5,690
Total assets        　        8,390        Total capital and liabilities        　        8,390
　　☆The accounting equation
　　Financial accounting is based upon a very simple idea:
　　
　　The amount of resources supplied by the owner is called capital. The actual resources that are then in the business are called assets. Usually, people other than the owner have supplied some, of the assets, for example, a supplier supplies stock of goods on credit. The business is said to owe a liability towards these suppliers. The following accounting equation always holds true:
　　The accounting equation:
　　ASSETS = PROPRITOR’S CAPITAL + LIABILITIES
　　- Any point in time, the assets of the business will be equal to its liabilities plus
　　the capital of the business;
　　- Assets less liabilities equal the capital of the business, which is known as net
　　 assets.
　　- Each and every transaction that the business makes or enters into has two
　　aspects to it and have a double effect on the business and the accounting
　　equation. This is known as the duality concept.
　　Duality concept: Each and every transaction that the business makes or enters into has two aspects to it and has a double effect on the business and the accounting equations. This is known as duality concept.


　　Illustration:
　　1）. Carl sets up in business by opening a coffee shop – Carl’s Coffee. He puts $5,000 into a business bank account.
　　The opening accounting equation is:
　　Assets （Cash in bank）= Capital + Liabilities
　　　　　　（$5,000）　　 = （$5,000） + （$0）
　　2）. Carl buys furniture （chairs and tables） for the shop for $1,500, paying the supplier out of the business bank account.
　　The accounting equation after this transaction is:
　　Assets　　　　　　　　　　　　Capital　 +　 Liabilties
　　（ Cash in bank $3,500）　 = （$5,000） 　　　（$0）
　　（Furniture $ 1,500）
　　3）. Now Carl spends a further $2,000 to buy coffee-making equipment and $800 on crockery and cutlery, paying cash out of the business bank account.
　　The accounting equation after this transaction is:
　　Assets　　　　　　　　　　　Capital　 +　 Liabilties
　　（Cash in Bank $700）　　　= （$5,000） 　（$0）
　　（Equipment $2,000）
　　（Fitting & Fixture $800）
　　（Furniture $1,500）
　　4）. Carl persuades his bank to lend $1,000 to develop the business. The bank loan is accounted for as a liability of the business.
　　The accounting equation is now as follows:
　　Assets　　　　　　　　　　　Capital　 + 　Liabilties
　　（Cash in Bank $1,700） = （$5,000） 　　（$1,000）
　　（Equipment $2,000）
　　（ Fitting & Fixture $800）
　　（Furniture $ 1,500）
　　5）. Carl now buys coffee, tea, milk, sugar, biscuits and cakes for $700, and pays in cash from the business bank account.
　　The accounting equation is now as follows:
　　Assets　　　　　　　　　　　Capital 　　+　　　 Liabilties
　　（Inventory $700）　　 = （$5,000）　　　　　　（$1,000）
　　（Equipment $2,000）
　　（Fitting & Fixture $800）
　　（Furniture $1,500）
　　（Cash in Bank $ 1,000）
　　6）. In his first day of trading, Carl uses up $650 of his inventory, and makes sales totaling $1,050. All his sales are in cash.
　　The accounting equation at the end of the day is as follows:
　　Assets　　　　　　　　　　　　Capital　　　　 +　　　　Liabilities
　　（Inventory $50）　　　　　　 = （Beginning $5,000） （$1,000）
　　（Equipment $2,000） 　　　　（ Profit $400）
　　（Fitting & Fixture $800）
　　（Furniture $1,500）
　　（ Cash in bank $2,050）

　　☆Classification of Assets and Liabilities
　　Assets: An asset is something owned or controlled by the business that will result in future economic benefits to the business. （ an inflow of cash or other assets.）
　　Such as:
　　Current assets:are assets owned by the business with the intention of turning them into cash within one year （accounting period）.
　　This definition allows inventory or receivables to quality as current assets, even if they may not be realized into cash within 12 months.

　　Non-current asset: is an asset held for and used in operation（rather than for selling to customer）, with a view to earning income or making profits from its use, for over more than one year （ accounting period）.
　　Liability: is something owed by the business to someone else.
　　Current liability: These include the debts of the business that are repayable within the next 12 months.
　　
　　Non-current liabilities: are liabilities that do not need to be settled for at least one year. （excluding the current portion of the debt）
　　Capital: Capital is a type of liability. It represents the owner’s net investment in the business. Capital appears as a credit balance on the balance sheet.

　　Assets – Liabilities = PROPRIETOR’S CAPITAL
　　Net Assets =（ Total ）Assets –（Total） Liabilities
　　Capital （at SFP date） = Capital introduced + Profit – Drawings
　　Drawing: Drawings are any amounts taken out of the business by the owner for their own personal use. Drawings will reduce the capital balance reported on the balance sheet.
　　Include:
　　●Money taken out of the business
　　●Goods taken for personal use
　　●Personal expenses paid by the business

　　Income statement
　　☆Financial Statements include:
　　- a statement of financial position at the end of the period
　　- a statement of comprehensive income for the period
　　- a statement of changes in equity for the period
　　- statement of cash flows for the period
　　- notes, comprising a summary of accounting policies and other explanatory notes
　　The statement of financial position:
　　Statement of Financial Position: showing the financial position of a business at a point of time.
　　The Vertical format of the SFP: （Statement of Financial Position as at 31 December 2007）
　　●The top half of the balance sheet shows the assets of the business.
　　●The bottom half of the balance sheet shows the capital and liabilities of the business.
　　A Statement of financial position at the end of the period （Balance Sheet）:

　　☆Income statement:
　　Mr. W Xang
　　Income statement for the year ended 31 December 20X6
　        $        $
Sales revenue        　        33,700
Opening inventory        3,200        　
Purchases        24,490        　
　        27,690        　
Less: Closing inventory        （2,390）        　
Cost of sales         　        （25,300）
Gross profit        　        8,400
　        　        　
Less: Expenses        　        　
wages        3,385        　
rent        1,200        　
Sundry expenses        365        　
　        　        （4,950）
Net profit        　        3,450
　　●Showing the financial performance of a business over a period of time.
　　●Reports revenue and expenses for the period.
　　●The sales revenue shows the income from goods sold in the year
　　●The cost of buying the goods sold must be deducted from the revenue
　　●The current year’s sales will include goods bought in the previous year, so this opening inventory must be added to the current year’s purchases.
　　●Some of this year’s purchases will be unsold at 31/12/20x6 and this closing inventory must be deducted from purchases to be set off against next year’s sales.
　　●The first part gives gross profit. The second part gives net profit.
　　The I.S. prepared following the accruals concept.
　　Accrual concept:
　　●Income and expenses are recorded in the I.S. as they are earned / incurred regardless of whether cash has been received/ paid.
　　（Sales revenue: income from goods sold in the year, regardless of whether those goods have been paid for.）
　　☆Relationship between a statement of financial position and a statement of income
　　
　　●The balance sheets are not isolated statements, they are linked over time with
　　the income statement
　　●As the business records a profit in the income statement, that profit is added to
　　the capital section of the balance sheet, along with any capital introduced. Cash
　　taken out of the business by the proprietor, called drawings, is deducted.
　
　　Illustration – the accounting equation:
　　The transactions:
　　Day 1 Avon commences business introduction $1,000 cash.
　　Day 2 Buys a motor car for $400 cash.
　　Day 3 Buys inventory for $200 cash.
　　Day 4 Sells all the goods bought on Day 3 for $300 cash.
　　Day 5 Buys inventory for $400 on credit.
　　SFP at the end of each day’s transactions:
　　Solution:
　　Day 1 Assets （Cash $1,000） = Capital （$1,000） + Liabilities （$0）
　　Day 2 Assets （Motor $400） = Capital （$1,000） + Liabilities （$0）
　　　　　　　　　（Cash $600）
　　Day 3 Assets （ Inventory $200） = Capital（$1,000） + Liabilities （$0）
　　　　　　　　　（Motor $400）
　　　　　　　　　（Cash $400）
　　Day 4 Assets （ Motor$ 400） = Capital　　　　 +　 Liabilities （$0）
　　　　　　　　　（Cash $700） （Beginning$1,000）
　　　　　　　　　　　　　　　　　　（Profit $100）
　　Day 5 Assets （Inventory $ 400） = Capital　　 +　 Liabilities
　　　　　　　　　　（ Motor$ 400）　 （Beginning$1,000） （$400）
　　　　　　　　　　　（Cash $700） 　　　（Profit $100）
　　Avon
　　Statement of Financial Position as at end of Day 5
　        $        $
Non – current assets        　        　
Motor Van        　        400
Current assets        　        　
Inventory        400        　
Cash in hand        700        　
　        　        1,100
Total assets        　        1,500
　        　        　
　        $        $
Capital account        　        　
Balance at Day 1        1,000        　
Add net profit for the period        100        　
　        　        1,100
Current liabilities        　        　
Payable        　        400
Total         　        1,500
　　 Example:
　　Continuing from the illustration above, prepare the SFP at the end of each day after accounting for the transactions below:
　　Day 6 Sells half of the goods bought on Day 5 on credit for $250.
　　Day 7 Pays $200 to his supplier.
　　Day 8 Receives $100 from a customer.
　　Day 9 Proprietor draws $75 in cash.
　　Day 10 Pays rent of $40 in cash.
　　Day 11 Receives a loan of $600 repayable in two years.
　　Day 12 Pays cash of $30 for insurance.
　　Your starting point is the SFP at the end of Day 5, from the illustration above.
　　Prepare: SFP at the end of Day 12
　　I.S. for the first 12 days of trading.
　　Solution:
　　Day 6 Assets （Inventory $ 200） = Capital　　　 + 　Liabilities
　　　　　　　　　（ Motor$ 400） 　　（Beginning$1,000） （$400）
　　　　　　　　　（Cash $700） 　　　　　（Profit $150）
　　　　　　　　　（A/Receivable$250）
　　Day 7 Assets （Inventory $ 200） = Capital 　　　+　 Liabilities
　　　　　　　　　（ Motor$ 400）　　 （Beginning$1,000） （$200）
　　　　　　　　　（Cash $500） 　　　　　（Profit $150）
　　　　　　　　　（A/Receivable$250）
　　Day 8 Assets （Inventory $ 200） = Capital　　　 + 　Liabilities
　　　　　　　　　（ Motor$ 400）　　 （Beginning$1,000） （$200）
　　　　　　　　　（Cash $600） 　　　　　（Profit $150）
　　　　　　　　　（A/Receivable$150）
　　Day 9 Assets （Inventory $ 200） = Capital　　　 +　 Liabilities
　　　　　　　　　（ Motor$ 400） 　　（Beginning$1,000） （$200）
　　　　　　　　　（Cash $525） 　　　　　（Profit $150）
　　　　　　　　　（A/Receivable$150）　 （Drawing $75）
　　Day 10 Assets （Inventory $ 200） = Capital　　 +　 Liabilities
　　　　　　　　　（ Motor$ 400）　　 （Beginning$1,000） （$200）
　　　　　　　　　（Cash $485） 　　　　　（Profit $110）
　　　　　　　　　（A/Receivable$150）　 （Drawing $75）
　　Day 11 Assets （Inventory $ 200） = Capital 　　+　 Liabilities
　　　　　　　　　（ Motor$ 400） 　（Beginning$1,000） （$200）
　　　　　　　　　（Cash $1,085） 　　　（Profit $110） （$600）
　　　　　　　　　（A/Receivable$150） （Drawing $75）
　　Day 12 Assets （Inventory $ 200） = Capital　　 +　 Liabilities
　　　　　　　　　（ Motor$ 400）　 （Beginning$1,000） （$200）
　　　　　　　　　（Cash $1,055） 　　　（Profit $80 ） （$600）
　　　　　　　　　（A/Receivable$150）　（Drawing $75）
　　Avon
　　 Statement of Financial Position as at end of Day 12
　        $        $
Non – current assets        　        　
Motor Van        　        400
Current assets        　        　
Inventory        200        　
Trade receivables        150        　
Cash in hand        1,055        　
　        　        1,405
Total assets        　        1,805
　        　        　
　        $        $
Capital account        　        　
Balance at Day 1        1,000        　
Add net profit for the period        80        　
Less: Drawing for year         （75）        　
　        　        1,005
　        　        　
Non – current liabilities        　        600
Current liabilities        　        　
Payable        　        200
Total         　        1,805
　　Avon
　　Income statement for the period ended at Day 12
　        $        $
Sales revenue        　        550
Opening inventory        0        　
Purchases        600        　
　        　        　
Less: Closing inventory        （200）        　
Cost of sales         　        （400）
Gross profit        　        150
　        　        　
Less: Expenses        　        　
rent        40        　
insurance        30        　
　        　        （70）
Net profit        　        80