Summary
Summary FIRST CLASS - AC100 Income Statement + Balance Sheet Preparation WITH FULL WORKINGS - Part 2
- Institution
- London School Of Economics (LSE)
ALL SCENARIOS THAT CAN COME UP IN EXAM INCLUDED
[Show more]
Seller
Follow
Content preview
Prepaid x + Prepaid expense (SOFP)Accrued x accrued expense – accrued expense = 0
(SOFP)
Reversing old prepayment and creating new accrual
X expense TB expense + accrual + prepaid (IS)
Accrued x + Accrued expense (SOFP)
Prepaid x Prepaid x – prepaid x (SOFP)
Reversing old prepayment – ratio!
DR x expense
CR prepaid x
X expenses TB expense - prepaid x (IS)
Prepaid x Prepaid x – prepaid x (SOFP)
Reversing old accrual – ratio!
DR accrued x
CR x expense
x expenses TB Expense – accrued expense (IS)
Accrued x accrued expense – accrued expense = 0
(SOFP)
Creating new prepayment – ratio!
DR prepaid x
CR x expense
x expenses TB expense + prepaid expense (IS)
Prepaid x + Prepaid expense (SOFP)
Creating new accrual – ratio!
DR x expense
CR accrued x
x expenses TB expense + accrued expense (IS)
Accrued x + Accrued expense (SOFP)
Depreciation and disposal of PPE
if also disposal -> depreciation and disposal together
Disposal
check which part is already accounted for and which not
if sales proceeds have already been credited do not touch cash!
(x) Depreciation x £000
, END OF YEAR
Depreciation methods:
Straight line
Take Annual Depreciation charge = ‘at cost’ x percentage
= [(Initial Cost – Residual Value)/ Useful economic life] from ‘at cost’ value
Reducing Balance
Depreciation rate of NBV of previous year (cost – accumulated depreciation)
Based on months
Percentage x cost (NBV when red.) x 1/12 x number of months dep.
aufpassen wann Jahr aufhört – nicht umb. Dezember
Depreciation expense of x Calculate as above (IS)
Acc. depreciation x Previous depreciation (=Cost-NBV) +
Depreciation expense (SOFP)
(x) Disposal of (PPE) £000
watch out WHEN the year ends when
doing with months (not necessarily Dec)
Cost of disposed (PPE) (In text)
Acc. depreciation of disposed Depreciation expense x years
NBV of disposed
Disposal proceeds
Gain/ Loss on disposal NBV of disposed – Disposal proceeds (IS)
if difference is positive loss
(PPE) cost (remaining) Cost (TB) – cost of disposed (SOFP)
Depreciation expense of (PPE) This year’s dep. of (PPE) cost (remaining)
(IS)
(if months + depr. of disposed for months
within this year)
Acc. depreciation (PPE) Acc. Depreciation old – Acc. Depr. Disposed
Asset + Depreciation expense (SOFP)
Cash Cash before + disposal proceeds (SOFP)
(if sales proceeds have not been credited or
not accounted for)
Revaluation
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller annabellelamberts90. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £3.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75323 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now