NOT FOR RESALE
FIN101 NOTES – EXAM
Assets, Liabilities & Owners Equity
ASSETS = OWNERS EQUITY + LIABILITIES
Textbook pg. 51 + 27 + 29 + 20-21 + 30
Current Liabilities - current expenses, short-term expenses
Current Liabilities = Trade Creditors, Accrued Expenses (due now)
Non-Current Liabilities = Long-term loans
Non-Current Assets = Machinery, Vehicles (Long-term assets)
Current Assets = Inventory, Trade Receivables, Cash & Bank, Pre-paid Expenses
(Short-term assets)
Owners’ Equity = Bank, Profit, less drawings
Capital = Equity
Profit = Owners Equity
ASSETS – LIABILITIES = CAPITAL
Creditors Control = Liability (Monies owed from the company)
Debtors Control = Asset (Monies owed to the company)
Year-End Adjusting Journal Entries: Debit = Credit
Journals, Textbook pg. 43 + 51
Adjustments, Textbook pg. 109 & 127
Accrual Adjustments, Textbook pg. 117 (Rent income)
Accrual Concept: Income & Expenses are recorded in the period they are earned
or incurred
, Double Entry Adjustments
ASSETS = OE + LIABILITY
Debit Left Credit Right
Double Entry Adjustments, Textbook pg. 42
Assets: Debit = Increase Credit = Decrease
Owners’ Equity: Debit = Decrease Credit = Increase
Liabilities: Debit = Decrease Credit = Increase
Year-end adjusting Entries
Prepaid Expenses = Dr.
Ex Rent = Cr.
Accrued Expenses = Cr.
Ex running cost of veh = Dr.
Allowance for credit losses = Cr.
Ex Credit losses = Dr.
Depreciation = Dr.
Ex acc. Depreciation = Cr.
Ex acc. Depreciation = Cr.
Depreciation
Straight-line Method: Cost x %
Reducing Method: (Cost – Accumulated depreciation) x %
Book Value: Cost - Accumulated depreciation
Financial Statement, Textbook pg. 136 – 138, 145
Cost of Sales = Opening Inventory + Purchases – Closing Inventory
Discount Received = Other Income
Depreciation is an Operating Expense
Debtors are also called Trade Receivables
Allowance for Credit losses get deducted from Debtors.
FIN101 NOTES – EXAM
Assets, Liabilities & Owners Equity
ASSETS = OWNERS EQUITY + LIABILITIES
Textbook pg. 51 + 27 + 29 + 20-21 + 30
Current Liabilities - current expenses, short-term expenses
Current Liabilities = Trade Creditors, Accrued Expenses (due now)
Non-Current Liabilities = Long-term loans
Non-Current Assets = Machinery, Vehicles (Long-term assets)
Current Assets = Inventory, Trade Receivables, Cash & Bank, Pre-paid Expenses
(Short-term assets)
Owners’ Equity = Bank, Profit, less drawings
Capital = Equity
Profit = Owners Equity
ASSETS – LIABILITIES = CAPITAL
Creditors Control = Liability (Monies owed from the company)
Debtors Control = Asset (Monies owed to the company)
Year-End Adjusting Journal Entries: Debit = Credit
Journals, Textbook pg. 43 + 51
Adjustments, Textbook pg. 109 & 127
Accrual Adjustments, Textbook pg. 117 (Rent income)
Accrual Concept: Income & Expenses are recorded in the period they are earned
or incurred
, Double Entry Adjustments
ASSETS = OE + LIABILITY
Debit Left Credit Right
Double Entry Adjustments, Textbook pg. 42
Assets: Debit = Increase Credit = Decrease
Owners’ Equity: Debit = Decrease Credit = Increase
Liabilities: Debit = Decrease Credit = Increase
Year-end adjusting Entries
Prepaid Expenses = Dr.
Ex Rent = Cr.
Accrued Expenses = Cr.
Ex running cost of veh = Dr.
Allowance for credit losses = Cr.
Ex Credit losses = Dr.
Depreciation = Dr.
Ex acc. Depreciation = Cr.
Ex acc. Depreciation = Cr.
Depreciation
Straight-line Method: Cost x %
Reducing Method: (Cost – Accumulated depreciation) x %
Book Value: Cost - Accumulated depreciation
Financial Statement, Textbook pg. 136 – 138, 145
Cost of Sales = Opening Inventory + Purchases – Closing Inventory
Discount Received = Other Income
Depreciation is an Operating Expense
Debtors are also called Trade Receivables
Allowance for Credit losses get deducted from Debtors.
