ACCA Financial Accounting Equations
Asset Equation - Assets = Capital + Liabilities Capital (Equity) Equation - Capital = Assets - Liabilities Assets Equation (Long) - Assets = Capital + Liabilities + Profit - Drawings Profit Equation - Profit = Total Revenue - Total Cost Gross Profit Equation - Gross Profit = Sales Revenue - Cost of Sales Tax To Pay Equation - Tax to Pay = Output Tax (Sales) - Input Tax (Purchases) Cost of Sales Equation - Opening Inventory + Purchases - Closing Inventory Straight Line Depreciation Expense Equation - Expense = (Cost-Residual Value) - Expected Useful Life Annual Carrying Amount Equation - Cost - Accumulated Depreciation Reducing Balance Depreciation Equation - Cost x (1-Rate of Depreciation)n Profit/(Loss) on Disposal - Profit/(Loss) = Sales Proceeds - Carrying Amount of Assets at Date of Disposal Revaluation Surplus Equation - Fair Value - Carrying Amount of Asset at date of Valuation Profit (Change) Equation - Increase in Net Assets- Increase in Capital + Drawings Non-Controlling Interest in P/L Equation - NCI % x Subsidiary Profit for the Period
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acca financial accounting equations