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Accounting Igcse Cie

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  1. The-Purpose-Of-Accounting Igcse Cie
    3 主题
  2. Business-Documents Igcse Cie
    3 主题
  3. Books-Of-Prime-Entry Igcse Cie
    2 主题
  4. Double-Entry-Book-Keeping-With-Ledger-Accounts Igcse Cie
    8 主题
  5. The-Cash-And-Petty-Cash-Books Igcse Cie
    2 主题
  6. The-Trial-Balance-And-Correction-Of-Errors Igcse Cie
    4 主题
  7. Bank-Reconciliation Igcse Cie
    2 主题
  8. Control-Accounts Igcse Cie
    3 主题
  9. Capital-And-Revenue-Expenditure-And-Receipts Igcse Cie
    2 主题
  10. Depreciation-And-Disposal-Of-Non-Current-Assets Igcse Cie
    3 主题
  11. Other-Payables-And-Other-Receivables Igcse Cie
    2 主题
  12. Irrecoverable-Debts-And-Provision-For-Doubtful-Debts Igcse Cie
    2 主题
  13. Valuation-Of-Inventory Igcse Cie
    2 主题
  14. Financial-Statements-For-Sole-Traders Igcse Cie
    8 主题
  15. Financial-Statements-For-Partnerships Igcse Cie
    5 主题
  16. Financial-Statements-For-Limited-Companies Igcse Cie
    4 主题
  17. Financial-Statements-For-Clubs-And-Societies Igcse Cie
    5 主题
  18. Financial-Statements-For-Manufacturing-Businesses Igcse Cie
    3 主题
  19. Incomplete-Records Igcse Cie
    4 主题
  20. Accounting-Ratios Igcse Cie
    6 主题
  21. Accounting-Principles-And-Policies Igcse Cie
    2 主题
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Exam code:0452 & 0985

Accounts for assets

How do I interpret ledger accounts for non-current assets?

  • At the start of an accounting period, the balance on an asset account will be on the debit side

Account is debited when:

Account is credited when:

  • More of the non-current asset

    is purchased

  • The non-current asset is sold

How do I interpret ledger accounts for trade receivables?

  • At the start of an accounting period, the balance on a trade receivables account will usually be on the debit side

  • A trade receivable account could start on the credit side

    • If the credit customer has returned goods to the business

    • And the goods have already been paid for

    • But the business has not yet refunded the credit customer

Account is debited when:

Account is credited when:

  • The customer buys more goods on credit

  • Interest is charged for an overdue balance

  • A cheque received from a customer is dishonoured

  • The business refunds the customer for goods that have already been paid for

  • The credit customer pays an invoice to the business

  • Cash discount is allowed to the customer by the business

  • The customer returns some goods

Accounts for liabilities

How do I interpret ledger accounts for liabilities?

  • At the start of an accounting period, the balance on a liability account will be on the credit side

Account is debited when:

Account is credited when:

  • The business repays some of its loan

  • The business borrows more money

    from the lender

How do I interpret ledger accounts for trade payables?

  • At the start of an accounting period, the balance on a trade payable account will usually be on the credit side

  • A trade payable account could start on the debit side

    • If the business has returned goods to a credit customer

    • And the goods have already been paid for

    • But the credit supplier has not yet refunded the business

Account is debited when:

Account is credited when:

  • The business pays an invoice to the credit supplier 

  • Cash discount is received by the business form the supplier

  • The business returns some goods

  • The business buys more goods on credit

  • Interest is charged for an overdue balance

  • A cheque sent to a supplier is returned

  • The supplier refunds the business for goods that have already been paid for

Accounts for expenses & incomes

How do I interpret ledger accounts for expenses?

  • At the start of an accounting period, the balance on an expense account should be zero

    • Unless there is an accrued or prepaid expense

  • There could be a starting balance on the debit side

    • if the business has made an early payment toward the expense for the current period

      • This is called a prepaid expense

  • There could be a starting balance on the credit side

    • if the business still owes money for an expense for the previous period

      • This is called an accrued expense

Account is debited when:

Account is credited when:

  • The business pays the expense

  • The balance is transferred to the

    income statement at the end of

    the accounting period

How do I interpret ledger accounts for incomes?

  • At the start of an accounting period, the balance on an income account should be zero

    • Unless there is accrued or prepaid income

  • There could be a starting balance on the debit side

    • if the business is waiting for money that should have been received in the previous period

      • This is called accrued income

  • There could be a starting balance on the credit side

    • if the business receives payments early for the current period

      • This is called prepaid income

Account is debited when:

Account is credited when:

  • The balance is transferred to the income statement at the end of the accounting period

  • The business receives the income

Accounts for capital & drawings

How do I interpret ledger accounts for drawings?

  • At the start of an accounting period, the balance on the drawings account will be zero

Account is debited when:

Account is credited when:

  • The owner takes money from the business for personal use

  • The owner takes goods from the business for personal use

  • The balance is transferred to the capital account at the end of the accounting period

How do I interpret ledger accounts for capital?

  • At the start of an accounting period, the balance on the capital account will be on the credit side

Account is debited when:

Account is credited when:

  • A loss is transferred from the income statement

  • The balance from the drawings account is transferred

  • The owner introduces money into the business

  • A profit is transferred from the income statement

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