741
FUNDAMENTALS OF FINANCIAL ACCOUNTING
INDEX
Sales returns daybook, 233
Sales tax, accounting for, 102–6
on non-current assets and expenses, 106
non-registered businesses, 106
in separate ledger accounts, 106
zero-rated and exempt supplies, 107
Sales to capital employed, 508, 511
Sales to non-current assets, 511
Segregation of duties, 280, 295, 347
Separate entity convention, 17–18
Services, exchange of goods, 120–1
Share capital, 434–5
Share premiums, 435
Shareholders:
separate entity convention, 17–18
use of accounts, 3–4
Shop taking, 370
Social responsibility accounting, 330–1
Societies, 9, 373
Sole traders:
business entity convention, 330
defi nition, 9
drawings, 19
legal status, 432
ratios, 515
regulations, 342
separate entity convention, 17–18
statements of cash fl ows, 432
Solvency ratios see Liquidity ratios
Source documents, 233
Specialised transactions, 99–102
Spot checks, 281
Stable monetary unit convention, 334
Staff see Employees
Standing orders, 282
Statement of cash fl ows, 447–54
Statement of changes in equity, 440
Statement of comprehensive income, 438–40
Statement of fi nancial position:
and accounting equation, 22–5
accruals and prepayments, 110–12
adjustments, 192–3
capital expenditure, 143–4
concept, 19, 22–5
contents, 22–4
current assets, 22
double-entry bookkeeping, 42–5
income statement, 344
incomplete records, 363–76
limited companies, 9, 432
for manufacturing organisations, 417
non-current assets, 22
non-profi t-making bodies, 9, 373–8
preparation, 191
vertical presentations, 24–5
Statement of profi t:
drawings, dealing with, 79
income statement, 76–8
income statement, balance on, 78–9
trading account, 72–6
Statutory deductions, 109
Stewardship function, management, 348
Stock exchange, 8, 9
Stores ledger cards see Bin cards
Straight-line method, 147–8
Strategic management, use of accounts, 6
Subscriptions, 374–5
Substantive testing, 345, 346
Suppliers:
account reconciliations, 281, 282
contra entries, 293
statement reconciliations, 282–5
use of accounts, 3
Supporting books, 232–3
Suspense accounts, 296–7
T
Tactical management, use of accounts, 6
Tangible assets, 18, 155
Taxation:
corporation tax, 433
income tax, 108, 109
limited companies, 433
sales tax, 102
Teeming and lading activities, 281
Terminology, 7–8, 42
Three-column accounts, 85
Total accounts, 287
Total working capital ratio, 513–14
Trade discounts, 100
Trademarks, 18, 155, 339
Trading account, 72
adjustments, 194
balance transfers, 73–4
carriage costs, 99–100
concepts, 72
manufacturing companies, 413
non-profi t-making bodies, 373
statement of profi t, 72–6
stock valuation, 332
vertical presentations, 74–5
Transactions:
bookkeeping, 7, 41–2, 231, 437
capital, 30