AL WADI INTERNATIONAL SCHOOL ACCOUNTING AL LEVEL (LAYOUTS) A LEVEL ACCOUNTING ACCOUNTING – (LAYOUTS) (LAYOUTS) S. No.
LIST OF TOPICS
PAGES
1
Depreci!io"
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No" pro$i! or%"i&!io"& (C' cco"!&)
*+,
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Pr!"er&-ip cco"!&
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Li0i!e Co0p"ie&
1# + 1/
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3"$c!ri"% cco"!&
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S!!e0e"! o$ c&- $'o4&
15 + #6
7%e!i"%
#1 + #/
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S!"r co&!i"%
#2 + #5
8
9o orer co&!i"%
#8
16
A&orp!io" co&!i"%
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11
3r%i"' co&!i"%
:EY FOR3ULAE
#
*1 + *2
*, + /2
1
AL WADI INTERNATIONAL SCHOOL ACCOUNTING AL LEVEL (LAYOUTS) DEPRECIATION No" + Crre"! A&&e! Acco"! (! co&!) D!e
De!i'&
;
D!e
2014 Dec 31
2014 Jan 1
Balance b/d
xxx
July1
Bank (additions)
xxx <<<
2015 Jan 1
Balance b/d
xxx
De!i'&
;
Balance c/d
xxx <<<
2015 Dec 31 31
Dispo isposa sall acco accoun untt
xxx
Balance c/d
xxx <<<
<<<
2016 Jan 1
Balance b/ b/d
<<< Pro=i&io" $or Depreci!io" Acco"!
D!e
2014 Dec 31
De!i'&
Balance c/d
;
D!e
xxx
2014 Jan 1 Dec 31
De!i'&
;
Balance b/d
xxx
Incoe stateent
xxx
<<<
2015 Dec 31
Disp Dispos osal al acco accoun untt
xxx
Balance c/d
xxx <<<
<<<
2015 Jan 1 Dec 31 2016 Jan 1
Balance b/d
xxx
Incoe stateent
xxx <<<
Balance b/d
xxx
Di&po&' Acco"! Acco"! (! co&!) D!e
2015 Dec Dec 31
De!i'&
!on !on cu"" cu""en entt asse assett acco accoun untt
#Inco Inco e state tate ent ent disposal)
($ai ($ain n
;
D!e
xxx
2015 Dec Dec 31
on xxx
De!i'&
;
%ccu %ccuu ula late ted d dep" dep"ec ecia iati tion on
xxx
Bank (disposal p"ice)
xxx
#Incoe stateent (loss on disposal)
xxx
<<<
<<<
2
AL WADI INTERNATIONAL SCHOOL ACCOUNTING AL LEVEL (LAYOUTS) DEPRECIATION No" + Crre"! A&&e! Acco"! (! co&!) D!e
De!i'&
;
D!e
2014 Dec 31
2014 Jan 1
Balance b/d
xxx
July1
Bank (additions)
xxx <<<
2015 Jan 1
Balance b/d
xxx
De!i'&
;
Balance c/d
xxx <<<
2015 Dec 31 31
Dispo isposa sall acco accoun untt
xxx
Balance c/d
xxx <<<
<<<
2016 Jan 1
Balance b/ b/d
<<< Pro=i&io" $or Depreci!io" Acco"!
D!e
2014 Dec 31
De!i'&
Balance c/d
;
D!e
xxx
2014 Jan 1 Dec 31
De!i'&
;
Balance b/d
xxx
Incoe stateent
xxx
<<<
2015 Dec 31
Disp Dispos osal al acco accoun untt
xxx
Balance c/d
xxx <<<
<<<
2015 Jan 1 Dec 31 2016 Jan 1
Balance b/d
xxx
Incoe stateent
xxx <<<
Balance b/d
xxx
Di&po&' Acco"! Acco"! (! co&!) D!e
2015 Dec Dec 31
De!i'&
!on !on cu"" cu""en entt asse assett acco accoun untt
#Inco Inco e state tate ent ent disposal)
($ai ($ain n
;
D!e
xxx
2015 Dec Dec 31
on xxx
De!i'&
;
%ccu %ccuu ula late ted d dep" dep"ec ecia iati tion on
xxx
Bank (disposal p"ice)
xxx
#Incoe stateent (loss on disposal)
xxx
<<<
<<<
2
AL WADI INTERNATIONAL SCHOOL ACCOUNTING AL LEVEL (LAYOUTS) NON – PROFIT ORGANISATIONS > CLU7 ACCOUNTS CALCULATION OF ACCU3ULATED FUND (OPENING) ;
;
A&&e!&? &lub '"eises uipent In*ento"y o+ "e+"es,ents -ubsc"iption in a""ea"s (o.in$s) t,e" "ecei*ables &as, in ,and (&as, +loat) &as, at Bank Bank Deposit account To!' &&e!& (+) Lii'i!ie&? .in$ to supplie"s +o" "e+"es,ents (t"ade payables) -ubsc"iption in ad*ance (p"epaid) t,e" payables oan +"o ebe"s To!' 'ii'i!ie& Acc0'!e $" ! e%i""i"% o$ !-e @er
xxx xxx xxx xxx xxx xxx xxx xxx <<<
xxx xxx xxx xxx (<<<) <<<
REFRESH3ENT SHOP > SNAC: 7AR I"co0e &!!e0e"! $or !-e @er e"e ; -ale o+ e+"es,ents / -nack ba" -ales (+) Co&! o$ re$re&-0e"!& &o'? penin$ in*ento"y o+ "e+"es,ents xxx 'u"c,ases (Co&! o$ re$re&-0e"!& B c'o&i"% o4i"% – ope"i"% o4i"%)
; xxx
xxx
3
AL WADI INTERNATIONAL SCHOOL ACCOUNTING AL LEVEL (LAYOUTS) (+) &losin$ in*ento"y +o" "e+"es,ents &o & ost o+ "e+"es,ents " "oss '"o+it (+) e+"es,ent s,op .a$es ent +o" s,op lect"icity +o" s,op Dep"eciation on s,op euipent
(xxx) (xxx) xxx xxx xxx xxx xxx xxx <<<
Pro$i! o" re$re&-0e"! &-op > &"c r &'e&
SU7SCRIPTION ACCOUNT #61, 1 Jan .in$s b/d (#612) 31 Dec e+und o+ o*e"paid su subsc"iptions Incoe and expenditu"e account
; xxx xxx
(7'"ci"% $i%re)
xxx xxx
'"epaid c/d (#61)
xxx <<< xxx
.in$s b/d
#61, 1 Jan '"epaid b/d 31 Dec -ubsc"iption "e "ecei*ed +o"
; xxx xxx
Bank 2015 (Arrer&) Bank 2016 (Crre"! @er) Bank 201 (A="ce) -ubsc"iption ./o++ (bad debts) .in$s c/d (#61,)
xxx xxx xxx xxx xxx <<< xxx
'"epaid b/d
I"co0e E
;
I"co0e&?
%nnual subsc"iptions i+e subsc"iptions
xxx
'"o+it on "e+"es,ent s,op / -nack ba" -ale o+ tickets / collection at atc,es ees Inte"est on deposit accounts
xxx xxx xxx
Donations / i+ts / "ants / le$acy (re=e"e receip!) '"o+it on disposal o+ non cu""ent assets
xxx xxx xxx
(+) E
xxx xxx xxx xxx xxx xxx
4
AL WADI INTERNATIONAL SCHOOL ACCOUNTING AL LEVEL (LAYOUTS) -ubsc"iption ."itten o++ (bad debts) oss on disposal o+ non cu""ent asset Dep"eciation on non cu""ent assets Srp'& > (De$ici!)
xxx xxx xxx
xxx <<<
S!!e0e"! o$ Fi""ci' Po&i!io" & ! No" Crre"! A&&e!&?
&lub ,ouse uipent
Co&! ; xxx xxx xxx
Crre"! A&&e!&? In*ento"y o+ "e+"es,ents -ubsc"iptions o.in$ t,e" "ecei*ables Bank cu""ent account Bank deposit account &as, (+) Crre"! Lii'i!ie&? 9"ade payables '"epaid -ubsc"iptions t,e" payables Bank o*e"d"a+t
Dep" ; xxx xxx xxx
N7V ; xxx xxx xxx
xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx (xxx) xxx xxx
Ne! Crre"! A&&e!& (+) Lo"% !er0 'ii'i!ie&? Bank loan oan +"o ebe"s Ne! &&e!& Fi""ce @? %ccuulated und (at 1 Janua"y 2016) (B) >(+) -u"plus / (De+icit)
xxx xxx
(xxx) <<< xxx xxx
5
AL WADI INTERNATIONAL SCHOOL ACCOUNTING AL LEVEL (LAYOUTS) (B) i+e subsc"iption +und (B) Donations / i+ts / "ants / e$acy Acc0'!e F" ! *1 Dece0er #61, PARTNERSHIP + CHANGES
xxx xxx <<<
Pro$i! Lo&& Appropri!io" cco"! $or !-e @er e"e ;
!et '"o+it
;
xxx
(B) Inte"est on d"a.in$s
%
xxx
B
xxx
%
xxx
B
xxx
%
xxx
B
xxx
(+) Inte"est on capitals
(+) 'a"tne"8s sala"ies
Dist"ibutable p"o+its (+) '"o+it s,a"ed %
xxx
B
xxx
xxx xxx (xxx) xxx (xxx) xxx
(xxx) +
6
AL WADI INTERNATIONAL SCHOOL ACCOUNTING AL LEVEL (LAYOUTS) PARTNERSHIP – AD3ISSION E<0p'e? Le!& &ppo&e A " 7 re e
!on &u""ent %ssets dec"eases In*ento"y dec"eases Bad debts Inc"ease in p"o*ision +o" d/d 9"ade payables inc"eases #ain on "e*aluation
; xx xx xx xx
!on &u""ent %ssets inc"eases In*ento"y inc"eases Dec"ease in p"o*ision +o" d/d 9"ade payables dec"eases #oss on "e*aluation
&apital accounts : %
xx
&apital accounts : %
xx
B
xx
B
xx
&
xx <<<
&
xx <<<
No!e? I! 4i'' e ei!-er %i" or 'o&& o" re='!io" Pr!"er& Crre"! Acco"! A #Balance b/d Inte"est on D"a.in$s D"a.in$s ; &as, ; In*ento"y -,a"e o+ osses #Balance c/d Balance b/d
7
C
;
;
;
xx xx xx xx xx xx << xx
xx xx xx xx xx xx << xx
xx xx xx xx xx xx << xx
A #Balance b/d Inte"est on &apitals Inte"est on 'a"tne"8s oans 'a"tne"8s -ala"ies #-,a"e o+ '"o+its #Balance c/d Balance b/d
7
C
;
;
;
xx xx xx xx xx xx << xx
xx xx xx xx xx xx << xx
xx xx xx xx xx xx << xx
No!e? Crre"! cco"! '"ce& 0@ e ei!-er crei! or ei!. Di&!ri!io" 4o' e ei!-er pro$i!& or 'o&&e&. Pr!"er& 0@ -=e ei!-er ei! or crei! '"ce&. Pr!"er& Cpi!' Acco"!
ood.ill ."itten o++ (Ne4 R!io&) #oss on e*aluation
A
7
C
A
7
C
;
;
;
; xx
; xx
; xx
;
;
xx
Balance b/d xx
xx
xx Bank ( C I"=e&!0e"!)
7
AL WADI INTERNATIONAL SCHOOL ACCOUNTING AL LEVEL (LAYOUTS) (o' R!io&) e*aluation ."itten o++ (Ne4 R!io&) Balance c/d
xx xx xx <<
xx xx xx <<
; xx xx <<
#ain on e*aluation (o' R!io&) ood.ill (o' R!io&) Balance b/d
xx xx << xx
xx xx << xx
; ; << xx
PARTNERSHIP – RETIRE3ENT E<0p'e? Le!& &ppo&e A 7 " C re e
Balance b/d
A ; xx
7 ; xx
C ; xx
Balance b/d
A ; xx
7 ; xx 8
C ; xx
AL WADI INTERNATIONAL SCHOOL ACCOUNTING AL LEVEL (LAYOUTS) Inte"est on D"a.in$s D"a.in$s ; &as, ; In*ento"y # -,a"e o+ osses 9"ans+e" to &apital a/c Balance c/d Balance b/d
xx xx xx xx xx ; <<< ;
xx xx xx xx ; xx <<< xx
xx xx xx xx ; xx <<< xx
Inte"est on &apitals Inte"est on 'a"tne"8s oans -ala"ies # -,a"e o+ '"o+its 9"ans+e" to &apital a/c Balance c/d
xx xx xx xx ; xx <<< xx
xx xx xx xx ; xx <<< xx
Balance b/d
A ; xx
7 ; xx
C ; xx
# ain on e*aluation (o' R!io&) ood.ill (o' R!io&)
xx xx
xx xx
xx xx
# &u""ent %ccount balance # oan +"o % (old) # &as,/ Bank
xx xx xx
; ; ;
; ; ;
<<< +
<<< xx
<<< xx
Balance b/d
xx xx xx xx xx ; <<< ;
No!e? Di&!ri!io" 4o' e o$ ei!-er Pro$i!& or Lo&&e&.
•
•
A! !-e re!ire0e"! !e A Crre"! Acco"! 7'"ce 4o' e !r"&$erre !o !-e Cpi!' Acco"!. Cpi!' Acco"!& A ;
ood.ill ."itten o++ (Ne4 R!io&) # oss on e*aluation (o' R!io&) e*aluation ."itten o++ (Ne4 R!io&) # &u""ent %ccount balance # oan +"o % (ne.) # &as,/ Bank Balance c/d
;
7 ;
xx
C ;
xx
xx
xx
xx
; xx xx xx + <<<
xx ; ; ; xx <<<
xx ; ; ; xx <<<
Balance b/d No!e? •
Re!iri"% pr!"er& 'o" 4o' e !r"&$erre !o -i& Cpi!' cco"!.
•
Re!iri"% pr!"er c" '&o eep -i& i"=e&!0e"! i" !-e $or0 o$ Lo" !o !-e pr!"er&-ip.
•
No!e !-! !-ere 4o' "e=er e '"ce re0i"i"% i" !-e re!iri"% pr!"er& Cpi!' Acco"!. PARTNERSHIP S!!e0e"! o$ Fi""ci' Po&i!io" (7'"ce &-ee!) & ! No" Crre"! A&&e!&? Co&! Dep". N7V ; ; ; '"ope"ty xxx xxx xxx 'lant < euipent xxx xxx xxx u"nitu"e < +ittin$s xxx xxx xxx =oto" >e,icles xxx xxx xxx
9
AL WADI INTERNATIONAL SCHOOL ACCOUNTING AL LEVEL (LAYOUTS) 9otal !on &u""ent %ssets Crre"! A&&e!&? In*ento"y 9"ade "ecei*ables (+) '"o*ision +o" doubt+ul debts t,e" "ecei*ables &as, Bank
xxx
xxx
xxx
xxx xxx (xxx)
Crre"! Lii'i!ie&? 9"ade payables t,e" payables Bank o*e"d"a+t !et &u""ent %ssets (.o"kin$ capital) &apital ployed No" Crre"! Lii'i!ie&? 10? Bank loans Ne! &&e!&
xxx xxx xxx
xxx xxx xxx xxx xxx
(xxx) xxx xxx (xxx) <<<
Fi""ce @? &apital accounts ; % B
xxx xxx
&u""ent accounts ; % xxx B xxx Pr!"er&-ip $"& FINANCIAL STATE3ENTS (LI3ITED CO3PANIES)
xxx
xxx <<<
I"co0e S!!e0e"! $or !-e @er e"e ;
e*enue (-ales) (+) Co&! o$ S'e&? penin$ in*ento"y (B) "dina"y $oods 'u"c,ased (+) &losin$ in*ento"y &ost o+ sales "oss '"o+it (+) Oper!i"% E
; xxx
xxx xxx (xxx) (xxx) xxx xxx xxx
(xxx) xxx (xxx) xxx (xxx) <<<
S!!e0e"! o$ Re!i"e Er"i"%&
10
AL WADI INTERNATIONAL SCHOOL ACCOUNTING AL LEVEL (LAYOUTS) ; xxx xxx xxx (xxx) (xxx) <<<
etained ea"nin$s balance at sta"t o+ yea" (B) '"o+it +o" t,e yea" (B) 9"ans+e" +"o ot,e" "ese"*es (+) Di*idend paid ; (I"!eri0 B "pi $ro0 pre=io& @er) (+)9"ans+e" to ot,e" "ese"*es Re!i"e er"i"%& '"ce ! e" o$ @er
OR S!!e0e"! o$ c-"%e& i" eJi!@ S-re
S-re
Re='!io"
Ge"er'
Re!i"e
De!i'&
cpi!'
Pre0i0
Re&er=e
re&er=e
er"i"%&
Balances at sta"t o+ yea" '"o+it +o" t,e yea" Di*idends paid -,a"e Issue : i$,ts issue -,a"e Issue : Bonus issue e*aluation o+ p"ope"ties 9"ans+e" to "ese"*es 7'"ce& ! @er e"
; xxx ; ; xxx xxx ; ; <<<
; xxx ; ; xxx (xxx) ; ; <<<
; xxx ; ; ; (xxx) xxx ; <<<
; xxx ; ; ; (xxx) ; xxx <<<
; xxx xxx (xxx) ; (xxx) ; (xxx) <<<
11
AL WADI INTERNATIONAL SCHOOL ACCOUNTING AL LEVEL (LAYOUTS)
S!!e0e"! o$ Fi""ci' Po&i!io" (7'"ce &-ee!) & ! No" Crre"! A&&e!&?
'"ope"ties 'lant < euipent u"nitu"e < +ittin$s =oto" >e,icles 9otal !on &u""ent %ssets Crre"! A&&e!&? In*ento"y 9"ade "ecei*ables (+) '"o*ision +o" doubt+ul debts t,e" "ecei*ables &as, < cas, eui*alents Crre"! Lii'i!ie&? 9"ade payables t,e" payables Bank o*e"d"a+t !et &u""ent %ssets (.o"kin$ capital) &apital ployed No" Crre"! Lii'i!ie&? @? Bank loan 10? Debentu"es Ne! &&e!& EJi!@? "dina"y s,a"es o+ A1 eac, 5? !on "edeeable '"e+e"ence s,a"es o+ A1 eac, -,a"e p"eiu e*aluation "ese"*e ene"al "ese"*e etained ea"nin$s S-re-o'er& $"&
Co&! ; xxx xxx xxx xxx xxx
Dep". ; xxx xxx xxx xxx xxx
N7V ; xxx xxx xxx xxx xxx
xxx xxx (xxx)
xxx xxx xxx
xxx xxx xxx xxx
(xxx) xxx xxx xxx xxx
(xxx) <<<
xxx xxx xxx xxx xxx xxx <<<
12
AL WADI INTERNATIONAL SCHOOL ACCOUNTING AL LEVEL (LAYOUTS)
3ANUFACTURING ACCOUNT 3"$c!ri"% cco"! $or !-e @er e"e
Direc! R4 3!eri'&? penin$ in*ento"y o+ "a. ate"ials (B) 'u"c,ases o+ "a. ate"ials (B) &a""ia$e on "a. ate"ials
; xxx xxx xxx
(+) etu"ns o+ "a. ate"ials
(xxx)
(+) -ale o+ sc"ap "a. ate"ial (+) &losin$ in*ento"y o+ "a. ate"ials a. ate"ial consued (used) (B) Di"ect +acto"y .a$es (=anu+actu"in$ .a$es) (B) Di"ect expenses (oyalties/ icence +ee) Pri0e co&!
(xxx) (xxx)
;
xxx xxx xxx <<<
(B) Fc!or@ o=er-e& (I"irec! co&!&)? acto"y +uel and po.e"
xxx
acto"y indi"ect ate"ial acto"y indi"ect .a$es acto"y "ent acto"y i$,tin$ and ,eatin$ acto"y $ene"al expenses Dep"eciation : acto"y p"eises ; 'lant and euipent
xxx xxx xxx xxx xxx xxx xxx
xxx xxx xxx (xxx) xxx xxx <<<
(B) o"k;in;p"o$"ess (openin$ in*ento"y) (+) o"k;in;p"o$"ess (closin$ in*ento"y) &ost o+ '"oduction (B) acto"y p"o+it on +inis,ed $oods Tr"&$er ='e
Pro=i&io" $or U"re'i&e Pro$i! Acco"! D!e
De!i'&
;
D!e
De!i'&
;
13
AL WADI INTERNATIONAL SCHOOL ACCOUNTING AL LEVEL (LAYOUTS) 2015 Dec 31
Balance c/d
xxx
2015 Jan 1 Dec 31
Balance b/d
xxx
Incoe stateent (i"cre&e)
xxx
<<<
2016 Dec 31
Incoe stateent (ecre&e)
xxx
Balance c/d
xxx <<<
<<<
2016 Jan 1
Balance b/d
xxx <<<
201 Jan 1
Balance b/d
xxx
I"co0e S!!e0e"! $or !-e @er e"e
e*enue (-ales o+ +inis,ed $oods) (+) -ales etu"ns ("etu"n in.a"ds)
; xxx (xxx)
;
xxx 14
AL WADI INTERNATIONAL SCHOOL ACCOUNTING AL LEVEL (LAYOUTS) (+) Co&! o$ S'e&? penin$ in*ento"y o+ +inis,ed $oods (! !r"&$er ='e) (B) 9"ans+e" *alue o+ +inis,ed $oods (B) 'u"c,ases o+ +inis,ed $oods (B) &a""ia$e in.a"ds on +inis,ed $oods (+) 'u"c,ase "etu"ns o+ +inis,ed $oods (+) In*ento"y d"a.in$s o+ +inis,ed $oods (+) &losin$ in*ento"y o+ +inis,ed $oods (! !r"&$er ='e) &ost o+ sales "oss '"o+it (+) E
xxx xxx xxx xxx (xxx) (xxx) (xxx) (xxx) xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx (xxx)
(xxx) <<< xxx <<<
STATE3ENT OF CASH FLOWS C'c'!io" o$ Pro$i! $ro0 oper!io"& (Pro$i! e$ore I"!ere&! " T<!io") 7c4r 3e!-o (S!r!i"% p 4i!- Re!i"e Pro$i!)
etained '"o+it (&u""ent yea") (as stated in t,e stateent o+ +inancial position) (+) etained '"o+it b/d +"o p"e*ious yea" (B) Debentu"e inte"est /inance costs (&u""ent yea") (B) 9axation (&u""ent yea") (B) Di*idend paid ("dina"y and '"e+e"ence) (B) 9"ans+e" to ot,e" "ese"*es (&u""ent yea") (B) Bonus issue (i+ c,a"$ed +"o "etained ea"nin$s) (B) 9"ans+e" +"o ot,e" "ese"*es (&u""ent yea") Pro$i! $ro0 oper!io"& (pro$i! e$ore i"!ere&! " !<!io")
; xxx (xxx) xxx xxx xxx xxx xxx xxx <<<
15
AL WADI INTERNATIONAL SCHOOL ACCOUNTING AL LEVEL (LAYOUTS)
Reco"ci'i!io" o$ Pro$i! $ro0 Oper!io"& !o Ne! C&- I"$'o4>(O!$'o4) $ro0 Oper!i"% Ac!i=i!ie& ;
'"o+it +"o ope"ations (be+o"e Inte"est < 9axation) (B) Dep"eciation c,a"$es on non cu""ent assets Inc"ease in p"o*ision +o" doubt+ul debts oss on disposal o+ non cu""ent assets %o"tiation o+ intan$ible non cu""ent assets (ood.ill ."itten o++) Ipai"ent o+ non cu""ent assets Dec"ease in in*ento"y Dec"ease in t"ade "ecei*ables Inc"ease in t"ade payables Inc"ease in ot,e" payables
; xxx
xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx
(+) Dec"ease in p"o*ision +o" doubt+ul debts ain on disposal o+ non cu""ent assets In*estent incoe Inc"ease in in*ento"y Inc"ease in t"ade "ecei*ables Inc"ease in ot,e" "ecei*ables Dec"ease in t"ade payables Dec"ease in ot,e" payables
xxx xxx xxx xxx xxx xxx xxx xxx
16
AL WADI INTERNATIONAL SCHOOL ACCOUNTING AL LEVEL (LAYOUTS) (xxx) xxx (xxx) (xxx) <<<
(+) Inte"est paid du"in$ t,e yea" (+) 9axation paid du"in$ t,e yea" Ne! C&- &e i">$ro0 oper!i"% c!i=i!ie&
S!!e0e"! o$ C&- F'o4& $or !-e @er e"e ; Ne! c&- (&e i")>$ro0 oper!i"% c!i=i!ie& ($ro0 o=e) C&- $'o4& $ro0 i"=e&!i"% c!i=i!ie&? 'u"c,ase o+ non : cu""ent assets (bot, tan$ible and intan$ible) 'u"c,ase o+ lon$ te" in*estents '"oceeds +"o t,e sale o+ non : cu""ent assets '"oceeds +"o t,e sale o+ lon$ te" in*estents Inte"est "ecei*ed Di*idends "ecei*ed Ne! c&- (&e i")>$ro0 i"=e&!i"% c!i=i!ie& C&- $'o4& $ro0 $i""ci"% c!i=i!ie&? '"oceeds +"o issue o+ s,a"e capital (includin$ s,a"e p"eiu aount) '"oceeds +"o issue o+ Debentu"es edeption o+ debentu"es (includin$ p"eiu aount) epayent o+ lon$ te" bo""o.in$s Di*idends paid du"in$ t,e yea" Ne! c&- (&e i")>$ro0 $i""ci"% c!i=i!ie& !et inc"ease/(dec"ease) in cas, and cas, eui*alents &as, and cas, eui*alents at t,e be$innin$ o+ t,e yea" C&- " c&- eJi='e"!& ! !-e e" o$ !-e @er
; <<<
xxx xxx xxx xxx xxx xxx <<<
xxx xxx xxx xxx xxx <<< xxx xxx <<<
17
AL WADI INTERNATIONAL SCHOOL ACCOUNTING AL LEVEL (LAYOUTS)
7UDGETING No!e?
I+ it8s stated t,at ont,ly p"oduction is su++icient (o" ,olds stock) to eet t,e "eui"eents o+ t,e +ollo.in$ ont, sales t,en t,e p"oduction bud$et is p"epa"ed in t,e +ollo.in$ .ayC PRODUCTION 7UDGET (IN UNITS)
Bud$eted sales in units (B) &losin$ in*ento"y o+ +inis,ed $oods (+) penin$ in*ento"y o+ +inis,ed $oods Proc!io" "i!&
9" xxx xxx xxx <<<
Fe xxx xxx xxx <<<
3r xxx xxx xxx <<<
No!e?
I+ it8s stated t,at ont,ly p"oduction is eual to t,e +ollo.in$ ont, sales plus a ce"tain pe"centa$e o+ stock t,en t,e p"oduction bud$et is p"epa"ed in t,e +ollo.in$ .ayC PRODUCTION 7UDGET (IN UNITS)
Bud$eted sales in units (B) 10? o+ stock o+ +inis,ed $oods Proc!io" "i!&
9" xxx xxx <<<
Fe xxx xxx <<<
3r xxx xxx <<<
Fe xxx xxx xxx <<<
3r xxx xxx xxx <<<
Fe xxx xxx xxx <<<
3r xxx xxx xxx <<<
Fe xxx
3r xxx
PURCHASES 7UDGET (IN UNITS)
Bud$eted p"oduction (B) &losin$ in*ento"y o+ "a. ate"ials (+) penin$ in*ento"y o+ "a. ate"ials Prc-&e& i" "i!&
9" xxx xxx xxx <<<
PURCHASES 7UDGET (IN VALUE)
Bud$eted p"oduction in units K $/ lit"es pe" unit K p"ice pe" $ / lit"es (A) Prc-&e& o$ r4 0!eri'& (;)
9" xxx xxx xxx <<<
DIRECT LA7OUR COST 7UDGET
Bud$eted p"oduction in units
9" xxx
18
AL WADI INTERNATIONAL SCHOOL ACCOUNTING AL LEVEL (LAYOUTS) K ,ou"s pe" unit K .a$e "ate pe" ,ou" (A) Direc! 'or co&! (;)
xxx xxx <<<
xxx xxx <<<
xxx xxx <<<
Fe xxx xxx <<<
3r xxx xxx <<<
3r xxx xxx xxx xxx <<<
SALES 7UDGET 9" xxx xxx <<<
Bud$eted sales in units K -ellin$ p"ice pe" unit (A) 7%e!e &'e& (;)
3ANUFACTURING (PRODUCTION) OVERHEAD 7UDGET
Bud$eted p"oduction in units < >a"iable p"oduction o*e",ead pe" unit (A) >a"iable p"oduction o*e",ead (A) (B) ixed p"oduction o*e",ead (A) 3"$c!ri"% o=er-e& (;)
9" xxx xxx xxx xxx <<<
Fe xxx xxx xxx xxx <<<
SALES AD3INISTRATION OVERHEAD 7UDGET 9" xxx xxx xxx xxx <<<
Bud$eted sales in units < >a"iable sales < adinist"ation o/, pe" unit (A) >a"iable sales < adinist"ation o*e",ead (A) (B) ixed sales < adinist"ation o*e",ead (A) S'e& " 0i"i&!r!io" o=er-e& (;)
Fe xxx xxx xxx xxx <<<
3r xxx xxx xxx xxx <<<
TRADE RECEIVA7LES 7UDGET
penin$ balance b/d (B) &"edit sales (+) eceipts +"o c"edit custoe"s -ales "etu"ns Discount allo.ed Bad debts C'o&i"% '"ce c>
9"
Fe
3r
; xxx xxx xxx xxx xxx xxx <<<
; xxx xxx xxx xxx xxx xxx <<<
; xxx xxx xxx xxx xxx xxx <<<
TRADE PAYA7LES 7UDGET
19
AL WADI INTERNATIONAL SCHOOL ACCOUNTING AL LEVEL (LAYOUTS)
penin$ balance b/d (B) &"edit pu"c,ases (+) 'ayents to c"edit supplie"s 'u"c,ase "etu"ns Discount "ecei*ed C'o&i"% '"ce c>
9"
Fe
3r
; xxx xxx xxx xxx xxx <<<
; xxx xxx xxx xxx xxx <<<
; xxx xxx xxx xxx xxx <<<
CASH 7UDGET For !-ree 0o"!-& e"e 9"
Fe
3r
;
;
;
C&- i"$'o4&? &as, sales eceipts +"o custoe"s 1 ont, 2 ont, -,a"es issued Disposal o+ non cu""ent assets Debentu"es issued (oan "ecei*ed) ent "ecei*ed To!' receip!& (A)
xxx xxx xxx xxx xxx xxx xxx <<<
xxx xxx xxx xxx xxx xxx xxx <<<
xxx xxx xxx xxx xxx xxx xxx <<<
C&- o!$'o4&? &as, pu"c,ases 'ayents to supplie"s 1 ont, 2 ont, 'u"c,ase o+ non cu""ent assets
xxx xxx xxx xxx
xxx xxx xxx xxx
xxx xxx xxx xxx 20
AL WADI INTERNATIONAL SCHOOL ACCOUNTING AL LEVEL (LAYOUTS) a$es and sala"ies paid ent and insu"ance paid epayent o+ loan Inte"est paid Di*idend paid To!' p@0e"!& (7) !et cas, +lo. (A – 7) penin$ bank balance C'o&i"% " '"ce
xxx xxx xxx xxx xxx <<< xxx xxx <<<
xxx xxx xxx xxx xxx <<< xxx xxx <<<
xxx xxx xxx xxx xxx <<< xxx xxx <<<
No!e? 3e &re "o! !o i"c'e "o" c&- e
STANDARD COSTING 3&!er > S!"r 7%e!e 3"$c!ri"% Acco"! " I"co0e S!!e0e"! (7&e o" &!"r "i!&) ;
-ales "e*enue Co&! o$ Proc!io"? Di"ect "a. ate"ial (standa"d units x uantity x ate"ial p"ice) Di"ect .a$es (standa"d units x ,ou"s x .a$e "ate) #>a"iable p"oduction o*e",eads (standa"d units x ,ou"s x .a$e "ate) # ixed p"oduction o*e",eads (standa"d units x ,ou"s x .a$e "ate) &ost o+ '"oduction (B) acto"y p"o+it (+) 9"ans+e" >alue "oss '"o+it (+) ixed *e",eads ; %dinist"ation ; -ellin$ and Dist"ibution >a"iable *e",eads ; %dinist"ation ; -ellin$ and Dist"ibution 9"adin$ '"o+it (B) acto"y '"o+it 7%e!e Pro$i!
; xxx
xxx xxx xxx xxx xxx xxx (xxx) xxx xxx xxx xxx xxx
(xxx) xxx xxx <<<
No!e? I$ &e o" Direc! Lor Hor&
21
AL WADI INTERNATIONAL SCHOOL ACCOUNTING AL LEVEL (LAYOUTS)
F'e
-ales "e*enue Co&! o$ Proc!io"? Di"ect "a. ate"ial (actual units x standa"d uantity x standa"d p"ice) Di"ect .a$es (actual units x standa"d ,ou"s x standa"d .a$e "ate) >a"iable p"oduction o/, (actual units x standa"d ,ou"s x standa"d .a$e "ate) #ixed p"oduction o/, (standa"d units x standa"d ,ou"s x standa"d .a$e "ate) &ost o+ '"oduction (B) acto"y p"o+it (+) 9"ans+e" >alue "oss '"o+it (+) ixed *e",eads ; %dinist"ation ; -ellin$ and Dist"ibution >a"iable *e",eads ; %dinist"ation ; -ellin$ and Dist"ibution 9"adin$ '"o+it (B) acto"y '"o+it F'e
; xxx
xxx xxx xxx xxx xxx xxx (xxx) xxx xxx xxx xxx xxx
(xxx) xxx xxx <<<
No!e? Fi
22
AL WADI INTERNATIONAL SCHOOL ACCOUNTING AL LEVEL (LAYOUTS)
Ac!' 3"$c!ri"% Acco"! " I"co0e S!!e0e"! (7&e o" c!' "i!&) ;
-ales "e*enue Co&! o$ Proc!io"? Di"ect "a. ate"ial (actual units x uantity x ate"ial p"ice) Di"ect .a$es (actual units x ,ou"s x .a$e "ate) #>a"iable p"oduction o*e",eads (actual units x ,ou"s x .a$e "ate) # ixed p"oduction o*e",eads (actual units x ,ou"s x .a$e "ate) &ost o+ '"oduction (B) acto"y p"o+it (+) 9"ans+e" >alue "oss '"o+it (+) ixed *e",eads ; %dinist"ation ; -ellin$ and Dist"ibution >a"iable *e",eads ; %dinist"ation ; -ellin$ and Dist"ibution 9"adin$ '"o+it (B) acto"y '"o+it Ac!' Pro$i!
; xxx
xxx xxx xxx xxx xxx xxx (xxx) xxx xxx xxx xxx xxx
(xxx) xxx xxx <<<
No!e? I$ &e o" Direc! Lor Hor&
RECONCILIATION STATE3ENTS + PROFITS Reco"ci'i!io" S!!e0e"! o$ 3&!er 7%e! Pro$i! 4i!- !-e Ac!' Pro$i! ;
=aste" Bud$et '"o+it (B) a*ou"able >a"iances (+) %d*e"se >a"iances Ac!' Pro$i!
xxx (xxx)
; xxx
xxx <<<
No!e? I$ M"!i!@ Pro$i! Vri"ce i& %i=e" !-e" o "o! i"c'e S'e& Vo'0e Vri"ce i" !-e Reco"ci'i!io" S!!e0e"!.
Reco"ci'i!io" S!!e0e"! o$ F'e
lexed Bud$et '"o+it (B) a*ou"able >a"iances (+) %d*e"se >a"iances Ac!' Pro$i!
xxx (xxx)
; xxx
xxx <<<
23
AL WADI INTERNATIONAL SCHOOL ACCOUNTING AL LEVEL (LAYOUTS)
Reco"ci'i!io" S!!e0e"! o$ 3&!er 7%e! Pro$i! 4i!- !-e F'e
=aste" Bud$et '"o+it (B) a*ou"able >a"iances (+) %d*e"se >a"iances F'e
xxx (xxx)
; xxx
xxx <<<
RECONCILIATION STATE3ENTS + COSTS Reco"ci'i!io" S!!e0e"! o$ 3&!er 7%e! Co&!& 4i!- !-e Ac!' Co&!& ;
=aste" Bud$et &osts (B) %d*e"se >a"iances (+) a*ou"able >a"iances Ac!' Co&!&
xxx (xxx)
; xxx
xxx <<<
Reco"ci'i!io" S!!e0e"! o$ F'e
lexed Bud$et &osts (B) %d*e"se >a"iances (+) a*ou"able >a"iances Ac!' Co&!&
xxx (xxx)
; xxx
xxx <<<
Reco"ci'i!io" S!!e0e"! o$ 3&!er 7%e! Co&!& 4i!- !-e F'e
=aste" bud$et costs (B) %d*e"se >a"iances (+) a*ou"able >a"iances F'e
xxx (xxx)
; xxx
xxx <<<
9O7 ORDER COSTING To!' Co&! o$ Pr!ic'r Orer > 9o ;
Di"ect =ate"ial : Dept % ($s x pe" $) / (it"es x pe" it"e)
xx
: Dept B ($s x pe" $) / (it"es x pe" it"e)
xx
;
xxx Di"ect abou" : Dept % (7ou"s x "ate pe" ,ou")
xx
: Dept B (7ou"s x "ate pe" ,ou")
xx xxx
24
AL WADI INTERNATIONAL SCHOOL ACCOUNTING AL LEVEL (LAYOUTS) >a"iable *e",eads ('"oduction)
xxx
Pri0e Co&!
<<<
ixed *e",eads ('"oduction) ; Dept % (% x %ctual abou" 7ou"s)#
xx
; Dept B (% x %ctual abou" 7ou"s)#
xx xxx
To!' Proc!io" Co&!&
<<<
(B) %dinist"ation *e",eads
xxx
-ellin$ < Dist"ibution *e",eads
xxx
9otal &ost o+ -ales
<<<
(B) '"o+it a"k up
xxx
Se''i"% > Mo!!io" > Orer or Te"er Price
<<<
No!e? I$ O=er-e i& &e o" Direc! Lor -or&.
A7SORPTION COSTING OVERHEAD ANALYSIS SHEET
7%e!e
7&i&
Proc!io" Depr!0e"!&
Ser=ice Depr!0e"!&
O=er-e& 3c-i"i"% =ac,ine "epai"s '"eises "epai"s acto"y "ent acto"y insu"ance =ac,ine insu"ance Indi"ect .a$es 7eatin$ and li$,tin$ Dep"eciation
A&&e0'@
3i"!e""ce
C"!ee"
;
;
;
;
Di"ect ac,ine ,ou"s %"ea %"ea %"ea =ac,ine cost !oC o+ eployees %"ea !et book *alue
xxx xxx xxx xxx xxx xxx xxx xxx <<<
xxx xxx xxx xxx xxx xxx xxx xxx <<<
xxx xxx xxx xxx xxx xxx xxx xxx <<<
xxx xxx xxx xxx xxx xxx xxx xxx (<<<)
!oC o+ eployees 'e"centa$e
xxx xxx <<<
xxx xxx <<<
Reppor!io"0e"!?
&anteen =aintenance To!'
xxx (<<<)
25
AL WADI INTERNATIONAL SCHOOL ACCOUNTING AL LEVEL (LAYOUTS)
3ARGINAL COSTING PROFIT STATE3ENT
;
-ales (+) Vri'e> 3r%i"' Co&! o$ S'e& penin$ in*ento"y (V'e =ri'e co&!) (B) '"oduction &ost (V'e =ri'e co&!) 9otal '"oduction &ost (+) &losin$ in*ento"y (V'e =ri'e co&!) >a"iable/ =a"$inal &ost o+ '"oduction (B) >a"iable -ellin$ < Dist"ibution *e",eads >a"iable %dinist"ation *e",eads >a"iable/ =a"$inal &ost o+ -ales Co"!ri!io" (+) Fi
; xxx
xxx xxx xxx (xxx) xxx xxx xxx (xxx) <<< xxx xxx xxx xxx <<<
26
AL WADI INTERNATIONAL SCHOOL ACCOUNTING AL LEVEL (LAYOUTS)
A7SORPTION COSTING PROFIT STATE3ENT ;
-ales (+)Co&! o$ S'e&? penin$ in*ento"y (V'e To!' co&!) (B) '"oduction &ost (V'e To!' co&!) 9otal '"oduction &ost (+) &losin$ in*ento"y (V'e To!' co&!) &ost o+ '"oduction (B) > (+) U"er > (O=er) O=er-e &ore &ost o+ -ales Gro&& pro$i! (+) ixed o*e",ead (-ellin$ < dist"ibution) ixed o*e",ead (%dinist"ation) >a"iable -ellin$ < Dist"ibution *e",ead >a"iable %dinist"ation *e",ead
; xxx
xxx xxx xxx (xxx) xxx <<< (xxx) <<< xxx xxx xxx xxx xxx <<<
A&orp!io" Pro$i!
Reco"ci'i!io" S!!e0e"! $or 3r%i"' Co&!i"% " A&orp!io" Co&!i"% Pro$i!
=a"$inal '"o+it (B) Di++e"ence in &losin$ in*ento"y o+ +inis,ed $oods (A&orp!io" – 3r%i"') (+) Di++e"ence in penin$ in*ento"y o+ +inis,ed $oods (A&orp!io" – 3r%i"') A&orp!io" Pro$i!
; xxx xxx (xxx) <<<
3ARGINAL COSTING PROFIT STATE3ENT (Di$$ere"! Proc!&)
27
AL WADI INTERNATIONAL SCHOOL ACCOUNTING AL LEVEL (LAYOUTS) Proc! A
Proc! 7
Proc! C
To!'
;
;
;
;
28
AL WADI INTERNATIONAL SCHOOL ACCOUNTING AL LEVEL (LAYOUTS) -ales (+) Vri'e co&!&? Di"ect ate"ial Di"ect labou" Di"ect expense '"oduction o*e",ead (=ri'e) %dinist"ation o*e",ead (=ri'e) -ales o*e",ead (=ri'e) Co"!ri!io" (+) Fi
xxx
xxx
xxx
xxx
xxx xxx xxx xxx xxx xxx (xxx) <<<
xxx xxx xxx xxx xxx xxx (xxx) <<<
xxx xxx xxx xxx xxx xxx (xxx) <<<
xxx xxx xxx xxx xxx xxx (xxx) <<<
xxx xxx xxx xxx <<<
xxx xxx xxx xxx <<<
xxx xxx xxx xxx <<<
xxx xxx xxx xxx <<<
3ARGINAL COSTING + LI3ITING FACTOR (C'c'!io" o$ Co"!ri!io" per Li0i!i"% Fc!or)
-ellin$ p"ice pe" unit (+) Vri'e co&!& per "i!? Di"ect ate"ial pe" unit Di"ect labou" pe" unit Di"ect expense pe" unit >a"iable o*e",ead pe" unit (proc!io") >a"iable o*e",ead pe" unit (0i"i&!r!io") >a"iable o*e",ead pe" unit (&e''i"%) >a"iable costs pe" unit
Proc! A
Proc! 7
Proc! C
; xxx
; xxx
; xxx
xxx xxx xxx xxx xxx xxx xxx
xxx xxx xxx xxx xxx xxx xxx
xxx xxx xxx xxx xxx xxx xxx 29
AL WADI INTERNATIONAL SCHOOL ACCOUNTING AL LEVEL (LAYOUTS) &ont"ibution pe" unit #=ate"ial pe" k$ /lit"e #&ont"ibution pe" ate"ial pe" k$ /lit"e ank o"de"
xxx xxx xxx ;
xxx xxx xxx ;
xxx xxx xxx ;
No!e? I" c&e i$ 0!eri' J"!i!@ i& !-e 'i0i!i"% $c!or. A'&o i! co' e?
3!eri' J"!i!@
Lor -or&
Vri'e o=er-e&
S'e& e0"
Re=i&e Proc!io" 7%e! (&e o" Li0i!i"% Fc!or)
Proc!&
% B &
U"i!&
xxx xxx xxx
3!eri' per "i!
To!' =i''e
(% > 'i!re&)
0!eri' J"!i!@
xxx xxx xxx
(% > 'i!re&) xxx xxx xxx <<<
Pro$i! S!!e0e"! – Li0i!i"% Fc!or
e*ised p"oduction units < &ont"ibution pe" unit (;) 9otal cont"ibution (;) (+) ixed costs (;) Pro$i! (;)
Proc! A
Proc! 7
Proc! C
To!'
xxx xxx xxx xxx <<<
xxx xxx xxx xxx <<<
xxx xxx xxx xxx <<<
; ; xxx xxx <<<
30
AL WADI INTERNATIONAL SCHOOL ACCOUNTING AL LEVEL (LAYOUTS)
PROFITA7ILITY RATIOS? (i)
(ii)
"oss p"o+it a"$in
"oss p"o+it a"k up
E
E
"oss p"o+it FFFFFFFFFFFFFFFFF !et -ales/"e*enue
x 100
"oss p"o+it FFFFFFFFFFFFFFFFF &ost o+ sales
x 100
(iii)
!et p"o+it "atio
E
!et p"o+it be+o"e inte"est FFFFFFFFFFFFFFFFFFFFFFFFFFFFFF x 100 !et -ales/"e*enue
(i=)
etu"n on capital eployed
E
!et p"o+it be+o"e inte"est FFFFFFFFFFFFFFFFFFFFFFFFFFFFFF x 100 &apital eployed
,e"eG capital eployed can be calculated by usin$ eit,e" one o+ t,e +o"ulae $i*en belo. &apital eployed E 9otal %ssets : &u""ent iabilitiesC &apital eployed E !on cu""ent %ssets H o"kin$ &apitalC • •
&apital eployed E -,a"e &apital H %ll ese"*es H Debentu"es etu"n on uity E !et p"o+it a+te" p"e+e"ence di*idend FFFFFFFFFFFFFFFFFFFFFFFFFFFFFF x 100 •
(=)
31
AL WADI INTERNATIONAL SCHOOL ACCOUNTING AL LEVEL (LAYOUTS)
uity
,e"eG uity E "dina"y s,a"e capital H all "ese"*es (=i)
etu"n on total assets
E
!et p"o+it be+o"e inte"est FFFFFFFFFFFFFFFFFFFFFFFFFFF x 100 9otal assets
(=ii)
pe"atin$ expenses to "e*enue "atio
E
pe"atin$ expenses FFFFFFFFFFFFFFFFFFFFFFFFFFF x 100 e*enue
(=iii)
!on cu""ent assets tu"no*e"
E
!et sales / "e*enue FFFFFFFFFFFFFFFFFFFFFFFFFFFFFF x 100 !et book *alue o+ non cu""ent assets Or !et book *alue o+ non cu""ent assets E ties !et sales / "e*enue
LIMUIDITY RATIOS? (i)
&u""ent "atio
E
&u""ent assets FFFFFFFFFFFFFFFFF &u""ent liabilities
(ii)
iuid "atio
E
&u""ent assets : in*ento"y FFFFFFFFFFFFFFFFFFFFFFFF &u""ent liabilities
A'&o "o4" & Mic r!io " Aci !e&! r!io (iii)
(i=)
(i=)
9"ade "ecei*ables tu"no*e"
9"ade payables tu"no*e"
In*ento"y tu"no*e"
E
E
E
9"ade "ecei*ables FFFFFFFFFFFFFFFFF &"edit sales
x 365
9"ade payables FFFFFFFFFFFFFFFFF &"edit pu"c,ases
x 365
%*e"a$e in*ento"y FFFFFFFFFFFFFFFFF &ost o+ sales
x 365
C" e &-o4" i" !i0e&
In*ento"y tu"no*e"
E
&ost o+ sales
32
AL WADI INTERNATIONAL SCHOOL ACCOUNTING AL LEVEL (LAYOUTS) FFFFFFFFFFFFFFFFF E ties %*e"a$e in*ento"y (=)
o"kin$ capital cycle in days
E
9"ade "ecei*ables tu"no*e" H In*ento"y tu"no*e" : 9"ade payables tu"no*e"
(=i)
!et .o"kin$ assets "atio
E
!et .o"kin$ assets FFFFFFFFFFFFFFFFFFFF x 100 !et sales / "e*enue
,e"eG !et .o"kin$ assets E In*ento"ies H 9"ade "ecei*ables : 9"ade payables
INVEST3ENT RATIOS? (i)
Inte"est co*e"
E
Or
(ii)
Incoe $ea"in$
E
ea"in$ "atio
E
Inte"est expense FFFFFFFFFFFFFFFFFFFFFFF x 100 '"o+it be+o"e inte"est < tax Or '"o+it be+o"e inte"est < tax FFFFFFFFFFFFFFFFFFFFFFF E ties Inte"est expense
ixed cost capital FFFFFFFFFFFFFFFFFFFFFFFFF x100 uity H !on cu""ent liabilities
,e"eG ixed cost capital E !on cu""ent liabilities H '"e+e"ence s,a"e capital (iii)
a"nin$s pe" s,a"e ('-)
E
(i=)
'"ice ea"nin$s "atio (')
E
'"o+it a+te" tax : '"e+e"ence s,a"e di*idend FFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFF !ube" o+ "dina"y s,a"es issued =a"ket p"ice pe" s,a"e a"nin$s pe" s,a"e
(=)
Di*idend yield (D)
E
Di*idend pe" s,a"e FFFFFFFFFFFFFFFFFFFFFF x 100 =a"ket p"ice pe" s,a"e 33
AL WADI INTERNATIONAL SCHOOL ACCOUNTING AL LEVEL (LAYOUTS)
(=i)
Di*idend co*e"
E
'"o+it a+te" tax : '"e+e"ence s,a"e di*idend FFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFF E ties "dina"y di*idend paid
(=ii)
Di*idend pe" s,a"e
E
"dina"y di*idend paid FFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFF !ube" o+ "dina"y s,a"es issued
7REA: EVEN ANALYSIS (AS > A LEVEL) (i)
9otal &ost
E
ixed &ost H >a"iable &ost
(ii)
9otal -ales e*enue
E
utput sold x -ellin$ p"ice pe" unit
(iii)
'"o+it
E
9otal -ales "e*enue : 9otal cost OR =a"$in o+ sa+ety (units) &ont"ibution pe" unit OR 9otal &ont"ibution ; 9otal ixed cost
(i=)
&ont"ibution pe" unit
E
(=)
&ont"ibution to -ales "atio
E
&ont"ibution FFFFFFFFFFFF x 100 -ales
(=i)
B"eak;e*en point (in units)
E
ixed &osts FFFFFFFFFFFFFFFFF &ont"ibution pe" unit
(=ii)
B"eak;e*en point (in sales "e*enue)
E
B"eak;e*en point (in units) x -ellin$ p"ice
(=iii)
B"eak;e*en point in *alue (+o" a ulti p"oduct +i")
E
ixed &ost FFFFFFFFFFFFFFFFFFFFFF &ont"ibution to -ales "atio
-ellin$ p"ice : >a"iable cost pe" unit
34
AL WADI INTERNATIONAL SCHOOL ACCOUNTING AL LEVEL (LAYOUTS)
(i<)
=a"$in o+ sa+ety
E
&u""ent output : B"eak;e*en output
(<)
=a"$in o+ sa+ety (as pe"centa$e)
E
=a"$in o+ sa+ety ( in units) FFFFFFFFFFFFFFFFFFFFFF x 100 -ales (in units)
(
e*el o+ utput / -ales (in units) "eui"ed to ac,ie*e ta"$et p"o+it
(
e*el o+ -ales (in *alue) "eui"ed to ac,ie*e ta"$et p"o+it
E
ixed cost H 9a"$et '"o+it FFFFFFFFFFFFFFFFFFFFF &ont"ibution pe" unit
E
ixed cost H 9a"$et '"o+it FFFFFFFFFFFFFFFFFFFFFF &ont"ibution to -ales atio
(
e*el o+ '"oduction (in units) at .,ic, t.o options s,o. t,e sae net p"o+it
E
Di++e"ence in ixed &osts FFFFFFFFFFFFFFFFFFFFFFFFFFFFFF Di++e"ence in &ont"ibution pe" unit
(
e*el o+ '"oduction (in units) at .,ic, total cost euals total pu"c,ase p"ice
E
ixed &osts FFFFFFFFFFFFFFFFFFFFFFFFFFFFFF 'u"c,ase p"ice ; >a"iable costs pe" unit
(<=)
=iniu le*el o+ p"oduction (in units) "eui"ed to anu+actu"e
E
ixed &osts (,i$,est *alue) FFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFF &ont"ibution pe" unit (,i$,est *alue) : buyin$ p"o+it
SENSITIVITY ANALYSIS (i)
(ii)
(iii)
(i=)
-ensiti*ity o+ expected p"o+it to c,an$e in &'e& / &'e& price
-ensiti*ity o+ expected p"o+it to c,an$e in &'e& =o'0e
-ensiti*ity o+ expected p"o+it to c,an$e in =ri'e co&!&
-ensiti*ity o+ expected p"o+it to c,an$e in $i
E
xpected p"o+it FFFFFFFFFFFFFFFFF x 100 e*enue
E
=a"$in o+ sa+ety ( in units) FFFFFFFFFFFFFFFFFFFFFFFFF x 100 xpected -ales (in units)
E
xpected p"o+it FFFFFFFFFFFFFFFFF x 100 >a"iable costs
E
xpected p"o+it FFFFFFFFFFFFFFFFF x 100 ixed costs
35
AL WADI INTERNATIONAL SCHOOL ACCOUNTING AL LEVEL (LAYOUTS) (=)
(=i)
-ensiti*ity o+ t,e p"oKect c,an$es in i"i!i' co&!&
to
-ensiti*ity o+ t,e p"oKect c,an$es in t,e &e''i"% price
to
E
!'> FFFFFFFFFFFFFFFFF x 100 Initial cost
E
!'> pe" unit FFFFFFFFFFFFFFFFF x 100 -ellin$ p"ice pe" unit OR %nnual !'> FFFFFFFFFFFFFFF x 100 %nnual -ales
A7SORPTION COSTING (AS > A LEVEL)
(i)
*e",ead abso"ption "ate (%)
E
Bud$eted *e",eads FFFFFFFFFFFFFFFFFFFFF Bud$eted base / et,od#
(ii)
*e",ead abso"bed
E
% x %ctual base / et,od#
(iii)
*e" / Lnde" abso"ption
E
*e",ead abso"bed : %ctual *e",eads
No!e?
9,e"e a"e &i< bases (et,ods) +o" calculatin$ %C % base (et,ods) *a"ies +"o one uestion to anot,e"M +o" exapleM it could be entioned in a uestion to calculate % usin$ di"ect labou" costC 7o.e*e"G ost coon et,ods a"e di"ect labou" ,ou"s and di"ect ac,ine ,ou"sC •
Di"ect labou" ,ou"s
•
Di"ect ac,ine ,ou"s
•
'"oduction units
•
Di"ect .a$es (di"ect labou" cost)
•
Di"ect ate"ial cost
•
'"ie cost
36
AL WADI INTERNATIONAL SCHOOL ACCOUNTING AL LEVEL (LAYOUTS)
INVEST3ENT APPRAISAL (CAPITAL 7UDGETING) (i)
!et cas, +lo.
E
eceipts : 'ayents H Dep"eciation (i+ included in expenditu"es)
(ii)
Inc"eental cas, +lo.
E
!et cas, +lo.s (.it, leasin$) ; !et cas, +lo.s (.it,out leasin$)
(iii)
!et p"o+it
E
!et cas, +lo.s : Dep"eciation OR
e*enue ; xpenses (i=)
!et p"o+it pe" annu
E
!et p"o+it FFFFFFFFFFFFFFFF !ube" o+ yea"s
(=)
%*e"a$e in*estent
E
!on cu""ent asset / '"oKect (initial cost) H sc"ap *alue FFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFF 2 (B) o"kin$ capital
(=i)
%ccountin$ "ate o+ "etu"n
!et p"o+it pe" annu E FFFFFFFFFFFFFFFFFF x 100 %*e"a$e in*estent
(=ii)
'ayback pe"iod
(=iii)
'ayback pe"iod (in ont,s)
&as, E E
!et cas, +lo. x !ube" o+ yea"s (till it co*e"s t,e initial cost) !on cu""ent asset at cost : 9otal cas, +lo.s (less t,an cost) FFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFF x 12 !et cas, +lo. (cu""ent yea")
,e"eG payback pe"iod can be calculated in days also (i<)
'"esent *alue (discounted payback pe"iod)
E
!et cas, +lo. x inte"est "ate (discount +acto") x nube" o+ yea"s
37
AL WADI INTERNATIONAL SCHOOL ACCOUNTING AL LEVEL (LAYOUTS) (<)
!et '"esent >alue (!'>)
E
'"esent *alue (discounted cas, +lo.) : !on cu""ent asset at cost
Inte"est "ate
E
1 FFFFFFFFFFFFFF (1 H "/100)
,e"eM r "ep"esents t,e inte"est "ate o" discount +acto"M " "ep"esents t,e nube" o+ yea"s
(
Inte"nal "ate o+ "etu"n (IRR)
E
H N (p : ) x ac O ad
,e"e M K
"ep"esents t,e inte"est "ate $i*in$ positi*e !'>
p–J
"ep"esents t,e distance / di++e"ence bet.een t.o inte"est "ates
c
"ep"esents t,e *alue o+ positi*e !'>
"ep"esents t,e addition o+ positi*e H t,e ne$ati*e !'>M (i+ bot, !'> a"e po&i!i=e t,en deductG ,o.e*e" i+ bot, a"e "e%!i=e t,en I cannot be calculated)C
38
AL WADI INTERNATIONAL SCHOOL ACCOUNTING AL LEVEL (LAYOUTS)
STANDARD COSTING (i)
Puantity cost *a"iance
E
=aste" bud$et costs : lexed bud$et costs
(ii)
Puantity p"o+it *a"iance
E
lexed bud$et p"o+it : =aste" bud$et p"o+it
(iii)
9otal cost *a"iance
E
=aste" bud$et costs : %ctual costs
(i=)
9otal sales *a"iance
E
%ctual sales "e*enue : Bud$eted sales "e*enue
(=)
9otal ate"ial *a"iance
E
lexed ate"ial cost : %ctual ate"ial cost
(=i)
9otal labou" *a"iance
E
lexed labou" cost : %ctual labou" cost
(=ii)
>a"iable o*e",ead (p"oduction)
E
lexed bud$et >7 : %ctual >7
(=iii)
>a"iable o*e",ead (adinist"ation)
E
lexed bud$et >7 : %ctual >7
(i<)
>a"iable o*e",ead (sellin$)
E
lexed bud$et >7 : %ctual >7
(<)
9otal ixed *e",ead >a"iance
E
%ctual ixed *e",eads ; %bso"bed ixed *e",eads (%ctual ouput x %)
I" c&e o$ &orp!io" co&!i"% !-e !o!' $i
ixed *e",ead (-pendin$) >a"iance
(ii)
ixed *e",ead >olue >a"iance
xpenditu"e
E
%ctual +ixed p"oduction 7 : Bud$eted +ixed p"oduction 7
E
%bso"bed +ixed '"oduction 7 ; Bud$eted +ixed p"oduction 7
Fi
ixed *e",ead ++iciency >a"iance
E
(-tanda"d p"oduction ,ou"s ; %ctual p"oduction ,ou"s) x %
(ii)
ixed *e",ead &apacity >a"iance
E
(Bud$eted p"oduction ,ou"s ; %ctual p"oduction ,ou"s) x %
39
