F3 Related Material

Accounting Synopsis

 

Tangible Fixed assets

• Land/building
• Furniture
• Plant/factory
• Machinery
• Equipment
• Vehicle /software

Contra fixed assets

• Allowance for depreciation 

 

Intangible fixed assets

• Goodwill
• Franchising
• Patents
• License fees
• Copyright
• Trademark

Current Asset

• Cash in Hand
• Cash in Bank
• Account Receivable
• Note/Bill Receivable
• Advance to Supplier
• Petty Cash Fund
• Merchandise Inventory
• Accrued Income (Receivable Income)
• Prepaid (Expenses)
• Unused Supplies (office/Store/Shop)
• Marketable Securities

Contra Current Asset

• Allowance for Bad Debt

 

Current Liabilities

• Account Payable
• Note/Bill Payable
• Accrued Expenses
• Unearned Income/Revenue
• Bank Overdraft
• Advance From Customer
• Expense Payable

Long Term Liabilities

• Bank Loan
• Long Term Loan
• Mortgage Payable
• Bond/Debenture Payable

Contra Liabilities

• Discount On Bond

 

Expenses

• Purchases
• Advertisement Expense
• Salaries Expenses
• Depreciation Expense
• Utilities Expenses
• Interest Expenses
• Rent Expenses
• Bad Debt Expenses
• Commission Expenses
• Govt. Taxes
• Repair Expenses
• Transportation/Carriage/ Freight/Cartage
• Other Expenses

Contra Expenses

• Purchase Return & Allowance
• Purchase Discount

 

Revenue

• Sales
• Fee income
• Commission income
• Repair income
• Interest income
• Rent income
• Others income

Contra income revenue

• Sales return & allowance
• Sales discount

Owners’ Equity

• Owners Capital

Contra Owner's Equity

• Owner's Drawing

Steps of Journalizing

Step 1. Determine the two accounts involved in the transaction.                 

Step 2. Classify the accounts.     

Step 3. Apply the rules of debit and credit.           

Step 4. Record in General journal