Financial Accounting DR CR

CIPFA Financial Accounting DR, CR etc

What are… Land and buildings? [Non-current assets, Current assets, Liabilities and capital, Expenses, Income]

Non-current assets

What are…Plant and machinery? [Non-current assets, Current assets, Liabilities and capital, Expenses, Income]

Non-current assets

What are… Motor vehicles? [Non-current assets, Current assets, Liabilities and capital, Expenses, Income]

Non-current assets

What are… Office equipment? [Non-current assets, Current assets, Liabilities and capital, Expenses, Income]

Non-current assets

What are… Inventories? [Non-current assets, Current assets, Liabilities and capital, Expenses, Income]

Current assets

What are… Receivables? [Non-current assets, Current assets, Liabilities and capital, Expenses, Income]

Current assets

What are… Cash (the cash book itself is the account)? [Non-current assets, Current assets, Liabilities and capital, Expenses, Income]

Current assets

What are… Payables (individual accounts for suppliers)? [Non-current assets, Current assets, Liabilities and capital, Expenses, Income]

Liabilities and capital

What are… Loans? [Non-current assets, Current assets, Liabilities and capital, Expenses, Income]

Liabilities and capital

What are… Proprietor’s capital? [Non-current assets, Current assets, Liabilities and capital, Expenses, Income]

Liabilities and capital

What are… Purchases (of goods for resale)? [Non-current assets, Current assets, Liabilities and capital, Expenses, Income]

Expenses

What are… Rent? [Non-current assets, Current assets, Liabilities and capital, Expenses, Income]

Expenses

What are… Salaries (and many other expenses)? [Non-current assets, Current assets, Liabilities and capital, Expenses, Income]

Expenses

What are… Sales? [Non-current assets, Current assets, Liabilities and capital, Expenses, Income]

Income

What is the double entry for… An accrual

DR Expense CR Current Liability

What is the double entry for… A prepayment

DR Current asset CR Expense

What is the double entry for… Bad debt write off in period

DR Bad debts Expense Account CR Trade Receivable Account

What is the double entry for… Bad debt write off at end of accounting period

DR Income Statement (as expense) CR Bad Debts

What is the double entry for… Bad debt Recovered in period

DR Bank CR bad debt recoverable

What is the double entry for… Bad debt Recovered at end of accounting period

DR Bad debt recoverable CR Income Statement (shown as other income).

What is the double entry for… Establishing an allowance for receivables

DR Income Statement (expense) CR Allowance for receivables

What is the double entry for… Establishing an allowance for receivables subsequent adjustments

INCREASE = DR Income Statement (Expense) CR Allowance for receivables. DECREASE = DR Allowance for receivables CR Income Statement (Other Income) .

What is the double entry for… Inventory Closing

CLOSING - DR Inventory account (closing inventory value) CR Income Statement (COS)

What is the double entry for… Inventory Opening

OPENING - DR Income Statement (COS) CR Inventory account (opening inventory value)

What is the double entry for… PPE

DR Asset account (e.g. building, vehicle) CR Bank or supplier

What is the double entry for… What two things does depreciation do

DR It ensures an expense hits the income statement CR It reduces the value of the asset in the statement of financial position

What is the double entry for… Disposal

Set up disposal account to determine profit or loss… DR Non- current assets disposal account CR Non- current assets cost account. Move associated depreciation… DR Accumulated depreciation account CR Non- current assets disposal account. Record amount received from sale… DR Cash/Bank CR Non- current assets disposal account. Balance disposal account to give profit DR or loss CR (LOSS - DR IS CR Non- current assets disposal account, PROFIT - DR Non- current assets disposal account CR IS.

Is settlement of a court case confirming a present obligation at tge reporting date a… Adjusting Event or Non Adjusting Event

Adjusting Event

Is a customer declared bankrupt soon after reporting date a… Adjusting Event or Non Adjusting Event

Adjusting Event

Is sale of inventories soon after reporting date for less than value in statement of financial position a… Adjusting Event or Non Adjusting Event

Adjusting Event

Is discovery of fraud or error affecting the financial statements a… Adjusting Event or Non Adjusting Event

Adjusting Event

Is inventory destroyed in a fire after reporting date a… Adjusting Event or Non Adjusting Event

Non Adjusting Event

Is decline in market value of investments after reporting date a… Adjusting Event or Non Adjusting Event

Non Adjusting Event

Is major business combination or restructure after reporting date a… Adjusting Event or Non Adjusting Event

Non Adjusting Event

What is the double entry for… Provision

DR Expense Income Statement CR Provision Liability (current, non-current) Statement of financial position

What is the double entry for… Settlement of provisioned amount

DR Provision Liability (current, non-current) Statement of financial position CR Bank

What is the double entry for… Research costs

DR Expense - Income Statement CR Bank or Payables

What is the double entry for… Development costs

DR Intangible assets - SFP non current assets CR Bank/Payables

How are… Dividends, declared or approved dealt with

DR Retained earnings CR Payables

How are… Dividends proposed dealt with

Should not be recognised in the statement of financial position. but are disclosedas a Note

How are… Dividends paid dealt with

DR Retained earnings CR Bank

DR or CR in the trial balance… Disposal Profit

CR (DR in the disposal account)

DR or CR in the trial balance… Disposal Loss

DR (CR in the disposal account)

DR or CR in the trial balance… Prepayments

DR

DR or CR in the trial balance… Accruals

CR

DR or CR in the trial balance… Purchases

DR

DR or CR in the trial balance… Sales

CR

DR or CR in the trial balance… Returns outwards

CR

DR or CR in the trial balance… Returns inwards

DR

DR or CR in the trial balance… Carriage outwards

DR

DR or CR in the trial balance… Carriage inwards

DR

DR or CR in the trial balance… Discount received

CR

DR or CR in the trial balance… Discount allowed

DR

DR or CR in the trial balance… Receivables

CR

DR or CR in the trial balance… Payables

DR

Sales or Purchases… Returns outwards

Purchases

Sales or Purchases… Returns inwards

Sales

Sales or Purchases… Carriage outwards

Sales (expense)

Sales or Purchases… Carriage inwards

Purchases

Sales or Purchases… Discount received

Purchases

Sales or Purchases… Discount allowed

Sales

Sales or Purchases… Receivables

Sales

Sales or Purchases… Payables

Purchases