Index. Assets (continued) scrapping or disposal trading-in Auditing Profession Act 26 of

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1 Index A Accounts balancing incomplete records Accounting balancing an account basic accounting equation cycle definition... 4, 13 developments... 5 domains function... 6 history process study of... 5 tax liabilities Accrued expenses Accrued income Adjustments consumables credit losses purpose of recording Allowances , 209 Assembling costs Asset accounts Assets affect of transactions classification costs incurred after acquisition current definition... 24, 285 in financial statements... 11, 277 intangible , 285 internal control measurement natural resources nature of non-current sale of Assets (continued) scrapping or disposal trading-in Auditing Profession Act 26 of B Balancing an account trial balance Bank accounts balances , 180 credit memos debit memos interest opening of Bank charges Bank reconciliations Bank statements Basic accounting equation... 27, 47 effect of transactions on Borrowings C Cash and cash equivalents definition internal control measurement and disclosure Cash equivalents Cash flows Cash payments journal Cash receipts journal Cheques damaged lost outdated petty cash referred to drawer (dishonoured) Closing entries , 137 Closing inventory Closing-off procedures service entity

2 386 About Financial Accounting: Volume 1 Closing-off procedures (continued) trading entity Column headings Comparability financial information Consumable inventory on hand Costs assembling current historical mark-up transport Cost of sales Credit cards debtors terms transactions Credit journals Credit losses allowance for measurement of debtors recording of recovery of tax liability writing off Creditors, internal control Creditors control account Current bank accounts Current liabilities accrued expenses disclosure long-term borrowings measurement recognition VAT payable D Debentures Debit orders Debtors control account credit balance disclosure in financial statements internal control of measurement of Deposits , 181 Depreciation calculation of Depreciation (continued) definitions income tax land and buildings methods necessity of recording of Discounts settlement , 205, 304 tax liability terms Dishonoured cheques Double-entry system... 27, 384 E Electronic data transfer Entities definition... 7, 130 Equity affect of transactions definition influence of loss influence of profit statement of changes , 331 Equity accounts Equity statements Errors not revealed by trial balance revealed by trial balance tracing errors Estimated profit or loss Expense accounts Expenses accrued , 305 definition prepaid F Financial accounting Financial assets categories definitions measurement recording and disclosure of Financial information... 4, 8, 14 comparability relevance users of... 9

3 Index 387 Financial instruments categories definitions equity instrument financial liability investments Financial performance... 10, Financial period Financial position... 11, 28 32, 136 Financial statements assets... 11, 277 cash characteristics disclosure of debtors elements of , 24, 328 financial position... 11, 29, 136, 328, 355 information in... 16, 326 objectives... 10, 15, 24 quality of relevance of... 15, 326 timeliness... 17, 327 trading entity, of Financial statements of sole proprietors notes purpose and composition statement of changes in equity statement of financial position statement of profit or loss First in first out Folio columns G General journal General ledger... 54, 74 Going concern assumption... 14, 326 Gross profit I Import duties Imprest system Income accounts accrued , 344 definition received in advance , 121 statement of profit or loss Incomplete records Input tax Intangible assets , 256 Interest , 181 International Accounting Standards Board... 4 Inventory cost of , 240 disclosure first in first out measurement of nature of systems... 88, 138, 141 valuing , 245 investments , 291 L Land depreciation Ledger accounts Legal ownership Liabilities affect of transactions... 53, 54 Liability accounts Liquidity Loss accounts Losses definition estimated loss measurement of debtors statement of M Management accounting Mark-up , 147 Membership non-profit entities Mortgages N Natural resources Net realisable value Nominal accounts Non-cash transactions Non-current assets , 254, 283 depreciation internal control purchase of Non-current liabilities... 26, 311 Non-expendable funds

4 388 About Financial Accounting: Volume 1 Non-profit entities characteristics financial reporting income, sources of , 347, 348 membership O Output tax Ownership legal P Periodic inventory system... 88, 141, 145 Perpetual inventory system... 88, 138, 145 Petty cash cheques imprest system Petty cash journal Posting Prepaid expenses Profit accounts definition determination estimated profit gross influence on equities statement of... 10, Property, plant and equipment See also assets Provisions Purchases account Purchases journal... 87, 300 design of objective Purchases returns journal... 89, 144, 301 R Recognition of current liabilities Reconciliation procedure statements Recovery of credit losses Residual value Revenue examples of S Sales cost of Sales (continued) of assets , 270 Sales journal design of objective of Sales returns journal Scrapping of assets Service entity closing procedure profit or loss account statement of changes in equity statement of financial position statement of profit or loss and other comprehensive income Services Settlement discounts... 89, 144, 304 Shares adjustments Source documents... 54, 74 South African Institute of Chartered Accountants... 4 Statement of assets and liabilities Statement of cash flows Statement of changes in equity.. 11, 135, 355 Statement of financial position... 11, 135 Statement of income and expenditure Statement of profit or loss... 10, Stop orders Subsidiary journals design and use of purpose of Supply T Tax liabilities... 96, 201, 220, 305 accounting procedures depreciation Taxable supplies Temporary accounts Timeliness Trade discounts Trading entity closing procedure cost of sales financial statements gross profit percentage

5 Index 389 Trading entity (continued) statement of changes in equity statement of financial position Transport costs Trial balance errors Trial balance (continued) post-adjustment Transactions asset accounts effect on basic accounting equation ledger accounts recording of V Value Value-Added Tax Act 89 of VAT... 94, 201, 220, 221, 305 Vendor W Writing off credit losses , 215 recovery of losses

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