Covers the broad areas of financial and management accounting, covering basic elements of bookkeeping to give readers an understanding of the principles underlying the accounting process.

Author(s): Hastings, W. J.
Published: 1993
Binding: Paperback
ISBN 10: 1856090493 ISBN 13: 9781856090490

Section One Financial Accounts

1 An Introduction to Financial Accounting

1.1 The Theoretical Framework.

1.1.1 Information

1.1.2 Exchange of Value

1.2 Personality and Status

1.2.1 Incorporated Associations

1.2.2 Unincorporated Associations

1.3 The Accounting Profession

1.3.1 The Financial Accountant

1.3.2 The Management Accountant

1.4 The Balance Sheet

1.4.1 The Effects of Change

1.5 Conclusion

2 Double Entry and the Trial Balance

2.1 Introduction

2.2 The Structure of the Ledger

2.3 The Ledger Accounts and Double Entry

2.4 Capital and Revenue Expenditure

2.4.1 Capital Expenditure

2.4.2 Revenue Expenditure

2.5 The Problem of Stock

2.6 Expenses and Revenues

2.7 Towards a Trading and Profit and Loss Account and the Balance Sheet

2.7.1 Structuring the Ledger Accounts

2.7.2 Structuring the Trial Balance

2.7.3 Structuring the Final Accounts and the Balance Sheet

3 Stock and Credit Sales  

3.1 Stock Valuation 

3.1.1 Last in First Out

3.1.2 First in First Out

3.2 Bad Debts and Their Provision

3.2.1 Known Bad Debts

3.2.2 Provision for Unknown Bad Debts

3.3 Determining Expectations

3.3.1 Percentage of Sum Method

3.3.2 Ageing Method

4 Adjustment Accounting

4.1 Introduction

4.2 Accruals 

4.2.1 Accrued Revenues

4.2.2 Accrued Expenses

4.3 Deferrals

4.3.1 Deferred Revenues

4 Adjustment Accounting cont.

4.3.2 Deferred Expenses

4.4 Depreciation

4.4.1 The Straight Line Method

4.4.2 The Diminishing Balance Method

4.5 The Disposal of Assets

5 Manufacturing Accounts

5.1 Introduction

5.2 The Use of Production Resources

5.3 Structuring the Manufacturing Accounts

5.4 The Elements of Cost

5.5 The Concepts and Conventions

5.5.1 The Money Measurement Concept

5.5.2 The Double Entry Concept

5.5.3 The Business Entity Concept

5.5.4 The Cost Concept

5.5.5 The Going Concern Concept

5.5.6 The Accrual Concept

5.5.7 The Consistency Convention

5.5.8 The Materiality Convention

5.5.9 The Conservatism Convention

5.6 A Revision

6 Partnership Accounts  

6.1 Introduction to Partnerships

6.2 The Partnership Acts

6.3 The Structure of Partnership Accounts

6.4 The Balance Sheet

6.5 Changes in The Partnership

6.5.1 The Creation of a Partnership

6.5.2 The Admission and Retirement of Partners

6.6 A Worked Example

7 The Accounts of Corporations

7.1 Creating a Corporation

7.1.1 Shares and Debentures

7.1.2 A Typology of Capital

7.1.3 The Unique Features of a Corporation

7.2 A Perspective of the Companies Act

7.2.1 The Format Requirements

7.2.2 The Valuation Rules

7.2.3 The Directors’ Report

7.2.4 The Companies Act 1989

7.2.5 Modified Accounts

7.3 Preparation of the Final Accounts

7.4 Corporation Tax

7.5 A Practical Example

Section Two Management Accounting

8 The Interpretation of Accounts

8.1 Introduction

8.2 Ratio Analysis

8.2.1 Ratios as to Profitability

8.2.2 Ratios as to Liquidity

8.2.3 Ratios as to the Use of Assets

8.2.4 Ratios as to Capital Structure

8.2.5 Investment Ratios

8.3 Sources and Application of Funds Statements

8.3.1 Funds Interpreted as Cash

8.3.2 Funds Interpreted as Working Capital

8.3.3 A Practical Example

8.4 Conclusion

9 Costing

9.1 Introduction

9.2 The Elements of Cost

9.2.1 Job Order Costing

9.2.2 Process Costing

9.2.3 Marginal Costing

9.3 Pricing 

9.3.1 Full Cost Pricing

9.3.2 Conversion Pricing

9.3.3 Variable Cost Pricing

9.4 Break-Even Analysis

9.4.1 Contribution

9.4.2 The Profit/Volume Graph

9.5 Budgetary Control

9.5.1 Limiting Factors

10 Investment Appraisal in Risk Protection

10.1 Introduction

10.2 The Need for Goals

10.3 The Nature of Capital Expenditure

10.4 The Techniques of Analysis

10.4.1 Pay Back Method

10.4.2 The Accounting Rate of Return

10.4.3 Discounted Cash Flow

10.4.4 The Net Present Value

10.4.5 The Internal Rate of Return

10.5 Independent and Dependent Projects

10.6 Conclusion

Table 1 Present Value Factors

Table 2 Cumulative Present Value Factors

Appendix 1 Suggested Supportive Texts

Index