Recording Business
Transactions
Chapter
2
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Acconting lesson chapter two topic is recording bussiness transactions
Typology: Lecture notes
2019/2020
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Recording Business
Transactions
Chapter
Accounting Terms
Account
Ledger
Assets
Liabilities
Owner’s equity
Double- entry accounting T-account
Classification of Accounts
● What are some asset accounts?
- Cash
- Notes Receivable
- Accounts Receivable
- Prepaid Expenses
- Land
- Building
- Equipment
Current
Assets
● Current assets are cash , or will be converted to cash, in one year or within the normal business operating cycle.
● What are some other examples?
- short-term receivables
- inventory
- prepaid expenses
11. SECURITIES
110 Common Stocks
111 Private Sector Notes, Bonds and Shares
112 Public Sector Notes, Bonds and Shares
118 Other Marketable Securities
119 Provision for Decrease in Value of Marketable Securities (-)
- TRADE RECEIVABLES 120 Customers 121 Notes Receivables 122 Rediscount of Notes Receivables (-) 126 Deposits and Guaranties Given 127 Other Trade Receivables 128 Doubtful Trade Receivables 129 Provisions for Doubtful Trade Receivables
- INVENTORIES 150 Raw Materials and Supplies 151 Semi-Finished Goods in Production 152 Finished Goods 153 Trade Goods 157 Other Inventories 158 Provision for Inventories (-) 159 Advances Given to Suppliers
18. PREPAID EXPENSE AND INCOME
ACCRUALS
180 Prepaid Expense for the Following Months
181 Income Accruals
LONG RUN ASSETS
- FINANCIAL ASSETS 240 Long Term Securities 241 Decrease in Value of LTS (-) 242 Participations 243 Capital Commitments for Part. (-) 244 Decrease in Value of Part.’s Shares (-) 245 Subsidiaries 246 Capital Commitments for Subs. (-) 247 Decrease in Value of Subs.’s Shares (-) 248 Other Financial Assets 249Decrease in Value of OFA (-)
- TANGIBLE FIX ASSETS 250 Land 251 Land Improvements 252 Buildings 253 Machinery, Building and Installations 254 Motor Vehicles 255 Furniture and Fixture 256 Other Tangible Fix Assets 257 Accumulated Depreciation (-) 258 Construction in Progress 259 Fix Assets Advances Given
Classification of Accounts
● What are some liability accounts?
- Notes Payable
- Accounts Payable
- Accrued Liabilities (for expenses incurred but not paid)
- Long-term Liabilities (bonds)
Current
Liabilities
● Current liabilities are debts or obligations due within one year or within the operating cycle.
● What are some examples?
- accounts and salary payables
- short-term notes payable
- unearned revenue
32. TRADE PAYABLES
320 Suppliers
321 Notes Payable
322 Rediscount on Notes Payable (-)
326 Deposits and Guarantees Taken
329 Other Trade Payables
33. OTHER PAYABLES
331 Due to Shareholders
332 Due to Participations
333 Due to Subsidiaries
335 Due to Personnel
336 Other Liabilities
337 Rediscount on Other Notes Payable (-)