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Accounting with Barca

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Accounting with Barca

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Accounting with Barca

  1. 1. The story of debits & credits with BARCA 1
  2. 2. The double entry accountingTOREMEMBER Asset accounts D Increase Decrease Liability accounts Decrease Increase Charges Revenus P & L Account
  3. 3. The concept of a balance sheetExercise1 What I HAVE What I OWE
  4. 4. Exercise1 What I HAVE What I OWE House Car Furniture Equipment Savings “Petty” Cash Mortgage Car loan Equipment loan Invoices Overdraft The concept of a balance sheet
  5. 5. Exercise1 What I HAVE What I OWE House 100 Car 10 Furniture 30 Equipment 20 Savings 10 Petty Cash 5 Adding up 175 Mortgage 65 Car loan 5 Equipment loan 10 Invoices 5 Overdraft 10 Adding up 95 The concept of a balance sheet
  6. 6. Exercise1 What I HAVE What I OWE House 100 Car 10 Furniture 30 Equipment 20 Savings 10 Petty Cash 5 Total 175 Net worth 80 Mortgage 65 Car loan 5 Equipment loan 10 Invoices 5 Overdraft 10 Total 175 The concept of a balance sheet
  7. 7. Exercise1 The concept of a balance sheet Assets =Liabilities +Net Worth (Equity) What about income and expenses?
  8. 8. Revenues (Income) 1000 - Mortgage loan repayment 300 - Car expenses 50 - Heating, electricity,… 100 - Various expenses 100 - Taxes and Soc. Sec. 400 Revenuesandexpenses Net income / Savings 50 Where did the money go?
  9. 9. The charges to the P & L Net Result TheP&LAccount Other operational income Gross margin Added Value Gross ops profit Profit before taxes Goods & services Personnel -expense Other ops expenses Amortisa tion EBIT Financial expenses Taxes Result of Operations Financial Income & exceptional Gross Profit Other income
  10. 10. P & L N-1 EURO N Turnover (1) Purchased goods - Inventory = Cost of goods sold (2) Gross margin (3)=(1)-(2) + Other business related income = Income from operations (4) - Goods and services (5) = Added Value (6)=(4)-(5) - Personnel expense - Other operational expenses = Gross operating income + Financial revenues + Exceptional results = Gross total revenue (EBITDA) - Amort., provisions, depreciations = EBIT - Financial expenses - Taxes = NET PROFIT ExceptionalExceptional OperationsOperations InvestmentsInvestments FinancingFinancing Key elements of a P & LTheP&LAccount
  11. 11. ASSETS LIABILITIES BALANCE SHEET INCOME statement CHARGES REVENUES
  12. 12. The balance sheet of a bank ASSETS LIABILITIES Differentbalancesheets What the bank HAS What the bank OWES
  13. 13. Example : The opening balance sheet of a company Assets Liabilities Short term asset Net worth The methodology of double entry accounting Doubleentry
  14. 14. Double entry Liability Increases = DEBIT Asset Doubleentry
  15. 15. Double entry Assets LIABILITY Increases CREDIT Doubleentry
  16. 16. Double entry accounting Cash Net Worth ASSETS LIABILITIES Doubleentry
  17. 17. Double entry accounting Income statement (P&L account) Doubleentry
  18. 18. The double entry accountingTOREMEMBER Asset accounts D Increase Decrease Liability accounts Decrease Increase Charges Revenus P & L Account
  19. 19. Whathappened? What happened? EURO Date 01/01/N-1 31/12/N-1 01/01/N 31/12/N ASSETS Fixed Inventory Receivable Cash 399 1.516 890 975 10,6 % 40,1 % 23,5 % 25,8 % 397 1.364 1.136 561 11,48 % 39,44 % 32,82 % 16,16 % TOTAL ASSETS 3.780 100 % 3,458 100 % LIABILITIES Net Worth LT Debt Suppliers Bank debt 592 660 2.528 0 15,7 % 17,5 % 66,9 % 0 % 673 441 2,166 178 19,43 % 12,75 % 62,63 % 5,19 % TOTAL LIABILITIES 3.780 100 % 3,458 100 %
  20. 20. EURO 01/01/N-1 31/12/N-1 01/01/N 31/12/N Turnover (1) Purchased goods - Inventory = Cost of goods sold (2) Gross margin (3)=(1)-(2) 14.104 12.639 422 12.217 1.887 13,38 % 14.690 12.573 -141 12.714 1.976 13,45 % + Other business related income = Income from operations (4) 343 2.230 2,43 % 15,81 % 521 2.497 3,55 % 17,00 % - Goods and services (5) = Added Value (6)=(4)-(5) 809 1.421 5,74 % 10,08 % 1.000 1.497 6,81 % 10,19 % - Personnel expense - Other operational expenses = Gross operating income 942 23 456 6,68 % 0,16 % 3,23 % 975 26 496 6,64 % 0,18 % 3,38 % + Financial revenues + Exceptional results = Gross total revenue 16 74 546 0,11 % 0,52 % 3,87 % 4 -10 490 0,03 % 0,07 % 3,34 % - Amort (161)., provisions, depr. = EBIT 185 361 1,31 % 2,56 % 212 278 1,44 % 1,89 % - Financial expenses - Taxes 23 156 0,16 % 1,11 % 30 111 0,20 % 0,76 % = NET PROFIT 182 1,29 % 137 0,93 % Financialflows The income statement
  21. 21. Barca BARCA Trial Balance Cash Capital Equipment Supplier Equipment Sales Stock Supplier Stock Customers Fees Operations Cost of goods sold Depreciation Income Taxes Due to Tax Aut. Dividends Due to Shareholders
  22. 22. Barca BARCA Trial Balance Cash Capital Equipment Supplier Equipment Sales 50,000 156,000 25,000 77,000 48,000 22,000 2,000 Trial balance = 339,600 206,000 174,000 32,000 50,000 25,000 25,000 25,0006,250 18,750 Stock Supplier Stock Customers Fees Operations Cost of goods sold Depreciation Income Taxes Due to Tax Aut. Dividends Due to Shareholders 240,000 95,000 80,000 95,00077,000 156,000240,000 48,000 22,000 80,000 6,250 27,600 27,600 6,000 4,000 15,000 18,000 84,000
  23. 23. Barca Debit Credit TRIAL Balance
  24. 24. Barca Debit Credit 32,000 50,000 18,750 240,000 15,000 18,000 84,000 48,000 22,000 80,000 6,250 27,600 27,600 6,000 4,000 339,600 339,600 TRIAL Balance
  25. 25. Barca P & L account (Income statement) Revenue Cost of materials Salaries Other operating cost EBITDA Depreciation Op. income EBIT Tax Net income before div.
  26. 26. Barca P & L account (Income statement) – rounded figures Revenue 240,000 Cost of materials -80,000 (95-15) Salaries -48,000 Other operating cost -22,000 EBITDA 90,000 Depreciation -6,250 (25% 25) Op. income EBIT 83,750 Tax -27,600 (33% EBIT) Net income before div. 56,150 Net income after div. 50,150
  27. 27. Barca Cash flow Payments from clients Cost of goods sold Salaries Other op. expenses Cash flow from ops Cash flow for investments Available cash flow disponibleCapital increase Dividends Cash flow from financing Cash flow
  28. 28. Barca Cash flow Payments from clients 156,000 (65%240) Purchase goods -77,000 (95-18) Salaries -48,000 Other op. expenses -22,000 Cash flow from ops 9,000 Cash flow for investments -25,000 Available cash flow disponible -16,000 Capital injection 50,000 Dividends -2,000 Cash flow from financing 48,000 Cash flow 32,000
  29. 29. Barca Balance Fixed assets Inventory Receivables Cash Total assets Capital Ret. Earn. Net worth Tax due Payables Div. due Liabilities N.W. & Liabilities towards third parties
  30. 30. Barca Balance (rounded figures ) Fixed assets 18,750 Inventory 15,000 Receivables 84,000 Cash 32,000 Total assets 149,750 Capital 50,000 Ret. Earn. 50,150 Net worth 100,150 Tax due 27,600 Payables 18,000 Div. due 4,000 Liabilities 49,600 N.W. & Liabilities towards third parties 149,750
  31. 31. Cost of goods sold Beginning inventory 4,000 Plus Purchases 7,400 Equals : Good available for sale 11,400 Less : Ending inventory 2,000 Cost of goods sold 9.400 Ending inventory Beginning inventory Available For sale 11,400 Pur- Chases 7,400 Cost of goods Sold 9,400 4,000 2,000

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