This will help you in grasping the concept about Balance Sheet. It is very helpful especially for economists and engineers as well. In case of any confusion you can contact me on linkedin. Thanx!
This will help you in grasping the concept about Balance Sheet. It is very helpful especially for economists and engineers as well. In case of any confusion you can contact me on linkedin. Thanx!
Introduction to Financial statements - AccountingFaHaD .H. NooR
Financial statement introduction and its elements.
There are three fundamental financial statements used in accounting.
The income statement shows revenues and expenses.
The balance sheet is a listing of all asset, liability, and equity account balances that do not appear on the income statement.
The statement of cash flows shows how the company receives and spends its cash.
Introduction to Financial statements - AccountingFaHaD .H. NooR
Financial statement introduction and its elements.
There are three fundamental financial statements used in accounting.
The income statement shows revenues and expenses.
The balance sheet is a listing of all asset, liability, and equity account balances that do not appear on the income statement.
The statement of cash flows shows how the company receives and spends its cash.
This is a PowerPoint I created for grade 10 on my second prac. I decided that having students just sit there and listen to me talk about accounting would not create the best learning outcome. Whilst the first few slides of the PowerPoint are them sitting there listening and copying information into their books further down in the PowerPoint the students are getting up from their seats and writing on the white board where the power pint is displayed. This is part of a game where they must fill in the blanks left on one of the 'game slides'. The PowerPoint has also left blanks where the teacher can write on the white board. For example when the class is solving problems for the first time the teacher shows an example of how to do it by writing on the white board, then the class does one together where the teacher writes on the board but with class input.
I hope this example of my previous use of ICT can help other pre-service teachers understand how ICT's can be used in a collaborative matter.
Enjoy! Jescynda.
Assets • Assets are valuable resources that are owned by a firm. – They represent probable future economic benefits and arise as the result of past transactions or events.
Basic accounting in 10 mints
This powerpoint teaches the basics of bookkeeping and accounting. It includes details about debits and credits, assets, liabilities, sales, and expenses. Examples are provided and a quick description of the chart of accounts, profit and loss statements and the balance sheet is also included.
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...beulahfernandes8
The financial landscape in India has witnessed a significant development with the recent collaboration between Poonawalla Fincorp and IndusInd Bank.
The launch of the co-branded credit card, the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card, marks a major milestone for both entities.
This strategic move aims to redefine and elevate the banking experience for customers.
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
2. 2
The characteristics of
business transactions
A business transaction is recorded when there
has been an exchange of resources between one
business and another person or business in
monetary terms
The exchange must be at arm’s length.
Entity concept must be kept intact – i.e. business
records must be kept separate from the owner’s
personal records
Personal expenditure from the entity’s funds are
known as drawings.
Transactions can be either in cash or credit.
Source documents provide evidence of the
business transactions.
4. 4
Business transaction versus a
business event
Personal transactions are ones that do not
involve an exchange between the business entity
and another entity.
Negotiations between the entity and outsiders
will not be recorded as a business transaction
until an exchange of resources actually takes
place.
Negotiations are considered as simply a business
event:
• These must not be included in the entity’s records until a
source document evidences an exchange
of resource/s
5. 5
The accounting equation –
process of double entry
The accounting equation is known as the
relationship between assets (whether
owned or controlled by the entity)
liabilities and equity
Assets = Liabilities + Equity
Liabilities and equity represent the claims
against the entity’s assets.
Business transactions are analysed by
examining the dual effect of each business
transaction and the impact on the
accounting equation
6. 6
The accounting equation –
process of double entry
The concept of duality simply means that every
business transaction will affect the accounting
equation – the result of which leaves the
equation in balance!
Assets = Liabilities + Equity
The Equity section of the accounting
equation can be expanded to analyse
the effects of income and expenses –
determines net profit/loss for the period.
Net profit/loss is then added to the
entity’s opening equity in the equity
section of the Balance Sheet.
7. 7
Worksheet
The accounting worksheet / trial
balance summarises the duality of
business transactions
The worksheet (like the Balance
Sheet) is based overall on the
accounting equation (A = L + E)
9. 9
Income Statement
Used to calculate net profit (or loss)
It is the difference between
income/revenue and expense
transactions
Net profit (or loss) is then
transferred to the Balance Sheet
11. 11
Balance Sheet
It is a statement of the entity’s
assets and liabilities
The accounting equation holds true
within the Balance Sheet (i.e. A = L + E)
12. 12
Example of a Balance Sheet
Source: Accounting: Business Reporting for Decision Making, Birt, Chalmers, Byrne, Brooks &
Oliver, 2010.
13. 13
Journals and Ledger
Journal
• a book used to record similar business transactions in
chronological order. Each entry will have:
the date of transaction
name of accounts affected and
the corresponding debit and credit amount.
Ledger
• An alternative to journals – can also be used to
summarise journals.
• Each ledger account will have a
debit (left side) and
a credit (right side)
14. 14
Debits and Credits
to increase an asset (e.g. cash) or
an expense account (e.g. wages)
we debit it.
to increase a liability account
(e.g. creditor) or revenue account
(e.g. sales) we would credit it.
16. Teresa is unhappy in her present job and wants to do
something more fulfilling and challenging. Currently she
is an office administrator for a company that imports and
exports. She loves textiles and feels that there is a
business opportunity in selling imported rugs and
carpets. She knows that you have completed studies in
accounting and asks for your help.
Teresa is willing to invest her savings of $20000 into the
business but she also knows that she will need to borrow
money to get started. Her aunty is willing to lend her
$50000 at commercial rates. According to the terms of
the loan the interest is based on a 6% variable rate tied
to the commercial bank rates. The loan is to be paid off
at the rate of $5000 per year for the next 10 years. So
on the 1 April she creates a business account with her
bank, transfers her $20000 across and banks her
aunty’s cheque for $50000.
16
17. So in summary:
Teresa injected $20 000 of her own money into the business.
Teresa borrowed $50 000 from her aunt.
Balance Sheet as at 1 April
Assets = Liabilities + Owner’s Equity
17
Assets Liabilities
Cash $70 000 Loan $50 000
Equity
Capital
Contributed
$20 000
$70 000 $70 000
18. Teresa needs a shop in which to sell her rugs. She finds the right shop
in a boutique shopping precinct which contains arts galleries, antique
shops, coffee shops and smaller retail shops. She leases the shop for a
period of 5 years. The cost of the lease has two components. The first
is a lease premium of $10 000. This is payable immediately and gives
Teresa the right to occupy the shop for the next five years. The second
is a yearly rental of $12000 payable in monthly instalments. On 2
March she signs the lease and writes a cheque for $10 000 in favour of
the leasor.
Balance Sheet as at 2 April
Assets Liabilities
Current Non-Current
Cash $60 000 Loan $50 000
Non-current
Lease $10 000 Equity
Capital Contributed $20 000
$70 000 $70 000
18
19. Teresa needs to fit out the shop in order to display the
wares she has for sale. On 3 April she contracts with a
builder to do the fit out for $20 000. The next day she
finishes the fit out and Teresa writes a cheque for $20 000
in favour for the builder.
Balance Sheet as at 4 April
Assets Liabilities
Current Non-Current
Cash $40 000 Loan $50 000
Non-current
Lease $10 000 Equity
Shop Fixtures $20 000 Capital Contributes $20 000
$70 000 $70 00019
20. Teresa needs to purchase her inventory of rugs and
carpets. She approaches several companies and decides
to buy her first stock from Carpetable Pty Ltd. On 5 April
she selects a range of small, medium and large rugs and
carpets of varying textures, colours and fabrics from
Carpetable Pty Ltd at a cost of $35 000. This is payable in
28 days.
Balance Sheet as at 5 April
Assets Liabilities
Current Current
Cash $40 000 Accounts Payable $35 000
Inventory $35 000 Non-current
Non-current Loan $50 000
Lease $10 000 Equity
Shop Fixtures $20 000 Capital Contributed $20 000
$105 000 $105 00020
21. During April Teresa sold $20 000 worth of inventory for
$40000. Interest expense was $250 for the month and
depreciation on fixtures was $334. The monthly rent was
$1000. Ignore the lease for simplicity.
Profit/(Loss) = $40000-$20000-$250-$334-$1000
= $18416.
Balance Sheet as at 30 April
Assets Liabilities
Current Current
Cash $78 750 Accounts Payable $35 000
Investory $15 000 Non-current
Non-current Loan $50 000
Equity
Shop Fixtures $20000
Less Accum Dep $334 $19 666
Capital Cont.$20000
+Retain Prof$18416 $38 416
$123 416 $123 416
21
22. Note that we have worked out the profit and loss in one line
above. Given the first month of trading it was simple
enough to do and we can remember what amounts
represent what expense. However, as time moves on and
as we incur more and varied expenses it is best to list the
profit and loss as a schedule as below:
Sales $40 000
Less: COGS $20 000
GROSS Profit $20 000
Less other expenses
Depreciation 334
Lease Rent payments 1 000
Interest Expense 250 $ 1 584
NET Profit $18 416
This is the income statement. It also gives us more
information.
22
23. We have ignored the prepaid lease payment of $10000 for 5 years.
This is an asset as it gives Teresa the right to use the shop over the
next five years. According to the matching principle we should account
for the proportion of the lease cost that is used each period. Therefore
the cost of the lease each month is $167. ($10000/5yrs/12mths). The
new balance sheet is as follows:
Balance Sheet as at 30 April
Assets Liabilities
Current Current
Cash $78 750 Accounts Payable $35 000
Inventory $15 000 Non-current
Non-current Loan $50 000
Lease Prepaid $10000
Less amortisation $ 167 $ 9 833
Equity
Shop Fixtures $20000
Less accum deprec$ 334 $19 666
Capital Contrib $20 000
+Retain Profit $18 249 $38 249
$123 249 $123 249
23
Assets Liabilities
Current Current
Cash $78 750 Accounts Payable $35 000
Inventory $15 000 Non-current
Non-current Loan $50 000
Lease Prepaid $10000
Less amortisation $ 167 $ 9 833
Equity
Shop Fixtures $20000
Less accum deprec$ 334 $19 666
Capital Contrib $20 000
+Retain Profit $18 249 $38 249
$123 249 $123 249
24. 24
The Balance Sheet
The financial position of an entity at
a particular point in time
Lists
• Assets
What the business owns or controls
• Liabilities
External claims on the entity’s assets
• Owner’s equity
Internal claims on the entity’s assets
26. 26
Assets
‘A resource controlled by the entity
as a result of past transactions or
other past events and from which
future economic benefits are
expected to flow to the entity.’
Future economic benefit
Controlled by the entity
Result of past transaction or event
27. 27
Asset
Recognition
‘It is probable that any future
economic benefits associated with
the asset will flow to the entity and
the asset has a cost or other value
that can be measured reliably.’
29. 29
Liabilities
‘A present obligation of the entity arising
from past events, the settlement of
which is expected to result in an outflow
from the entity of resources embodying
economic benefits.’
A future sacrifice of economic benefits
A present obligation to another entity
A result of a past transaction or other
past events
30. 30
Liabilities
Recognition
‘It is probable that the outflow of
resources embodying economic
benefits will result and can be
measured reliably.’
32. 32
Equity
‘The residual interest in the assets of the
entity after deduction of its liabilities.’
Equity = Assets – Liabilities
Categories of Owner’s equity
• Owner’s equity contributed
• Owner’s equity retained
• Reserves
Equity cannot be defined independently
36. On 2 May Teresa bought another $50000 worth
of inventory on credit and paid the account owing
from her previous inventory purchases. She
decided to spend some money on advertising to
try to boost her name in the area. This marketing
cost $5000. Teresa paid for this in cash.
Throughout May Teresa sold $55000 worth of
rugs for $100 000 ($80000 for cash and $20 000
on credit).
36
37. Income Statement for May
Sales $100 000
Less COGS
Beginning Inventory $15 000
+Purchases $50 000
$65 000
-End Inventory $10 000 $55 000
Gross Profit $45 000
Other Expenses
Depreciation $ 334
Interest $ 250
Marketing $ 5 000
Lease Prepaid $ 167
Lease Rent Payment $ 1 000 $ 6 751
Net Profit $38 249
37
38. Balance Sheet as at 31 May
*Cash $78750 - $35000 + $80000 - $1000 - $250 - $5000 38
Assets Liabilities
Current Current
Cash* $117 500 Accounts Payable $50 000
Accounts Receivable $ 20 000 Non-current
Inventory $ 10 000 Loan $50 000
Non-current
Lease Prepaid $10000
Less amortisation$ 334 $ 9 666
Equity
Shop Fixtures $20000
Less Accum Deprec $ 668
$19 332
Capital Cont. $20 000
Beg Retained
Profit $18 249
+ Net Profit $38 249
$56 498 $76 498
$176 498 $176 498
39. 39
Balance Sheet Format
‘T’ Format/Horizontal
Narrative Format/Vertical
Remember:
• Balance Sheet balances
• i.e. Assets = Liabilities + Equity
Generally presented in order of liquidity
Comparative Information (2 years)
Parent entity and consolidated entity
40. 40
Classification of Items
Current and Non-current
• Current Assets – expected to be consumed or
converted to cash in next 12 months eg. cash,
inventory, debtors
• Non-Current Assets – normally held on a
continuing basis to generate wealth eg. Land
and buildings
• Current Liabilities – due and payable within 12
months eg. Trade creditors
• Non-current Liabilities – payable beyond 12
months eg. Long term loan
42. 42
Valuation
The dollar value assigned to assets and
liabilities is called their carrying or
book value
The carrying value can either be:
Historical cost – i.e. original cost
• Current cost
Market value
• Present value
So which one do we choose?
43. 43
Valuation
The one that ensures the information is
relevant and reliable
For example
• Debtors: net realisable value
i.e. expected collection value
• Inventory: lower of cost or net realisable value
NRV = expected selling price minus any costs involved in the sale
• Non-Current Assets: lower of cost or recoverable amount
(selling price or value in use - i.e. amount expected to be
recovered through use and/or sale)
Benefits consumed each period are recorded as an expense of the
business for that period
• Depreciation – for tangible non-current assets
• Amortisation – for intangible non-current assets
• Goodwill - purchased goodwill only
44. 44
Balance Sheet Analysis
liquidity: ability to meet current obligations from
liquid assets. Related to the probability of
business failure.
mix of assets held: current vs non current.
Given their long term nature, an over-investment
in non current assets can cause cash shortages.
financial structure: reliance on external vs
internal sources of finance. Important because
external finance involves legal obligations
45. 45
Limitations of the Balance Sheet
1. Asset, Liability and Entity values are at a particular point
in time only (these values will change over time)
2. The entity’s value is not really reflected in balance sheet
due to
• Items that generate future benefits or involve future
sacrifices not satisfying definition/recognition criteria
• The historical nature (or combinations of cost and fair
values) of the Balance Sheet
3. Preparing a Balance Sheet involves –
• management choices
• judgements and
• estimations