Account Reconstructions - My General Ledger Templates

[Kuroyuki]

If the order did matter, its like saying we will be penalised depending on which journal we post first cash payments or purchases.

[itsalmostover]

Thanks Damoz, you've been a real help to me this year

Just wondering, for the Stock Control account, would there be a debit 'Capital' if the owner contributed stock to the business?

[Damoz.G]

Thanks Damoz, you've been a real help to me this year

Just wondering, for the Stock Control account, would there be a debit 'Capital' if the owner contributed stock to the business?

No worries.

Yup, it would be a Debit Entry. There's lots of Entries that can go into those General Ledger Accounts, but I just included the main ones that are constantly used. 

So in the General Journal:
* DR: Stock Control
* CR:   Capital

[icecream]

You know for the income statement, it's like:
Revenue
Cash Sales
Credit Sales
Less Sales Returns

Do we have to total cash and credit sales before we deduct sales returns? and if we do, which column does the total go into?

[Damoz.G]

You know for the income statement, it's like:
Revenue
Cash Sales
Credit Sales
Less Sales Returns

Do we have to total cash and credit sales before we deduct sales returns? and if we do, which column does the total go into?

No. This is how I do it:
REVENUES                              $                      $
Cash Sales                      12,0000
Credit Sales                     12,0000
less Sales Returns             1,000              23,000

[itsalmostover]

No brackets around the Sales Returns figure?

[Damoz.G]

No brackets around the Sales Returns figure?

No, you gotta look closely at the setting out of the Examiner's Reports - That's the format of what I follow.

For the Income Statement, there are no brackets, instead you say "less" or "add".

For the CFS, you use brackets.

[Hayes451]

Great Templates

Was wondering if a 3rd Cost of Sales entry for prepaid sales is required on the credit side of the Stock Control Template?

[Damoz.G]

Great Templates

Was wondering if a 3rd Cost of Sales entry for prepaid sales is required on the credit side of the Stock Control Template?

Thank you.

For Prepaid Sales? No, you wouldn't need a third Cost of Sales on the Credit Side, because the Prepaid Sales would be converted into Sales (Specifically Credit Sales) and would thus be included as part of the Cost of Sales figure from Credit Sales.

[Hayes451]

Thank you.

For Prepaid Sales? No, you wouldn't need a third Cost of Sales on the Credit Side, because the Prepaid Sales would be converted into Sales (Specifically Credit Sales) and would thus be included as part of the Cost of Sales figure from Credit Sales.

Yeah that makes sense since I've never used it in a reconstruction, for some reason the Cambridge text says otherwise.

[Damoz.G]

Yeah that makes sense since I've never used it in a reconstruction, for some reason the Cambridge text says otherwise.

I use the Cambridge Textbook as well. What page does it state that?

[Hayes451]

I use the Cambridge Textbook as well. What page does it state that?

Page 408.

[Damoz.G]

Page 408.

Oh wow! Completely missed that.

Definitely a mistake, because no Cost of Sales is determined for a Deposit (Prepaid Sales Revenue). When the Deposit converts into a Sale, that is the only time when the Cost of Sales is determined. Can't have a Cost of Sales figure for a deposit. So yeah, its a mistake. 

Good find! 

[icecream]

No. This is how I do it:
REVENUES                              $                      $
Cash Sales                      12,0000
Credit Sales                     12,0000
less Sales Returns             1,000              23,000

ohh okay thank youuu

[Damoz.G]

ohh okay thank youuu

No problems!