1 - Basic Assumptions & Policies 1 AEL was incorporated on...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
1 AEL was incorporated on 1 January 2000 and is an importer of abalone. It rents a warehouse and office premises in Ubi area and imports its abalone from places ranging from Mexico, Namibia and Thailand. 2. GST, CPF and taxation are not included in this report. 3. Financial year end = 31 December 4. AEL uses manual accounting and record keeping system with physical documents. 5. AEL uses the weighted average method of valuing inventory and the perpetual inventory system is used to record inventory. 6. AEL uses control accounts, specialized journals (sales, purchases, cash receipt and cash disbursement journals), sub-ledgers (inventory, AR and AP) and registers (such as fixed asset register and payroll register) to record transactions relating to sales, purchases, accounts receivable and accounts payable from year one. AEL makes postings from sales and purchases journals to the general ledger once a month. 7. Unless otherwise stated, all payments are made using cheques. Salaries are made
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/02/2011 for the course ECON 222 taught by Professor Beros during the Spring '11 term at Abant İzzet Baysal University.

Page1 / 2

1 - Basic Assumptions & Policies 1 AEL was incorporated on...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online