Lecture%20Notes%20-%20Week%203

Lecture%20Notes%20-%20Week%203 - Australian School of...

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Australian School of Business School of Accounting ACCT 1501: Accounting and Financial Management 1A Weeks 3 The Double Entry System Student Handout Lecturer: Dr. Youngdeok Lim School of Accounting UNSW QUAD 3069 Ph: 9385 6081 [email protected] Blackboard: http://elearning.unsw.edu.au
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WEEK 3: The Double Entry System 1. Introduction Last week we discussed the importance of the balance sheet and income statement to managers. It is therefore critical that every manager understand the impact of transactions on these financial reports. This week covers those skills by extending transaction analysis, which considers the impact of specific transactions on the accounting equation. The double entry system involving debits and credits, which forms the basis of modern accounting, is then addressed. Learning objectives At the end of this topic you should be able to: Carry out transaction analysis and determine the impact of transactions on elements of balance sheets and income statements Describe how debits and credits work in the double entry accounting system. Understand debits and credits in the context of transaction analysis Required reading Trotman & Gibbins Chapter 3 2. Tutorial Questions – Week 4 Students should attempt these questions before the tutorial. Preparation Questions : DQ 3.5 & 3.7 P3.1*, P3.18 & P3.25 Tutorial Questions : DQ 3.6 P3.4, P3.16 & P3.30
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1 Accounting and Financial Management 1A Dr. Youngdeok Lim Quad 3069 Week 3, Session 1, 2010 The Double Entry System What we learn? Lecture 3: Transaction analysis, Double entry system Lecture 4: Accounting Cycle (1) – Introduction, Journal entries, Posting Lecture 5: Accounting Cycle (2) - Adjusting entries, closing entries Today’s lecture objectives: Carry out transaction analysis and determine the impact of transactions on elements of balance sheets and income statements Describe how debits and credits work in the double entry accounting system. Understand debits and credits in the context of transaction analysis Revisit Balance sheet and Income statement Assets Liabilities Equities = Creation of income Operating income Distribution of income Interest expense Creditors Investors Net profits Financing Investment Dividends
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2 Woolworth B/S (Consolidated) Current Assets 4,859 M Current Liabilities 6,414 M Noncurrent Assets 12,225 M Noncurrent Liabilities 3,613 M Total Liabilities 10,027 M Equities 7,057 M Total Assets 17,084 M Total Liabilities and Equities 17,084 M As at 30 June 2009 Woolworth I/S (consolidated) Revenue 49,697 M Expense (47,837 M) Net profit 1,860M 2009 52 weeks Transactions Transactions are events that affect the operations or finances of an organisation.
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This note was uploaded on 07/25/2011 for the course MGMT 1001 taught by Professor Danielellason during the Three '09 term at University of New South Wales.

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Lecture%20Notes%20-%20Week%203 - Australian School of...

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