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Accounting English Lu_Xiufen

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Presentation on theme: "Accounting English Lu_Xiufen"— Presentation transcript:

1 Accounting English Lu_Xiufen

2 Lesson one Lesson Nine A Worksheet Lesson Nine A Worksheet

3 Accounting English Capture transaction data on source documents Capture transaction data on source documents Journalize transaction Journalize transaction Post transaction to the ledger Post transaction to the ledger Prepare trial balance Prepare trial balance Journalize and post adjusting entries Journalize and post adjusting entries Prepare financial statements Prepare financial statements Prepare adjusted trial balance Prepare adjusted trial balance Journalize and post closing entries Journalize and post closing entries Prepare post-closing trial balance Prepare post-closing trial balance Accounting Process Draw up a worksheet Draw up a worksheet facilitate

4 Accounting English Lesson Nine A Worksheet Words and PhrasesWords and Phrases 1 presentation 2 Exercises 3 Summary 4

5 Accounting English Part 1 Words and Phrases Words to Drill Draw (up) Interim foregoing Contribution Terms Calendar year Fiscal year Interim financial statement Annually financial statement

6 Accounting English Part 1 Words and Phrases Draw (up)---- v.t. prepare ;compose To draw up a contract. In actual practice, many accountants find that drawing up a worksheet first facilitates the preparation of the statements.

7 Accounting English Part 1 Words and Phrases interim  ① n. in the interim.meanwhile;during the time that comes between; ② (attrib)as an instalment Interim dividents,paid between annual dividents as advance payments. When interim (monthly or quarterly) financial statements are being prepared, usually adjustments are made only on the worksheet and will not be recorded in the journal and posted to the ledger accounts.

8 Accounting English Part 1 Words and Phrases foregoing  preceding,already mentioned The income statement for January and the balance sheet on Jan.31 prepared from the foregoing worksheet have already been presented in Lesson Four and Lesson Two.

9 Accounting English Part 1 Words and Phrases Contribution  n. giving money,time,labor,usually for a good cause. Captital contribution. When captital contributions have been made during the period, we cannot determine from the worksheet alone the beginning balance of owners’ capital and amounts of captital contributions during the period.

10 Accounting English Terms – Accounting Year 1 Calendar Year 2 Fiscal Year

11 Accounting English Terms – Accounting Year Text AccountingYear Calendar year Fiscal year Text Accounting year ending with a month other than December. Accounting year ending on December 31.

12 Accounting English Terms – financial statement 1 Interim financial statement 2 Anually financial statement

13 Accounting English Terms – Inventory Accounting System Text financial statement Interim Annually Text Quarterly Monthly Semi-annually

14 Accounting English Part 2 Presentation a. Why do many accountants draw up a worksheet before preparing the financial statements in practice? b. When would adjusting entries be entered only on a worksheet and not in the ledger accounts? c. How to draw up a worksheet?

15 Accounting English Part 2 Presentation --- Why To facilitate the preparation of the formal financial statements advantages To minimize the possibility of errors

16 Accounting English Part 2 Presentation --- When When is the worksheet prepared?

17 Accounting English Part 2 Presentation --- When The worksheet presented is prepared after all transactions have been recorded and posted to the accounts. P73

18 Accounting English Part 2 Presentation --- Columns of Worksheet 1 2 Trial Balance Adjustment Income Statement Balance Sheet 34

19 Accounting English Part 2 Presentation --- About trial balance What is a trial balance? Trial Balance is a list of the account titles in the ledger with their respective debit and credit balances.

20 Accounting English Capture transaction data on source documents Capture transaction data on source documents Journalize transaction Journalize transaction Post transaction to the ledger Post transaction to the ledger Prepare trial balance Prepare trial balance Journalize and post adjusting entries Journalize and post adjusting entries Prepare financial statements Prepare financial statements Prepare adjusted trial balance Prepare adjusted trial balance Journalize and post closing entries Journalize and post closing entries Prepare post-closing trial balance Prepare post-closing trial balance Part 2 Presentation --- When

21 Accounting English Part 2 Presentation --- About trial balance Trial Balance Out of balance In balance Errors Errors Debits equal credits Correct

22 Accounting English Errors when a trial balance is in balance Failing to record or enter a particular transaction Entering transaction more than once Entering one or more amounts in the wrong accounts Making a compensat -ing error that exactly offsets the effect of another error

23 Accounting English Part 2 Presentation --- about statements Corporations Single proprietorships Partnerships Statement of owners’ equity Statement of retained earning

24 Accounting English Statement of Owners ’ Equity Text Ending balance Additions Beginning balance + Deductions - Owners’ Capital Worksheet

25 Accounting English Part 2 Presentation --- about adjustments Text FinancialStatements Interim Annually Text The necessary adjusting entries must be recorded in the general journal and posted to the ledger accounts. Adjustments are made only on the worksheet.

26 Accounting English Because it will facilitate the preparation of the formal financial statements and minimize the possibility of errors. Part 3 Exercises a. Why do many accountants draw up a worksheet before preparing the financial statements in practice?

27 Accounting English Adjusting entries usually are made on the worksheet when interim financial statements are to be prepared because it will save posting time. Part 3 Exercises b. When would adjusting entries be entered only on a worksheet and not in the ledger accounts? Why?

28 Accounting English A worksheet usually has four sets of columns which include the trial balance columns,adjustment columns, income statement columns and balance sheet columns. Each set of columns has a debit and credit column. Part 3 Exercises c. How to draw up a worksheet? P76

29 Accounting English The four distinct types of errors are: Failing to record or enter a particular transaction; Entering transaction more than once; Entering one or more amounts in the wrong accounts; Making a compensating error that exactly offsets the effect of another error. Part 3 Exercises d. What are the four distinct types of errors that may be present even when a trial balance is in balance?

30 Accounting English Part 3 Exercises e. P79: 6

31 Accounting English Part 4 Summary. a. In actual practice, many accountants draw up a worksheet before preparing the financial statements because it will facilitate the preparation of the formal financial statements and minimize the possibility of errors. b. A worksheet usually has four sets of columns which include the trial balance columns,adjustment columns, income statement columns and balance sheet columns. Each set of columns has a debit and credit column.

32 Accounting English 2007 Annual report of WAL*MART

33 Accounting English 2007 Annual report of TESCO

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