Accounting in Business

I The Accounting Environment 1 The Scope and Environment of Business Accounting The Scope of Business Accounting The Nature and Place of Accounting Theory Accounting in Historical Perspective Further Reading Questions for DiscussionII Financial Accounting Theory and Practice 2 The Balance Sheet The Accounting Environment The Environmental Postulates Business Entity The Balance Sheet The Nature of Assets The Valuation of Assets The Nature of Outside Liabilities The Balance Sheet Equation Further Reading Questions for Discussion 3 Income Measurement-Expense The Nature of Profit The Accrual Postulate The Accounting Period Definitions The Relationship between Cost and Expense The Accounting Equation Recording Transactions in the Quadrant The Income Statement and Balance Sheet Further Reading Questions for Discussion 4 Income Measurement-Revenue The Nature of Revenue The Realization Postulate 'Revenue' and 'Receipts' Debtors, Bad Debts and Doubtful Debts Gross and Net Profit The Trading, Profit and Loss Account Accounting and Economic Profit The Assumptions and Conventions of Accounting Appendix-The Effect of Revenue Recognition on Reported Profit Further Reading Questions for Discussion 5 Accounting Records-An Introduction to Bookkeeping Analysis of Transactions using the Quadrant Debit and Credit The Account Analysis of Transactions using Accounts The Trial Balance The Trading, Profit and Loss Account The Position of Stock Asset and Liability Accounts The Balance Sheet Accruals and Prepayments Provisions The Journal and Day Books The Accounting Process The Sources of Financial Data Further Reading Questions for Discussion 6 Income Measurement-The Valuation and Depreciation of Fixed Assets The Nature of Depreciation The Cost of the Asset The Useful Life of the Asset The Salvage (Residual) Value of the Asset The Method of Depreciation Accounting for Depreciation Accounting for the Disposal of Fixed Assets Valuation of Fixed Assets Further Reading Questions for Discussion 7 Income Measurement-The Valuation of Current Assets The Valuation of Stock The Nature of Stock The Bases of Stock Valuation Accounting and Stock Valuation Historic Cost Historic Cost-Comparison of Methods The Valuation of Debtors Further Reading Questions for Discussion 8 Further Aspects of Financial Records Incomplete Records Control Accounts Verification of the Bank Account Matrix Accounting Further Reading Questions for Discussion 9 The Partnership The Nature of Partnership The Proprietary Theory The Partnership Agreement The Final Accounts Capital and Current Accounts The Admission of New Partners-the Valuation of Goodwill The Admission of New Partners-the Treatment of Goodwill Partnership Dissolution Further Reading Questions for Discussion 10 The Public Limited Company-Capital Structure and Financial Reporting The Public Limited Company, Partnership and Sole Trader-A Comparison Memorandum and Articles Shares and Share Capital Par Value and Market Value Share Premium Debentures Capitalization Capital Gearing Reserves-Their Purpose Types of