...41 Consignment accounts Objectives After you have studied this chapter, you should: • • understand what is meant by the term ‘consignment account’, how such accounts are used, and by whom know how to record the entries for consignment accounts 41.1 Nature of a consignment When a trader sells goods directly to customers, whether they are in his home country or overseas, these are ordinary sales. However, a trader may send goods to an agent to sell them for him. These goods are said to be sent on consignment. The main features are: (a) The trader sends the goods to the agent. The goods do not belong to the agent; his job is to sell them for the trader. The goods are owned by the trader until they are sold. The trader sending the goods is called the consignor. The agent is called the consignee. (b) The agent will store the goods until they are sold by him. He will have to pay some expenses, but these will later be refunded by the trader. (c) The agent will receive a commission from the trader for his work. (d) The agent will collect the money from the customers to whom he sells the goods. He will pay this over to the trader after deducting his expenses and commission. The statement from the agent to the trader showing this is known as the account sales. Consignment accounts are to be found mainly in overseas trade. 41.2 Consignors (the traders) records For each consignment to an agent a separate consignment account is opened. Think of it as a trading and profit...
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...State University of New York BINGHAMTON UNIVERSITY School of Management Fall 2011 Class: Mgmt 501 Accounting for Managers Mondays: 4:25 – 5:50 pm LN 2403 Wednesdays: 4:25- 5:50 pm SL206 Instructor: Anna M. Addonisio, CPA, MBA Email: aaddonis@binghamton.edu Phone: 777-4941 Office: Library North Room 2430 Office Hours: by appointment Text: Financial and Managerial Accounting, by Needles, Powers, & Crosson, 9e edition, Houghton Mifflin Co. (required) Cases: Harvard Business School Cases (required) Wall Street Journal (recommended) Financial Calculator: Texas Instruments BAII Plus is required Course Objective: This course integrates financial accounting and managerial accounting. The objective is to provide students with an understanding of accounting information from the managers’ perspective and develop students’ ability and analytical skills necessary to use accounting information to make decisions in the business world. The first part of this course introduces financial accounting with the emphasis on financial statement preparation by accountants, selection of reporting strategies by managers, and interpretations by users of corporate financial reports. The second part of this course introduces managerial accounting, which is primarily concerned with data gathering and presentation for purpose of internal management evaluation and decision-making. The objective is to understand the determination of cost structure and develop techniques for...
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...Final Examination According to IRS 25.1.1.2 “tax fraud is often defined as an intentional wrongdoing on the part of a taxpayer, with the specific purpose of evading a tax known or believed to be owing” (Hopwood, pg 320). By this definition, if Tom Anderson ignores the receipt to the foreign trust, he is enabling Mary Wench in tax fraud. Mr. Anderson should encourage Ms. Wench in reporting the foreign trust deposit and other related income that she might be hiding. If Ms. Wench resists, Mr. Anderson should discuss what could happen if she chooses to continue to hide the possible income and inform her that he could no longer represent her in filing her annual taxes. Mr. Anderson should also let the IRS know of his findings so that they can red flag her account. If she chooses another accountant and does not disclose the same information to them, then they will be in the middle of the legal case when they come after Ms. Wench for tax fraud. Mr. Anderson should also disengage himself from doing any other type of work, like consulting, from Ms. Wench’s company. As the CEO of her company, Ms. Wench is responsible for overseeing and supplying accounting information to her company. Who is to say she would not hide income, expenses, losses, or assets to make her company look good. If she is willing to do it in her personal life, she is capable of doing it in her professional role as CEO. Mr. Anderson is bound by ethics like every other profession. He must encourage his...
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...Full cost accounting Calculations -----> Six full cost accounting decisions #1 Defining final cost objects What is the product #2 Determining mission and support cost centers Which centers support and who are production #3 Distinguishing between direct cost and indirect cost Direct cost can directly be attributed to either product or organizational unit #4 Choosing allocation bases for support center cost How is it stated that the support centers shall be allocated to mission #5 Selecting an allocation method And execute the allocation. Stepdown allocation or similar #6 Attaching a mission center's cost to it's cost objects Allocate mission centers to the cost object after how it's stated #1 Client services in each department #2 8 mission service departments T&E, recordkeeping, cleaning, utilities, rent, adm is support #3 Others are direct costs #4 Rent allocated by square foot Administration time allocated on salaries Utilities allocated by square foot Cleaning allocated by square foot Record keeping allocated by number of records (one record per visit) * After adm utilities and cleaning Training and Education allocated by hours used First rent, utilities, cleaning,administration, record keeping, T&E ANSWER ASSIGNMENT Full Costs per visits are: Homemaker Service FC pr visit W/O Counseling $ 46,34 $ 59,32 Tot cost $ 231 707,98 Family Planning $ 17,15 $ 19,02 $ 171...
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...public accountant like performance/operational audit, internal audit and compliance audit. 2. COURSE OBJECTIVES This course intends the student: 1. To comprehend applicable regulations, legal responsibilities and ethical standards and current issues facing the audit profession. 2. To appreciate the concepts of internal control system and the use of computer assisted audit techniques in auditing a computerised environment. 3. To understand and apply audit risk, materiality, and statistical and non statistical audit sampling techniques. 4. To be familiar with related issues in audit completion, group audit, internal audit and related audit services and other services that can be provided by the public accounting firms. 3. LEARNING OUTCOMES Upon completion of the course, students will be able to: 1. Explain the professional conduct and ethics of an auditor, the legal liability environment affecting the auditors and relate it to relevant cases (C2, P2, A3). 2. Relate the significance of client’s IT and its implications on business activities...
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...Faculty of Business School of Accounting Economics and Finance Student to complete: Family name Other names Student number Table number ACCY111 Accounting Fundamentals in Society Final Examination Practice Paper Autumn Session, 2014 Exam duration Items permitted by examiner Aids supplied Directions to students 3 hours UOW approved calculator nil All questions to be answered. Questions are worth different marks. This exam paper must not be removed from the exam venue Question 1 (8 marks) The following account balances are from the ledger of S. Gill, architect, at 31 January 2014. The accounts are not listed in any particular order. The firm’s accounting year began on 1 January. All accounts had normal balances. Prepaid Insurance Insurance Expense Supplies on Hand Advertising Expense S. Gill, Capital 1 January Cash Accounts Payable Rent Expense Supplies Expense Electricity Expense Service Fees Accounts Receivable Salaries Expenses S. Gill, Drawings Required: a) Prepare a trial balance from the given data. $ 320 80 560 230 21 000 9 500 480 720 350 140 9 420 16 500 1 800 700 (8marks) Question 2 (20 marks) Firelights Displays is a graphic design firm providing art services to publishers and advertisers. It has the following accounts in its general ledger: Cash Accounts Receivable Supplies on Hand Office Equipment Accounts Payable O. Harper, Capital O. Harper, Drawings Fees Earned Rent Expense Telephone and Electricity Expense Salaries Expense Required...
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.... POINT OF VIEW This case is analyzed from the point of view of a third party consultant. II. PROBLEM There is inefficiency in the management of Krispy Kreme Doughnuts, Inc. in terms of its operations, marketing, accounting, and investment planning. III. OBJECTIVES a. To gradually gain back analysts’, investors’ and lenders’ confidence in the company in the succeeding months. b. To increase sales and profitability in terms of its core business, selling of doughnuts. c. To regain and increase stock price therefore increasing shareholder value. d. To correct inaccurate entries in the financial statements of KKD and to present a clean and unbiased reports. e. To extend further reach to consumers strategically to achieve significant growth in the next five years. f. To implement extensive marketing measures for its brand and products and investment strategy for both on and off premise operations. IV. AREAS OF CONSIDERATION • Fortune magazine had dubbed Krispy Kreme Doughnut, Inc. “the hottest brand in America.” With ambitious plans to open 500 doughnut shops over the first half of the decade. • The company generated revenues through four primary sources: on-premise retail sales at company owned stores (27% of revenues), off-premises sales to grocery and convenience stores (40%); manufacturing and distribution of product mix and machinery (29%); and franchise royalties and fees (4%). • Roughly 60% of sales at a Krispy Kreme store were derived...
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...SAMPLE BUSINESS PLAN: Moose Mountain Café Moose Mountain Café The purpose of this business plan is to obtain debt-based capital and to secure private equity funding. The total amount of capital needed is $30,000 The Business Moose Mountain Café has selected the sole proprietorship as its formal legal entity. This structure was chosen because of its operational simplicity. Although this structure exposes the owner to unlimited liability, risk management and insurance protection will be established to offset this risk. Moose Mountain Café will be an independent, start-up venture. The proposed starting date for the venture will be 07/04/2010. This business plan documents the precise strategies and activities that will be taken in order to commence operations of the business. The Moose Mountain Café will be located at 200 Main Street, Moose Mountain, NH, with seating for 20 patrons. The rent is $600 a month, with a five-year lease available. The site consists of a 20 x 20 square-foot dining room, a 15 x 15 square-foot kitchen, two bathrooms, and a storage room in back. To be used as a restaurant, this storefront needs to be plumbed and wired appropriately. Painting, new floors, and countertops are also needed. With materials bought on sale and volunteer labor, the cost to renovate will be $5,000. The kitchen will be equipped with a commercial stove, refrigerator, freezer, walk-incooler, oven, microwave, and small commercial dishwasher. With bargain (but quality) ...
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...and manufacturing. We will scrutinize the similarities and differences in the flow of costs in these organizations, focusing particularly on how they accumulate costs for valuing inventory and reporting income. Because cost allocations play an integral role in this process, we end our discussion of this module with a brief overview of the mechanics of cost allocations. What we are going to discuss in this module is important because we need data to estimate costs and benefits. Invariably, we get this data from the accounting system and most systems are set up to comply with GAAP. Accordingly, it behooves us to understand how such systems work. All costs incurred are eventually recognized as expense in the income statement. However, some costs are recognized as expenses immediately and some costs are recognized as expense after a lag. The timing with which the costs of acquiring assets or services are recognized as expense is an important issue in accounting. An expense is defined as the cost incurred when an asset is used up or sold for the purpose of generating revenue. The terms product cost and period cost are used to describe the timing with which various expenses are recognized. A product cost is a cost assigned to goods that were either purchased for resale or produced for sale. In the period of the sale, the product costs are recognized as an expense called cost of goods sold. GAAP requires that costs are grouped according to business function. Therefore,...
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...Acct2310 – Assignment #5 – due Thursday, June 21 1. The Hanlon Company maintains a chequing account at the Royal Bank. The bank provides a bank statement along with cancelled cheques on the last day of each month. The July 2011 bank statement included the following information: Balance, July 1, 2011 $ 55,678 Deposits 179,500 Cheques processed (192,610) Service charges (30) NSF cheques (1,200) Monthly loan payment deducted directly by bank from account (includes $320 in interest) (3,320) Balance, July 31, 2011 $ 38,018 The company's general ledger account had a balance of $38,918 at the end of July. Deposits outstanding totalled $6,300, and all cheques written by the company were processed by the bank, except for those totalling $8,420. In addition, a $2,000 July deposit from a credit customer was recorded as a $200 debit to cash and credit to accounts receivable, and a cheque correctly recorded by the company as a $30 disbursement was incorrectly processed by the bank as a $300 disbursement. Required: a) Prepare a bank reconciliation for the month of July. b) Prepare the necessary journal entries at the end of July to adjust the general ledger cash account. Mandalay Company’s January 1, 2011 balances relevant to accounts receivable are as follows: Accounts receivable $400,000 (dr.) Allowance for doubtful accounts 20,000 (cr.) During 2011, $45,000 of accounts receivable are judged to be uncollectible, and no additional efforts to collect these accounts will be made. Total sales...
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...MANAGMENT ACCOUNTING Launchbreak LTD 1. Be able to analyse cost information within a business 1.1 classify different types of cost 1.2 use different costing methods 1.3 calculate costs using appropriate techniques 1.4 analyse cost data using appropriate techniques 2. Be able to propose methods to reduce costs and enhance value within a business 2.1 prepare and analyse routine cost reports 2.2 use performance indicators to identify potential improvements 2.3 suggest improvements to reduce costs, enhance value and quality 3. Be able to prepare forecasts budgets for a business 3.1 explain the purpose and nature of the budgeting process 3.2 select appropriate budgeting methods for the organisation and its needs 3.3 prepare budgets according to the chosen budgeting method 3.4 prepare a cash budget 4. Be able to monitor performance against budgets within a business 4.1 calculate variances, identify possible causes and recommend corrective action 4.2 prepare an operating statement reconciling budgeted and actual results 4.3 report findings to management in accordance with identified responsibility centres COMPANY BACKGROUND Launchbreak LTD is a small manufacturing company that makes cakes, which are sold to supermarkets and grocery stores. You work as an accounts manager at Launchbreak LTD, reporting to the general manager. 1.1(a) Managment accounting is one kind of accounting which is designated to provide business leaders...
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...other words, the proverbial big picture. The management role requires engineers to be able to envision, from a broader perspective, the operation of an organization and the market one serves. You must learn to think, act, speak, and process from the “management mind.” This capstone course draws from all functional areas of an enterprise to provide strategic direction to an organization. It also provides engineers with a management perspective as a complement to the engineering orientation, which they currently possess. Strategies are offered to ensure not only success in a competitive “for profit” environment, but the sustainability of success throughout the economic cycle. A framework is developed to understand the interrelation of accounting, finance, operations, engineering, and marketing. Class format will be lecture, case study analysis, open discussion, guest speakers, and student presentation. Student Notice: As a...
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...to lifelong success. It’s all about opportunity. Accounting professionals can work in any sector, anywhere in the world. And when you choose CGA, you’ll gain the leadership, problem-solving and technical skills that are sought after by organizations in the private, public and not-for-profit sectors. The CGA Program of Professional Studies gives you the tools to succeed in business, no matter where your career takes you. You’ll enter the workforce with the applied knowledge and demonstrated expertise that employers want, including specialized technical knowledge, sectorspecific competencies, problem-solving skills and the ethical integrity to lead. CGA’s competency-based curriculum is simply your best way to prepare for a rewarding career in financial management. Flexible study options and the freedom to choose the career you want CGA is all about choice. You choose the professional-studies path and real-world experience that best match your career goals and interests. We give you the skills and freedom to work in any type of organization, in any industry, at any level of management. With a CGA designation, your opportunities—both professional and personal, at home and around the world—are limitless. Take your place as a highly respected member of the business world. Karmen Rempel, CGA Manager Grant Thornton LLP Vancouver, British Columbia Why CGA? There are many reasons why CGA is the fastest-growing accounting designation in Canada. With CGA, you can: 1. Pursue...
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...What is internal control? Why is internal control important in organizations? Internal controls are processes established by a business or organizations board of directors, management and other personnel to provide reasonable assurance for that businesses objectives in effectiveness and efficiency, reliability of financial reports and compliance with laws and regulations. Internal controls are used to safeguard businesses assets. They help a to establish guidelines within a business and makes sure that everyone within that business follows those guidelines and procedures. Internal controls are important because without them a business would be more susceptible to fraud. Internal controls are used to prevent people from stealing from a business and to make sure all the rules are followed. Feedback: Internal control is a system of policies and procedures designed to help an organization run more efficiently and effectively. Without strong internal control, an organization is much more susceptible to various forms of risk which can compromise its operations and its financial reporting. What are the four basic purposes of internal control? Give an example of each one. The first purpose of internal controls is to safeguard assets. Internal controls should protect your assets such as cash. One internal control that helps with protection of assets is the segregation of duties, another is sequential numbering of checks or locking checks in a safe place. The second purpose is to ensure...
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...course and a suitable faculty is available to teach. • In a regular semester (except summer session) the minimum required load for a full time student is 12 credit hours, whereas maximum course is 18 credit hours. • A fine of Rs. 200 per day will be charged for late payment of fees. Registration will be considered completed only when all the dues are paid. Students, who fail to pay the dues by Jan. 31, 2005 will not be allowed to attend classes and will be dropped from the semester. • It is mandatory to attend 80% of total contact hours failing which the student will not be allowed to appear in the final exam. |S No |Course Code |Code & Title of Course |Cr Hrs |Pre Requisites/Passed |Mor/Eve |Section | |1 |ACC-160 |Principles of Accounting-II |3 |Principles of Accounting-I | | | |2 |ECO-160 |Macroeconomics |3 |Microeconomics | | | |3 |QTM-160 |Business Statistics |3 |Nil...
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