Manufacturing Cost Components

Manufacturing costs are those which relate to the manufacture of a product and consist of three basic manufacturing cost components which are materials, labor, and expenses.

Manufacturing Cost Components September 17th, 2018Team
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Self Balancing Accounts System

As the number of bookkeeping transactions increases an accounting ledger needs to be split into various subsidiary ledgers. Self balancing ledger accounting is a method of entering two sided transactions in each ledger using adjustment accounts in order that a trial balance can be extracted from each of the subsidiary ledgers.

Self Balancing Accounts System July 31st, 2018Team
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Sales Mix and Quantity Variances

The sales volume variance has two components, the sales mix variance and the sales quantity variance. The sales mix variance shows the effect of the difference between the actual and budgeted sales mix. The sales quantity variance shows the effect of the difference between the actual volume sold at the budgeted mix and the budgeted volume.

Sales Mix and Quantity Variances July 18th, 2018Team
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Sales Variance Analysis in Accounting

The total sales variance sometimes referred to as the sales value variance is the difference between the actual sales and budgeted sales and can be split and analysed into the sales volume variance and the sales price variance.

Sales Variance Analysis in Accounting July 16th, 2018Team
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Partnership Appropriation Account

The net income from the profit and loss account is transferred to the partnership appropriation account in order that it can be adjusted for partner salaries, commissions, and interest. Any residual net income after adjustment is distributed to the partners.

Partnership Appropriation Account July 12th, 2018Team
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Departmental Accounting System

Departmental accounting is used by a business to assess the profitability of each of its departments using either the gross profit, contribution, or net profit method.

Departmental Accounting System July 4th, 2018Team
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Manufacturing Account Format

The manufacturing account is a general ledger account used by a manufacturer to accumulate production costs such as direct materials, direct labor and manufacturing overheads. The account is used to calculate the manufacturing cost of goods completed during an accounting period.

Manufacturing Account Format August 16th, 2018Team
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Trading Profit and Loss Account

The trading and profit and loss accounts are temporary accounts in the general ledger. The trading account shows the gross profit and is particularly useful for a trading business which buys and sells finished products as it allows the gross profit and gross profit percentage to be calculated.

Trading Profit and Loss Account July 31st, 2018Team
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Sales Return Day Book

The sales return day book is used to record goods returned by customers. The sales return book is not part of the double entry posting and is simply a chronological list of credit notes issued to customers and used to post the accounts receivable and general ledgers.

Sales Return Day Book June 23rd, 2018Team
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Purchases Returns Day Book

The purchase return day book is used to record goods returned to suppliers. The purchase return book is not part of the double entry posting and is simply a chronological list of supplier credit notes used to post the accounts payable and general ledgers.

Purchases Returns Day Book June 5th, 2018Team
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Retirement of a Partner

When a partner retires the existing partnership is dissolved. To calculate the amount due to the retiring partner net assets are adjusted to fair value. Depending on the method of partnership accounting used bonus or goodwill journal entries may be necessary if the amount paid to the retiring partner differs from their adjusted net asset value.

Retirement of a Partner June 27th, 2018Team
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