Accounting Method Curriculum

Accounting method curriculum Lec1 1Financial position Definition Assets----future economic benefits/past transactions Liability-----present obligation /past transactions Equity---Assets-Liabilities 2Accounting Equations A=L+E Analysis of accounting equations (Practice) 3 Double entry accounting Debit side=Credit side& A=L+E (1)A (Debit) =L (Credit) +E (Credit) (2) Increase Decrease (3) Balance

Debit Debit Credit

Credit Credit Debit

Debit Debit-Credit

Credit Credit-Debit

Lec2 1 Ledger accounts Formal ledger Complete with explanations, debit, credit and balance. T-account Left (Debit)/Right (Right) Double entry rules Entries in T-account (Practice) 2GST Purpose: Agent for ATO to collect tax

Category GST collected: liability to be paid to ATO GST outlays: asset to be claimed back form ATO If GST collected>GST outlays, forward payment to ATO If GST collected
Lec3 1Recording in the Journal & Ledger account (Practice) 2Trial Balance Purpose: check debit equals to credit 3Expenses and Incomes Expense: decrease in economic benefits/outflow of assets or incurrence of liability/result in decrease in equity/other than drawings or distribution Income: increase in economic benefits/inflow of assets or decrease in liability/result in increase in equity/other than contributions Profit=Income-Expense Rules: accrual accounting---recognise all transactions when they occur regardless of cashflow

Nature: Income (Credit) ----increase equity/ Expense (Debit) ---decrease equity 4 Owner’s capital adjustment Nature: Contributions (Credit) ---increase in equity/ Drawings (Debit) ---decrease in equity

Lec4 Applications of Income and expenses/ Trial Balance (Practice)

Lec5