Accounting and Finance

capital account

motor vehicles account

purchases account

returns inward account

Long-term liabilities

Current assets

Owner’s equity

Current liabilities

to calculate the profit and loss

to show the financial position

to check the arithmetical accuracy of the ledger

to check the cash and bank balances

The easiest to turn into cash will come first

The easiest to turn into cash will come last

The highest value of money will come first

The highest value in money will come last

capital reduced and assets reduced

liabilities increased and assets reduced

liabilities reduced and assets increased

no effect on assets or liabilities

Accounts payable

Equipment

Cash

Owner’s equity

$81

$90

$180

$261

general journal

sales journal

purchases returns journal

sales returns journal

$1 050

$1 850

$2 100

$2 900

at a valuation decided by the management

at the lower of cost or net realisable value

at the net book value of the inventory

at the purchase price of the inventory