4.4 the rules for revenues and expenses
TRANSCRIPT
4.4
THE RULES FOR REVENUES
AND EXPENSES
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© Michael Allison. Author’s permission required for external use.
The rules for Revenues and Expenses…
4.4 THE RULES FOR REVENUES
AND EXPENSES
Debit Credit
Owner’s Equity
Revenue
Expenses
Debit Credit
Owner’s Equity
Revenue
Expenses
Debit Credit
Owner’s Equity
Revenue
Expenses
RevenuesExpenses
OE OE
© Michael Allison. Author’s permission required for external use.
All the rules together…
Debit Credit
Assets
Expenses
Liabilities
Owner’s Equity
Revenue
4.4 THE RULES FOR REVENUES
AND EXPENSES
© Michael Allison. Author’s permission required for external use.
Transaction Account Classification Increase /
Decrease
Debit Credit
7. Sold goods for $1,000 cash
plus GST of $100 (cost price
of goods $600)
Transaction Account Classification Increase /
Decrease
Debit Credit
7. Sold goods for $1,000 cash
plus GST of $100 (cost price
of goods $600)
Cash
Transaction Account Classification Increase /
Decrease
Debit Credit
7. Sold goods for $1,000 cash
plus GST of $100 (cost price
of goods $600)
Cash A
Transaction Account Classification Increase /
Decrease
Debit Credit
7. Sold goods for $1,000 cash
plus GST of $100 (cost price
of goods $600)
Cash A
Transaction Account Classification Increase /
Decrease
Debit Credit
7. Sold goods for $1,000 cash
plus GST of $100 (cost price
of goods $600)
Cash A 1100
Transaction Account Classification Increase /
Decrease
Debit Credit
7. Sold goods for $1,000 cash
plus GST of $100 (cost price
of goods $600)
Cash A 1100
GST Liability
Transaction Account Classification Increase /
Decrease
Debit Credit
7. Sold goods for $1,000 cash
plus GST of $100 (cost price
of goods $600)
Cash A 1100
GST Liability L
Transaction Account Classification Increase /
Decrease
Debit Credit
7. Sold goods for $1,000 cash
plus GST of $100 (cost price
of goods $600)
Cash A 1100
GST Liability L
Transaction Account Classification Increase /
Decrease
Debit Credit
7. Sold goods for $1,000 cash
plus GST of $100 (cost price
of goods $600)
Cash A 1100
GST Liability L 100
Transaction Account Classification Increase /
Decrease
Debit Credit
7. Sold goods for $1,000 cash
plus GST of $100 (cost price
of goods $600)
Cash A 1100
GST Liability L 100
Sales
Transaction Account Classification Increase /
Decrease
Debit Credit
7. Sold goods for $1,000 cash
plus GST of $100 (cost price
of goods $600)
Cash A 1100
GST Liability L 100
Sales R
Transaction Account Classification Increase /
Decrease
Debit Credit
7. Sold goods for $1,000 cash
plus GST of $100 (cost price
of goods $600)
Cash A 1100
GST Liability L 100
Sales R
Transaction Account Classification Increase /
Decrease
Debit Credit
7. Sold goods for $1,000 cash
plus GST of $100 (cost price
of goods $600)
Cash A 1100
GST Liability L 100
Sales R 1000
Transaction Account Classification Increase /
Decrease
Debit Credit
7. Sold goods for $1,000 cash
plus GST of $100 (cost price
of goods $600)
Cash A 1100
GST Liability L 100
Sales R 1000
Cost of Sales
Transaction Account Classification Increase /
Decrease
Debit Credit
7. Sold goods for $1,000 cash
plus GST of $100 (cost price
of goods $600)
Cash A 1100
GST Liability L 100
Sales R 1000
Cost of Sales E
Transaction Account Classification Increase /
Decrease
Debit Credit
7. Sold goods for $1,000 cash
plus GST of $100 (cost price
of goods $600)
Cash A 1100
GST Liability L 100
Sales R 1000
Cost of Sales E
Transaction Account Classification Increase /
Decrease
Debit Credit
7. Sold goods for $1,000 cash
plus GST of $100 (cost price
of goods $600)
Cash A 1100
GST Liability L 100
Sales R 1000
Cost of Sales E 600
Transaction Account Classification Increase /
Decrease
Debit Credit
7. Sold goods for $1,000 cash
plus GST of $100 (cost price
of goods $600)
Cash A 1100
GST Liability L 100
Sales R 1000
Cost of Sales E 600
Stock
Transaction Account Classification Increase /
Decrease
Debit Credit
7. Sold goods for $1,000 cash
plus GST of $100 (cost price
of goods $600)
Cash A 1100
GST Liability L 100
Sales R 1000
Cost of Sales E 600
Stock A
Transaction Account Classification Increase /
Decrease
Debit Credit
7. Sold goods for $1,000 cash
plus GST of $100 (cost price
of goods $600)
Cash A 1100
GST Liability L 100
Sales R 1000
Cost of Sales E 600
Stock A
Transaction Account Classification Increase /
Decrease
Debit Credit
7. Sold goods for $1,000 cash
plus GST of $100 (cost price
of goods $600)
Cash A 1100
GST Liability L 100
Sales R 1000
Cost of Sales E 600
Stock A 600
Debit Credit
Assets
Expenses
Liabilities
Owner’s Equity
Revenue
4.4 THE RULES FOR REVENUES
AND EXPENSES
Debit Credit
Assets
Expenses
Liabilities
Owner’s Equity
Revenue
Debit Credit
Assets
Expenses
Liabilities
Owner’s Equity
Revenue
Debit Credit
Assets
Expenses
Liabilities
Owner’s Equity
Revenue
Debit Credit
Assets
Expenses
Liabilities
Owner’s Equity
Revenue
Debit Credit
Assets
Expenses
Liabilities
Owner’s Equity
Revenue
Debit Credit
Assets
Expenses
Liabilities
Owner’s Equity
Revenue
Debit Credit
Assets
Expenses
Liabilities
Owner’s Equity
Revenue
Debit Credit
Assets
Expenses
Liabilities
Owner’s Equity
Revenue
Debit Credit
Assets
Expenses
Liabilities
Owner’s Equity
Revenue
© Michael Allison. Author’s permission required for external use.
Cash at Bank [A]
Date Details $ Date Details $
1 Jan Capital 25000 1 Jan Computer/GST Liability 3300
1 Jan Loan 10000 4 Jan Loan 500
6 Jan Capital 800 5 Jan Stock/GST Liability 660
7 Jan Sales/GST Liability 1100
GST Liability [L]
Date Details $ Date Details $
3 Jan Cash at Bank 300 7 Jan Cash at Bank 100
5 Jan Cash at Bank 60
Sales [R]
Date Details $ Date Details $
7 Jan Cash at Bank 1000
Cash at Bank [A]
Date Details $ Date Details $
1 Jan Capital 25000 1 Jan Computer/GST Liability 3300
1 Jan Loan 10000 4 Jan Loan 500
6 Jan Capital 800 5 Jan Stock/GST Liability 660
7 Jan Sales/GST Liability 1100
GST Liability [L]
Date Details $ Date Details $
3 Jan Cash at Bank 300 7 Jan Cash at Bank 100
5 Jan Cash at Bank 60
Sales [R]
Date Details $ Date Details $
7 Jan Cash at Bank 1000
Transaction Account Classification Increase /
Decrease
Debit Credit
7. Sold goods for $1,000 cash
plus GST of $100 (cost price
of goods $600)
Cash A 1100
GST Liability L 100
Sales R 1000
4.4 THE RULES FOR REVENUES
AND EXPENSESTransaction Account Classification Increase /
Decrease
Debit Credit
7. Sold goods for $1,000 cash
plus GST of $100 (cost price
of goods $600)
Cash A 1100
GST Liability L 100
Sales R 1000
Transaction Account Classification Increase /
Decrease
Debit Credit
7. Sold goods for $1,000 cash
plus GST of $100 (cost price
of goods $600)
Cash A 1100
GST Liability L 100
Sales R 1000
Transaction Account Classification Increase /
Decrease
Debit Credit
7. Sold goods for $1,000 cash
plus GST of $100 (cost price
of goods $600)
Cash A 1100
GST Liability L 100
Sales R 1000
© Michael Allison. Author’s permission required for external use.
Cost of Sales [E}
Date Details $ Date Details $
7 Jan Stock 600
Stock [A]
Date Details $ Date Details $
5 Jan Cash at Bank 600 7 Jan Cost of Sales 600
Cost of Sales [E}
Date Details $ Date Details $
7 Jan Stock 600
Stock [A]
Date Details $ Date Details $
5 Jan Cash at Bank 600 7 Jan Cost of Sales 600
Transaction Account Classification Increase /
Decrease
Debit Credit
7. Sold goods for $1,000 cash
plus GST of $100 (cost price
of goods $600)
Cost of Sales E 600
Stock A 600
4.4 THE RULES FOR REVENUES
AND EXPENSESTransaction Account Classification Increase /
Decrease
Debit Credit
7. Sold goods for $1,000 cash
plus GST of $100 (cost price
of goods $600)
Cost of Sales E 600
Stock A 600
Transaction Account Classification Increase /
Decrease
Debit Credit
7. Sold goods for $1,000 cash
plus GST of $100 (cost price
of goods $600)
Cost of Sales E 600
Stock A 600
© Michael Allison. Author’s permission required for external use.
Transaction Account Classification Increase /
Decrease
Debit Credit
8. Advertising of $300 plus
GST of $30 was purchased
on credit terms of 60 days
Transaction Account Classification Increase /
Decrease
Debit Credit
8. Advertising of $300 plus
GST of $30 was purchased
on credit terms of 60 days
Advertising
Transaction Account Classification Increase /
Decrease
Debit Credit
8. Advertising of $300 plus
GST of $30 was purchased
on credit terms of 60 days
Advertising E
Transaction Account Classification Increase /
Decrease
Debit Credit
8. Advertising of $300 plus
GST of $30 was purchased
on credit terms of 60 days
Advertising E
Transaction Account Classification Increase /
Decrease
Debit Credit
8. Advertising of $300 plus
GST of $30 was purchased
on credit terms of 60 days
Advertising E 300
Transaction Account Classification Increase /
Decrease
Debit Credit
8. Advertising of $300 plus
GST of $30 was purchased
on credit terms of 60 days
Advertising E 300
GST Liability
Transaction Account Classification Increase /
Decrease
Debit Credit
8. Advertising of $300 plus
GST of $30 was purchased
on credit terms of 60 days
Advertising E 300
GST Liability L
Transaction Account Classification Increase /
Decrease
Debit Credit
8. Advertising of $300 plus
GST of $30 was purchased
on credit terms of 60 days
Advertising E 300
GST Liability L
Transaction Account Classification Increase /
Decrease
Debit Credit
8. Advertising of $300 plus
GST of $30 was purchased
on credit terms of 60 days
Advertising E 300
GST Liability L 30
Transaction Account Classification Increase /
Decrease
Debit Credit
8. Advertising of $300 plus
GST of $30 was purchased
on credit terms of 60 days
Advertising E 300
GST Liability L 30
Creditors
Transaction Account Classification Increase /
Decrease
Debit Credit
8. Advertising of $300 plus
GST of $30 was purchased
on credit terms of 60 days
Advertising E 300
GST Liability L 30
Creditors L
Transaction Account Classification Increase /
Decrease
Debit Credit
8. Advertising of $300 plus
GST of $30 was purchased
on credit terms of 60 days
Advertising E 300
GST Liability L 30
Creditors L
Transaction Account Classification Increase /
Decrease
Debit Credit
8. Advertising of $300 plus
GST of $30 was purchased
on credit terms of 60 days
Advertising E 300
GST Liability L 30
Creditors L 330
Debit Credit
Assets
Expenses
Liabilities
Owner’s Equity
Revenue
4.4 THE RULES FOR REVENUES
AND EXPENSES
Debit Credit
Assets
Expenses
Liabilities
Owner’s Equity
Revenue
Debit Credit
Assets
Expenses
Liabilities
Owner’s Equity
Revenue
Debit Credit
Assets
Expenses
Liabilities
Owner’s Equity
Revenue
Debit Credit
Assets
Expenses
Liabilities
Owner’s Equity
Revenue
Debit Credit
Assets
Expenses
Liabilities
Owner’s Equity
Revenue
© Michael Allison. Author’s permission required for external use.
Advertising [E}
Date Details $ Date Details $
8 Jan Creditors 300
GST Liability [L]
Date Details $ Date Details $
3 Jan Cash at Bank 300 7 Jan Cash at Bank 100
5 Jan Cash at Bank 60
8 Jan Creditors 30
Creditors [L]
Date Details $ Date Details $
8 Jan Advertising/GST Liability 330
Transaction Account Classification Increase /
Decrease
Debit Credit
8. Advertising of $300 plus
GST of $30 was purchased
on credit terms of 60 days
Advertising E 300
GST Liability L 30
Creditors L 330
Advertising [E}
Date Details $ Date Details $
8 Jan Creditors 300
GST Liability [L]
Date Details $ Date Details $
3 Jan Cash at Bank 300 7 Jan Cash at Bank 100
5 Jan Cash at Bank 60
8 Jan Creditors 30
Creditors [L]
Date Details $ Date Details $
8 Jan Advertising/GST Liability 330
4.4 THE RULES FOR REVENUES
AND EXPENSESTransaction Account Classification Increase /
Decrease
Debit Credit
8. Advertising of $300 plus
GST of $30 was purchased
on credit terms of 60 days
Advertising E 300
GST Liability L 30
Creditors L 330
Transaction Account Classification Increase /
Decrease
Debit Credit
8. Advertising of $300 plus
GST of $30 was purchased
on credit terms of 60 days
Advertising E 300
GST Liability L 30
Creditors L 330
Transaction Account Classification Increase /
Decrease
Debit Credit
8. Advertising of $300 plus
GST of $30 was purchased
on credit terms of 60 days
Advertising E 300
GST Liability L 30
Creditors L 330
© Michael Allison. Author’s permission required for external use.
TASK
In-class Homework
SQ6 X
Ex4.3 X