...Ever since the first time I rode my bike without training wheels down a mountain in Williams, Arizona, far faster than my mother was comfortable with, it was apparent that I have good balance. The following year, when I took gymnastics and won 1st place for my performance on the balance beam, it became clearer. When I entered High School, I realized that I was going to have to continue to balance, but in a new way. Now I needed to balance all of my extracurricular activities along with a rigorous curriculum. It was a tough habit to learn, but I feel that in the past three years I have mastered the skill. When I walk down the hallway on my way to class I am stopped by teammates asking me questions about the volleyball game that night, seventh...
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... [pic] 2. Documents and Records 2.1 Purchase requisition (請購單) – a form detailing the request for goods or services by an authorized employee of the user department and it is then passed from the user department to the purchase department. For example, order of materials by a factory/storeroom supervisor. [pic] 2.2 Purchase order (訂購單) – a document from a company to the supplier recording the description, quantity and amount of the goods or services ordered and it should be properly authorized by the company. [pic] 2.3 Goods received note (收貨單) – a document prepared by the supervisor of the storeroom/receiving department at the time the goods are received. It shows the description, quantity, condition and date of the goods received. [pic] 2.4 Purchase invoice – a document received from vendor which indicates the date, description, quantity and the total amount of goods and services the company has received. 2.5 Purchase journal and ledgers (a) A journal (day book) for recording the purchases of goods or services. (b) Vendors’ accounts in the purchase ledger will also be updated with the remittance advice/receipts when payments are made to vendors. 2.6 Payment voucher – an internally generated document that establishes a formal means of recording and controlling cash disbursements. It is usually accompanies with purchase invoice, goods received note and/or purchase order when approval for payment is sought. [pic] 2.7 Cheque/Electronic...
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...Balance of Trade and Balance of Payment with a special reference of Bangladesh Introduction Bangladesh is one of the fastest growing economic countries among the LDC’s country. According to the International Monetary Fund, Bangladesh ranked as the 42rd largest economy in the world in 2011 in PPP terms and 57th largest in nominal terms, among the Next Eleven or N-11 of Goldman Sachs and D-8 economies, with a gross domestic product of US$269.3 billion in PPP terms and US$104.9 billion in nominal terms. The economy has grown at the rate of 6-7% per annum over the past few years. More than half of the GDP is generated by the service sector; while nearly half of Bangladeshis are employed in the agriculture sector. Other goods produced are textiles, jute, fish, vegetables, fruit, leather and leath An easy way to understand any country's economic scenario is through its Balance of Trade (BOT) and Balance of Payment (BOP) figures. Balance of Trade shows the difference between the total amount of incoming and outgoing currencies through import and export. Balance of Payment (BOP) is a summary of economic activities between the residents of a country and the rest of the world during a given period, usually one year. The main purpose of keeping these records is to inform government authorities about the overall international economic position of the country in order to assist them in arriving at decisions on monetary and fiscal policy, on the one hand, and trade and payments policy...
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...depositing $2,10,000 in cash in the name of the company, in exchange for 21,000 shares of $10 per value stock of the corporation. Jan 10: Purchased goods on cash $1,00,000 from ABC. 21: Sold goods on cash $80,000 to Pro Asia. Feb 05: Purchased goods on credit $88,000 from ABC. 16: Sold goods on credit $49,000 to Pro Asia. 25: Paid advertisement bill of $5,000. 28: Sold goods to Sarmon’s Brothers for $1,000. Mar 07: Purchased store equipment for $30,000. 17: Paid $50,000 to ABC. 29: Received cash $30,000.for Pro Asia. Apr 01: Store equipment purchased on credit $50,000. 30: Opened a bank account for $30,000. May 06: Paid $40,000 to equipment supplier. 31: Took loan from IDLC for $ 1,70,000 on 12% interest. 31: Pro Asia returned goods worth $5,000. Jun 03: Returned goods worth $8,000 to ABC. 05: The amount of Sarmon’s Brothers had to be written off as uncollectable. 11: Paid electricity bill of $10,000. 15: Purchased land worth $70,000. Jun 31: Paid rent $6,000 and salary $6,000 for the first six months. Jul 20: Purchased 3,000 shares of Beximco. 25: Bought furniture of $7,000. 26: Sold goods worth $1,00,000 on notes receivable to XYZ. 31: Paid $12,000 for insurance policy of one year. Aug 07: Purchase goods for notes payable of $30,000 from Anderson. 09: Paid $500 for carriage inward. Sept 05: Paid $1,000 for miscellaneous expense. Oct 01:...
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...Business that sell a product are called merchandiser. The operating cycle of merchandiser: it begins when the company purchases inventory from a vendor and the company sells the inventory to the customer. Finally the company collects cash from customers. Objectives of merchandising operations Account for the sale of inventory Use sales and gross profit to evaluate a company Adjust and close the accounts of a merchandising business Prepare a merchandiser’s financial statements Use gross profit percentage and inventory turnover to evaluate a business Accounting inventory Merchandising companies use several accounts that service companies do not use. The balance sheet includes an additional current asset called merchandise inventory, or simply inventory, which records the cost of merchandise held for resale. On balance sheets, the inventory account usually appears just below accounts receivable because inventory is less liquid than accounts receivable. Merchandising companies also have several specific income statement accounts designed to provide detailed information about revenues and expenses associated with salable merchandise. Recording sales Sales invoices are source documents that provide a record for each sale. For control purposes, sales invoices should be...
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...Explain what is meant by the term Balance of Payments Deficit on the Current Account and Explain the Measures that could be taken to Reduce this Deficit The balance of payments records all financial tractions made with foreigners over a period time made between consumers, businesses and the government. The current account of the balance of payments compromises the balance of trade in goods and services plus net investment incomes from overseas assets and net transfers. In 2012, the UK’s current account balance of payments deficit was £59.8 billion. The government is always attempting to introduce measures in order to reduce the balance of payments deficit in order to have a balance of payments surplus where exports are greater than imports. One way the government could take measures in order to decrease the deficit is by lowing the exchange rate. A depreciation in the exchange rate of sterling could help to boost the overseas demand for UK exports because as a result goods from British would be cheaper and the UK export cheaply in international markets. Therefore, Exports would increase but also this would have an effect on imports for UK consumers. As the exchange rate lowers, imported goods are more expensive to UK consumers and goods become relatively more expensive - leading to a slowdown in imported goods. However, these consequences depend on the elasticity of demand. Another way in order to reduce the balance of payments deficit is to focus more on longer term improvements...
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...BRAC UNIVERSITY Assignment Topic Balance of Trade and Balance of Payment with special reference of Bangladesh Submitted to Dr. Shah Ahsan Habib Prepared by: Student Name: Marshal Richard Student ID# 10364057 Program: MBA Course: BUS 510: International Business Date of Submission: 22 April 2012 Bus 510: International Business Introduction Bangladesh is one of the fastest growing economic countries among the LDC’s country. According to the International Monetary Fund, Bangladesh ranked as the 42rd largest economy in the world in 2011 in PPP terms and 57th largest in nominal terms, among the Next Eleven or N-11 of Goldman Sachs and D-8 economies, with a gross domestic product of US$269.3 billion in PPP terms and US$104.9 billion in nominal terms. The economy has grown at the rate of 6-7% per annum over the past few years. More than half of the GDP is generated by the service sector; while nearly half of Bangladeshis are employed in the agriculture sector. Other goods produced are textiles, jute, fish, vegetables, fruit, leather and leath. An easy way to understand any country's economic scenario is through its Balance of Trade (BOT) and Balance of Payment (BOP) figures. Balance of Trade shows the difference between the total amount of incoming and outgoing currencies through import and export. Balance of Payment (BOP) is a summary of economic activities between the residents of a country and the rest of the world during a given period, usually one year. The...
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...and issue financial statements each year. 9. The dividends account is closed to the Income Summary account in order to properly determine net income (or loss) for the period. 10. After closing entries have been journalized and posted, all temporary accounts in the ledger should have zero balances. 11. Closing revenue and expense accounts to the Income Summary account is an optional bookkeeping procedure. 12. Closing the dividends account to Retained Earnings is not necessary if net income is greater than dividends during the period. 13. The dividends account is a permanent account whose balance is carried forward to the next accounting period. 14. Closing entries are journalized after adjusting entries have been journalized. 15. The amounts appearing on an income statement should agree with the amounts appearing on the post-closing trial balance. 17. A business entity has only one accounting cycle over its economic existence. 18. The accounting cycle begins at the start of a new accounting period. 19. Both correcting entries and adjusting entries always affect at least one balance sheet account and one income statement account. 20. Correcting entries are made any time an error is discovered even though it may not be at the end of an accounting period. 21. An incorrect debit to Accounts Receivable instead of the correct account Notes Receivable does not require a...
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...groceries, it's easy to picture ourselves standing at the checkout, writing out a personal check, and taking possession of the goods. It's a simple transaction—we exchange our money for the store's groceries. In the world of business, however, many companies must be willing to sell their goods (or services) on credit. This would be equivalent to the grocer transferring ownership of the groceries to you, issuing a sales invoice, and allowing you to pay for the groceries at a later date. Whenever a seller decides to offer its goods or services on credit, two things happen: (1) the seller boosts its potential to increase revenues since many buyers appreciate the convenience and efficiency of making purchases on credit, and (2) the seller opens itself up to potential losses if its customers do not pay the sales invoice amount when it becomes due. Under the accrual basis of accounting (which we will be using throughout our discussion) a sale on credit will: 1. Increase sales or sales revenues, which are reported on the income statement, and 2. Increase the amount due from customers, which is reported as accounts receivable—an asset reported on the balance sheet. If a buyer does not pay the amount it owes, the seller will report: 1. A credit loss or bad debts expense on its income statement, and 2. A reduction of accounts receivable on its balance sheet. With respect to financial statements, the seller should report its estimated credit losses as soon as possible using...
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...ing CHAPTER 5 Accounting for Merchandising Operations ASSIGNMENT CLASSIFICATION TABLE | | |Brief | |Problems Set A |Problems | |Study Objectives |Questions |Exercises |Exercises | |Set B | |Describe the differences between |1, 2, 3, 4 |1 |1 |1 |1 | |service and merchandising companies. | | | | | | |Prepare entries for purchases under a |5, 6, 7, 8, 9, 10,|2, 3, 4, 5 |1, 2, 4, 5, 10 |2, 3, 4 |2, 3, 4 | |perpetual inventory system. |11 | | | | | |Prepare entries for sales under a |8, 9, 10, 11 |6, 7 |1, 3, 4, 5, 10 |2, 3, 4 |2, 3, 4 | |perpetual inventory system. | | | | | | |Perform the steps in the accounting |12, 13, 14 |8, 9 |1, 4, 5, 7 |5, 6, 7 |5, 6, 7 | |cycle for a merchandising company. | | | | | | |Prepare multiple-step and single-step |15, 16, 17 |10, 11 ...
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...PAID | 20000 | 10 | GOODS VEHICLE PURCHASED | 300000 | 11 | ADAVANCE FOR GOODS FROM KRISHNA | 200000 | 12 | TELEPHONE CHARGES | 2000 | 13 | ELECTRICITY BILL | 500000 | 14 | OUTSTANDING ELECTRICITY BILL | 150000 | 15 | COMPUTERS PURCHASED | 50000 | 16 | ELECTRICITY CHARGES | 1000 | 17 | ADVERTISEMENT CHARGES | 10000 | 18 | INSURANCE PAID | 5000 | 19 | MACHINERY PURCHASED | 100000 | 20 | OUTSTANDING ADVERTISING EXPENSES | 3000 | 21 | COMPUTERS PURCHASED | 20000 | 22 | GENERAL EXPENSIVES | 5000 | 23 | LICENSES AND TAXEX EXPENSES | 2500 | 24 | RAW MATERIAL PURCHASED | 200000 | 25 | GOODS SOLD | 100000 | 26 | MOTOR BIKE PURCHASES | 70000 | 27 | GOODS SOLD | 250000 | 28 | MONEY DRAWN FROM BANK | 200000 | 29 | OIL CHARGES | 10000 | 30 | COMMISSION | 2000000 | 31 | GENERAL EXPENSES | 1000 | 32 | ADVANCE FOR FURNITURE | 25000 | 33 | OUTSTANDING RENT | 5000 | 34 | BIKE MAINTAINENCE | 1000 | 35 | TRANSPORTATION CHARGES | 10000 | 36 | GOODS SOLD TO PREM | 100000 | 37 | MONEY DRAWN FROM BANK | 100000 | 38 | OUTSTANDING MAINTAINANCE EXPENSES | 2000 | 39 | FOOD EXPENSES | 10000 | 40 | MAINTAINENCE CHARGES | 4000 | 41 | OUTSTANDING TRANSPORTATION CHARGES | 10000 | 42 | XEROX | 1000 | 43 | GOODS SOLD TO CHAKRI | 50000 | 44 | ADVANCE FOR MACHINERY | 100000 | 45 | POSTAGE CHARGE | 5000 | 46 | ADVANCE FOR FURNITURE | 20000 | 47 | RAW MATERIALS PURCHASED | 100000 | 48 | GOODS SOLD | 75000 | 49 | GOODS SOLD TO SURESH | 50000...
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...Now Explain Steps:1 Recording:- This is the basic function of accounting. All business transaction, as evidenced by some documents such as Sale bill, Pass book, Salary Slip ect are recorded in the books of account. This is called recording process. 2. Classifying:- All entries in the Journal or books of Original Entry should be posted to the appropriate ledger accounts to find out at a glance the total effect of all such transactions in a particular account. 3. Summarizing:- It is concerned with the preparation and presentation of the classified data in a manner useful to the Internal a well as the external users of financial statements. This process leads to the preparation of the following financial statements:a) Trial Balance b) Profit & Loss Account c) Balance Sheet d) Cash flow Statement. DIFF. BETWEEN BOOK KEEPING AND ACCOUNTING BOOK KEEPING ACCOUNTING 1. It is a Process concerned with recording of transaction. 2. It is the basic of accounting. 1. It is a process concerned with Summarizing of the recorded transaction. 2. It is the basic for business language. for accounting are 3. Person responsible for book-keeping are called book keeper. 4. It does not required any special skill or Knowledge. 5. Personal judgment of the book-keeper is not required. 6. Financial statement are not prepared from 3. Personal responsible called accountant. 4. It required special Skill & knowledge. 5. Personal Judgment of the accountant is essential. 6. Financial statement...
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...THE BALANCE OF PAYMENTS ALWAYS BALANCES Economic Concepts Balance of payments Capital account Current account Financial assets Trade deficit Trade surplus Content Standards Standard 5: Students will understand that: Voluntary exchange occurs only when all participating parties expect to gain. This is true for trade among individuals or organizations within a nation, and among individuals or organizations in different nations. • Students will be able to use this knowledge to: Negotiate exchanges and identify the gains to themselves and others. Compare the benefits and costs of policies that alter trade barriers between nations, such as tariffs and quotas. Benchmarks, Grade 12: At the completion of grade 12, students will know • A nation pays for its imports with its exports. Lesson Overview Balance of payments accounting is an often misused and misunderstood tool for keeping track of our economy’s flow of imports and exports. While the data, itself, is neutral, it is sometimes reported in ominous tones, especially when the numbers total up to a deficit in the merchandise account. As students learn more about trade, they appreciate that a trade deficit is not necessarily bad any more than a trade surplus is necessarily good. This lesson reinforces their appreciation of that reality by identifying the components of the balance of trade. Learning about the flow of financial assets captured in the...
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...International Finance Dr. Angela Ng FINA 342 HKUST Class Notes 2 BALANCE OF PAYMENTS (BOP) WHAT IS THE BALANCE OF PAYMENTS? An accounting statement that summarizes the economic transactions between residents of a home country and residents of all other countries. BOP is based on double-entry bookkeeping. Every transaction is recorded twice, once as a debit and once as a credit. According to accounting convention, a source of funds (either a decrease in assets or an increase in liabilities) is a credit and a use of funds (either an increase in assets or a decrease in liabilities) is a debit. Inflows are reported with a positive sign and are listed as a credit. Outflows are reported with a negative sign and are reported as a debit. Three major BOP categories: – Current Account: records flows of goods, services, and transfers. – Capital Account: shows public and private investment and lending activities. – Official Reserves Account: measures changes in holdings of gold and foreign currencies by official monetary institutions. By definition, the overall BOP must balance. (Current account balance) + (Capital account balance) ( (Official reserves account) = BOP = 0 BOP is related to the foreign exchange market. All transactions that affect the inflows and outflows of foreign currency are recorded in the BOP. Exhibit 2.1 Balance of Payments Categories |Credits (+) ...
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...| | | SCHOOL OF BUSINES Project on: Balance of Payments Prepared By: Hassan ajami, Mansour daher, reda younes,ali Mohsen, Mohammad kanso Submitted To: Dr. habib awada Course BFIN 430 (International Banking & Finance). Spring 2013-2014 TABLE OF CONTENTS 1- INTRODUCING THE BOP CONCEPT: 1.1) Brief History 5 1.2) Basic Definition 5 1.3) System of Recording 7 1.3.1) Identifying Transactions 7 1.3.2) The Debit & Credit System 9 2- GENERAL STRUCTURE OF THE BOP: 2.1) Main Components 12 2.1.1) Current Account 12 2.1.2) Trade Balance 15 2.1.3) Capital Account 16 2.1.4) Financial Account 18 2.1.5) Errors & Omissions 22 2.2) Complications 23 2.2.1) Accounts Interrelation 23 2.2.2) Deficit & Surplus Dilemmas 25 3- BOP FROM EQUILIBRIUM TO DISEQUILIBRIUM 3.1) BOP in Equilibrium 27 3.1.1) Equilibrium Conditions 27 3.1.2) Equilibrium Model 27 3.1.3) Types of Equilibrium 29 3.2) BOP in Disequilibrium 29 3.2.1) Causes of Disequilibrium 29 3.2.2) Types of Disequilibrium 32 3.2.3) Consequences of Disequilibrium 33 3.2.4) Measures to Eliminate Disequilibrium 33 3.2.5) Demonstrating Disequilibrium 35 4- STUDYING THE LEBANESE BOP 4.1) Historical Events: 1999 and before 37 4.2) Major Events of the Decade: 2000-2008 38 4.3) Recent Events: 2009-2010 40 5- CONCLUSION Importance of BOP 44 1- INTRODUCING...
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