1、Prime Minister总理Chief Translator首席翻译1、“亦余心之所善兮，虽九死其犹未悔。”For the ideal that I hold dear to my heart,Id not regret a thousand times to die.2、“人或加讪，心无疵兮。”My conscience stays untainted in spite of rumors and slanders from the outside.3、“兄弟虽有小忿，不废懿亲。”Differences between brothers cannot sever their blood
2、ties.企业交易记录企业交易记录2.0 Accounting Theory2.1 Types of Business Entities2.2 The Accounting Equation2.3 Double Entry Bookkeeping After finishing this unit,you should be able to:1.Understand the accounting theory2.Describe the types of business entities3.Understand the accounting equation4.Understand the
3、double-entry bookkeeping Accounting theory mainly covers:Accounting AssumptionThe Elements of Financial StatementsAccounting Measurement Accounting assumptions include:The accounting entity assumptionThe periodicity assumptionThe going concern assumptionThe monetary assumption The accounting entity
4、assumptionAn enterprise shall recognize,measure and report transactions or events that the enterprise itself have occurred.The periodicity assumption An enterprise shall close the accounts and prepare financial reports for each separate accounting period.The going concern assumption In performing re
5、cognition,measurement and reporting for accounting purposes,an enterprise shall be assumed to be a going concern.The monetary assumption Accounting measurement shall be based on unit of currency.The basic elements include:AssetsLiabilitiesShareholders Equity(or Net Assets)RevenuesExpensesProfit Asse
6、tsCurrent AssetsPrepaymentsAccounts ReceivableInterests ReceivableNotes ReceivableOther ReceivablesRaw MaterialsFinished GoodsLow Value Consumables Non-current AssetsFixed AssetsLong-term ReceivablesIntangible AssetsGoodwill LiabilitiesCurrent LiabilitiesShort-term BorrowingsAccounts PayableEmployee
7、 Benefits PayableTaxes and Fees PayableNotes PayableAdvances from Customers Non-current LiabilitiesLong-term BorrowingsBonds Payable LiabilityLiabilities 是liability 的复数形式。它的意思是法律上的责任、义务。如 liability for an accident（肇事的责任）；liability to pay taxes（纳税的义务）。只有其为复数形式 liabilities 时才表示负债、债务的意思。例如：负债是指将来需用货币或服
8、务偿还的债务或履行的义务还有就是欠外部的数额，如应付票据、应付帐款、应付债券。Exercises about liability and liabilitiesHe admitted his _ for the accident.Heavy _ forced the company into bankruptcy.DebtDebt指的是向外部借入实际上的金额而形成的债务。比如向银行或者其他企业借了一笔钱，需要在以后以一定的金额进行偿还。和liabilities相比，debt 从属于liabilities。Exercises about debt and liabilitiesThe _ he
9、borrowed from the local bank is about to be paid off.The status of _ of this company showed that it was in great trouble.Shareholders EquityPaid-in Capital(Share capital/Capital Stock)Capital ReservedSurplus ReservedUndistributed Profit RevenuesPrime Operating RevenuesOther Operating RevenuesNon-ope
10、rating Revenues ProfitTotal ProfitGross ProfitNet Profit Accounting MeasurementHistorical CostReplacement CostNet Realizable Value(NRV)Present Value(PV)Fair Value(FV)Three forms of business entities:The ProprietorshipOnly has a single ownerThe PartnershipJoins two or more individuals together as co-
11、ownerThe CorporationOwned by shareholdersMost basic tool of the accountantAssets=Liabilities+EquityIn a business enterprise,equity is the ownership interest and is called owners equity or shareholders equity Computation I:Small Numbers在口语中的小数目的加法，用and代表“+”号，is或are代表“=”号。7+8=157 and 8 is/are 15.Compu
12、tation I:Small Numbers在口语中，小数目的减法形式是，减数+from+被减数+leave/is+余数。7-2=52 from 7 leaves/is 5.Computation I:Small Numbers在口语中，小数目的乘法，第二个数目用复数形式，“=”号用are表示。3*6=18Three sixes are eighteen.Computation I:Small Numbers在口语中，小数目的除法，除数+into+被除数+goes+余数，在此“=”用goes表示。8*2=42 into 8 goes 4.Computation5+4=95-4=15*4=209
13、/3=3 300+150=450 215-75=140 25*35=875 999/3=333 Computation II:Large Numbers在正式场合中或大数目，“+”号用plus（动词）表示，“=”号用is或equal表示。112+230=342112 plus 230 is/equals 342.Computation II:Large Numbers在正式场合中或大数目，“-”号用minus（动词）表示，“=”号用is或equal表示。250-120=130250 minus 120 is/equals 130.Computation II:Large Numbers在正式场
14、合中或大数目，“*”号用times（动词）表示，“=”号用is或equal表示。120*20=2400120 times 20 is/equals 2400.Computation II:Large Numbers在正式场合中或大数目，“/”号用divided by表示，“=”号用is或equal表示。360*120=3360 divided by 120 is/equals 3.How to describe the effects of transactions on the accounting equation?The type of transactionWhat the trans
15、action did not affectThe equality of the equation Vocabularyincrease sth.by 增加decrease sth.by 减少involve vt.涉及到1.A dentist invested$10 000 cash in a dental practice.Assets=Liabilities+Owners equity +$10 000 +$10 000This transaction is a capital transaction that increases assets and owners equity.This
16、 transaction involves no liabilities.The amount on the left side of the equation equals the amount on the right side.2.The dental practice purchased stationeries on account at a cost of$800.Assets=Liabilities+Owners equity +$800 +$800This transaction is an asset and liability transaction that increa
17、ses both assets and liabilities.This transaction involves no owners equity.The amount on the left side of the equation equals the amount on the right side.3.The dentist had borrowed$10 000 from the local bank,and now the bank decided to take this debt as investment.Assets=Liabilities+Owners equity -
18、$1 000 +$1 000This transaction is a liability and equity transaction that decreases the liabilities while increases the equity by the same amount.It does not affect any assets.Note that the sums of the balance of each side is equal.4.Stationeries costing$300 were used.Assets=Liabilities+Owners equit
19、y -$300 -$300 This transaction is an asset and equity transaction that decreases both assets and equities by the same amount.It involves no liabilities.Note that the sums of the balance of each side is equal.5.The dental practice paid$600 due on an account with a supplier.Assets=Liabilities+Owners e
20、quity -$600 -$600This transaction is an asset and liability transaction that decreases both assets and liabilities.It has no effect on the owners equity.Note that the sums of the balance of each side is equal.Conclusion to the equation:The equality of this equation always hold for every transaction.
21、What is the effect of this transaction on the accounting equation?Transaction 1:John Smith invests$50,000 to begin the business.Transaction 2:John Smith purchases land for a future office location,paying cash of$40,000.Transaction 3:John Smith buys stationery,agreeing to pay$500 within thirty days.T
22、ransaction 4:John Smith earns$5,500 for providing legal services to his clients.Fundamentals of double-entry bookkeepingSymbols of bookkeeping Rules of bookkeepingAccountsEntry Symbols of BookkeepingDebit(abbreviated to Dr)Credit(abbreviated to Cr)Rule of bookkeepingEvery transaction affects at leas
23、t two accounts.Where there is a debit,there is a credit.For every transaction,the total debits are always equal to the total credits.AccountsAccounts is used to accumulate the effects of transactions and other economic events on each financial statement item.An account,in“T-account”form,appears as b
24、elow:Account title No.Debit Credit Entry Chinese Format借：会计科目 贷：会计科目 English FormatDr.Account Title Cr.Account Title1.A dentist invested$10 000 in a dental practice.Cash Paid-in CapitalDebit Credit Debit Credit10,000 10,000 Dr.Cash 10,000Cr.Paid-in Capital 10,0002.The dental practice purchased stati
25、oneries on account at a cost of$800.Management Expenses Accounts Payable Debit Credit Debit Credit 800 800 Dr.Management Expenses 800 Cr.Accounts Payable 800 3.Dental services were performed for patients on accounts,$10 000.Accounts Receivable Prime Operation Revenues Debit Credit Debit Credit 10,00
26、0 10,000 Dr.Accounts Receivable 10,000 Cr.Prime Operation Revenue 10,0004.Stationeries costing$300 were used.Management Expenses Low Value Consumables Debit Credit Debit Credit 300 300Dr.Management Expenses 300 Cr.Low Value Consumables 3005.The practice paid$600 on account.Cash Accounts PayableDebit
27、 Credit Debit Credit 600 600Dr.Accounts Payable 600 Cr.Cash 6006.The dentist had borrowed$100 000 from the local bank and now the bank decided to take this debt as investment.Short-term Borrowings Paid-in Capital Debit Credit Debit Credit 100,000 100,000 Dr.Short-term Borrowings 100,000 Cr.Paid-in C
28、apital 100,000 Open accounts and record the transactions Transaction 1:John Smith invests$50,000 to begin the business.Transaction 2:John Smith purchases land for a future office location,paying cash of$40,000.Transaction 3:John Smith buys stationeries,agreeing to pay$500 within thirty days.Transact
29、ion 4:John Smith earns$5,500 for providing legal services to his clients.Cash Paid-in CapitalDebit Credit Debit Credit1,800 1,800 Dr.Cash 1,800 Cr.Paid-in Capital 1,800 Accounts Receivable Prime Operating Revenues Debit Credit Debit Credit 650 650 Dr.Accounts Receivable 650 Cr.Prime Operating Revenu
30、es 650 Low Value Consumables Accounts PayableDebit Credit Debit Credit 500 500 Dr.Low Value Consumables 500 Cr.Accounts Payable 500 Cash Accounts ReceivableDebit Credit Debit Credit400 400 Dr.Cash 400 Cr.Accounts Receivable 400 Accounts Payable CashDebit Credit Debit Credit 250 250 Dr.Accounts Payab
31、le 250 Cr.Cash 250 Low Value Consumables CashDebit Credit Debit Credit 90 90 Dr.Low Value Consumables 90 Cr.Cash 90 Cash Prime Operating RevenuesDebit Credit Debit Credit2,000 2,000 Dr.Cash 2,000 Cr.Prime Operating Revenues 2,000 Cash Administrative ExpensesDebit Credit Debit Credit 700 700 Dr.Admin
32、istrative Expenses 700 Cr.Cash 700 Cash in Bank Paid-in Capital Debit Credit Debit Credit120,000 120,000 Dr.Cash in Bank 120,000 Cr.Paid-in Capital 120,000 Intangible Assets CashDebit Credit Debit Credit90,000 90,000 Dr.Intangible Assets 90,000 Cr.Cash 90,000 Supplies Accounts PayableDebit Credit De
33、bit Credit 2,000 2,000 Dr.Supplies 2,000 Cr.Accounts Payable 2,000 Cash Prime Operating RevenuesDebit Credit Debit Credit6,000 6,000 Dr.Cash 6,000 Cr.Prime Operating Revenues 6,000 Employee Benefits Payable Administrative Expenses Debit Credit Debit Credit 1,400 1,300 Cash Debit Credit 2,700 Dr.Empl
34、oyee Benefits Payable 1,400 Administrative Expenses 1,300 Cr.Cash 2,700 Cash Other Operating RevenuesDebit Credit Debit Credit500 500 Dr.Cash 500 Cr.Other Operating Revenues 500 Other Operating Costs Supplies Debit Credit Debit Credit 500 500 Dr.Other Operating Costs 500 Cr.Supplies 500 Accounts Pay
35、able CashDebit Credit Debit Credit1,500 1,500 Dr.Accounts Payable 1,500 Cr.Cash 1,500texttexttexttextHave fun with PowerPoint-AcoolsoftConvert PowerPoint to video such as AVI,MP4,WMV,MOV and so onBurn PowerPoint to DVD,and watch your PowerPoint on TV with a DVD playerA professional tool which helps you upload PowerPoint to YouTubeAdd your company slogan
