Debt Balance Credit Balance Assets Expenses Inverse of income Sales return Capital Liabilities Incomes Inverse of expenditure Ex Purchase Sales return Sundry debtors Fixed Assets Salaries Wages Rent , Taxes Telephone expense Discount Allowed Insurance Pre paid insurance Carrieage inward Carrieage Outward Cash in bank Investment Closing stock Opening stock Expense Reverse of income Assets Assets Expense Expense Expense Expense Expense Expense Assets Expense Expense Assets Assets Assets Expense Assets and liabilities Capital + Liabilities = Assets Starting Capital Capital at Year End = Total Assets-O/s Liabilities Profit earned = Capital at year end - Initial Capital PERSONAL ACCOUNT Debit the receiver Credit the giver REAL ACCOUNT Debit what comes in Credit what goes Out NOMINAL ACCOUNT Debit all expenses & losses Credit all incomes and gain Personal Account Exmp Names ,individuals account Real Account Exmp Cash ,Stock in hand , Plant , Machinary Building ,investment etc NOMINAL ACCOUNT Exmp Discount , commission , exchange,rent salary,coveyance,entertainment advertisement, stationary consumed , brokerage Ex Purchase return sundry credtors sales Discount received share capital Debentures Reserves and surplus provision for doubtful debts inverse of expense liability income income capital liability capital Cash Operating Profit (EBITDA) =Profit/Loss Before Exceptional, ExtraOrdinary Items And Tax + Finance Costs + Depriciation And Amortization Expenses = Operating Profit (EBIT) =Profit/Loss Before Exceptional, ExtraOrdinary Items And Tax + Finance Costs = Profit for Equity shareholders (PAT) Profit/Loss For The Period Net Operating Income Total Operating Revenues Shareholder's fund Total Shareholders Funds Total Assets Total Assets Non-Current Liabilities Total Non-Current Liabilities Total Debt =Non-current liabilities + current liabilities Shareholder's fund/Total Assets Non-Current Liabilities/Total Assets Non-current liabilities + current liabilities/Total Assets Total Debt/Shareholder's fund Return on Equity =PAT/Average Shareholder's fund Average Shareholder's fund =(Opening Shareholder's fund + Closing Shareholder's fund)/2 Current Ratio =Current Assets/current Liabilties Quick Asset Ratio =Quick Assets/current liabilities Quick Assets =Current Assets - Inventories Cash and Bank balance to Current Assets =Cash And bank balance/current ratio Assets Fixed Asset Turnover Ratio =Net Operating Income/Average Non-Current Assets Inventory Turnover Ratio Working Capital Turnover Ratio Working Capital =Net Operating Income/Average Inventory =Net Operating Income/Average Working Capital =Current Assets - Current Liabilities
