[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-0-en-105":3,"doc-seo-648033-105":59,"doc-detail-648033-en":129},{"code":4,"msg":5,"data":6},0,"success",[7,13,18,23,28,33,38,43,48,51,55],{"id":8,"doc_module":4,"doc_module_name":9,"category_name":10,"show_sort_weight":11,"slug":12},1,"Document","Story & Novel",90,"story-novel",{"id":14,"doc_module":4,"doc_module_name":9,"category_name":15,"show_sort_weight":16,"slug":17},2,"Literature",80,"literature",{"id":19,"doc_module":4,"doc_module_name":9,"category_name":20,"show_sort_weight":21,"slug":22},4,"Exam",70,"exam",{"id":24,"doc_module":4,"doc_module_name":9,"category_name":25,"show_sort_weight":26,"slug":27},5,"Comic",60,"comic",{"id":29,"doc_module":4,"doc_module_name":9,"category_name":30,"show_sort_weight":31,"slug":32},6,"Technology",50,"technology",{"id":34,"doc_module":4,"doc_module_name":9,"category_name":35,"show_sort_weight":36,"slug":37},7,"Healthcare",40,"healthcare",{"id":39,"doc_module":4,"doc_module_name":9,"category_name":40,"show_sort_weight":41,"slug":42},8,"Research & Report",30,"research-report",{"id":44,"doc_module":4,"doc_module_name":9,"category_name":45,"show_sort_weight":46,"slug":47},9,"Religion & Spirituality",20,"religion-spirituality",{"id":46,"doc_module":4,"doc_module_name":9,"category_name":49,"show_sort_weight":46,"slug":50},"World Cup","world-cup",{"id":52,"doc_module":4,"doc_module_name":9,"category_name":53,"show_sort_weight":52,"slug":54},10,"Lifestyle","lifestyle",{"id":56,"doc_module":4,"doc_module_name":9,"category_name":57,"show_sort_weight":24,"slug":58},19,"General","general",{"code":4,"msg":60,"data":61},"ok",{"site_id":62,"language":63,"slug":64,"title":65,"keywords":66,"description":67,"schema_data":68,"social_meta":122,"head_meta":124,"extra_data":126,"updated_unix":128},105,"en","basic-financial-accounting-chapter-3-syllabus-content","Basic Financial Accounting - Chapter 3 - Syllabus Content","","Basic Financial Accounting, Chapter 3, outlines key syllabus areas including accounting systems, ledger accounts, and double-entry bookkeeping. It explains how preparation of trading, profit and loss accounts, and balance sheets derives from the trial balance, and how appropriations of profit are handled. The chapter introduces the income statement and balance sheet under the separate entity concept, then details balance sheet structure by assets, liabilities, capital, reserves, and the accounting equation. Worked examples show how transactions affect the accounting equation across capital introduction, asset purchases, inventory sales, drawings, and expenses.",{"@graph":69,"@context":121},[70,84,104],{"@type":71,"itemListElement":72},"BreadcrumbList",[73,77,79,82],{"item":74,"name":75,"@type":76,"position":8},"https://docshare.wps.com","Home","ListItem",{"item":78,"name":9,"@type":76,"position":14},"https://docshare.wps.com/document/",{"item":80,"name":20,"@type":76,"position":81},"https://docshare.wps.com/document/exam/",3,{"item":83,"name":65,"@type":76,"position":19},"https://docshare.wps.com/document/basic-financial-accounting-chapter-3-syllabus-content/648033/",{"url":83,"name":65,"@type":85,"image":86,"author":91,"headline":65,"publisher":94,"fileFormat":97,"inLanguage":63,"description":67,"dateModified":98,"datePublished":98,"encodingFormat":97,"isAccessibleForFree":99,"interactionStatistic":100},"DigitalDocument",{"url":87,"@type":88,"width":89,"height":90},"https://docshare.wps.com/thumbnails/basic-financial-accounting-chapter-3-syllabus-content/648033.png","ImageObject",300,407,{"name":92,"@type":93},"Patrick","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-10-23",true,{"@type":101,"interactionType":102,"userInteractionCount":4},"InteractionCounter",{"@type":103},"ViewAction",{"@type":105,"mainEntity":106},"FAQPage",[107,113,117],{"name":108,"@type":109,"acceptedAnswer":110},"What accounting topics does Chapter 3 cover?","Question",{"text":111,"@type":112},"Chapter 3 covers accounting systems, ledger accounts, and double-entry bookkeeping, plus the preparation of trading, profit and loss accounts, and balance sheets from the trial balance.","Answer",{"name":114,"@type":109,"acceptedAnswer":115},"How does the separate entity concept affect financial statements?",{"text":116,"@type":112},"The separate entity concept treats the business as distinct from its owners, which applies to sole traders, partnerships, and incorporated companies when preparing the income statement and balance sheet.",{"name":118,"@type":109,"acceptedAnswer":119},"How is the accounting equation expressed in this chapter?",{"text":120,"@type":112},"Assets equal liabilities, and net assets equal capital and reserves (proprietors’ funds/shareholders’ funds). The chapter also presents it as Assets - Liabilities = Capital + Profits - Losses - Drawings, and rearranged forms for capital, profits, and liabilities.","https://schema.org",{"og:url":83,"og:type":123,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":125,"canonical":83},"index,follow",{"doc_id":127,"site_id":62},648033,1792791816,{"code":4,"msg":5,"data":130},{"doc_id":127,"user_id":131,"nickname":92,"user_avatar":132,"doc_module":4,"category_id":19,"category_name":20,"doc_title":65,"doc_description":67,"doc_content":133,"file_id":134,"file_url":135,"file_type":136,"file_size":137,"view_count":4,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":138,"language":139,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":140,"faqs":141,"seo_title":142,"seo_description":67,"update_tm":128,"read_time":143},549758146520,"https://ap-avatar.wpscdn.com/avatar/80002397d8c0411e94?_k=1775819394049821470","Chapter  \n3  \nBasic Financial Accounting  \nSyllabus Content  \nAccounting systems – 20%  \nLedger accounts; double-entry bookkeeping.;  \nD-Preparation of accounts – 45%  \nTrading, profit and loss accounts and balance sheets from trial balance; accounting for the appropriations of profit.  \nFinancial statements are produced to give information to the users. As mentioned earlier the most important financial statements are the income statement and balance sheet. These are prepared under the separate entity concept.  \nThe separate entity concept means the business is treated separately from its owners. This applies to sole traders, partnerships and incorporated companies.  \n3.1 The Balance sheet  \nThe top half of the balance sheet shows all the assets owned by the business. The assets are either non current or current.  \nThe bottom half off the balance sheet shows capital, reserves and liabilities. The liabilities are either non current or current.  \n\n| Items in balance sheet | Description | \u003Cbr>Examples | |\n| --- | --- | --- | --- |\n| Non current assets | \u003Cbr>\u003Cbr>These are long term assets used to generate profit. The business will hold on to these assets for more than one year. | \u003Cbr>\u003Cbr>Land & buildings, plant & machinery, fixtures & fittingsand motor vehicles |  |\n| Current assets | \u003Cbr>\u003Cbr>Short-term assets used for the day-to-day operations. These assets are for less than one year. | \u003Cbr>\u003Cbr>Inventories, trade receivablesand cash |  |\n| Non current liabilities | \u003Cbr>\u003Cbr>These are long term liabilities over one year which are owed to third parties. | Long term bank loans |  |\n| Current liabilities | \u003Cbr>\u003Cbr>These are liabilities owed to third parties but which are due in less than one year’s time | \u003Cbr>\u003Cbr>Trade payables, taxation and bank overdraft. |  |\n| Capital | \u003Cbr>\u003Cbr>This is what the owners have put into the business as investment, and therefore are owed by the entity. | \u003Cbr>\u003Cbr>Share capital or cash. Owners can withdraw capital and this is known as drawings. Dividends for incorporated entities. |  |\n| Accumulated profit or loss (Reserves) | \u003Cbr>\u003Cbr>business has made. It belongs to the owners.\u003Cbr>| \u003Cbr>\u003Cbr>loss\u003Cbr>|  |\n\nThe income statement shows all the revenue or income generated for the period less all expenses arriving at the period’s profit or loss.  \n3.2 Accounting Equation  \nIn the balance sheet the assets of the business are equal to the liabilities.  \nNet assets are total assets less total liabilities. The net assets equal the capital and reserves in the balance sheet. The capital and reserves is also known as the “proprietors’ funds or Shareholders’funds”.  \nTherefore putting this into an equation, we get:  \nAssets – Liabilities = Capital + Profits – Losses – Drawings OR  \nNets Assets = proprietors’ funds or Shareholders’ funds  \nAssets are positive figures on the balance sheet. Liabilities and capital are negative figures. We can now re-arrange the accounting equation as follows:  \n\n| Assets =\u003Cbr>Assets = | Capital + Profits – Losses-Drawings + liabilities Or\u003Cbr>proprietors’ funds + liabilities |\n| --- | --- |\n\nWorked Example  \n1 Introduction of Capital  \nKitten sets up a new business selling designer makeup at low prices. The new business is called“Beauty Within”  \nShe puts £20,000 cash into the business.  \nThis is how it effects the accounting equation  \n\n| Assets | = | Proprietors’ funds | \u003Cbr>\u003Cbr>+ Liabilities |\n| --- | --- | --- | --- |\n| Cash | 20,000 | Introduced | 20,000 |\n| Total | 20,000 |  | 20,000 |\n\n£20,000 is a current asset in the form of cash, and this is what Beauty Within owes to Kitten. Beauty Within is a separate entity.  \n2 Purchase of Assets  \nKitten now buys a shop to sell the makeup from. The shop costs £10,000, and is paid for in cash. Kitten also purchases £5,000 worth of makeup in cash from a special dealer that she has contacts with.  \nThis is how the above transactions effect the accounting equation.  \n\n| Assets | = | Proprietors’ funds | \u003Cbr>\u003Cbr>+ Liabilities |\n| --- | --- | --- ","cbCairpNFm9pnjLu","https://ap.wps.com/l/cbCairpNFm9pnjLu","pdf",536259,35,"English","# Accounting systems\n# Ledger accounts and double-entry bookkeeping\n# Preparation of accounts\n## Trading, profit and loss accounts, and balance sheets\n# Separate entity concept\n# Balance sheet structure\n## Assets and liabilities (current vs non-current)\n## Capital and accumulated profit or loss (reserves)\n# Income statement\n# Accounting equation\n## Assets, liabilities, capital and reserves\n# Worked examples\n## Introduction of capital\n## Purchase of assets\n## Sale of inventory\n## Drawings\n## Expenses of the business\n## Purchases on credit","[{\"question\":\"What accounting topics does Chapter 3 cover?\",\"answer\":\"Chapter 3 covers accounting systems, ledger accounts, and double-entry bookkeeping, plus the preparation of trading, profit and loss accounts, and balance sheets from the trial balance.\"},{\"question\":\"How does the separate entity concept affect financial statements?\",\"answer\":\"The separate entity concept treats the business as distinct from its owners, which applies to sole traders, partnerships, and incorporated companies when preparing the income statement and balance sheet.\"},{\"question\":\"How is the accounting equation expressed in this chapter?\",\"answer\":\"Assets equal liabilities, and net assets equal capital and reserves (proprietors’ funds/shareholders’ funds). The chapter also presents it as Assets - Liabilities = Capital + Profits - Losses - Drawings, and rearranged forms for capital, profits, and liabilities.\"}]","Basic Financial Accounting - Chapter 3 - Syllabus Content | PDF",88]