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CHAPTER 1 - COMPANY ACCOUNT (PART II) - Coggle Diagram
CHAPTER 1 - COMPANY ACCOUNT (PART II)
types of reserves
Capital reserves
increases to shareholders’ equity by non-trading
activities
Revenue reserves
realised profits arising from trading activities
retained profits / general reserve
debenture interest paid by the
company
Dr Debenture interest (an expense in Statement of Profit or Loss)
Cr Bank (amount paid)
debenture interest accrued by the companies outstanding
Dr Debenture interest (an expense in Statement of Profit or Loss)
Cr Debenture interest payable (outstanding interest not yet paid)
DIVIDEND
stated as percentage based on the nominal/par value of
the share or alternatively as an amount per share
An RM0.05 dividend on a RM1.00 share can also be expressed either as
5% dividend or RM0.05 per share.
COMPONENT OF MFRS 101
A statement of financial position
A statement of profit or loss/comprehensive income
A statement of cash flows
Notes (to the accounts)
A statement of changes in equity
proposed final dividend
Dr Retained earnings (reduction in equity)
Cr Proposed dividend (a current liability)
payment of an interim dividend
Dr Retained earnings (reduction in equity)
Cr Bank
true and fair view
Going concern
Accrual basis of accounting
Consistency of presentation
Materiality and aggregation
Offsetting