Category Archives: All About Accounting

The Four of Financial Statements

Financial statements are written reports that provide an indication of an individual’s, organization’s, or business’ financial status. There are four basic types of financial statements: balance sheets, income statements, cash-flow statements, and statements of retained earnings. Typically, financial statements are used in relation to business endeavors.

Financial accounting generates the following general-purpose, external, financial statements:

  1.     Income statement (sometimes referred to as “results of operations” or “earnings statement” or “profit and loss [P&L] statement”, revenues minus expenses for a given time period ending at a specified date.)
  2.     Balance sheet (sometimes referred to as statement of financial position at a given point in time.)
  3.     Statement of cash flows (summarizes sources and uses of cash; indicates whether enough cash is available to carry on routine operations.)
  4.     Statement of stockholders’ equity (also known as Statement of Retained Earnings or Equity Statement.)


Income Statement (Laporan Rugi Laba)

The income statement reports a company’s profitability during a specified period of time. The period of time could be one year, one month, three months, 13 weeks, or any other time interval chosen by the company.

The main components of the income statement are revenues, expenses, gains, and losses. Revenues include such things as sales, service revenues, and interest revenue. Expenses include the cost of goods sold, operating expenses (such as salaries, rent, utilities, advertising), and nonoperating expenses (such as interest expense). If a corporation’s stock is publicly traded, the earnings per share of its common stock are reported on the income statement.

Balance Sheet (Neraca)

The balance sheet is organized into three parts: (1) assets, (2) liabilities, and (3) stockholders’ equity at a specified date (typically, this date is the last day of an accounting period).

The first section of the balance sheet reports the company’s assets and includes such things as cash, accounts receivable, inventory, prepaid insurance, buildings, and equipment. The next section reports the company’s liabilities; these are obligations that are due at the date of the balance sheet and often include the word “payable” in their title (Notes Payable, Accounts Payable, Wages Payable, and Interest Payable). The final section is stockholders’ equity, defined as the difference between the amount of assets and the amount of liabilities.

Statement of Cash Flows (Laporan Arus Kas)

The statement of cash flows explains the change in a company’s cash (and cash equivalents) during the time interval indicated in the heading of the statement. The change is divided into three parts: (1) operating activities, (2) investing activities, and (3) financing activities.

The operating activities section explains how a company’s cash (and cash equivalents) have changed due to operations. Investing activities refer to amounts spent or received in transactions involving long-term assets. The financing activities section reports such things as cash received through the issuance of long-term debt, the issuance of stock, or money spent to retire long-term liabilities.

Statement of Stockholders’ Equity (Laporan Perubahan Modal)

The statement of stockholders’ (or shareholders’) equity lists the changes in stockholders’ equity for the same period as the income statement and the cash flow statement. The changes will include items such as net income, other comprehensive income, dividends, the repurchase of common stock, and the exercise of stock options.

Cost Of Goods Sold (COGS) / Harga Pokok Penjualan (HPP)

Cost of goods sold (COGS) refer to the inventory costs of those goods a business has sold during a particular period. Costs are associated with particular goods using one of several formulas, including specific identification, first-in first-out (FIFO), or average cost. Costs include all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Costs of goods made by the business include material, labor, and allocated overhead. The costs of those goods not yet sold are deferred as costs of inventory until the inventory is sold or written down in value.

Cost of Goods Sold (COGS), also known as cost of sales, is the total direct expenses incurred in the production of a good, including the cost of materials used to make that good and the cost of labor to produce it. It does not include indirect expenses, like marketing, accounting, and shipping. It’s important for a business to know the COGS of its products, since this helps it determine accurately which products is turning a profit. By subtracting the COGS from the sales revenue, a business can determine the gross profit earned on particular goods. Net profit, in the same way, is the difference between COGS and indirect expenses from sales revenue.

The way these costs relate to profit can be seen in the following example. James owns a business that resells machines. At the start of 2009, he has no machines or parts on hand. He buys machines A and B for 10 each, and later buys machines C and D for 12 each. All the machines are the same, but they have serial numbers. James sells machines A and C for 20 each. His cost of goods sold depends on her inventory method. Under specific identification, the cost of goods sold is 10 + 12, the particular costs of machines A and C. If he uses FIFO, his costs are 20 (10+10). If he uses average cost, his costs are 22 ( (10+10+12+12)/4 x 2). If he uses LIFO, his costs are 24 (12+12). Thus, his profit for accounting and tax purposes may be 20, 18, or 16, depending on his inventory method. After the sales, his inventory values are either 20, 22 or 24.

After year end, James decides he can make more money by improving machines B and D. He buys and uses 10 of parts and supplies, and it takes 6 hours at 2 per hour to make the improvements to each machine. James has overhead, including rent and electricity. He calculates that the overhead adds 0.5 per hour to his costs. Thus, James has spent 20 to improve each machine (10/2 + 12 + (6 x 0.5) ). He sells machine D for 45. His cost for that machine depends on his inventory method. If he used FIFO, the cost of machine D is 12 plus 20 he spent improving it, for a profit of 13. Remember, he used up the two 10 cost items already under FIFO. If he uses average cost, it is 11 plus 20, for a profit of 14. If he used LIFO, the cost would be 10 plus 20 for a profit of 15.

In year 3, James sells the last machine for 38 and quits the business. He recovers the last of her costs. His total profits for the three years are the same under all inventory methods. Only the timing of income and the balance of inventory differ. Here is a comparison under FIFO, Average Cost, and LIFO:

Transaction No. year of Machine Name Cost Profit
1 1 A -10 -10
2 1 B -10 -10
3 1 C -12 -12
4 1 D -12 -12
5 1 A 20 10
6 1 C 20 8
7 2 B -20 -30
8 2 D -20 -32
9 2 D 45 13
10 3 B 38 8
Cost of Goods Sold —— Profit ——
Year Sales FIFO Avg. LIFO FIFO Avg. LIFO
1 40 20 22 24 20 18 16
2 45 32 31 30 13 14 15
3 38 32 31 30 6 7 8
Total 123 84 84 84 39 39 39

Cost Flow Assumptions/Inventory Identification Conventions

The following methods are available in many jurisdictions for associating costs with goods sold and goods still on hand:

  • Average cost. The average cost method relies on average unit cost to calculate cost of units sold and ending inventory. Several variations on the calculation may be used, including weighted average and moving average.
  • First-In First-Out (FIFO) assumes that the items purchased or produced first are sold first. Costs of inventory per unit or item are determined at the time made or acquired. The oldest cost (i.e., the first in) is then matched against revenue and assigned to cost of goods sold.
  • Last-In First-Out (LIFO) is the reverse of FIFO. Some systems permit determining the costs of goods at the time acquired or made, but assigning costs to goods sold under the assumption that the goods made or acquired last are sold first. Costs of specific goods acquired or made are added to a pool of costs for the type of goods. Under this system, the business may maintain costs under FIFO but track an offset in the form of a LIFO reserve. Such reserve (an asset or contra-asset) represents the difference in cost of inventory under the FIFO and LIFO assumptions. Such amount may be different for financial reporting and tax purposes in the United States.

Each of the three cost flow assumptions listed above can be used in either of two systems (or methods) of inventory:

A.   Periodic
B.   Perpetual

A.  Periodic inventory system. Under this system the amount appearing in the Inventory account is not updated when purchases of merchandise are made from suppliers. Rather, the Inventory account is commonly updated or adjusted only once—at the end of the year. During the year the Inventory account will likely show only the cost of inventory at the end of the previous year.

Under the periodic inventory system, purchases of merchandise are recorded in one or more Purchases accounts. At the end of the year the Purchases account(s) are closed and the Inventory account is adjusted to equal the cost of the merchandise actually on hand at the end of the year. Under the periodic system there is no Cost of Goods Sold account to be updated when a sale of merchandise occurs.

In short, under the periodic inventory system there is no way to tell from the general ledger accounts the amount of inventory or the cost of goods sold.

B.  Perpetual inventory system. Under this system the Inventory account is continuously updated. The Inventory account is increased with the cost of merchandise purchased from suppliers and it is reduced by the cost of merchandise that has been sold to customers. (The Purchases account(s) do not exist.)

Under the perpetual system there is a Cost of Goods Sold account that is debited at the time of each sale for the cost of the merchandise that was sold. Under the perpetual system a sale of merchandise will result in two journal entries: one to record the sale and the cash or accounts receivable, and one to reduce inventory and to increase cost of goods sold.

The combination of the three cost flow assumptions and the two inventory systems results in six available options when accounting for the cost of inventory and calculating the cost of goods sold:

A1.   Periodic FIFO
A2.   Periodic LIFO
A3.   Periodic Average

B1.   Perpetual FIFO
B2.   Perpetual LIFO
B3.   Perpetual Average

A1. Periodic FIFO

“Periodic” means that the Inventory account is not routinely updated during the accounting period. Instead, the cost of merchandise purchased from suppliers is debited to an account called Purchases. At the end of the accounting year the Inventory account is adjusted to equal the cost of the merchandise that has not been sold. The cost of goods sold that will be reported on the income statement will be computed by taking the cost of the goods purchased and subtracting the increase in inventory (or adding the decrease in inventory).

“FIFO” is an acronym for First In, First Out. Under the FIFO cost flow assumption, the first (oldest) costs are the first ones to leave inventory and become the cost of goods sold on the income statement. The last (or recent) costs will be reported as inventory on the balance sheet.

Let’s illustrate periodic FIFO with the amounts from the Bookstore:

Number of Books Cost per Book Total Cost
Inventory at Dec. 31, 2010 1 @ $ 85 = $  85
First purchase (January 2011) 1 @ 87 = 87
Second purchase (June 2011) 2 @ 89 = 178
Third purchase (December 2011) 1 @ 90 =     90
Total goods available for sale 5 $440
Less: Inventory at Dec. 31, 2011 4 - 355
Cost of goods sold 1 @ $85 $  85

As before, we need to account for the total goods available for sale (5 books at a cost of $440). Under FIFO we assign the first cost of $85 to the one book that was sold. The remaining $355 ($440 – $85) is assigned to inventory. The $355 of inventory costs consists of $87 + $89 + $89 + $90. The $85 cost assigned to the book sold is permanently gone from inventory.

If the Bookstore sells the textbook for $110, its gross profit under periodic FIFO will be $25 ($110 – $85). If the costs of textbooks continue to increase, FIFO will always result in more profit than other cost flows, because the first cost is always lower.

A2. Periodic LIFO

“Periodic” means that the Inventory account is not updated during the accounting period. Instead, the cost of merchandise purchased from suppliers is debited to an account called Purchases. At the end of the accounting year the Inventory account is adjusted to equal the cost of the merchandise that is unsold. The other costs of goods will be reported on the income statement as the cost of goods sold.

“LIFO” is an acronym for Last In, First Out. Under the LIFO cost flow assumption, the last (or recent) costs are the first ones to leave inventory and become the cost of goods sold on the income statement. The first (or oldest) costs will be reported as inventory on the balance sheet.

It’s important to note that under LIFO periodic (not LIFO perpetual) we wait until the entire year is over before assigning the costs. Then we flow the year’s last costs first, even if those goods arrived after the last sale of the year. For example, assume the last sale of the year at the Bookstore occurred on December 27. Also assume that the store’s last purchase of the year arrived on December 31. Under LIFO periodic, the cost of the book purchased on December 31 is sent to the cost of goods sold first, even though it’s physically impossible for that book to be the one sold on December 27. (This reinforces our previous statement that the flow of costs does not have to correspond with the physical flow of units.)

Let’s illustrate periodic LIFO by using the data for the Bookstore:

Number of Books Cost per Book Total Cost
Inventory at Dec. 31, 2009 1 @ $85 = $  85
First purchase (January 2010) 1 @ 87 = 87
Second purchase (June 2010) 2 @ 89 = 178
Third purchase (December 2010) 1 @ 90 =     90
Total goods available for sale 5 $440
Less: Inventory at Dec. 31, 2010 4 - 350
Cost of goods sold 1 @ $90 $  90

As before we need to account for the total goods available for sale: 5 books at a cost of $440. Under periodic LIFO we assign the last cost of $90 to the one book that was sold. (If two books were sold, $90 would be assigned to the first book and $89 to the second book.) The remaining $350 ($440 – $90) is assigned to inventory. The $350 of inventory cost consists of $85 + $87 + $89 + $89. The $90 assigned to the book that was sold is permanently gone from inventory.

If the bookstore sold the textbook for $110, its gross profit under periodic LIFO will be $20 ($110 – $90). If the costs of textbooks continue to increase, LIFO will always result in the least amount of profit. (The reason is that the last costs will always be higher than the first costs. Higher costs result in less profits and usually lower income taxes.)

A3. Periodic Average

Under “periodic” the Inventory account is not updated and purchases of merchandise are recorded in an account called Purchases. Under this cost flow assumption an average cost is calculated using the total goods available for sale (cost from the beginning inventory plus the costs of all subsequent purchases made during the entire year). In other words, the periodic average cost is calculated after the year is over—after all the puchases of the year have occurred. This average cost is then applied to the units sold during the year as well as to the units in inventory at the end of the year.

As you can see, our facts remain the same—there are 5 books available for sale for the year 2010 and the cost of the goods available is $440. The weighted average cost of the books is $88 ($440 of cost of goods available ÷ 5 books available) and it is used for both the cost of goods sold and for the cost of the books in inventory.

Number of Books Cost per Book Total Cost
Inventory at Dec. 31, 2009 1 @ $85 = $  85
First purchase (January 2010) 1 @ 87 = 87
Second purchase (June 2010) 2 @ 89 = 178
Third purchase (December 2010) 1 @ 90 =     90
Total goods available for sale 5 $440
Less: Inventory at Dec. 31, 2010 4 @ $88 - 352
Cost of goods sold 1 @ $88 $  88

Since the bookstore sold only one book, the cost of goods sold is $88 (1 x $88). The four books still on hand are reported at $352 (4 x $88) of cost in the Inventory account. The total of the cost of goods sold plus the cost of the inventory should equal the total cost of goods available ($88 + $352 = $440).

If Bookstore sells the textbook for $110, its gross profit under the periodic average method will be $22 ($110 – $88). This gross profit is between the $25 computed under periodic FIFO and the $20 computed under periodic LIFO.

B1. Perpetual FIFO

Under the perpetual system the Inventory account is constantly (or perpetually) changing. When a retailer purchases merchandise, the retailer debits its Inventory account for the cost; when the retailer sells the merchandise to its customers its Inventory account is credited and its Cost of Goods Sold account is debited for the cost of the goods sold. Rather than staying dormant as it does with the periodic method, the Inventory account balance is continuously updated.

Under the perpetual system, two transactions are recorded when merchandise is sold: (1) the sales amount is debited to Accounts Receivable or Cash and is credited to Sales, and (2) the cost of the merchandise sold is debited to Cost of Goods Sold and is credited to Inventory. (Note: Under the periodic system the second entry is not made.)

With perpetual FIFO, the first (or oldest) costs are the first moved from the Inventory account and debited to the Cost of Goods Sold account. The end result under perpetual FIFO is the same as under periodic FIFO. In other words, the first costs are the same whether you move the cost out of inventory with each sale (perpetual) or whether you wait until the year is over (periodic).

B2. Perpetual LIFO

Under the perpetual system the Inventory account is constantly (or perpetually) changing. When a retailer purchases merchandise, the retailer debits its Inventory account for the cost of the merchandise. When the retailer sells the merchandise to its customers, the retailer credits its Inventory account for the cost of the goods that were sold and debits its Cost of Goods Sold account for their cost. Rather than staying dormant as it does with the periodic method, the Inventory account balance is continuously updated.

Under the perpetual system, two transactions are recorded at the time that the merchandise is sold: (1) the sales amount is debited to Accounts Receivable or Cash and is credited to Sales, and (2) the cost of the merchandise sold is debited to Cost of Goods Sold and is credited to Inventory. (Note: Under the periodic system the second entry is not made.)

With perpetual LIFO, the last costs available at the time of the sale are the first to be removed from the Inventory account and debited to the Cost of Goods Sold account. Since this is the perpetual system we cannot wait until the end of the year to determine the last cost—an entry must be recorded at the time of the sale in order to reduce the Inventory account and to increase the Cost of Goods Sold account.

If costs continue to rise throughout the entire year, perpetual LIFO will yield a lower cost of goods sold and a higher net income than periodic LIFO. Generally this means that periodic LIFO will result in less income taxes than perpetual LIFO. (If you wish to minimize the amount paid in income taxes during periods of inflation, you should discuss LIFO with your tax adviser.)

Once again we’ll use our example for the Bookstore:

Number of Books Cost per Book Total Cost
Inventory at Dec. 31, 2009 1 @ $85 = $  85
First purchase (January 2010) 1 @ 87 = 87
Second purchase (June 2010) 2 @ 89 = 178
Third purchase (December 2010) 1 @ 90 =     90
Total goods available for sale 5 $440
Less: Inventory at Dec. 31, 2010 4 - 351
Cost of goods sold 1 @ $89 $  89

Let’s assume that after the Bookstore makes its second purchase in June 2010, the Bookstore sells one book. This means the last cost at the time of the sale was $89. Under perpetual LIFO the following entry must be made at the time of the sale: $89 will be credited to Inventory and $89 will be debited to Cost of Goods Sold. If that was the only book sold during the year, at the end of the year the Cost of Goods Sold account will have a balance of $89 and the cost in the Inventory account will be $351 ($85 + $87 + $89 + $90).

If the bookstore sells the textbook for $110, its gross profit under perpetual LIFO will be $21 ($110 – $89). Note that this is different than the gross profit of $20 under periodic LIFO.

B3. Perpetual Average

Under the perpetual system the Inventory account is constantly (or perpetually) changing. When a retailer purchases merchandise, the costs are debited to its Inventory account; when the retailer sells the merchandise to its customers the Inventory account is credited and the Cost of Goods Sold account is debited for the cost of the goods sold. Rather than staying dormant as it does with the periodic method, the Inventory account balance under the perpetual average is changing whenever a purchase or sale occurs.

Under the perpetual system, two sets of entries are made whenever merchandise is sold: (1) the sales amount is debited to Accounts Receivable or Cash and is credited to Sales, and (2) the cost of the merchandise sold is debited to Cost of Goods Sold and is credited to Inventory. (Note: Under the periodic system the second entry is not made.)

Under the perpetual system, “average” means the average cost of the items in inventory as of the date of the sale. This average cost is multiplied by the number of units sold and is removed from the Inventory account and debited to the Cost of Goods Sold account. We use the average as of the time of the sale because this is a perpetual method. (Note: Under the periodic system we wait until the year is over before computing the average cost.)

Let’s use the same example again for the Bookstore:

Number of Books Cost per Book Total Cost
Inventory at Dec. 31, 2009 1 @ $85 = $      85
First purchase (January 2010) 1 @ 87 = 87
Second purchase (June 2010) 2 @ 89 = 178
Third purchase (December 2010) 1 @ 90 =         90
Total goods available for sale 5 $440.00
Less: Inventory at Dec. 31, 2010 4 @ $88.125 - 352.50
Cost of goods sold 1 @ $87.50 $  87.50

Let’s assume that after The Bookstore makes its second purchase, The Bookstore sells one book. This means the average cost at the time of the sale was $87.50 ([$85 + $87 + $89 + $89] ÷ 4]). Because this is a perpetual average, a journal entry must be made at the time of the sale for $87.50. The $87.50 (the average cost at the time of the sale) is credited to Inventory and is debited to Cost of Goods Sold. After the sale of one unit, three units remain in inventory and the balance in the Inventory account will be $262.50 (3 books at an average cost of $87.50).

After The Bookstore makes its third purchase, the average cost per unit will change to $88.125 ([$262.50 + $90] ÷ 4). As you can see, the average cost moved from $87.50 to $88.125—this is why the perpetual average method is sometimes referred to as the moving average method. The Inventory balance is $352.50 (4 books with an average cost of $88.125 each).

Comparison of Cost Flow Assumptions
Below is a recap of the varying amounts for the cost of goods sold, gross profit, and ending inventory that were calculated above.

             Periodic                         Perpetual           
Sales $110 $110 $110 $110 $110 $110.00
Cost of Goods Sold  – 85  – 90  – 88  – 85  – 89  – 87.50
Gross Profit $  25 $   20 $  22 $  25 $  21 $  22.50
Ending Inventory $355 $350 $352 $355 $351 $352.50

There are two methods for estimating ending inventory:

1.   Gross Profit Method
2.   Retail Method

1.  Gross Profit Method. The gross profit method for estimating inventory uses the information contained in the top portion of a merchandiser’s multiple-step income statement:

ABC Company
Income Statement (partial)
For the Year Ended Dec. 31, 2009

Sales $100,000 100.0%
Cost of Goods Sold
Beginning Inventory $ 22,000
Purchases – net    83,000
Cost of Goods Available 105,000
Less: Ending Inventory    25,000
Cost of Goods Sold    80,000   80.0%
Gross Profit $ 20,000   20.0%

Let’s assume that we need to estimate the cost of inventory on hand on June 30, 2010. From the 2009 income statement shown above we can see that the company’s gross profit is 20% of the sales and that the cost of goods sold is 80% of the sales. If those percentages are reasonable for the current year, we can use those percentages to help us estimate the cost of the inventory on hand as of June 30, 2010.

While an algebraic equation could be constructed to determine the estimated amount of ending inventory, we prefer to simply use the income statement format. We prepare a partial income statement for the period beginning after the date when inventory was last physically counted, and ending with the date for which we need the estimated inventory cost. In this case, the income statement will go from January 1, 2010 until June 30, 2010.

Some of the numbers that we need are easily obtained from sales records, customers, suppliers, earlier financial statements, etc. For example, sales for the first half of the year 2010 are taken from the company’s records. The beginning inventory amount is the ending inventory reported on the December 31, 2009 balance sheet. The purchases information for the first half of 2010 is available from the company’s records or its suppliers. The amounts that we have available are written in italics in the following partial income statement:

ABC Company
Income Statement (partial)
For the Six Months Ended June 30, 2010

Sales $ 56,000 100.0%
Cost of Goods Sold
Beginning Inventory $ 25,000
Purchases – net 46,000
Cost of Goods Available
Less: Ending Inventory
Cost of Goods Sold  80.0%
Gross Profit  20.0%

We will fill in the rest of the statement with the answers to the following calculations. The amounts in italics come from the statement above. The bold amount is the answer or result of the calculation.

Step 1. Cost of Goods Available = Beginning Inventory + Net Purchases
Cost of Goods Available = $25,000 + $46,000
Cost of Goods Available =     $71,000
Step 2. Gross Profit = Gross Profit Percentage (or Gross Margin) x Sales
Gross Profit = 20% x $56,000
Gross Profit =      $11,200
Step 3. Cost of Goods Sold = Sales   Gross Profit
Cost of Goods Sold = $56,000   $11,200  (from Step 2.)
Cost of Goods Sold = $44,800

This can also be calculated as 80%  x  Sales of  $56,000  =  $44,800.

Inserting this information into the income statement yields the following:

ABC Company
Income Statement (partial)
For the Six Months Ended June 30, 2010

Sales $56,000 100.0%
Cost of Goods Sold
Beginning Inventory $25,000
Purchases – net   46,000
Cost of Goods Available 71,000
Less: Ending Inventory            ?
Cost of Goods Sold   44,800  80.0%
Gross Profit $11,200  20.0%

As you can see, the ending inventory amount is not yet shown. We compute this amount by subtracting cost of goods sold from the cost of goods available:

Ending Inventory = Cost of Goods Available Cost of Goods Sold
Ending Inventory = $71,000 $44,800
Ending Inventory =        $26,200

Below is the completed partial income statement with the estimated amount of ending inventory at $26,200. (Note: It is always a good idea to recheck the math on the income statement to be certain you computed the amounts correctly.)

ABC Company
Income Statement (partial)
For the Six Months Ended June 30, 2010

Sales $56,000 100.0%
Cost of Goods Sold
Beginning Inventory $25,000
Purchases – net   46,000
Cost of Goods Available 71,000
Less: Ending Inventory   26,200
Cost of Goods Sold   44,800  80.0%
Gross Profit $11,200  20.0%

2.  Retail Method. The retail method can be used by retailers who have their merchandise records in both cost and retail selling prices. A very simple illustration for using the retail method to estimate inventory is shown here:

Cost Retail
Beginning Inventory $ 11,000 $ 15,000
Purchases – net + 69,000 + 85,000
Goods Avail. & Cost Ratio 80,000 100,000
Less: Sales at retail  - 90,000
Est. ending inventory at retail 10,000
Est. ending inventory at cost $   8,000

As you can see, the cost amounts are arranged into one column. The retail amounts are listed in a separate column. The Goods Available amounts are used to compute the cost-to-retail ratio. In this case the cost of goods available of $80,000 is divided by the retail amount of goods available ($100,000). This results in a cost-to-retail ratio, or cost ratio, of 80%.

To arrive at the estimated ending inventory at cost, we multiply the estimated ending inventory at retail ($10,000) times the cost ratio of 80% to arrive at $8,000.

Sources: accountingcoach


Accounting Journal Entries

Entri Jurnal dan proses pembuatannya..

Ketika suatu perusahaan kecil membuat transaksi keuangan, mereka membuat entri jurnal dalam jurnal akuntansi mereka untuk merekam transaksi tersebut. Transaksi ini dicatat dalam jurnal umum atau salah satu jurnal khusus untuk akun-akun yang paling aktif. Jurnal-jurnal khusus yang paling umum adalah Jurnal Penjualan, Jurnal Pembelian, Jurnal Penerimaan Kas dan Jurnal Pengeluaran Kas.

Jurnal akuntansi adalah catatan rinci tentang transaksi keuangan bisnis. Transaksi-transaksi tersebut didaftarkan dalam urutan kronologis, dengan jumlah, dengan akun yang terkait, dan sebagai apa akun tersebut dikaitkan. Tergantung pada ukuran dan kompleksitas usaha, nomor referensi dapat diberikan ke setiap transaksi dan sebuah catatan dapat diberikan untuk menjelaskan transaksi tersebut.

Jurnal adalah catatan secara sistematis dan kronologis dari transaksi-transaksi finansial dengan menyebutkan perkiraan yang akan didebet dan dikredit, jumlah dan keterangan ringkas. Buku besar (General Ledger) adalah tempat Anda mencari gambaran besarnya. sebagai contoh halaman jurnal akuntansi memiliki kolom untuk tanggal, nomor akun, jumlah debit, dan jumlah kredit.
Jurnal mempunyai 3 fungsi  yaitu fungsi percatatan, fungsi historis dan fungsi analisis.

Terdapat Bermacam-macam Bentuk Jurnal yang dapat dipakai oleh perusahaan. Bentuk standar jurnal 2 kolom adalah bentuk yang umum digunakan digambarkan sbb:

Tgl NomorBukti Keterangan Ref Debit Kredit
Jan 20 001 Kas 111 5.000.000,-
   Modal 301 5.000.000,-

Posting adalah pemindahan dari buku jurnal ke buku besar. Pada system akuntansi komputer Buku Jurnal dan posting  posting dilakukan secara automatics oleh komputer (auto Posting). Walaupun tidak mutlak, seorang data entry sebaiknya menguasai proses posting yang dilakukan oleh komputer agar bila terjadi kegagalan akan mudah menelusuri kesalahan yang terjadi.

Metode mengerjakan Jurnal dan Posting

Ada beberapa cara yang dapat digunakan untuk mencatat Jurnal jurnal dan posting. Cara berikut adalah salah satu teknik yang hanya dapat dilakukan dengan dukungan system komputer yang terintegrasi.

Posting dilakukan langsung dari file transaksi  ke rekening-rekening buku pembantu dan lansung diprint-out  ke buku besar. Bukti transaksi terlebih dahulu diproses/dientry ke system komputer sebelum diserahkan ke bagian akuntansi.

Kapan menggunakan Debit atau Kredit pada Entri Jurnal?

Salah satu hal yang paling sulit untuk ditangani adalah pada saat membuat buku akunting Anda adalah kapan menggunakan debet dan kapan menggunakan kredit. Berikut adalah beberapa aturan sederhananya. Jika Anda mengikuti aturan ini, akan membuat hidup akuntansi jauh lebih mudah.

  • Anda akan selalu menggunakan baik debet maupun kredit untuk setiap entri jurnal. Itu didasari oleh sistem pembukuan double-entry. Anda memiliki dua kolom dalam entri jurnal Anda. Masing-masing akan memiliki entri yang sama – satu untuk debet, satu untuk kredit.
  • Ingatlah format Persamaan Akuntansi yang mana Aktiva (Aset) = Kewajiban + Ekuitas Pemilik. Sisi Aset adalah sisi kiri dari persamaan dan Kewajiban + Ekuitas pemilik di sisi kanan dari persamaan. Bila Anda perlu membuat entri jurnal, lihat di Bagan Akun (Chart of Accounts) Anda untuk melihat apakah akun yang perlu Anda gunakan berada di sisi kiri atau kanan dari persamaan akuntansi.
  • Jika akun di sisi Aktiva atau kiri, maka itu adalah sisi Debet. Sebuah Debet akan meningkatkan akun tersebut dan sebuah kredit akan mengurangkannya. Jika account ada pada Kewajiban dan Ekuitas Pemilik atau disisi kanan, maka itu adalah sisi Kredit. Sebuah Kredit akan meningkatkan akun tersebut dan sebuah debit akan mengurangkannya.

Entri Jurnal untuk Akun dengan Saldo normal

Salah satu cara mudah untuk mengingat kapan harus menggunakan debet dan kapan harus mengkredit akun adalah ingat akan saldo normal dari lima jenis akun pada Bagan Akun. Saldo normal adalah apa yang akun akan dapatkan jika kenaikan lebih dari pengurangan. Berikut adalah daftar dari akun tersebut dan saldo normal mereka. Jika Anda ingat daftar ini, itu akan menghemat banyak waktu Anda.

  • Asset accounts – debit
  • Liability accounts – credit
  • Owner’s equity – credit
  • Revenue accounts – credit
  • Expense accounts – debit

Sebagai contoh, jika Anda merekam sebuah entri ke akun aset (aktiva), Anda akan mendebet akun aset (aktiva) dan kredit untuk beberapa akun lainnya.

Contoh Entri Journal

Berikut adalah contoh dari Entri jurnal yang benar. Contoh ini adalah entri jurnal yang akan Anda buat pada saat awal sebuah bisnis baru. Jika pemilik menginvestasikan Rp. 200.000.000,- ke dalam sebuah bisnis baru, ini akan menjadi format entri jurnal. Akan ada peningkatan aktiva (Aset), khususnya rekening kas, uang sebesar Rp. 200.000.000,- dicatat sebagai debit dan peningkatan di akun ekuitas pemilik menjadi kredit.

Jurnal Khusus :   Pada perusahaan besar ternyata transaksi-transaksi yang sama terjadi berulangkali sehingga tidak efektif lagi bila dicatat setiap hari ke dalam jurnal umum. Untuk menghadapi hal tersebut, dilakukan penyesuaian bentuk Jurnal disesuaikan dengan kebutuhan. Pada jurnal khusus transaksi yang sama dalam perioda tertentu dapat dijurnal satu kali saja. Jurnal khusus memiliki kontrol intern  yang lebih baik karena transaksi telah dikelompokan, dan memungkinkan pembagian tugas sehingga terjadi spesialisasi pekerjaan.

Macam-macam jurnal umum dan jumlah kolom jurnal disesuaikan dengan kebutuhan namun umumnya jurnal umum terdiri dari

Jurnal Kas, dapat dibagi atas jurnal penerimaan kas untuk mencatat penerimaan kas dan jurnal pengeluaran kas untuk mencatat pengeluaran las

Jurnal Penjualan, untuk mencatat penjualan kredit. Penjualan tunai merupakan bagian dari jurnal Kas.

Jurnal Pembelian, untuk mencatat pembelian kredit, pembelian tunai merupakan bagian dari jurnal kas.

Jurnal Memorial (Jurnal Umum) untuk mencatat transaksi yang tidak dapat dikelompokan pada jurnal-jurnal khusus di atas misalnya ayat penyesuaian, biaya/beban penyusutan, pendapat/biaya bunga,  pendapatan/kerugian kurs. Dll.

Neraca lajur dan ayat penutup

Neraca lajur tidak diperlukan Pada system akuntansi komputer, karena semua proses penyusunan laporan keuangan (Laporan Rugi laba, Neraca, Perubahan modal serta analisanya) dapat dilakukanh oleh komputer

Pada sistem akuntansi manual, untuk mempermudah menyusunan laporan keuangan dibuat tabel untuk mencatat, meyesuaikan, menggolongkan saldo perkiraan-perkiraan buku besar yang disebut Neraca lajur (work sheet)

Accounting Terms

The following are list of Accounting Terms (sorted by alphabet as ascending) :

• ACCOUNT = Perkiraan
• ACCOUNT FROM = Bentuk Perkiraan
• ACCOUNT NOT CURRENT = Pos-pos yang tidak lancar
• ACCOUNT PAYABLE = Hutang Lancar
• ACCOUNT PAYABLE LEDGER= Buku besar hutang
• Account Payable Subsidiary Ledger = Buku tambahan piutang
• ACCOUNTANT = Akuntan
• ACCOUNTANT PUBLIC = Akuntan publik
• ACCOUNTING = Akuntasi
• ACCOUNTING ASSUMPTION = Asumsi akuntansi
• ACCOUNTING CYCLE = Sirklus akuntansi
• ACCOUNTING DATA = Data akuntansi
• ACCOUNTING DEPARTMENT = Departemen akuntansi
• ACCOUNTING EQUATION = Persaman akuntansi
• ACCOUNTING INCOME = Laba akuntansi
• ACCOUNTING INFORMATION = Informasi akuntansi
• ACCOUNTING INSTRUCTION = Intruksi akuntansi
• ACCOUNTING MANAGEMENT = Manajement akuntansi
• ACCOUNTING METHOD = Metode akuntansi
• ACCOUNTING PERIOD = Periode akuntansi
• ACCOUNTING PRINCIPLE = Akuntansi dasar
• ACCOUNTING PROCEDURE = Prosedur akuntansi
• ACCOUNTING RESPONSIBILITY = Akuntansi pertanggung jawaban
• ACCOUNTING SYSTEM = Sistem akuntansi
• ACCOUNTS INTER COMPANY = Rekening antar perusahan
• ACCRUED EXPENSE = Biaya yang akan di bayar
• ACCRUED INTERS PAYABLE = Bunga terhutang
• ACCRUED REVENUE = Pendapatan yang akan diterima
• ACCRUED TAX PAYABLE = Hutang pajak
• ACCRUED WAGES PAYABLE = Upah terhutang
• ACCUMULATED DEPLETION = Akumulasi deplesi
• ACCUMULATED DEPRECIATION = Akumulasi penyusutan
• ACTUAL AMOUNT = Jumlah sesungguhnya
• ACTUAL COST = Biaya sesungguhnya
• ACTUAL FACTORY OVERHEAD = Beban overhead sesungguhnya
• ACTUAL PRICE = Harga sesungguhnya
• ACTUAL QUANTITY = Kwalitas sesungguhnya
• ADJUSTED BALANCE = Saldo setelah penyesuaian
• ADJUSTED TRIAL BALANCE = Neraca saldo penyesuaian
• ADJUSTING ENTRIES = Ayat jurnal penyesuaian
• ADDITIONAL COST = Biaya tambahan
• ADVANCE FROM CUSTOMER = Uang muka langganan
• ADVANCE ACCOUNTING = Akuntansi lanjutan
• ADVERSE OPINION = Pendapatan tidak wajar
• Allowance for inventory decline to market = Cadangan penurunan nilai persediaan
• ALLOWANCE METHOD = Metode cadangan
• ALLOWANCE ACCOUNT = Perkiraan cadangan
• ALLOWANCE FOR BAD DEBT = Cadangan piutang tak tertagih
• ALLOWANCE FOR DOUBT FULL ACCOUNT = Cadangan pitang ragu-ragu
• ALLOWANCE FOR OVERVALUATION OF BRANCH MERCHANDISE = Cadangan kenaikan harga barang cabang
• AMORTIZATION = Penyusutan atas harta tak berwujud
• APPLIED FACTORY OVERHEAD COST = Biaya overhead yang dibebankan
• ANNUAL REPORT = Laporan tahunan
• ASSET = Harta
• ASSET APPROACH = Pendekatan aktifa
• ASSET ACCOUNT = Perkiranan harta
• AUDIT FEE = Pendapatan audit
• ASSUME = Asumsi
• AUDIT EXPENSE = Biaya audit
• AUDIT PROGRAMME = Program pemeriksaan
• AUDIT PROCESS = Proses pemeriksaan
• AUDIT PLANNING = Rencana pereiksaan
• AUDITOR = Pemeriksa keuangan
• AUDITING = Pemeriksaan keuangan
• AVERAGE METHOD = Metode rata-rata

• BALANCE PER BANK = Saldo menurut bank
• BALANCE PER BOOK = Saldo menurut buku
• BALANCE SHEET ACCOUNT = Perkiraan neraca
• BALANCE AMOUNT = keseimbangan jumlah
• BANK PAYABLE = Hutang bank
• BALANCE BEFORE LIQUIDATION = Saldo sebelum likuidasi
• BANK RECONCILIATION = Reconsiliasi bank
• BANK SERVICE CHARGE = Bedan administrasi bank
• BANK STATEMENT = Rekening koran
• BIN CARD = Kartu gudang
• BASIC FINANCIAL STATEMENT = Laporan keuangan pokok
• BETTERMENT = Perbaikan
• BOOK VALUE = Nilai buku
• BOOK VALUE OF ASSET = Nilai buku aktifa
• BOOK VALUE PER SHARE = Nilai buku per saham
• BRANCH = Cabang
• BRANCH MERCHANDISE = Barang dagangan cabang
• BRANCH PROFIT = Keuntungan cabang
• BREAK EVENT = Pulang pokok
• BREAK EVEN PIONT = Titik pulang pokok
• BREAK EVEN SALES = Penjualan pulang pokok
• BUDGET = Anggaran
• BUDGET VARIANCE = Selisih anggaran
• BUDGET FLEXIBLE = Anggaran flexsibel
• BUDGET FIXED = Anggaran tetap
• BUDGET CYCLE = Siklus Anggaran
• BUDGET BALANCE SHEET = Anggaran neraca
• BY PRODUCT = Produksi sampingan
• BUILDING = Gedung
• BUSINESS ENTITY = Kesatuan usaha

• CAPITAL = Modal
• CAPITAL STATEMENT = Laporan perubahan modal
• CAPITAL STOCK = Modal saham
• CASH = Kas
• CASH BUDGET = Anggaran kas
• CASH COUNT = Perhitungan kas
• CASH DISBURSEMENT JOURNAL = Jurnal pengeluaran kas
• CASH DISCOUNT = Potongan yang diberikan atas pembayaran tunai
• CASH FLOW = Alur kas
• CASH FLOW CYCLE = Siklus alur kas
• CASH IN BANK = Kas dalam bank/kas di bank
• CASH ON HAND = Kas di tangan
• CASH IN TRANSIT = Kas dalam perjalanan
• CASH PAYMENT JOURNAL = Buku kas pengeluaran
• CASH RECEIPT JOURNAL = Buku kas penerimaan
• CASH SALES = Penjualan tunai
• CLOSING ENTRIES = Ayat jurnal penutup
• COST = Biaya
• COST ACCOUNTING = Akuntansi biaya
• COST OF GOODS AVAIBLE FOR SALES = Harga pokok barang tersedia untuk dijual
• COST OF GOODS MANUFACTURED = Harga pokok produksi
• COST OF GOODS SOLD = Harga pokok barang yang di jual (Harga Pokok Penjualan)
• CURRENCY = Mata uang
• CURRENCY ASSET = Harta lancar
• CURRENCY LIABILITIES = Hutang jangka pendek

• DEBIT NOTE = Nota debet
• DEBIT BALANCE = saldo debet
• DEDUCTION = Pengurangan
• DEFECTIVE GOODS = Produk rusak
• DEFERRED GROS PROFIT ON REALIZATION = Laba kotar yang belum direalisasikan
• DELIVERY EXPENSE = Biaya pengankutan
• DEPOSIT SLIP = Bukti setoran
• DEPRECIATION = Penyusutan
• DEPRECIATION EXPENSE = Biaya penusutan
• DETERMINING DEPRECIATION = Penetapan penyusutan
• DIRECT COSTING = Penetapan biaya langsung
• DIRECT DEPARTMENT OVERHEAD EXPENSE = Beban/biaya overhead departemen lansung
• DIRECT EXPENSE = Biaya langsung
• DIRECT LABOR COST BUTGET = Biaya anggaran buruh langsung
• DIRECT TAXES = Pajak langsung
• DIRECT WRITE OFF = Penghapusan langsung
• DISCOUNT = Potongan ( harga )
• DISSOLUTION = Pembubaran
• DIVIDEND STOCK = Deviden saham
• DOUBLE ENTRY SYSTEM = Sistem pembukuan berpasangan
• DRAFT = Wesel
• DUE DATE = Tanggal jatuh tempo

• EARNED = Pendapatan
• EARNING AFTER INTEREST AND TAXES = Pendapatan sesudah bunga dan pajak
• EARNING AFTER TAX = Pendapatan sesudah pajak
• ECONOMIC LIFE = Umur ekomoni
• ECONOMIC ORDER QUANTITY = Jumlah pembelian optimal
• EMERGENCY WORKING CAPITAL = Modal kerja darurat
• EMPLOYEE EARNING STATEMENT = Laporan gaji karyawan
• END OF MONTH TRIAL BALANCE = Daftar saldo akhir bulan
• ENDING BALANCE = Saldo akhir
• ENDING INVENTORY = Persediaan akhir
• ENTERTAIMENT EXPENSE = Biaya entertain
• ENTRY = Ayat
• EQUIPMENT = Peralatan
• EQUITIES = Kekayaan
• EQUITY IH INCOME OF SUBSIDIARY COMPANY = Laba atas anak perusahaan
• ESTIMATE VALUE = Nilai taksir
• ESTIMATED GROSS PROVIT = Taksiran laba kotor
• EVIDENCE = Bukti-bukti
• EXCEPT = Pengecualian
• EXCESS OF COST OVER BOOK VALUE OF SUBSIDIARY INTEREST = Selisih lebih harga pokok di atas nilai buku
• EXCESS VALUE = Nilai lebih
• EXCHANGE RATE = Nilai tukar
• EXPECTED ACTUAL CAPACITY = Kapasitas yang sesungguhnya di harapkan
• EXPECTED RATE OF RETURN = Tingkat pengembalian yang diinginkan
• EXPIRED = Kadarluasa
• EXPENSE = Biaya
• EXTERNAL AUDIT = Pemeriksaan ekternal
• EXTRA ORDINARY GAIN = pembelajan yang luar biasa
• EXTRA ORDINARY LOSS = Kerugian yang luar biasa
• EXTRA ORDINARY REPAIRS = Perbaikan luar biasa
• EXTRA ORDINARY RETIREMENT = Penarikan aktiva sebab luar biasa

• Fiscal Year = Tahun pajak
• Fixed asset subsidiary ledge = Buku tambahan harta tetap
• Fixed asset turnover = Perputaran harta tetap
• Fixed capital asset = Modal kerja tetap
• Fixed cast = Biaya tetap
• Fixed efficency variance = Penyimpangan effisiensi yang tetap
• Fixed factory overhead = Overhead pabrik yang tetap
• Flexible budget = Anggaran yang berubah-ubah
• Floor = Batasan bawah
• Flow of cost = Aliran biaya
• Flow of document = Peredaran dokumen
• Flow of funds = Aliran dana
• Flow of work = Peredaran kerja
• Flowchart = Daftar aliran
• Fluctualing method = Metode fluktuasi
• Fluctuating fund = Dana berubah-ubah
• Foot note = Catatan kaki
• Forecast balance sheet = Ramalan neraca
• Forecast income statement = Taksiran rugi laba
• Form = Formulir
• Four collumn ccount = Jurnal empat kolom
• Fraud = kecurangan
• Freight in = Ongkos angkut pembelian
• Freight on material purchasas = Beban angkut pembelian bahan
• Freight out = Ongkos angkut penjualan
• Funds = Dana
• Funds statement = Laporan sumber dan pengunan dana
• Furniture & fixture = Peralatan
• Fusion = Penggabungan

• General Accounting = Aukuntansi Umum
• General Ledger = Buku besar
• General Journal = Jurnal umum
• General And Administrative Expense = Biaya umum dan administrasi
• General Examination = Pemeriksaan umum
• General Assigment = Penegasan umum
• Government financial = Keuangan penerintah
• Government accunting = Akuntansi pemerintah
• Gross Method = Metode Kotor
• Gross loss = Rugi kotor
• Gross Profit Laba kotor
• Gross Profit Analysist = Analisa laba kotor
• Gross provfi metho = Metode laba kotor
• Gross Profit on sales = Laba kotor atas penjualan
• Gross Working Capital = modal kerja kotor
• Group Code = Kode kelompok
• Go Publik Compony = Perusahan yang menjual saham ke masyarakat

• Heating and lighting expense = Biaya pemanasan dan penerangan
• Hidden Reserves = Cadangan rahasia
• Historical cost Accounting = Harga perolehan historis
• Historical cost = Biaya Historis
• Home office = kantor pusat
• Horizon Analyst = Analisa mendatar
• Human Resource Accounting = Akuntansi sumber daya manusia

• Income = laba
• Income After Tax = Laba sesudah pajak
• Income From Joint Venture = Laba usaha patungan
• Income From Operation = Laba usaha
• Income Sharing Agreement = Persetujuan penbagian laba
• Income Statement = Laporan rugi laba
• Income Statement Account = Pendekatan laba rugi
• Income Summary = iktiar rugi laba
• Incremental cost = Biaya tambahan
• Independent Auditor Report = Laporan pemeriksaan bebas
• Indirect Expense = Biaya tak langsung
• Indirect Departemental Expense = Biaya departemen tak langung
• Indirect factory cost = Biaya pabrik tak langsung
• Indirect Labor = Tenaga kerja tak langsung
• Inderect Material = Bahan baku tak langsung
• Indirect Operatiing Expense = Biaya usaha tak langsung
• Individual Priprietorship = perusahan perorangan
• Inflation = Inflansi
• Information = informasi
• Information System = Sistem informasi
• Initial Inventory = Persediaan awal
• Initial Audit = Pemeriksaan awal/pertama kali
• Input Tax = Pajak masukan
• Installation Cost = Biaya instalasi atau pemasangan
• Installment = Angguran atau cicilan
• Installment Contract Receivable = Piutang penjualan cicilan
• Installment Method = Metode cicilan
• Installment Payable = Hutang cicilan
• Installment Term Debt = Utang jangka menengah
• Insurance Expense General = Biaya asuransi unum
• Insurance expense selling = Biaya asuransi penjualan
• Intagible Asset = Aktiva tak berwujud
• Intangible Fixed Assets = Aktiva tetap tak berwujud
• Intercompany Loans = Pinjaman antar perusahan
• Interest = Bunga
• Interest Baering Note = Wesel berbunga
• Interest Expense = Biaya bunga
• Interest Factor = Faktor bunga
• Interest Income = Pendapatan bunga
• Interest ayable = Hutang bunga
• Interest Receivable = Piutang bunga
• Interim Statement = Laporan sementara
• Internal Audit = Pemeriksan Intern
• Internal Auditor = Pemeriksan internal
• Internal Control = Pengawasan internal
• Internal Control Questioary = Pertanyaan pengendalian Intern
• Internal Finacing = Pembiayan internal
• Inventory = Persediaan
• Inventory Balance = Saldo Persedian
• Inventory of Material = Persediaan Bahan Mentah
• Inventory Trun Over = Perputaran persediaan
• Inventory Valuation = Penilaian Persediaan
• Invesment In Fund = Investasi dalam dana
• Invesment In Bond = Investasi dalam obligasi
• Invesment In Joint Venture = Investasi dalam usaha patungan
• Invesment In Land = Investasi dalam bentuk tanah
• Invesment In life Insurance = Investasi dalam bentuk asuransi jiwa
• Invesment In Stock = Investasi saham
• Investor = Orang yang menanamkan modal
• Invoice = Faktur

• Job order cost = Biaya pesanan
• Job order cost sheet = Kartu biaya pesanan
• Job order cost system = Sistem biaya pesanan
• Job time ticket = Kartu jam kerja
• Joint cost = Biaya gabungan
• Joint cost of capital = Biaya penggunan modal bersama
• Joint product = Produksi gabungan
• Joint venture = Usaha patungan
• Joint venture books = buku-buku usaha patungan
• Journal = Buku harian
• Journal entry = Ayat-ayat jurnal
• Journalizing = menjurnal/ penjurnalan
• Judgment sample = Sampel pertimbangan

• Labor = Tenaga kerja
• Labor budget = Anggaran tenaga kerja
• Labor cost = biaya tenaga kerja
• Labor cost control = pengendalian biaya tenaga kerja
• Labor cost report = Laporan biaya tenaga kerja
• Labor efficiency ratio = Rasio effiensi tenaga kerja
• Labor efficiency stasndar = Standar effisinsi tenaga kerja
• Labor efficiency Variance = Selisih effiensi upah
• Labor Fringe benefit = Pendapatan yang diterima tenaga kerja
• Labor performance report = Laporan pelaksanan kerja
• labor rate variance = Penyimpangan tarif tenaga kerja
• Land = Tanah
• Land right = Hak atas tanah
• Last in first out ( LIFO ) = Masuk pertamakeluar pertama
• Lease = Sewa
• Lease agreement = Kontrak sewa guna
• Leaseing = Sewa guna
• Ledger = Buku besar
• Legal capital = Modal resmi
• Lessee = Pihak yang menyewakan guna barang
• Lessor = Pihak yang menyewa guna barang
• letter of comments = Surat komentar
• Letter of transmettal = Surat penyerangan
• Liabilities = Kewajiban
• Limited liabilty = Tanggung jawab terbatas
• Liquidating deviden = Deviden likiudasi
• liquidity = Kemampunan bayar hutang jangka pendek
• Long from report = Laporan akuntansi betuk panjang
• Long run proof = Pengecekan jangka panjang
• Long term debets = Utang jangka panjang
• long term debet to equity ratio = Rasio utang jangka panjang terhadap modal sendiri
• Long term investment = Investasi jangka panjang
• Long term liabilities = Hutang jangka panjang
• Loss = rugi
• loss from operation = Rugi usaha
• Loss on realization = Realisasi kerugian
• Loss on reduction of inventory = Rugi penurunan nilai persdiaan
• Loss on repossession = Rugi penarikan kembali
• loss on sale of invesment = Rugi penjualan investasi
• Loss on trade in = Rugi pertukaran
• Loss unit = Unit yang hilang
• Lower cost or market = Harga beli atau harga pasar yang lebih rendah
• Lumsump purchase = Pembelian secara bulat

• Machine = Mesin
• Maintenance Cost = Biaya pemeliharana
• Maintenance Departement Butget = Anggaran departeman pemeliharan
• Maintenance Expense = Biaya pemeliharan
• Management Accounting = Akuntansi manjemen
• Management Advisory Service = Pelayanan Konsultasi perusahan
• Management Audit = Pemeriksaan manajemen
• Management By Exception = Manjemen dengan pengecualian
• Manufacturer = Pabrikan
• Manufacturing Company = Perusahan pabrikan
• Manufacturing Cost = Biaya pabrikasi
• Manufacturing Overhead = Overhead pabrik
• Markdown cancellation = Pembatalan penurunan harga
• Market Rate = Harga pasar
• market Value = Harga pasar
• Market Value At Split Off = Harga jual pada titik pisah
• Market Value Of Rights = Harga jual hak beli saham
• Market Value Of Stock Ex Right = Harga pasar saham tampa hak beli saham
• Marketable securities = surat berharga
• Marketing = Pemasaran
• Marketing Department = Departemen pemasaran
• Marketing Expense = Biaya pemasaran
• Markup Cancellation = Pembatalan kenaikan harga
• Matching Cost With revenue = Penetapan pendapatan dan biaya
• Material = Bahan baku
• Material Account = Perkiraan bahan baku
• Material in Control = pengendalian bahan baku
• Material in Process = Bahan baku dalam proses
• Material ledger = Buku besar bahan baku
• Material Ledger Card = Kartu bahan baku
• Material Mix Variance = Selisih komposisi bahan
• Material Price variance = Penyimpangan harga bahan baku
• Material Usage prince Variance = Sesilsih harga pemakainan bahan
• Material Yield Variance = Selisih hasil bahan
• Material Requisition = Permintaan bahan baku
• Medical Expense = Biaya pengobatan
• Merchandise Inventory = Persediaan barang dagangan
• Merchandise Inventory Turnover = Perputaran persedian barang dagangan
• Merchandise Shipment on Consigment = Pengiriman barang konsinyasi
• Merchandise Company = Perusahan Dagang
• Mixed Account = Rekening campuran
• Mixed Opinion = Pendapat Campuran
• Mortgage Bond = Obligasi Hipotik
• Mortgage Payable = Hutang hipotik
• Moving Average = Rata rata bergerak

• National Association of Accounting = Asosiasi akuntan nasional
• Natural Bussiness year = Tahun bisnis alami
• Negative Assurance = Jaminan negatif
• Net Asset = Aktifa bersih
• Net earning =Pendapatan bersih
• Net Income = Keuntungan bersih
• Net Income After Tax = Keuntungan bersih setelah pajak
• Net Loss = Kerugian bersih
• Net Method = Metode Bersih
• Net Profit = Laba bersih
• Net Purchase = Pembelian bersih
• Net Realizable Value = Nilai bersih yang dapat direalisasikan
• Net Sales = Penjualan bersih
• Net Worth = Kekayan bersih
• Nominal Accounts = Perkiraan nominal
• Nominal Value = Nilai nominal
• Normal Balance= istilah = Saldo normal
• Not Sufficient Fund = Dana tidak mencukupi
• Note Payable = Wesel bayar
• Note Receivable = Wesel tagih
• Note of Financial Statement = Catatan atas laporan keuangan
• Notice of Employment = Surat perjanjian kerja.

• Observation of Inventory = Pengamatan persediaan
• Observation Of Inventory Taking = Pengamatan perhitungan persediaan
• Occupancy Cost = Biaya pendiaman atau penetapan
• Office Equipment = Peralatan kantor
• Office Salaries Expense = Biaya gaji bagian kantor
• Office Supplies = perlengkapan kantor
• Office Supplies Expense = Biaya perlengkapan kantor
• One Time Voucher procedure = Prosedur pembuatan voucher sekaligus
• One Write System = Sistem sekali tulis
• Open Item Statement = surat pernyatan elemen-elemen terbuka
• Operating Assets = Aktifa atau modal operasi
• Operating Expense = Biaya usaha
• Operating Sales Budget = Anggaran operasional penjualan
• Operating Transaction = Transaksi operasional
• Opinion = Pendapat
• Opportunity Cost = Biaya kesempataan
• Ordering Cost = Biaya Pesanan
• Ordinary Repair = Reperasi luar biasa
• Organization Chart = Stuktur Ogranisasi
• Other General Expense = Biaya umum lainya
• Other Longterm Liabilities = Hutang jangka panjang lainnya
• Out Of Pocket Cost = Biaya kantong sendiri
• Out Tax = Pajak keluaran
• Outlay = Pengeluaran
• Outstanding check = Cek beredar
• Out standing Stock = Saham yang beredar
• Over Time = Lembur
• Over All Cost Of Capital = Biaya penggunan modal Rata-rata
• Over Applied Factory Overhead = Kelebihan aplikasi overhead pabrik
• Over draft = Kelebihan penarikan
• Over Stated = Terlalu tinggi
• Owners Equity = Modal pemilik
• Onnership Right = Hak pemilik perusahan.

• Partner in Charge = Partner utama
• Partnership =Persekutuan
• Payable = Hutang
• Payable to Defaulting Sub souder = Hutang kepada pemesanan saham
• Payment = pembayaran
• Percentage Depletion = Deplesi persentase
• Perferred St0ck holder = Pemegang saham istimewa
• Performence Report = Laporan pelaksanaan
• Premium =Agio
• Premium of Prepered Stock = agio Saham preferen
• Premium on Bonds Payable = Agio olbigasi
• Premium on stock = Agoi saham
• Prepaid Advertising = Iklan dibayar dimuka
• Prepaid expense = Biaya dibayar dimuka
• Prepaid Insurance = Asuransi dibayar dimuka
• prepaid Transportation = Transportation sewa dibayar dimuka
• Prepayment = pembayaran dimuka
• Price Index = Indek harga
• Primary working capital = Modal kerja perimer
• Process Cost = Biaya proses
• Profssional Fess = pendapatan profesional
• Profit = laba
• Proforma = Proyeksi
• Progress Billing to Costomer = harga kontrak yang difakturkan
• Property = Kekayan
• Property Tax = Pajak keayaan
• Purchase = pembelian
• Purchase Discount = Potongan pembelian
• Purchase Invoice = Faktur pembelian
• Purchase journal = Buku harian pembelian
• Purchase Method = Metode pembelian
• Purchase order =Pesanan pembelian
• Purchase Requistion = Permintaan pembelian

• Qualified Opinion = Pendapat wajar tanpa syarat
• Quick Ratio = Ratio aktiva tunai

• R & D Cost = Biaya riset dan pengembangan
• Rate of Return = Tingkat pengembalian
• Rate of Return on Net Worth = Rentabilitas modal sendiri
• Ratio Analysist = analsa ratio
• Ratio of Plant Asset to Long term Liability = Perbandingan harga tetap dengan hutang jangka panjang.
• Raw Material = Bahan mentah
• Raw Material Investory = Persedianan bahan mentah
• Raw Material Price Variance = Penyimpangan harga bahan mentah
• Realized Gross profit On Installment Sales = Realiasai laba kotor
• Re Arrangement = penyusunan kembali
• Receivable = Piutang
• Receivable Collection Budget =Budget pengumpulan piutang
• Receivable Trun Over = Perputaran piutang
• Receivable Write Off = Penghapusan piutang
• Receiving Account = Laporan penerimaan barang
• Reciprocal Account = Perkiraan berlawanan
• Recovable From Insurance Companies = Piutang kepada asuransi
• Redemption of bound = Penghentian obligasi
• Redemption value = Nilai penarikan
• Refference = Petunjuk
• Registered Bonds = Daftar obligasi
• Related Partty transaction = Transaksi dengan pihak yang mempunyai hubungan yang istimewa
• Reliability = Dapat dipercaya
• Rent Earned = Pendapatan sewa
• Rent Income = Pendapatan sewa
• Re Odrder Point = Titik pesanan kembali
• Repair And Maintenance Expense = Biaya perbaikan dan pemeliharan
• Repeat Audit = Pemeriksaan yang berulang
• Replacement Cost = Nilai ganti
• Report = Laporan
• Report Form = Formulir laporan
• Report Frorm Balance Sheet = Neraca bentuk laporan
• Representative Letter Client = Surat pernyatan pelayanan
• Required Rate of Return = Tingkat pengembalian yang di inginkan
• Resaerch and Development Budget Reserve = Anggaran riset dan pengembangan cadangan
• Residual Value = Nilai sisa
• Responsibility Accounting = Akuntansi pertanggung jawaban
• Responsibility Center = Pusat pertanggung jawaban
• Responsibility Reporting Restated = Laporan pertnggung jawaban disajikan kembali
• Restrition of Diveden = Pembatasan deviden
• Retail Lifo Inventory Method = Metode harga eceran
• Retail Merchandsing = barang dagangan dijual dengan eceran
• Retail Method = Metode eceran
• Retained Earning = Laba yang ditahan
• Retained Earning Statement = Laporan laba yang ditahan
• Retirement of Bonds = Penarikan obligasi
• Return On Invesment = Tingkat pengembalian Investasi
• Revaluation = Penerikan kembali
• Revennue = Pendapatan
• Revenue Center = Pusat penghasi laba
• Revenue Expenditure = Pengeluaran pendapatan
• Revenue Recognition = Pengakuan pendapatan
• Reversing Entries = Ayat jurnal pembalik
• Riel Material Invetory Turnover = Perputaran persediaan bahan baku.

• Sefety Stock = Persediaan bersih
• Safe Harbor Rule = Aturan perlindungan
• Saleries Allowance = Tunjangan gaji
• Salary Expense = Beban gaji
• Sale On Account = Penjualan kredit
• Sales = Penjualan
• Sales Budget = Anggran penjualan
• Sales Discount = Potongan penjualan
• Sales Invoice = Faktur penjualan
• Sales Journal = Buku harian penjualan
• Sales Mix Variance = Selesih komposisi
• Sales order = Order penjualan
• Sales Return = Retur penjualan
• Sales Salaries Expense = Biaya gaji bagian penjualan
• Sale Salaries Payable = Hutang gaji bagian penjualan
• Sales Tax = Pajak penjualan
• Salvage value = Nilai sisa
• Sample Risk = Resiko penarikan contoh
• Schedule Of Account Payable = Daftar hutang
• Schedule Of Account Receivable = Daftar piutang
• Schedule Of Factory overhead = Daftar overhead pabrik
• Scrap Value = Nilai barang sisa
• Seasonal Working Capital = Modal kerja musiman
• Secured Bond = Obligasi yang dijamin
• Selling Expense = Biaya penjualan
• Semifixed Cost = Biaya semi tetap
• Separable Cost = Biaya tambahan
• Separation Report = Laporan pemberhentian
• Service Firm = Perusahan Jasa
• Set Up Cost = Biaya Pesanan
• Share holder = Pemegang saham
• Shipment On Installment sales = Pengiriman barang cicilan
• Short Form Report = Laporan akuntansi bentuk pendek
• Shut Down Point = Titik penutupan usaha
• Significant = Penting cukup berarti
• Simple Average Of Cost = Metode rata-rata sederhana
• Single Bookkeeping = Tata buku tunggal
• Single entery System = Sistem Pembukuan tunggal
• Single step = Langkah tunggal
• Sinking Fund = Dana pelunasan / dana pembayaran
• Slush Fund = Dana taktis
• Social Benefit = Manfaat sosial
• Sole Proprietorship = Persahan perseorangan
• Sound Value = Nilai sehat
• Special Journal = Jurnal khusus
• Specified Order Of Closing =Metode urutan alokasi yang diatur
• Spoilage = Produksi cacat
• Spoiled Goods = Pruduk cacat
• Standar of Reporting = Norma pelaporan pemeriksaan
• Statement By Director = Surat pernyatanan langanan
• Statement Of Changes Financial Position = Laporan perubahan dalam posisi keuangan
• Statement Of Changes In Working Capital = Laporan perubahan modal kerja
• Statement Of Cost Of Goods Manufacture = Laporan harga pokok produksi
• Statement of Finantial Posisition = Laporan posisi keuangan
• Statement Of Owners Capital = Laporan perubahan modal
• Statement Of Retained Earning = Laporan laba yang ditahan
• Statement Of Source And Application Of Fund = Laporan sumber dan penggunaan dana
• Step Method = Metode alokasi bertahap
• Stock Outstanding = Pertukaran saham
• Stock Redemption Fund = Laba yang dibagikan dalam bentuk saham
• Stock Right = pemegang saham
• Stock Rigth Outstanding = Rapat pemegang saham
• Stock Convertion = Dana penarikan saham
• Stock Holder Meeting = Rapat pemegang saham
• Stock Subcription = Saham yang dipesan
• Stock Warrant = Surat hak beli saham
• Storage Cost = Biaya penyimpanan
• Store Salaries Expense = Beban gaji toko
• Straight Line Method = Metode garis lurus
• Subsidiary ledger = Buku tambah
• Sunk cost = Biaya tersembunyi
• Supplementary information S= Penjelasan tambahan
• Supplies = pelengkapan
• Supplies Expense = Biaya perlengkapan
• Surplus = Kelebihan
• Supporting Schedule = Daftar tambahan

• T Account = Perkiraan bentuk T
• Tangible Asset = Harta berwujud
• Tangible Fixed Asset = Aktiva tetap berwujud
• Tax Acoounting = Akuntansi perpajakan
• Tax Deduction = Pengurangan Pajak
• Tax Invoice = Faktur pajak
• Tax Return Statement = Surat pemberitahuan pajak
• Taxable Firm = Pengusaha kena pajak
• Taxable Income = Pendapatan kena pajak
• Taxes Expense = Biaya pajak
• Taxes Holiday = Pembebasan pajak
• Taxes payable = Hutang pajak
• Taxes Rate = Tarif pajak
• Taxes Return = Pajak yang dikembalikan
• Temporary Investment = Investasi sementara
• Temporary Proprietorship = Perkiraan pemilikan sementara
• Tender Offer = Penawaran dagang
• Term Compliance = UJi ketaatan
• The old & New Balance Proof = Pengecekan saldo awal dan akhir
• Theoritical Capacity = Kapasitas secara teoritis
• Three Variance Method = Metode tiga penyimpangan
• Tickmarks = Tanda pemeriksaan
• Time Value of Money = Nilai waktu dari pada uang
• Timing Diffrence = Perbedaan waktu
• To Compare = Membandingkan
• To Trace = Menelusuri
• Total Asset Turn Over = Perputaran total harta
• Total Asset To Debts Ratio = Ratio aktifa terhadap utang
• Tracks = Taksiran
• Trade Discounts = Potongan perdagangan
• Trande In = Tukar tambah
• Trade Mark = Merk Dagang
• Traveling Expense = Biaya perjalan
• Treasurer = Pejabat keuangan
• Treasury Bill = Surat hutang jangka panjang
• Treasury Departement = Departemen keuangan
• Trent Analyst = Analysa pengembangan dari waktu ke waktu
• Trial Balance = Neraca saldo
• Trouble Debt Restructuring = Penataan kembali utang yang macet
• Trust Fund = Dana perwakilan
• Turn Over = Perputaran
• Two bin System = Sistem dua bin
• Two collumn Account = Perkiraan dua kolom
• Two collumn Journal = Dua kolom jurnal
• Two Variance Method = Metode dua penyimpangan

• Unadjusted Trial Balance : Neraca percobaan yang belum disesuaikan
• Unearned Income : Sewa diterima dimuka
• Uncertainties : Ketidak pastian
• Uncollectible Account : Beban penghapusan puitang
• Uncollectible Account Receivable : Beban penghapusan piutang
• Under Applied Overhead : Overhead yang dibebankan terlalu rendah
• Unearned Revenue : Pendapatan diterima dimuka
• Unemployment Tax : Pajak pengurangan
• Unexpired : Belum kadaluwarsa
• Unfavorable Variance : Selisih merugikan
• Uniformity : Keseragaman
• Unissued Capital stock : Modal saham yang belum beredar
• Unit Cost : Harga perunit
• Unit Equivalent : Unit setara
• Unit Of Output Depreciation : Penyusutan dengan jumlah unut keluaran
• Unit Product Cost : Biaya unit produksi
• Unit Profit Graph : Grafik laba perunit
• Unit Still In Process : Unit dalam Proses
• Unlimited Liabilities : Kewajiban tak terbatas
• Unqualied Opinion : Pendapatan Wajar
• Unvoidable Cost : Biaya yang terhindarkan
• Useful Life : Masa Pengunaan

• Valuation Account = Perkiraan pernilaian
• Value = Nilai
• Value Added = Nilai tambah
• Value Added Tax = Pajak Pertambahan Nilai
• Value In Use = Nilai pengurangan
• Variable Cost = Biaya variabel
• Variable Cost Ratio= Rasio biaya Variabel
• Variable Efficiency Variance = Penyimpangan effisiensi biaya variabel
• Variance Analysist = Analisa selisih
• Variance Analysist Report = Laporan analisa penyimpangan
• Verability = Daya uji
• Vertical Analysist = Analisa Vertical
• Volume Variance = Penyimpangan dalam isi
• Vouching =Biaya upah
• Voucher Register = Pemeriksaan dokumen dasar
• Voucher = Dokumen
• Voluntary Contribution = Simpanan sukarela

• Working Capital = Modal kerja
• Working In Process = Barang dalam proses
• Working In Process Inventory = Persediaan barang dalam proses
• Wages Expense = Pemeriksaan dokumen dasar
• Wages Rate = Biaya upah
• Wages And Taxes Statement = Laporan upah dan pajak
• Working Paper For Consolidated Balance Sheet = Neraca lajur untuk neraca konsolidasi
• Weighted Average = Metode rata-rata terimbang
• Weighted Average Method = Metode rata-rata terimbang
• working sheet= Neraca Lajur
• Working Paper = Kertas kerja
• Write Off = Dihapuskan
• Write Off Method = Metode penghapusan

• Yield = Metode penghapusan
• Yield Variance = Penyimpangan hasil

• Zero Base Budgeting = Penganggaran atas dasar nol

The Accounting cycle

Accounting processes are repetitive. The accounting cycle is the sequence of procedures used to keep track of what has happened in the business and to report the financial effect of those things. Following is a depiction of the steps in the accounting cycle.

Another example for accounting cycle in Bahasa indonesia :

The accounting cycle is the sequence of procedures used to keep track of what has happened in the business and to report the financial effect of those things. Following is a depiction of the steps in the accounting cycle and a brief description of each.

Basically, a transaction is doing business. A financial transaction (which is the kind of transaction we are interested in here) is doing something in business that involves the exchange of money.
Source Documents
Usually, the accounting department is not where the transaction takes place. It is necessary that a paper or computer record be prepared at the point-of-the-transaction so that the accounting department is aware that a transaction occurred.
When personnel in accounting get the source documents, it is necessary to determine:1.) What happened? What kind of exchange took place? Did we charge our customer for something, get money for something, buy something, etc.?2.) What accounts will change? An account (Asset, Liability, Owner’s Equity) is where we keep information on anything we wish to know about individually. For example, we have an account for Cash where we keep track of the increases, decreases and the balance. Any time there is a transaction, at least two accounts will change.

3.) How will they change? Will the account increase or decrease?

4.) Do they get a Debit or Credit? T-accounts may help in the analysis. It is a method to help your thought process without the formality of general journal entries.

Journals are also called the “book of original entry” and are basically a chronological list of transactions and the accounts that changed and what to post in them. In VCE you are required to master four special journals (CRJ, CPJ, SJ, PJ) and a General Journal.
Post and Balance
Posting is the act of transferring the information in the journal to the appropriate ledger accounts. Balancing is adding the increases to and subtracting the decreases from the previous balance in an account. Post referencing is essential. Write the number of the journals in the ledgers, and the account numbers of ledgers in the journal.
Trial Balance
A trial balance is a list of all the accounts and their balances. What we call Debit balances are written in one column and Credit balances are written in another column. Each column is totaled and compared to make sure that Debits = Credits.
Generally speaking, adjusting entries are made at the end of a period to ensure that Revenues are reported when earned and Expenses are reported when incurred.
Adjusted Trial Balance
A trial balance after all adjustments have been: Analyzed, Journalized, Posted and the affected accounts Balanced.
Prepare Financial Statements
Financial Statements are used to report the financial position and results from operating a business. They are the Statement of Financial Position, Statement of Financial Performance and the Cash Flow Statement.


(you may close before preparing the Reports)

Closing an account means to “bring the balance to zero”. We close what we call the temporary accounts. They are the temporary Owner’s Equity accounts – Revenues, Expenses and Withdrawals.
Post-closing Trial Balance
A trial balance after all temporary accounts have been closed. The accounts remaining open are called real accounts and include: Asset accounts, Liability accounts and the Capital account. In other words, the Statement Financial Position accounts remain open.
One reporting period has been concluded and it is time to begin the next cycle.
Subsequent (next) Period
Preparation for the ensuing period includes:

  • Creating new Revenue, Expense and Drawings accounts.
  • Using the same Asset, Liability and OE accounts as previous periods.
  • Dealing with the accruals from the last period.

source: internet


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