Topp Class Air Conditioning

Topp Class Air Conditioning is a retail and service business operated by a partnership with a simple 50:50 split of profit or loss. This practice set requires students to manually prepare a set of internal-format financial reports, including a Cash Flow Statement (optional), using a system of special and general journals and general and subsidiary ledgers, for a limited number and range of transactions, for a one-month period. This activity gives students the opportunity to learn how...
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Topp Class Air Conditioning is a retail and service business operated by a partnership with a simple 50:50 split of profit or loss. This practice set requires students to manually prepare a set of internal-format financial reports, including a Cash Flow Statement (optional), using a system of special and general journals and general and subsidiary ledgers, for a limited number and range of transactions, for a one-month period. This activity gives students the opportunity to learn how all of the steps in the accounting cycle fit together and how accounting controls can be designed into an accounting information system (with reconciliations, trial balances etc.).FEATURES Requires preparation of working papers and calculation of some figures Incorporates accrual-based GST Uses special journals for credit sales and purchases, cash receipts and payments, and petty cash Uses the perpetual inventory system and subsidiary ledgers for trade receivables and payables Requires students to think beyond what is provided to them, including identification and estimation of amounts that should be accrued at the end of the period, which should result in a unique profit figure for each student.