Impact Of Slavery - Free Essay Example

Sample details Pages: 4 Words: 1075 Downloads: 7 Date added: 2019/05/17 Category Society Essay Level High school Tags: Slavery Essay Did you like this example? Many depict slavery as a regional institution of cruelty in the South, however, it is also certain that it is the minds behind the broader American economic prosperity in the north. The slave economy in the south had gradually expanding influences all through the whole U.S. economy, mostly due to a lot of merchants in Boston, New York City, and anywhere else arranging the exchange of slave-developed agrarian items and getting very wealthy. Cotton was offering a purpose behind business merchants and creators in the north to manufacture factories in such places as Lowell, Portsmouth, Rhode Island, etc., creating a connection between New Englands Industrial Revolution to the advancing Deep South. During the years of slavery in the American Republic, cotton impacted the economic development of not just the South, but the North too. Although the United States of America had acquired much of Europes innovations at the time of the Industrial Revolution, an exceptional amount of American innovations and technologies came about at the beginning of the early nineteenth century that would greatly impact the north. These inventions impacted manufacturing, communication, and especially agriculture in the south (Lecture, 10-22-18). Modern technologies and innovations offered ascend to the Cotton Kingdom. Don’t waste time! Our writers will create an original "Impact Of Slavery" essay for you Create order The Cotton Kingdom demanded constant growth, and slavery would likely have spread if not for the Civil War (Lecture, 11-9-18). Cotton fiber is famously and historically known to be difficult to separate from the seed by hand. Eli Whitneys cotton gin separated the fiber from the seed quickly and efficiently; and in the 1790s, led to the expansion of cotton plantations in the following years (Lecture, 10-24-18). With the cotton gin and with steam engines moving production, the manufacturing of cotton cloth suddenly became affordable as the 18th century turned into the 19th century (Lecture, 10-24-18). The cotton gin enabled more material to be generated. Whitney couldnt have anticipated the way by which his development would change society for the even worse. The most important, the development of slavery. While the thought is to demonstrate that the cotton gin lessened the work of removing seeds, it didnt diminish the requirement for the slaves to grow and pick the cotton, but did ind eed impact the north for the better. Cotton developing turned out to be so beneficial for the plantation owners that it significantly expanded their interest for both land and slave work (Lecture, 10-24-18). Demand was powered by different innovations of the Industrial Revolution, for example, the machines to turn and weave it, and the steamboats to transport it (Lecture, 10-22-18). Midcentury America was growing seventy-five percent of the worlds supply of cotton, its majority dispatched to England or New England where it was produced into fabric (Lecture, 10-22-18). And, it was all due to the invention of quality steam engines which had the impact of an enormous increase of cotton production (Lecture, 10-22-18). Steam engines, in theory, were the back bones of the industrial revolution. Before steam engines were invented, manufactories were limited. However, with the modern innovation of the steam engine, mills, and manufactories could be located in so many more locations. As cotton was becoming a tremendous cash crop , slavery was given a new role. If the cotton gin, steam engines, and other technologies were not created, slavery may have been able to slowly go away. With a new huge demand for cotton at this time, much more land and labor was needed, meaning that this new face of slavery was to spread across even more southern states, and especially impact the north. Slaves were often owned by affluent families who benefited from a thriving economy. One of these families was the Goodwin family; specifically Ichabod Goodwin, a successful merchant. Goodwin soon became a merchant in Portsmouth, New Hampshire and becoming master and part owner of several ships, and eventually the owner of banks, railroads, and textile factories. Cotton production and cargo was the main power behind these technologies, specifically Goodwins ships and textiles factories. Cotton cargo being sent to the north gave these ship captains and textile manufactures in the north immense wealth. With all this wealth in merchants hands, slaves were clearly not given reciprocation for their work nearly as much as the merchants and northern businessmen. An important part of Goodwins history is documented in the University of New Hampshires Special Collections as a letter sent to a ship captain from Goodwin himself, gives great insight to how cotton production fueled not only his wealth, but the northern economy (Goodwin and Coues, Letter to William Parsons.) In 1838 from Portsmouth, New Hampshire, Ichabod Goodwin sent a letter to William Parsons, a ship captain. At this time, Goodwin was a business merchant and sailor himself, asking Parsons about the best price he can get for a shipment of cotton cargo and whether it would be better to shi p it to a Portsmouth mill or to Liverpool (Goodwin and Coues, Letter to William Parsons.) This primary source is a great document to exemplify how cotton from the south effected the economy in the north through profits off of cotton cargo shipments being sent from the south to the north. Indeed, New England manufactories were taking in large amounts of southern cotton as the mills advanced the U.S. as the second greatest textile producer in the entire nation. During the years of slavery in the American Republic, cotton impacted the economic development of not just the South, but the North too. Amid the 1850s, the U.S. economy developed quickly, driven by offers of open land, cotton creation, and manufactories of textiles. In 1860 the south produced more than a couple billion pounds of cotton (Lecture, 10-22-18). Additionally, cotton trades represented sixty percent of the nations fares, the majority of which were dealt with by New York City, the newer outlet for the United States. The South provided eighty percent of the cotton for materials produced in Britain and the majority of the cotton for materials made in New Englands factories. The economy of America at the time was in-between a transition headed to the Civil War. The economy was first almost purely agrarian, which would then transition into an industrial revolution, making America a great leader for industrial power. The North was now well on its way to making huge impacts from slavery and production of materials from the south. Slavery was indeed the driver behind American economic prosperity in the north.

Character Comparison Titus Andronicus And Prince Hamlet

Essay One Character comparison: Titus Andronicus and Prince Hamlet The two major characters, Hamlet and Titus of Shakespearean plays, Hamlet and Titus Andronicus are characteristic in terms of considering revenge and aspiring to avenge the murders. However, the two are quite different in their approach toward revenge. This is due to the fact that two protagonist in their respective plays consider revenge differently since Titus is anxious to avenge the murder and Hamlet delays his decision of taking revenge while seeking other alternatives to revenge such as suicide. Therefore, the theme of procrastination in Hamlet is the cause of delay in taking the revenge of Hamlet’s father’s murder. However, the theme of long delays and seeking alternative to revenge such as in the form of suicide while c considering it less sinful as compare to revenge from the aspect of the Christian theology also discloses that Hamlet is sensible and even in the times of emotional instability, he does not fall beneath what is humanlike behavior. On the contrary, Titus does not show such emotional savvy while expression grave concern and shows eagerness to avenge the murder (Burwick 24). In fact, the two characters in Shakespeare’s plays are very significant since their stance against the damaged honor is similar. Titus and Hamlet have their own individual moral standpoints on taking revenge in which one display emotional outbursts that is Titus and another shows maturity of thought whileShow MoreRelated Comparing the Use of Language in Titus Andronicus and Hamlet2966 Words   |  12 PagesComparing the Use of Language in Titus Andronicus and Hamlet As characters of high birth and important political positions, Titus and Hamlet are necessarily observed closely by those around them for their reaction to the tragic events that have taken in place in their lives; and it is primarily the unique language with which they express their grief and anger that disconcerts both their enemies and their friends, and keeps them under an exacting scrutiny for the duration of their eponymousRead MoreWilliam Shakespeare : The Greatest Playwright Of All Times1845 Words   |  8 PagesNetwork). Following the lost years in 1592, Shakespeare left Stratford to London so he could pursue his career. He does have a few works including The Comedy of Errors, Henry IV Part 1, Part 2, and Part 3, Richard III, The Taming of the Shrew, and Titus Andronicus. 1592 was truly Shakespeare s time in the limelight. Shakespeare became well known by many people in London as an established playwright, in addition, Shakespeare was an actor, writer, director, and stockholder of a theatrical company in LondonRead More Shakespeare - Authorship Essays1781 Words   |  8 Pagesin many ways represented in the plays attributed to Shakespeare of Stratford. For example, in the play Hamlet, de Vere describes many of the details of his life. Like the main character Hamlet, de Vere is virtually a prince and also of Danish decent. De Vere’s cousins, Horance and Francis are strikingly similar in name and action to Hamlet’s two friends, Horatio and Francisco. The anguish Hamlet felt due to his mother’s hasty remarriage after the murder of her husband was also similar to the distressRead MoreEssay A Comparison of Macbeth and Hamlet2672 Words   |  11 PagesA Comparison of Macbeth and Hamlet MACBETH stands in contrast throughout with Hamlet; in the manner of opening more especially. In the latter, there is a gradual ascent from the simplest forms of conversation to the language of impassioned intellect,—yetRead MoreDuchess Of Malf Open Learn10864 Words   |  44 Pagesyears younger. He makes a brief appearance in the 1998 film Shakespeare in Love as a boy who tortures mice, spies on Shakespeare’s love-making, and feels inspired to take up the pen himself after seeing Shakespeare’s blood-soaked revenge tragedy, Titus Andronicus. ‘Plenty of blood. That’s the only writing’, he asserts. This affectionate but crude caricature testifies to Webster’s reputation for writing dark and violent plays. Yet it also testifies to the enduring popularity of those plays. Shakespeare

The Power of the Press African American News Publications in the Jim Crow Era

Throughout United States history, the press has played a significant role in social conflicts and political events. In the African American community, newspapers played a vital role in fighting racism and social injustice. As early as 1827, writers John B. Russwurm and Samuel Cornish published the Freedoms Journal  for the freed African American community. Freedoms Journal was also the first African-American news publication. Following in Russwurm and Cornishs footsteps, abolitionists such as   Frederick Douglass and Mary Ann Shadd Cary published newspapers to campaign against enslavement.   Following the Civil War, African American communities throughout the United States desired a voice that would not only expose injustices, but also celebrate everyday events such as weddings, birthdays, and charity events. Black newspapers cropped up in southern towns and northern cities. Below are three are the most prominent papers during the Jim Crow Era.   The Chicago Defender Published: 1905Founding Publisher: Robert S. AbottMission: The Defender utilized the tactics of yellow journalism to expose racism and oppression that African-Americans faced throughout the United States. Robert S. Abott published the first edition of The Chicago Defender with an investment of twenty-five cents. He used his landlord’s kitchen to print copies of the paper—a collection of news clippings from other publications and Abott’s own reporting. By 1916, The Chicago Defender boasted a circulation of more than 15,000 and was considered one of the best African-American newspapers in the United States. The news publication went on to have a circulation of over 100,000, a health column and a full page of comic strips. From the outset, Abbott employed yellow journalistic tactics-sensational headlines and dramatic news accounts of African-American communities throughout the nation. The tone of the paper was militant and referred to African-Americans, not as black or negro but as the race. Graphic images of lynchings, assaults and other acts of violence against African-Americans were published prominently in the paper. As an initial supporter of The Great Migration, The Chicago Defender published train schedules and job listings in its advertising pages as well as editorials, cartoons, and news articles to persuade African-Americans to relocate to northern cities. Through its coverage of the Red Summer of 1919, the publication used these race riots to campaign for anti-lynching legislation. Writers such as Walter White and Langston Hughes served as columnists; Gwendolyn Brooks published one of her earliest poems in the pages of the Chicago Defender. The California Eagle Published: 1910Founding Publisher(s): John and Charlotta BassMission: Initially, the publication was to help African-American migrants settle in the West by providing housing and job listings. Throughout the Great Migration, the publication focused on challenging injustice and racist practices in the United States. The Eagle led campaigns against racism in the motion picture industry. In 1914, publishers of The Eagle printed a series of articles and editorials protesting the negative portrayals of African-Americans in D.W. Griffith’s Birth of a Nation. Other newspapers joined the campaign and as a result, the film was banned in several communities across the nation. On the local level, The Eagle used its printing presses to expose police brutality in Los Angeles. The publication also reported on and discriminatory hiring practices of companies such as the Southern Telephone Company, Los Angeles County Board of Supervisors, Boulder Dam Company, the Los Angeles General Hospital, and the Los Angeles Rapid Transit Company. The Norfolk Journal and Guide Published: 1910Founding Publisher: P.B. YoungCity: Norfolk, Va.Mission: Less militant than newspapers in northern cities, the publication focused on traditional, objective reporting of issues impacting African-American communities in Virginia. When The Norfolk Journal and Guide was established in 1910, it was a four-page weekly news publication. Its circulation was estimated at 500. However, by the 1930s, a national edition and several local editions of the newspaper were published throughout Virginia, Washington D.C., and Baltimore. By the 1940s, The Guide was one of the best-selling African-American news publications in the United States with a circulation of more than 80,000. One of the biggest differences between The Guide and other African-American newspapers was its philosophy of objective news reporting of events and issues facing African-Americans. In addition, while other African-American newspapers campaigned for the Great Migration, the editorial staff of The Guide argued that the South also offered opportunities for economic growth. As a result, The Guide, like the Atlanta Daily World was able to acquire advertisements for white-owned businesses on a local and national level. Although the papers less militant stance enabled The Guide to garner large advertising accounts, the paper also campaigned for improvements throughout Norfolk that would benefit all of its residents, including reducing crime as well as improved water and sewage systems.

The Effects Of Media And Stereotypes On Women - 1554 Words

Women Leaders and The Effects of Media and Stereotypes Confidence, integrity, purpose, empowerment, determination, and courage. These are some of the many words associated with leadership. Regardless of gender, these words apply to all leaders. It is no longer a question of what women leaders are, but rather why there are not women leaders. Today’s society focuses on fulfilling leadership positions with males, not because females do not have the same skills and knowledge as men, but because people associate men with leaders. There are various daily obstacles that women face in the attempt towards leadership roles including prejudice beliefs, resistance due to stereotypes, leadership styles, family life demands and underinvestment in social capital. We have found that through depictions in the media, women are not seen as effective leaders in the same sense as men. These media findings and various research techniques provide evidence for the lack of female presence in leadership positions. Media Review As part of our research, we Googled different images associated with women and leadership. When you Google women leaders, what do you see? Countless images of beautiful women appear. Women have always had to walk a fine line when it comes to their femininity in the workforce. If a woman is too â€Å"girly†, she is looked down upon. When a woman is too â€Å"masculine†, she is looked down upon. Google pictures of women news casters. Many news casters today are dressed in a sexy andShow MoreRelatedMedia Stereotypes’ Effect on Women in the Workplace Essay1553 Words   |  7 Pagesterrorist. These are just a few of the many stereotypes that are portrayed by the media. A stereotype is an oversimplified conception that you put on someone because of the way they look, what gender they are, or countless other categories that we put people in. Many people fail to realize how the media influences the way they think about people of a different nationality, race, religio n, or gender. This widespread belief in stereotypes has adversely affected women in the workplace. Ann Hopkins is aRead MoreEssay about Gender Based Stereotype in the Media1723 Words   |  7 PagesIntroduction The media plays an extremely important and arguably the most powerful role in shaping the perception individuals and members of the public holds towards themselves and their surroundings. This therefore makes it extremely difficult for one to maintain his/her unique self identity or perception of others without the influence of the media. People will define themselves and others based on the messages insinuated by the media. The problem hence emerges when the media insinuate the wrongRead MoreMedia s Influence On Society1293 Words   |  6 PagesMedia is a major contributor of how social groups are perceived in today’s society. Mediais around us every day almost all day, and it constantly sends messages about the world’s environment. There are many indicators shown pertaining to how media really affects society. One of the most prominent explanations of those questions is the way media influences stereotypes. There has been previous research linking media sources and b iased attitudes. This research paper explores articles supporting mediaRead MoreComparison of Turkeys in the Kitchen and You Just Walk on By Essays1640 Words   |  7 PagesIn the essays, â€Å"Turkeys in the Kitchen† by Dave Barry, and â€Å"Just Walk on By† by Brent Staples, they argue the theme of gender, and racial stereotypes that have been present in our world from the very beginning. Barry suggests through a sarcastic and humors tone that gender stereotypes have been present since before the start of time; he uses a highly conversational style to prove this, as well as narrates to give the reader a better understanding of exactly what he’s talking about. Staples, on theRead MoreEssay Negative Stereotypes of Women1164 Words   |  5 Pages1301 3 December 2011 The Negative Impact of Stereotypes Stereotype- a simplified and standardized conception or image invested with special meaning and held in common by members of a group (Dictionary). In simpler words, stereotypes are judgments based on actions of an individual or small group, thought to be true about the rest of that group. Stereotypes refer to individuals perceptions that typically do not correspond to reality. A stereotype is a picture in the head, not an accurate mirrorRead MoreStereotyping Is Inevitable, By James Baldwin1717 Words   |  7 Pagesis inevitable, we all do it ad we all experience it, but this does not mean it does not effect us. Stereotypes are all around us. They effect the way we think about ourselves and the way we think about the people around us. Stereotyping leads us to act certain ways and treat people certain ways. At times it can be beneficial to a certain group, but may bring many disadvantages to others. Many times stereotypes limit us and restricting our success in life. In â€Å"A Letter to My Nephew,† by James BaldwinRead MoreThe Impact Of Media On Women s Perceptions Of Image, Gender Roles, And Overall Self Worth Essay1352 Words   |  6 PagesMedia plays a huge role in people’s perceptions of image, gender roles, and overall self worth. The media is constantly reinforcing limiting stereotypes through television, advertisements, films, and more. These stereotypes are especially geared towards women, suggesting that they have to look and act in an overtly feminine manner in order to be accepted by society. Though there are stereotypical qualities of men illustrated in media as well, they are mostly suggesting that men are dominant andRead MoreWomen s Role Model On The Media930 Words   |  4 Pageswoman in the media as their role models. However, the woman in the media can either set the best examples, or the worst. Some of these women tend to advertise their entire lives over the media, and depending on the woman depends on the examples they are setting for women everywhere. Some of these role models on the media attempt to follow the woman stereotype, and they advertise themselves like they have accomplished it, and it is something that every woman can live by. Regular women see these famousRead MoreBlack Women Stereotypes763 Words   |  4 PagesThe stereotypical misrepresentations of African-American women and men in popular culture have influenced societal views of Blacks for centuries. The typical stereotypes about Black women range from the smiling, asexual and often obese Mammy to the promiscuous Jezebel who lures men with her sexual charms. However, the loud, smart mouthed, neck-rolling Black welfare mother is the popular image on reality television. The typical stereotype about Black men is the violent, misogynistic thug, and theRead MoreKilling Us Softly : Advertising s Image Of Women913 Words   |  4 PagesAdvertising’s Image of Women In the video, Killing Us Softly: Advertising’s Image of Women, the way women are portrayed in advertising is explored in great detail. The video exposes the gender stereotypes that are depicted in advertising on a regular basis. The effects of mass advertising are also explored particularly the effect of objectification of women on young girls. Young girls and women are affected by these constant and never-ending advertisements sexualizing women and marginalizing them

Lcci Passport to Sucess Level 1 Book-Keeping Answer Free Essays

string(443) " motor vehicles to Wong Ltd \(g\) Paid a creditor, T Bird, by cash \(h\) Paid by cheque for the motor vehicle bought from Wong Ltd Debit Office Furniture C Bing Motor Vehicles Bank Bank Wong Ltd T Bird Wong Ltd Credit Cash Office Furniture Wong Ltd P Butler Capital Motor Vehicles Cash Bank Solutions to Target Practice Questions Question 1 The left hand side of a ‘T’ account is the debit side and the right hand side is the credit side\." Level 1 Book-keeping Solutions Booklet For further information contact us: Tel. +44 (0) 8707 202909 Email. enquiries@ediplc. We will write a custom essay sample on Lcci Passport to Sucess Level 1 Book-Keeping Answer or any similar topic only for you Order Now com www. lcci. org. uk London Chamber of Commerce and Industry (LCCI) International Qualifications are provided by EDI, a leading international awarding body. Passport to Success Level 1 Book-keeping Solutions Booklet The initials LCCI and the words LONDON CHAMBER OF COMMERCE AND INDUSTRY are registered trademarks belonging to the London Chamber of Commerce and Industry and are used under licence. Every effort has been made to trace all copyright holders, but if any have been inadvertently overlooked the Publishers will be pleased to make the necessary arrangements at the first opportunity.  © EDI 2008 First published in 2008. All rights reserved. Apart from any use permitted under UK copyright law, no part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying and recording, or held within any information storage and retrieval system, without permission in writing from the publisher or under licence from the Copyright Licensing Agency Limited. Further details of such licences (for reprographic reproduction) may be obtained from the Copyright Licensing Agency Limited, Saffron House, 6–10 Kirby Street, London EC1N 8TS. Cover photo: www. fotolia. com TABLE OF CONTENTS 1. 2. 3. 4. The Accounting Equation and the Balance Sheet Double entry system for assets, liabilities and capital Recording double entry for stock The double entry system for Expenses and Revenues and the Effect of Profit (or loss) and drawings upon capital 1 4 7 11 5. 6. 7. 8. 9. Balancing accounts and the Trial Balance Trading and Profit Loss Accounts: An introduction The Balance Sheet Final Accounts with further considerations The Division of the Ledger and Books of Original Entry 16 25 28 31 38 39 41 44 48 53 56 59 62 68 71 75 77 81 82 10. Bank Facilities 11. Cash Books 12. The Sales and Purchases Day Books 13. The Returns Day Books 14. The Journal 15. The Petty Cash Imprest System 16. Adjusting for accruals and prepayments 17. Depreciation of Fixed Assets 18. Bad Debts 19. Bank Reconciliation Statements 20. Capital and Revenue Expenditure 21. Errors in the accounts and their corrections 22. Control Accounts 23. Final Accounts and year end adjustments Chapter 1 The Accounting Equation and the Balance Sheet Answers to ‘Think about it’ Questions Page 5 – Why are liabilities shown on the right hand side of the balance sheet and not on the left? Because based on the accounting equation it has to be on the same side as capital. Answers to Activities Activity 1. 1 (a) (b) (c) (d) L A A A (e) L (f) A (g) C Activity 1. 2 ASSETS ? 5 000 4 200 4 100 3 500 6 900 CAPITAL ? 000 2 500 2 800 2 400 4 100 LIABILITIES ? 2 000 1 700 1 300 1 100 2 800 (a) (b) (c) (d) (e) Solutions to Target Practice Questions Question 1 (a) (b) (c) (d) (e) (f) ‘†¦assets less liabilities equals capital’. assets liabilities debtor creditor Balance Sheet 1 Question 2 ASSETS ? 3 100 800 2 200 LIABILITIES ? Shop fittings Cash register Stock of goods Creditors Loan – T Armani Bank 1 00 0 1 800 870 6 970 2 800 Capital = Assets – Liabilities Capital = 6970 – 2800 = ? 4170 Question 3 M Williams Balance Sheet at 30 June 20X6 ? Cash at Bank Stock of goods Fixtures and Fitting Debtors Motor vehicles 2 614 5 860 1 900 3 750 4 200 18 324 Creditors Loan – D Wong Capital (missing item) ? 4 150 3 600 10 574 _____ 18 324 Question 4 Transactions (a) The owner borrows ? 5000 from L Pole and the money is put into the business’ bank account. A debtor pays the business ? 250 by cheque. The owner buys a motor vehicle on credit ? 6200. The owner withdraws ? 160 from the business’s bank account for his personal use. The business sells goods on credit for ? 840. The owner puts a further ? 000 in cash into the business. The money is put into the business’s bank account. The business pays a creditor ? 290 by cheque. Assets + Bank Effect upon Liabilities + Loan Capital (b) (c) (d) + Bank – Debtors + Motor Vehicle – Bank + Creditors – Capital (e) (f) – Stock + Debtors + Bank + Capital (g) – Bank – Creditors 2 Question 5 W Mandrake Balance Sheet at 30 June 20 X5 ? 5 360 4 500 1 845 2 800 5 100 19 605 ? 2 900 3 000 13 705 _____ 19 605 Stock of goods Debtors Cash at Bank Fixtures and fittings Motor vehicles Creditors Loan – L Walter Capital (balancing figure) W Mandrake Balance Sheet at 31 July 20X5 ? Stock of goods Creditors (5360 + 700 – 600) 5 460 (2900 + 700 – 400) Debtors Loan – L Walter (4500 – 1100 + 600) 4 000 Capital Cash at Bank (balancing figure) (1845 – 400 + 1100) 2 545 Fixtures and Fittings 2 800 Motor Vehicles 5 100 19 905 ? 3 200 3 000 13 705 †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 19 905 Question 6 D Duncan Balance Sheet at 21 January 20X7 ? 20 000 2 100 500 100 700 123 300 ______ 123 300 ? 120 000 3 300 Motor Vehicles Stock of goods (1500 + 600) Debtor – A Gianna Cash at Bank (101 000 – 300) Capital Creditor – Stax Suppliers (3000 + 600 – 300) Question 7 The difference between a cash transaction and a credit transaction is based on when payment is made. With a cash transaction, payment is made immediately for goods and/or services purchased while in a credit transaction payment is made 3 Chapter 2 Double Entry System for Assets, Liabilities and Capital Answers to ‘Think about it’ Questions Page 16 – Why is it necessary to keep separate accounts for each debtor and creditor? So it can clearly be seen how much is owed to individual creditors and how much is owed by individual debtors. Answers to Activities Activity 2. 1 (a) Bought office furniture for cash (b) Sold some office furniture on credit to C Bing (c) Bought motor vehicles on credit from Wong Ltd (d) A debtor, P Butler, pays the business by cheque (e) The owner puts a further amount into the business by cheque (f) Returned one of the motor vehicles to Wong Ltd (g) Paid a creditor, T Bird, by cash (h) Paid by cheque for the motor vehicle bought from Wong Ltd Debit Office Furniture C Bing Motor Vehicles Bank Bank Wong Ltd T Bird Wong Ltd Credit Cash Office Furniture Wong Ltd P Butler Capital Motor Vehicles Cash Bank Solutions to Target Practice Questions Question 1 The left hand side of a ‘T’ account is the debit side and the right hand side is the credit side. To ‘debit’ an account the transaction is entered on the left hand side and to ‘credit’ an account, the transaction is entered on the right hand side. Question 2 There must be a debit entry and a corresponding credit entry of the same value (and vice versa) for every transaction that occurs. Question 3 To know when to debit or credit an account, you will first need to determine the type of the account and decide how the transaction will affect the account ;( whether increase or decrease) and then apply the double entry rules as below: To increase an asset, DEBIT the account To decrease an asset, CREDIT the account To increase a liability or capital, CREDIT the account To decrease a liability or capital, DEBIT the account 4 Question 4 Bank ? 20X2 6 000 July 15 July 29 20X2 July 01 Capital Office Machinery Elstead Garage ? 420 2 900 Capital 20X2 July 01 Bank ? 6 000 20X2 July 06 Motor Vehicle ? Elstead Garage 2 800 20X2 July 29 Bank Elstead Garage ? 20X2 2 800 July 06 Motor vehicle ? 2 800 20X2 July 15 Bank Office Machinery ? 420 20X2 July 23 Office Equipment ? Longmore Sons 70 Longmore Sons 20X2 July 23 Office equipment ? 370 Question 5 Cash ? 20X9 2 000 April 08 300 April 30 20X9 April 01 April 29 Capital Bank Bank Furniture World ? 1 000 800 5 Bank 20X9 April 01 April 03 April 08 Capital Loan – S Lee Cash ? 8 000 3 000 1 000 20X9 April 14 April 23 April 29 Delivery Van Loan – S Lee Cash ? 1 500 1 200 300 Capital 20X9 April 01 April 01 Cash Bank ? 2 000 8 000 20X9 April 23 Loan – S. Lee ? 20X9 1 200 April 03 Bank ? 3 000 20X9 April 14 Bank Delivery Van ? 1 500 20X9 April 20 Furniture World Office Furniture ? 20X9 1 100 April 26 Furniture World ? 200 20X9 April 26 April 30 Office Furniture Cash Furniture World ? 20X9 200 April 20 800 Office Furniture ? 1 100 6 Chapter 3 Recording Double Entry for Stock Answers to Activities Activity 3. 1 Debit Office Furniture Cash Purchases A Litton D Penarth Motor Van Returns Inwards Purchases Credit Cash Sales A Litton Returns Outwards Sales Grange Garage D Penarth Bank a) Bought office furniture for use in the business by cash (b) Sold goods for cash (c) (d) (e) (f) Bought goods on credit from A Litton Returned to A Litton some of the goods bought Sold goods on credit to D Penarth Purchased motor van on credit from Grange Garage (g) D Penarth returned some goods to us (h) Bought goods paying immediately by cheque Solutions to Target Practice Questions Question 1 ‘Pu rchases’ means goods bought by the business with the intention of reselling them for profit as a part of its trading activities. ‘Sales’ means oods sold by the business that were originally bought for resale purposes. In other words, the sale of those goods in which the business trades or deals. Question 2 (a) This is not good practice. Parts returned to suppliers should be credited to a Returns Outwards Account and parts returned from customers should be debited to Returns Inwards Account. This is necessary to provide information on the totals of the returns and to assess whether these are increasing or decreasing over time. (b) Goods sold for cash is recorded by debiting the cash account and crediting the sales account. Goods sold on credit is first recorded by debiting the debtor account and crediting the sales account; when the debtor pays for the goods his account is credited and the bank/cash is debited. Question 3 (a) (b) (c) (d) (e) (f) Sold goods on credit to F. Winter N. Armour returns goods to you You settle a creditor’s account by cheque F. Winter pays his account You pay Grange Garages by cheque the amount due on the delivery vehicle previously purchased You return goods to B. Smart Debit F Winter Returns Inwards Creditor Bank Grange Garages B Smart Credit Sales N Armour Bank F Winter Bank Returns Outwards Question 4 20X7 March 01 Capital March 30 B Wright Bank ? 20X7 10 000 March 03 Office Furniture 70 March 23 Scales Motors March 26 T Hunt ? 460 3 600 320 Capital 20X7 March 01 Bank ? 10 000 20X7 March 03 Bank Office Furniture ? 460 20X7 March 05 Purchases Purchases ? 375 T Hunt 20X7 20X7 ? March 08 Returns Outwards 55 March 05 March 26 Bank 320 Purchases ? 375 Returns Outwards 20 X7 March 08 T Hunt ? 55 20X7 March 12 Sales B Wright 20X7 ? 156 March 19 March 30 Returns Inwards Bank ? 26 70 Sales 20X7 March 12 B Wright ? 56 8 20X7 March 15 Scales Motors Motor Vehicle ? 3 600 20X7 March 23 Bank Scales Motors ? 20X7 3 600 March 15 Motor Vehicle ? 3 600 20X7 March 19 B Wright Returns Inwards ? 26 Question 5 20X7 October 01 Capital October 17 Cash Cash 20X7 ? 8 600 October 02 80 October 07 ? 8 000 179 Bank Purchases Capital 20X7 October 01 Cash ? 8 600 20X7 October 02 Cash October 23 Loan – R Nandha October 31 J Durrant Bank ? 20X7 8 000 October 21 October 29 1 200 303 Motor Vehicle M Price ? 1 990 100 20X7 October 03 October 07 M Price Cash Purchases ? 250 179 20X7 October 13 Returns Outwards October 29 Bank M Price ? 0X7 October 03 32 100 Purchases ? 250 9 Fixtures Fittings 20X7 October 05 Display Ltd ? 2 750 20X7 October 07 Display Ltd ? 730 Display Ltd 20X7 ? 20X7 ? October 09 Fixtures Fittings 30 October 05 Fixtures Fittings 2 750 20X7 October 11 Sales J Durrant 20X7 ? 345 October 26 Returns Inwards October 31 J Durrant ? 42 303 Sales 20X7 October 11 J Durrant October 17 Cash ? 345 80 Returns Outwards 20X7 October 13 M Pr ice ? 32 20X7 October 21 Bank Motor Vehicle ? 1 990 Loan – R Nandha 20X7 October 23 Bank ? 1 200 20X7 October 26 J Durrant Returns Inwards ? 42 10 Chapter 4 The Double Entry System for Expenses and Revenues and the Effect of Profit (or Loss) and Drawings upon Capital Answers to ‘Think about it’ Questions Page 36 – What kinds of expense and revenue accounts would you expect to see in the books of a Bank? Revenue Accounts Loan interest receivable Commission receivable Service charges (eg. bank charges) Expense Accounts Interest payable Salaries and wages Insurance Stationery Utilities Answers to Activities Activity 4. 1 Transactions Paid general expenses in cash ? 150 Received commission by cheque ? 230 Paid for office stationery by cash ? 5 Paid telephone by cheque ? 230 Received interest of ? 350 by cheque Accounts General Expense Cash Bank Commission Receivable Office Stationery Cash Telephone Bank Bank Interest Receivable Type of account Expense Asset Asset Revenue Expense Asset Expense Asset Asset Revenue Transaction effect Increase Decrease Increase Increase Increase Decrease Increase Decrease Increase I ncrease Action in the account Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Solutions to Target Practice Questions Question 1 (a) Revenue (b) The entries are on the credit side of the account. 11 Question 2 Expense accounts should be debited and revenue accounts should be credited. Question 3 20X3 April 01 April 24 April 30 Bank 20X3 ? 5 000 April 03 85 April 05 1 000 April 14 April 21 April 27 ? 370 260 130 20 385 Capital Sales Capital Office Equipment Rent Cash Stationery A Smart Capital 20X3 April 01 April 30 Bank Bank ? 5 000 1 000 20X3 April 03 Bank Office Equipment ? 370 20X3 April 05 Rent Rent ? 260 20X3 April 08 A Smart Purchases ? 420 20X3 April 11 April 27 Returns Outwards Bank A Smart ? 20X3 35 April 08 385 Purchases ? 420 Returns Outwards 20X3 April 11 A Smart ? 35 12 0X3 April 14 Bank ? 130 Cash 20X3 April 15 Wages ? 115 20X3 April 15 Cash Wages ? 115 20X3 April 18 Sales R Squires ? 175 Sales 20X3 April 18 April 24 R Squires Bank ? 175 85 20X3 April 21 Bank Stationery ? 20 Question 4 Bank 20X4 ? 7 000 May 02 100 May 08 May 19 May 24 May 26 May 31 Capital 20X4 May 01 20X4 May 01 May 28 Capital D Langford Rent Fixtures Fittings Drawings Cash R Lester Office Equipm ent ? 280 170 160 240 470 215 Bank ? 7 000 20X4 May 02 Bank Rent ? 280 13 20X4 May 05 R Lester Purchases ? 520 20X4 May 12 May 26 Returns Outwards Bank R Lester 20X4 ? 45 May 05 475 Purchases 520 20X4 May 08 Bank Fixtures Fittings ? 170 Returns Outwards 20X4 May 12 R Lester ? 45 Sales 20X4 May 15 D Langford ? 32 20X4 May 15 Sales D Langford 20X4 ? May 22 32 May 28 Returns Inwards Bank ? 24 100 20X4 May 19 Bank Drawings ? 160 20X4 May 22 D Langford Returns Inwards ? 30 20X4 May 24 Bank Cash ? 20X4 240 May 30 Wages ? 80 14 20X4 May 30 Cash Wages ? 80 20X4 May 31 Bank Office Equipment ? 215 Question 5 Drawings are defined as money, goods, or services withdrawn from the business by the owner(s) for their personal use. Drawings reduce the capital of the business. Question 6 a) Answer = ? 2500 Workings: 1 February 20X7 Assets Equipment Stock Bank Liabilities Creditors Loan Capital ? 8 000 6 000 2 000 ? 2 000 1 000 ?16 000 ?3 000 ?16 000 – ? 3000 = ? 13 000 28 February 20X7 Assets Equipment Stock Bank Liabilities Creditors Loan Capital ? 8 000 2 000 8 500 ? 2 000 1 000 ?18 500 ?3 000 ?18 500 – ? 3000 = ? 15 500 Therefore, Opening Capital + Profit = Closing Capital ? 13 000 + ? = ? 15 500 ? 15 500 – ? 13 000 = ? 2500 (b) Profits increase capital whereas losses reduce it. 15 Chapter 5 Balancing Accounts and the Trial Balance Answers to ‘Think about it’ Questions Page 49 – How the double entry principle relates to the balancing of accounts. For every ‘balance c/d’ there is a corresponding ‘balance b/d’ of the same amount on the opposite side of the account. Answers to Activities Activity 5. 1 (a) An account will have a debit balance if the total of the debit entries is greater than the total of the credit entries. This means that the balance brought down from the last month (balance b/d) is on the debit side of the account. (b) An account will have a credit balance if the total of the credit entries is greater than the total of the debit entries. This means that the balance brought down from the last month (balance b/d) is on the credit side of the account. (c) The ‘balance c/d’ is the amount transferred (carried down or carried forward) from one accounting period to the next; this is the balance at the last date of the accounting period (e. g. a month). The ‘balance b/d is the amount transferred (brought down or brought forward) from a previous accounting period to the current one; this is the balance at the first date of the accounting period. (d) The double lines are necessary to show that the account has been balanced and that the totals are final figures. e) Accounts are closed off when there is no balance on the account at the end of the accounting period. Activity 5. 2 20X9 July 01 July 04 July 09 July 13 July 15 July 19 July 22 July 24 July 29 Capital Equipment Wages Sales Computers Wages Sales Motor vehicles Wages Debit ? 55 000 Credit ? 5 000 900 Balance ? 55 000 50 000 49 100 58 650 50 650 49 750 53 630 47 630 46 530 9 550 8 000 900 3 880 6 000 1 100 16 Solutions to Target Practice Questions Question 1 E. Appleby 20X6 ? 650 October 07 Returns Inwards 276 October 18 Bank 190 October 31 Balance c/d 1 116 506 0X6 October 03 Sales October 12 Sales October 24 Sales November 01 Balance b/d ? 120 490 506 1 116 Answer – There is a debit balance of ? 506. Question 2 N Small ? 145 215 185 ___ 545 365 20X3 March 04 March 18 March 23 Sales Sales Sales 20X3 March 13 March 26 March 30 March 31 Returns Inwards Returns Inwards Bank Balance c/d ? 20 35 125 365 545 April 01 Balance b/d 20X3 March 21 March 31 Bank Bank A Smith 20X3 ? 70 March 10 290 360 Purchases ? 360 ___ 360 20X3 March 07 March 28 March 31 T Dove 20X3 ? Returns Outwards 35 March 02 Bank 235 March 15 Balance c/d 310 580 April 01 Purchases Purchases Balance b/d ? 270 310 ___ 580 310 N Small is a debtor and T Dove is a creditor. A Smith is neither. 17 Question 3 T Dove 20X3 March 02 March 07 March 15 March 28 Purchases Returns Outwards Purchases Bank Debit ? 35 310 235 Credit ? 270 Balance ? 270 Cr 235 Cr 545 Cr 310 Cr N Small 20X3 March 04 March 13 March 18 March 23 March 26 March 30 Sales Returns Inwards Sales Sales Returns Inwards Bank Debit ? 145 215 185 35 125 Credit ? 20 Balance ? 145 Dr 125 Dr 340 Dr 525 Dr 490 Dr 365 Dr A Smith 20X3 March 10 March 21 March 31 Purchases Bank Bank Debit ? 70 290 Credit ? 360 Balance ? 360 Cr 290 Cr NIL Question 4 (a) 20X5 January 01 January 23 January 26 January 31 Capital Cash S Lee Capital Bank ? 20X5 25 000 January 01 6 000 January 25 5 500 January 29 5 000 January 30 January 30 January 31 _____ January 31 41 500 23 000 ? Rent 2 000 Cash 500 Midland Motors 4 000 D. Terry 8 000 E. Appleby 2 000 Electricity 2 000 Balance c/d 23 000 41 500 February 01 Balance b/d 20X5 January 31 Balance b/d Capital ? 20X5 30 000 January 1 Bank .. †¦Ã¢â‚¬ ¦. January 31 Bank 30 000 February 01 Balance c/d ? 25 000 5 000 30 000 30 000 18 20X5 January 1 Bank February 01 Balance b/d Rent 20X5 ? 2 000 January 31 2 000 2 000 Balance c/d ? 2 000 2 000 20X5 January 03 January 05 January 15 D Terry E Appleby D Terry February 01 Balance b/d Purchases ? 20X5 5 000 January 31 3 000 10 000 18 000 18 000 Balance c/d ? 18 000 †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 18 000 20X5 January 22 January 30 January 31 Returns Outwards Bank Balance c/d D Terry 20X5 ? January 03 Purchases 2 000 January 15 Purchases 8 000 5 000 15 000 February 01 Balance b/d ? 5 000 10 000 _____ 15 000 5 000 Motor Car 20X5 20X5 ? January 04 Midland Motors 4 000 January 31 February 01 Balance b/d 4 000 Balance c/d ? 4 000 20X5 January 29 Bank Midland Motors 20X5 ? 4 000 January 4 4 000 Motor Car 4 000 4 000 20X5 January 30 January 31 Bank Balance c/d E Appleby 20X5 ? Purchases 2 000 January 5 1 000 3 000 February 01 Balance b/d ? 3 000 †¦Ã¢â‚¬ ¦.. 3 000 1 000 19 20X5 January 10 January 25 Sales Bank February 01 Balance b/d Cash 20X5 ? 6 000 January 23 500 January 28 †¦Ã¢â‚¬ ¦.. January 31 6 500 250 Bank Office expenses Balance c/d ? 6 000 250 250 6 500 20X5 January 31 Balance c/d Sales 20X5 ? 14 000 January 10 Cash †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ January 20 S Lee 14 000 February 01 Balance b/d ? 6 000 8 000 14 000 14 000 20X5 January 20 Sales February 01 Balance b/d S Lee 20X5 ? 8 000 January 24 January 25 †¦Ã¢â‚¬ ¦.. January 31 8 000 1 500 Returns Inwards Bank Balance c/d ? 1 000 5 500 1 500 8 000 20X5 January 31 Balance c/d Returns Outwards 20X5 ? 2 000 January 22 D Terry 2 000 February 01 Balance b/d ? 2 000 2 000 2 000 20X5 January 24 S Lee February 01 Balance b/d Returns Inwards 20X5 ? 1 000 January 31 1 000 1 000 Balance c/d ? 1 000 1 000 20 Office Expenses 20X5 ? Cash 250 January 31 250 February 01 Balance b/d 250 20X5 January 28 Balance c/d ? 250 250 20X5 January 31 Bank February 01 Balance b/d Electricity 20X5 ? 2 000 January 31 2 000 2 000 Balance c/d ? 2 000 2 000 (b) Steve Trial Balance at 31January 20X5 DR CR ? Bank Capital Rent Purchases D Terry Motor Car E Appleby Cash Sales S Lee Returns Outwards Returns Inwards Office Expenses Electricity 23 000 30 000 2 000 18 000 5 000 4 000 1 000 250 14 000 1 500 2 000 1 000 250 2 000 52 000 _____ 52 000 Question 5 Bank 20X8 ? 5 000 May 16 700 May 27 May 30 †¦Ã¢â‚¬ ¦.. May 31 5 700 1 300 20X8 May 01 May 18 Balance b/d Bank Dodd Delivery Van Cash Balance c/d ? 2 900 1 200 300 1 300 5 700 June 01 Balance b/d 21 20X8 May 31 Balance c/d Capital 20X8 ? 20 000 May 01 20 000 June 01 Balance b/d Balance b/d ? 20 000 20 000 20 000 20X8 May 01 May 04 May 30 June 01 Balance b/d Sales Bank Balance b/d Cash 20X8 ? 000 May 07 2 000 May 23 300 May 31 3 300 900 Purchases Office Expenses Balance c/d ? 1 500 900 900 3 300 20X8 May 16 May 31 Bank Balance c/d Dodd 20X8 ? 2 900 May 01 2 100 May 02 5 000 June 01 Balance b/d Purchases Balance b/d ? 2 000 3 000 5 000 2 100 20X8 May 01 May 10 June 01 Balance b/d Sales Balance c/d Fish ? 20X8 6 000 May 18 5 000 May 31 11 000 10 300 ? Bank Balance b/d 700 10 300 11 000 20X8 May 01 June 01 Balance b/d Balance b/d Furniture ? 20X8 10 000 May 31 10 000 10 000 Balance c/d ? 10 000 10 000 20X8 May 02 May 07 June 01 Dodd Cash Balance b/d Purchases 20X8 ? 3 000 May 31 1 500 4 500 4 500 Balance c/d 4 500 †¦Ã¢â‚¬ ¦.. 4 500 22 20X8 May 31 Balance c/d Sales 20X8 ? 7 000 May 04 ____ May 10 7 000 June 01 Cash Fish Balance b /d ? 2 000 5 000 7 000 7 000 20X8 May 23 June 01 Cash Balance b/d Office Expenses 20X8 ? 900 May 31 900 900 Balance c/d ? 900 900 20X8 May 27 June 01 Bank Balance b/d Delivery Van 20X8 ? 1 200 May 31 1 200 1 200 Balance c/ ? 1 200 1 200 (b) Tom Trial Balance at 31 May 20X8 DR CR ? ? Bank Capital Cash Dodd Fish Furniture Purchases Sales Office Expenses Delivery Van 1 300 20 000 900 2 100 10 300 10 000 4 500 7 000 900 1 200 29 100 †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 29 100 23 Question 6 (a) T. Lennon Trial Balance at 31 December 20X9 DR CR ? Motor Vehicle Purchases Sales Stock of Goods Cash at Bank Fixtures and Fittings Wages Debtors Creditors Rent Drawings General Expenses Loan from D. Waller Capital 4 500 2 960 4 230 1 800 6 740 7 900 2 310 1 960 2 600 1 250 180 930 2 000 21 700 30 530 30 530 (b) A trial balance checks the arithmetical accuracy of the double entry. (c) Errors not revealed by the trial balance: 1. A transaction that has been completely omitted 2. A transaction that was entered co rrectly but using the wrong amount Errors revealed by the trial balance 1. Entering only one side of a transaction 2. Addition errors Question 7 a) (b) (c) (d) (e) (f) Credit Debit Debit Credit Credit Debit 24 Chapter 6 Trading and Profit Loss Accounts: An Introduction Answers to Activities Activity 6. 1 Year Sales ? Cost of goods sold ? 23 230 23 900 21 500 Gross Profit/Loss ? 5 890 2 889 7 000 Operating Expenses ? 3 311 3 600 2 900 Other Revenue ? 600 200 – Net Profit / Loss ? 3 179 (511) 4 100 2005 2006 2007 29 120 26 789 28 500 Solutions to Target Practice Questions Question 1 Andrew Gordon Trading and Profit Loss Account for the year ended 31 December 20X2 ? 26 200 3 100 23 100 11 570 34 670 6 100 1 200 160 380 3 730 11 570 ? 34 670 _____ 34 670 Gross profit b/d 11 570 Purchases Less Stock at 31 December 20X2 Cost of goods sold Gross profit c/d Wages Rent Insurance Lighting and heating Net profit Sales ______ 11 570 25 Question 2 A. Darnell Trading and Profit Loss Account for the year ended 30 September 20X7 ? 23 380 3 650 19 730 11 140 30 870 900 320 860 4 200 165 4 695 11 140 ? 30 870 _____ 30 870 Gross profit b/d 11 140 Purchases Less Stock at 30 September 20X7 Cost of goods sold Gross profit c/d Rent Insurance Motor vehicle expenses Wages General expenses Net profit Sales _____ 11 140 Question 3 B. Betty Trading and Profit Loss Account for the year ended 30 June 20X5 ? 1 160 2 800 18 360 10 280 28 640 2 240 5 100 190 315 2 435 10 280 ? 28 640 _____ 28 640 Gross profit b/d 10 280 Purchases Less Stock at 30 June 20X5 Cost of goods sold Gross profit c/d Rent Wages Insurance Office expenses Net profit Sales ______ 10 280 26 Question 4 Ada Cheung Trading and Profit Loss Account for the year ended 31 March 20X3 Purchases Less Stock at 31 March 20X 3 Cost of goods sold Gross profit c/d Wages Rent Advertising Lighting and heating Sundry expenses Net profit ? 46 820 9 140 37 680 16 020 53 700 7 360 2 370 840 765 1210 3 475 16 020 Sales ? 53 700 _____ 53 700 Gross profit b/d 16 020 _____ 16 020 Question 5 (a) 1. Comparing performance with other businesses or with previous periods of time to see if the business is growing. Planning ahead – profits will allow the firm to expand so information about how much profit has been made and how it was made will be important in deciding what to do in the future. To help the business to control and monitor its expenses. 2. 3. (b) This means that his cost of goods sold was more than the sales revenue; he sold the goods for less than he paid for them. 27 Chapter 7 The Balance Sheet Answers to ‘Think about it’ Questions Page 72 – Why the balance sheet is prepared at a specified date while the trading and profit and loss is prepared for a period of time. Because it shows the financial position of a business at a particular date and not for a particular period of time. It shows the value of assets and liabilities as they are at a specific date. Solutions to Target Practice Questions Question 1 1. Fixed assets are presented in order of decreasing permanence while current assets are presented in increasing order of liquidity. Question 2 J Robinson Balance Sheet at 31 March 20X7 ? Fixed Assets Buildings Fixtures and fittings Motor vehicle ? Capital (missing figure) ? 47 020 35 000 2 860 6 400 44 260 Current Assets Stock Debtors Bank Cash 4 360 7 200 2 950 80 14 590 58 850 Current Liabilities Creditors Long-term Liabilities Loan 6 830 5 000 ______ 58 850 28 Question 3 Andrew Gordon Balance Sheet as at 31 December 20X2 ? Fixed Assets Premises Fixtures and fittings Motor vehicle ? Capital Add: Net profit Less: Drawings ? ? 68 660 3 730 2 600 1 130 69 790 Current Liabilities Creditors 54 000 1 200 5 600 60 800 Current Assets Stock Debtors Bank 3 180 3 460 4 130 10 690 71 490 1 700 _____ 71 490 Question 4 A Darnell Balance Sheet as at 30 September 20X7 ? Fixed Assets Premises Fixtures and fittings Motor vehicle ? Capital Add: Net profit Less: Drawings ? ? 34 555 4 695 3 200 1 495 36 050 Current Liabilities Creditors 24 000 850 4 200 29 050 Current Assets Stock Bank Cash 3 650 2 130 70 9 900 38 950 2 900 38 950 29 Question 5 B Betty Balance Sheet as at 31 June 20X5 ? Fixed Assets Office furniture Motor vehicle ? Capital Add: Net profit Less: Drawings ? ? 7 500 2 435 1 230 1 205 8 705 Current Liabilities Creditors 1 870 650 2 800 ____ 3 450 2 800 2 360 1 890 75 _7,125 10 575 Current Assets Stock Debtors Bank Cash _____ 10 575 Question 6 Ada Cheung Balance Sheet as at 31 March 20X3 ? Fixed Assets Premises Fixtures and fittings Motor vehicle ? Capital Add: Net profit Less: Drawings ? ? 68 335 3 475 3 700 __(225) 68 110 Current Liabilities Creditors 43 000 5 700 5 300 54 000 Current Assets Stock Debtors Bank 9 140 8 200 1 710 19 052 73 050 4 940 _____ 73 050 30 Chapter 8 Final Accounts with Further Considerations Answers to Activities Activity 8. 1 T Antonio Trading Account for the month ending 30 April 20X8 Opening Stock Purchases Add Carriage inwards Less Returns outwards Less Closing Stock Cost of goods sold Gross profit c/d ? 3 855 2 680 102 2 782 139 Sales Less Returns inwards Turnover ? 280 139 5 141 2 643 6 498 2 631 3 867 1 274 5 141 5 141 Solutions to Target Practice Questions Question 1 (a) Carriage Inwards is associated with the cost of getting goods into the business and ready for resale so it is always added to the cost of purchases in the Trading Account. Carriage Outwards is a necessary cost of ‘distribution’ of sales to customers and so it is debited to the Profit Loss Account with other expenses. (b) It is necessary to include returns inwards and returns outwards in the trading account to adjust the purchases and sales figures to find the amounts actually bought and sold. c) It shows the amount of resources a business has that can be readily turned into cash. 31 Question 2 R Knight Trading and Profit Loss Account for the year ended 31 October 20X6 ? Sales Less: Returns inwards Turnover Less: Cost of goods sold Opening stock Purchases Add: Carriage inwards Net purchases Less: Closing stock Gross Profit Less: Expenses Carriage outwards Wages Sundry expenses Net Profit ? ? 120 500 740 119 760 15 200 75 400 2 150 77 550 92 750 13 600 79 150 40 610 3 200 28 500 2 230 33 930 6 680 32 Question 3 T Pearl Trading and Profit Loss Account for the year ended 31 August 20X7 ? Sales Less: Returns inwards Turnover Less: Cost of goods sold Opening stock Purchases Add: Carriage inwards Less Returns outwards Net purchases Less: Closing stock Gross Profit Add: Rent Receivable Less: Expenses Carriage Outwards Rent Payable Lighting and heating Telephone Net Profit ? ? 34 350 1 230 33 120 4 360 26 500 940 27 440 1 050 26 390 30 750 4 210 26 540 6 580 600 7 180 540 2 100 430 215 3 305 3 875 33 Question 4 P Franks Trading and Profit Loss Account For the year ended 28 February 20X8 ? Sales Less: Returns Inwards Turnover Less: Cost of goods sold Opening stock Purchases Less: Returns outwards Net purchases Less: Closing stock Gross Profit Less: Expenses Lighting and heating Salaries and wages Sundry expenses Rent and rates Net Profit ? ? 221 300 5 200 216 100 12 600 155 400 6 650 148 750 161 350 16 100 145 250 70 850 3 900 48 500 4 650 2 300 59 350 11 500 34 P Franks Balance Sheet at 28 February 20X8 ? Fixed assets Premises Equipment Motor vehicle Current assets Stock Debtors Bank Cash Less: Current liabilities Creditors Net current assets Long-term liabilities Loan ? 04 000 28 000 21 000 153 000 16 100 23 750 960 76 40 886 15 716 25 170 178 170 32 000 146 170 Financed by: Capital Balance b/d Add: Net profit Less: Drawings 145 270 11 500 156 770 10 600 146 170 35 Question 5 T Williams Trading and Profit Loss Account for the year ended 31 May 20X8 ? Sales Less: Returns inwards Turnover Less: Cost of goods sold Opening Stock Purchases Add: Carriage inwards Less: Ret urns outwards Net purchases Less: Closing stock Gross Profit Less: Expenses Wages and salaries Rent Insurance Sundry expenses Carriage Outwards Net Profit ? 139 200 430 138 770 27 230 103 500 630 104 130 960 103 170 130 400 30 580 99 820 38 950 15 320 5 400 325 475 2 340 23 860 15 090 36 T Williams Balance Sheet at 31 May 20X8 ? Fixed assets Buildings Fixtures and fittings Current assets Stock Debtors Bank Cash Less: Current liabilities Creditors Net current assets Long-term liabilities Loan Financed by: Capital balance b/d Add: Net profit Less: Drawings ? 32 000 4 250 36 250 30 580 21 460 4 450 195 56 685 12 240 44 445 80 695 15 000 65 695 62 005 15 090 77 095 11 400 65 695 37 Chapter 9 The Division of the Ledger and Books of Original Entry Answers to ‘Think about it’ Questions Page 93 – What have you noticed about the Cash Book? It is a Book of Original Entry as well as a Ledger. Answers to Activities Activity 9. 1 1. 2. 3. 4. 5. 6. General Ledger Sales Ledger General Ledger General Ledger General Ledger or Private Ledger General Ledger Solutions to Target Practice Questions Question 1 (a) They provide documentation (proof) that a transaction has occurred. (b) 1. 2. They save time as they summarise similar transactions for the period, resulting in less information and less frequent postings to the General Ledger. They allow a business to have different individuals responsible for different journals therefore increasing internal control. Question 2 (a) Debtors Ledger (b) Creditors Ledger (c) Nominal Ledger Question 3 (a) (b) (c) (d) (e) Real Nominal Nominal Real Real Question 4 (a) (b) (c) (d) (e) (f) Cash Book Cash Book Cash Book Cash Book Purchases Day Book Cash Book 38 Chapter 10 Bank Facilities Answers to Activities Activity 10. 1 Payee Cheque number Drawer Counterfoil Crossed cheque Mary White is writing a cheque for ? 200 to John Blue. As she is the drawer she must make sure that she signs the cheque. Her book-keeper told her to always fill out the counterfoil so she will have a record of the payment. As the cheque number is on the counterfoil as well as the cheque it will help her to trace the payment. She has decided to give John a crossed cheque as she is worried that the cheque might get lost. John is not very happy about this. As he is the payee it means he will not be able to get the money from the bank immediately. Solutions to Target Practice Questions Question 1 Bank 20X7 ? 45 December 15 December 22 20X7 November 30 Interest receivable Interest payable Bank charges ? 320 45 Interest Receivable 20X7 November 30 Bank ? 145 20X7 December 15 Bank Interest Payable ? 320 20X7 December 22 Bank Bank Charges ? 45 Question 2 A bank overdraft occurs when the bank allows a current account holder to withdraw more money from the account than is actually in the account. For example, the account holder only has ? 800 in the account but with the permission of the bank is allowed to withdraw up to a maximum of ? 1500. 39 Question 3 A standing order is used for payments of fixed amounts at regular intervals at the request of the account holder while a direct debit is made at the request of the payee (the person/organisation that is owed) and can be used for either fixed or changing amounts and for payments at irregular intervals. Question 4 (a) Interest receivable is the interest received on the balance of an interest bearing account; the amount the bank pays the account holder for the use of the money in the account. (b) Interest payable is the cost of borrowing; it is the payment to the lender (the bank) for the use of its money. c) Bank charges is a charge by a bank for the services it provides. Question 5 (a) (b) (c) (d) Direct Debit Credit transfer Standing order Dividend Question 6 (a) 1. 2. Current account Deposit account (b) Current accounts do not always earn interest, deposit accounts do. Question 7 (a) (b) (c) (d) ? 2738. 57 – ? 206. 05 = ? 2532. 52 Credit column Credit transfer Loan repayment through a standing order 40 Chapter 11 Cash Books Answers to ‘Think about it’ Questions Page 111 – Is it possible for the cash columns to have a credit balance? Give reasons for your answer. No – because it is impossible to spend more cash than is available. If the business has cash in hand of only ? 50 then it cannot spend more than this amount. Solutions to Target Practice Questions Question 1 (a) As a book of original entry it is the first place where all the cash and cheque transactions are recorded; it is also one side of the double entry. (b) Where the debit and credit entries for a transaction are in the same ledger or book. Question 2 F. Patel – Cash Book Bank 20X3 Details ? Bank (C) Nov 02 Rent 2 800 Nov 03 Purchases Nov 07 Stationery 230 Nov 10 Wages Nov 12 Cash (C) 200 Nov 14 Carriage in Nov 20 Drawings Nov 26 Bank (C) Nov 28 Purchases Nov 30 Balances c/d †¦Ã¢â‚¬ ¦.. Nov 30 3 230 2 130 20X3 Nov 01 Nov 02 Nov 14 Nov 17 Nov 23 Nov 28 Details Capital Cash (C) Bank (C) Sales Sales Cash (C) Cash ? 3 000 160 220 Cash ? 2 800 46 120 Bank 140 370 160 34 60 200 120 3 380 430 2 130 3 230 Dec 1 Balances b/d †¦Ã¢â‚¬ ¦.. 3 380 120 41 Question 3 T. Karekla – Cash Book Cash Bank 20X9 Details ? ? Motor vehicle 6 000 July 3 150 Cash (C) July 4 Rent 2 000 July 8 100 Purchases July 10 390 Carriage in July 18 Cash (C) 540 July 20 Purchases 300 July 24 Wages July 24 Bank (C) July 30 Balances c/d July 31 ___ ____ 640 8 840 95 4 460 0X9 July 1 July 4 July 15 July 20 July 23 July 29 July 30 Details Capital Bank (C) Loan Bank (C) Sales Sales Cash (C) Cash ? 85 Bank ? 3 000 150 460 40 100 20 300 95 670 100 4 460 8 840 Aug 1 Balances b/d Question 4 Maria Metaxa – Cash Book Cash Bank 20X7 DETAILS ? 65 ? 3 196 2 610 1 250 2 730 2 945 1 760 Feb 02 Feb 06 Feb 06 Feb 12 Feb 12 Feb 15 Feb 16 Feb 19 Feb 21 Feb 25 Feb 27 Feb 28 Feb 28 Feb 28 Postage Purchases Wa ges Cash (C) Wages Electricity Stationery Wages Travelling expenses Telephone Wages P Barratt D Smart Balances c/d 20X7 Feb 01 Feb 04 Feb 08 Feb 10 Feb 12 Feb 19 Feb 23 DETAILS Balances b/d Sales D Pole Sales Bank (C) Sales E Holme Discount Allowed ? 30 Discount Received ? Cash ? 50 Bank ? 1 075 2 167 100 1 964 53 100 40 38 1 840 19 132 1 920 1 240 2 145 1 855 14 491 __ 70 Mar 1 Balances b/d ___ 165 58 _____ 14 491 1 855 20 55 __ 75 58 165 (b) Discount Allowed ? Total for the month 70 20X7 February 28 42 Discount Received 20X7 February 28 Total for the month ? 75 Question 5 (a) 20X2 Oct 01 Oct 02 Oct 10 Oct 12 Oct 18 Oct 20 Oct 21 Oct 21 Oct 26 DETAILS Balances b/d P Mace Sales G Lai Bank (C) Sales Loan interest Cash (C) B Chalke Discount Allowed ? 150 1 120 60 16 1 120 704 Sally Foon – Cash Book Cash Bank 20X2 DETAILS ? 68 ? 160 2 086 560 Oct 01 Oct 12 Oct 14 Oct 16 Oct 18 Oct 21 Oct 22 Oct 22 Oct 24 Oct 28 Oct 30 Oct 30 Oct 31 Balances b/d W Eastern Stationery F Samway Cash (C) Bank (C) Wages G Lai Telephone Office Expenses L. Hall Interest paid Balances c/d Discount Received ? Cash ? 35 4 1 120 35 560 147 40 13 __ 17 247 20 1 618 14 491 86 150 Bank ? 1 692 75 __ 24 Nov 1 Balances b/d ____ 1 398 203 _____ 4 630 1 618 203 1 398 (b) The ? 24 discount allowed will be posted to the debit side of the discount allowed account. The ? 17 discount received will be posted to the credit side of the discount received account. (c) 20X2 October 31 Discount Allowed ? Total for the month 24 Discount Received 20X2 October 31 Total for the month ? 17 43 Chapter 12 The Sales and Purchases Day Books Answers to ‘Think about it’ Questions Page 125 – Why do you think the invoice numbers are not sequential in S French’s Purchases Day Book? Because S French has not assigned unique numbers to each invoice but is instead using the invoice numbers as received from the different sellers. Solutions to Target Practice Questions Question 1 (a) Sales Day Book Date 20X8 Oct 01 Oct 04 Oct 09 Oct 15 Oct 23 Oct 29 Oct 31 Details F Law G Harding S Wilks L Ryle F Law G Harding Transferred to Sales Account Net Amount ? 612 436 370 810 354 508 3 090 (b) Sales Ledger 20X8 October 01 F Law ? 612 Sales 20X8 October 04 Sales G Harding ? 436 20X8 October 09 Sales S Wilks ? 370 44 L Ryle 20X8 October 15 Sales ? 810 20X8 October 23 Sales F Law ? 354 20X8 October 29 Sales k G Harding ? 508 General Ledger (c) Sales 20X8 ? October 30 Credit sales for the month 3 090 Question 2 (a) Sales Day Book Date 20X5 July 02 July 07 July 12 July 18 July 23 July 30 July 31 Details D Smith T Ronald N Smithers L Malt D Smith T Ronald Transferred to Sales Account Net Amount ? 488 480 256 186 221 435 2 066 (b) Sales Ledger 20X5 July 02 D Smith ? 488 Sales 45 20X5 July 07 July 30 Sales Sales T Ronald ? 480 435 N Smithers ? 256 20X5 July 12 Sales 20X5 July 18 Sales L Malt ? 186 20X5 July 23 Sales D Smith ? 221 General Ledger Sales 20X5 July 31 Credit sales for the month ? 2 066 Question 3 (a) Purchases Day Book Date 20X3 April 01 April 03 April 10 April 14 April 21 April 27 April 30 How to cite Lcci Passport to Sucess Level 1 Book-Keeping Answer, Papers

NATO in Serbia free essay sample

An analysis of the NATO invasion of Serbia by examining international law. This paper attempts to justify the NATO strikes on Serbia by examining international law. This invasion, made for both strategic and moral purposes, and made in part because of violations of international law by Serbia, was itself an exercise in near-total disregard of international law. On March 24, 1999, President William Clinton of the United States of America ordered air strikes against Serbia as part of a North Atlantic Treaty Organization (NATO) offensive, Operation Allied Force. Speaking to the American people, he explained: We act to protect innocent people in Kosovo from a mounting military offensive to prevent a wider war; to diffuse a powder keg at the heart of Europe that has exploded twice before in this century to stand united with our allies for peace. The 30,000 soldier offensive was made in response to Serbian oppression of ethnic Albanians living in the province of Kosovo. We will write a custom essay sample on NATO in Serbia or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page NATO justified the bombing as an attempt to protect Kosovar civilians, to stabilize regional European security, and to maintain NATO credibility. This invasion, made for both strategic and moral purposes, made in part because of violations of international law by Serbia, was itself an exercise in near-total disregard of international law.

Determination Of Level Of Compensation †MyAssignmenthelp.com

Question: Discuss about the Determination Of Level Of Compensation. Answer: Introduction: The idea of linking high pay packages with the executives of various Companies for their exquisite skills and jobs have been the norm for a very long period of time. It is widely believed that the executives must be paid handsomely for their top notch services and cultural changes brought into the organization. There is a limited pool of the best executive talents and failing to pay their high end salaries may compel them to flock to better places. This notion has been the backbone of the high pays. This trend has continued despite the severe drop in the share prices of the various companies which have followed the culture of paying handsomely to their executives. In such a scenario, the shareholders are not very impressed and they want to withdraw their generous pay packets made to their company executives. This report aims to throw some light and analyze the executive compensation for the financial year 2016-17 for Commonwealth Bank of Australia. In addition to this, the report sha ll also look into the various accounting provisions regarding executive compensation in the Australian context. Literature Review: Determination of level of compensation: There have been a variety of factors which have been instrumental in influencing the level of pay packets provided to the executives. According to the report compiled by Shields and ODonnell risk, responsibility and organizational size are some of the primary factors on which the level of executive remuneration depends. Globalization and scarcity of quality executives also have impacted the executive remuneration of the companies. Theoretical explanation for High pay: There are various theoretical explanations behind this heavy pay; Adam Hartung of Forbes has said that a CEO and other executives earn so much because they can (Forbes Welcome, 2018) A CEO practically sets up his or her own salary and the board has the power to change it but they seldom do it, because the board generally comprises of Ex-CEOs and it doesnt do much good to the reputation of the former ones to alter the salaries of the present ones. The Companies hire external lawyers and consultants to review the pay packets and the performances of the executives, but they mostly hired by the CEOs themselves (Choe, 2014). These external reviewers generally give their nod to such exorbitant pay packets justifying the power, and the pressure of the high profile jobs of these CEOs. Executive compensation and firm performance: The influence of the remuneration of the CEO on the performance of the firms is profound. Generally it is seen, that a positive relationship exists between the two. It is because, when the firms performance increases, so does the companys profitability and the CEOs pay. A study conducted by Sigler in 2011 concluded that there is a strong and positive relationship between the two. In 2011, coverage on this report was done by BBC and it was concluded from the coverage that the high pay of the company executives has a corrosive impact on not only the economy as a whole but also affects the efficiency, performance and capabilities of the employees of the firm (Schultz et al., 2013). This is turn has serious implications on the firms performance. Another study performed by Leonard in 1995 suggests that a firm with long term incentive plans for its employees and executives have a direct link with greater Return on equity of the firm. Effect of internal corporate governance on CEO compensation and firm performance: The primaries purpose of the board of directors of any company is the incessant monitoring the performance of the management of the company. They advise the management about the day to day functioning. They set up executive compensation and also work round the corner to protect the interests of the company. Some of the studies present some alternative views, as is presented by Jensen (1993), who argues that often the board of directors fail to look into the working of the management of the company because of the differences of opinion between the two because of their different objectives. The management want to increase sales in order to increase their commission whereas the board wants better compensation for their job. The directors do not want to rock the boat, so they stop interfering with the lax performance of the management (Khan Vieito, 2013). This kind of a culture is present because of the presence of deep layers of cronyism which exist in the company as has been revealed by Jensen. In such a scenario, both the directors fail to protect the interests of the shareholders of the company. This showcases a negative relationship between firm performance and executive compensation. Callahan, Millar, and Schulman (2003) have concluded from their study that performance of a company is positively related with the involvement of management in the selection of members of the board but the association is negative when the CEO also is the Chairman of the Board of Directors. It has been revealed that when the CEO is in the chair and is at the helm of affairs, directors receive higher and better compensation (Kiatpongsan Norton 2014). This practice reflects a business environment which is characterized by weak and feeble governance suggesting cronyism. Discussion and Analysis: Ethical issues in 2016: The payment of salaries and bonuses to top executives in the Australian banking industry had called for an excessive attention of the financial world. Commonwealth bank, the island nations largest banking company had been in the limelight for all the wrong reasons, the companys CEO Ian Narev had earned a mammoth $ 8.6 million including the bonus and salaries in 2016. This has caused widespread discontent among the general public (The New Daily, 2018). It has caused significant amount of disparity in income between the average Australian and the executive incomes. The current Australian minimum wage rate is $17.29 per hour or approximately $ 34,000 per year. The full time average adult weekly total earnings is about $ 1500. This disparity of income has brought the case of Commonwealth Bank in the limelight. This had brought into the mainstream media about the pay parity ethical issues regarding the compensation packages in the year 2016. Social Criteria in CEOs compensation package: Benefits: It would lead help in stimulating the efforts on the part of the executives of the company to work towards their social responsibilities, as a result of which, the value of the company would improve and increase. The results of social projects are filled with risks and are ambiguous in nature. The linking of compensation pay with social criteria helps the executives of the company to put their efforts and time into the social arena (Ferri Maber, 2013). It would help to protect the executives from the uncertain results of social strategies of the company. Executive pay packages in exchange for undertaking social responsibilities makes the executives socially responsible to their as well the firms actions in the arena of social service. Drawbacks: The impact of social initiatives upon the economic performance and results of a company is not very clear as a result, executives are not very inclined to undertake these social tasks (Wilkins, 2018). In some cases, the interests of the various stakeholders of the company are at a continuous conflict with the social and other environmental policies and actions. This is a big turn off for the executives, which may compel them to stop pursuing social responsibilities. CBA executive remuneration comparison and changes: The complete remuneration details of all the board members of 2016-17 has been provided below: (2016 figures are in black and 2017 are normal) Executive members Base remuneration Short term benefits (incl. LTVR STVR) Others Long term benefits Loan to Value remuneration rights Total Statutory remuneration Ian Narev (CEO) 2,625,000 2,625,000 2,902,052 40,909 35,870 35,870 1,37,211 113,341 3,068,219 2,966,190 8,768,352 5,712,363 Adam Bennet (Group Exec.) 955,000 974,600 1,212,522 40,909 9385 (36,550) 51,361 24,113 283,329 145,640 2,630,713 1,672,373 David Cohen (Group Exec.) 875,000 1,175,000 1,099,240 49.909 60,308 44,169 35,088 100,122 964,254 988,620 3,033,890 3,033,890 Matt Comyn (Group Exec.) 1,030,750 10,30,750 1,345,232 39,599 6656 24,802 36,150 25,425 982,736 1,078,073 3,401,526 2,198,649 David Craig (Group Exec.) 1,355,000 1,360,384 1,644,140 19,616 57,196 51,519 60,057 69,661 1,478,428 3,935,949 4,615,541 5,453,038 Rob Jesudason (Group Exec.) 1,190,237 1,149,030 14,27,532 3073 627,302 972,349 24,014 41,466 853,286 987,414 4,122,371 3,153,322 Kelly Bayer Rosemarin (Group Exec.) 1025600 1,025,600 12,12,522 40,909 3760 18,037 68,867 (52,237) 555,203 833,943 3,076,278 1,936,835 Review and Analysis of Changes: The remuneration scheme and report for the fiscal year 2016 was viewed as complex, visionless and complete lack of transparency. The company had paid huge amount of unnecessary short term benefits in the form of cash Short term variable remuneration for overcoming financial hurdles in a single year, Deferred STVR and other short term benefits. No proper basis was presented in the report for the allowance of such expenses. In the subsequent year, the executives had received LTVR awards for undertaking various risky business propositions. The excessive monetary benefits were transformed into awards in the subsequent financial year. There was a lot of ambiguity in the financial reports too in relation to the share payments. This had made it difficult to fully comprehend and understand the details of of the remuneration framework adopted in 2016 by CBA. The Board has proposed a new approach to tackle such financial mishaps in the near future such as:- Usage of quantitative performance targets which are easily measureable while calculating STVR. Complete transparency of LTVR awards by use of face value methodology. A thorough and transparent approach to be applied while clarifying Key Management Personnel (KMP) remuneration procedure and outcomes. Increased quantitative measurement of the various non financial measures and procedures and the introduction of customer performance score cards for boosting customer and other stakeholders confidence. Direct linking of variable remuneration to both short term and long term performance goals. The company has addressed some of the key issues while revamping their pay structure. According to Adam Hartung, a CEO has the ability to manipulate and set his or her own remuneration and still this loophole exists with CBA. Now with the excessive media pressure, transparency has been brought in through the linkage of performance and risks, increased quantitative assessments. If the board fails to address this issue more stringently, a second voting strike may occur from the disgruntled shareholders (ABC News, 2018). Still, the threat of projecting a favorable report by the external agencies looms at large as these agencies are still hired by the internal management of CBA and the chances of cronyism and favoritism is still quite high. Recommendation: The company had received a fair amount of media backlash and loss of reputation due to its remuneration scandal back in 2016. In the banking industry it is one of the most reputed banks and is the largest company in the island nation and a huge image loss has been detrimental to the company. The company must take some stringent actions internally in order to address this issue at the grass root level. Large scale transparency is needed in the framing of remuneration scales, unnecessary expenses must be avoided, timely audit performance by a government backed independent agency must be done in order to ensure complete authenticity in the pay process in order to ensure an avoidance of similar incidents in the future. References: ABC News. (2018). CBA averts board spill, apologises for AUSTRAC scandal. [online] Available at: https://www.abc.net.au/news/2017-11-16/commonwealth-bank-avoids-board-spill-at-agm/9157870 [Accessed 31 Mar. 2018]. Asx.com.au. (2018). [online] Available at: https://www.asx.com.au/asxpdf/20170814/pdf/43lcmzmrg2sjnj.pdf [Accessed 31 Mar. 2018]. Choe, C., Dey, T., Mishra, V. (2014). Corporate diversification, executive compensation and firm value: Evidence from Australia.Australian Journal of Management,39(3), 395-414. Ferguson, A. (2018). Why CBA's Ian Narev had to 'retire'. [online] The Sydney Morning Herald. Available at: https://www.smh.com.au/business/banking-and-finance/why-cbas-ian-narev-had-to-retire-20170814-gxvt2z.html [Accessed 31 Mar. 2018]. Ferri, F., Maber, D. A. (2013). Say on pay votes and CEO compensation: Evidence from the UK.Review of Finance,17(2), 527-563 Forbes Welcome. (2018).Forbes.com. Retrieved 31 March 2018, from https://www.forbes.com/sites/adamhartung/2015/06/22/why-ceos-make-so-much-money/#1394112f4203 Khan, W. A., Vieito, J. P. (2013). CEO gender and firm performance.Journal of Economics and Business,67, 55-66. Kiatpongsan, S., Norton, M. I. (2014). How much (more) should CEOs make? A universal desire for more equal pay.Perspectives on Psychological Science,9(6), 587-593. Schultz, E., Tian, G. Y., Twite, G. (2013). Corporate governance and the CEO payperformance link: Australian evidence.International Review of Finance,13(4), 447-472. The New Daily. (2018). 'What are we paying bank CEOs for?' | The New Daily. [online] Available at: https://thenewdaily.com.au/money/finance-news/2016/09/27/bank-ceo-pay/ [Accessed 31 Mar. 2018]. Wilkins, G. (2018). 2016 a wake up call for company boards on executive pay. [online] The Sydney Morning Herald. Available at: https://www.smh.com.au/business/the-economy/2016-a-wake-up-call-for-company-boards-on-executive-pay-20161208-gt6iwk.html [Accessed 31 Mar. 2018].