# Level 3 Advanced Bookkeeping Formulas

?
What is the accounting formula?
Assets - liabilities = equity + profit
1 of 12
What is the formula for profit?
Income - expenses = profit
2 of 12
What is the formula for net worth?
Equity + profit = net worth
3 of 12
What is the formula for net assets?
Non current assets + net current assets - non current liabilities = net assets
4 of 12
What is the formula for straight line depreciation?
Cost - residual value / useful economic life
5 of 12
What is the formula for net book value?
Cost - depreciation charged to date
6 of 12
How do you know if you have a profit on disposal?
Proceeds > net book value
7 of 12
How do you know if you have a loss on disposal?
Proceeds < net book value
8 of 12
What is the formula for cost of sales?
Opening inventory + purchases - closing inventory
9 of 12
How to you know if your VAT is payable to HMRC?
Output VAT > input VAT
10 of 12
How do you know if VAT is reclaimable from HMRC?
Input VAT < output VAT
11 of 12
What is the formula for units of depreciation?
Cost / amount made x units in a year
12 of 12

## Other cards in this set

### Card 2

#### Front

What is the formula for profit?

#### Back

Income - expenses = profit

### Card 3

#### Front

What is the formula for net worth?

### Card 4

#### Front

What is the formula for net assets?

### Card 5

#### Front

What is the formula for straight line depreciation?