Английский язык для бухгалтерского дела. English for Accounting. Учебное пособие

II. Prepare a brief report on the basis of the content of texts A and B. Make up 8-10 sentences summarizing the company’s financial activity over a given period of time.

III. Find an Income Statement of a Russian company and translate it into English.

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Translate Text C into Russian in 45 minutes. Use the dictionary. Answer the question: What principle advantage do preference shares have?

Text C

SHARE CAPITAL

Share Capital is equal to the difference between the company’s property value and liabilities. Generally speaking share capital is the shares in the proprietary interest in the company. The participation in the proprietary interest in the company is represented by share certificates issued by the company for shareholders. There are different kinds of shares issued by a public company, each kind of shares possess different requisites.

Preference Shares have a principal advantage as compared to other kinds of shares regarding payment of dividends as well as distribution of assets in case of liquidation of the company. The Articles of Association of the public companies specify the terms of the preference shares issue. The

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owners of preference shares have the first option to a fixed income of 5% of the par value of the share ($100 each). Thus, deductions for the preference shares dividends payment are prior the ordinary shares dividends distribution. The preference shares holders have no right to participate in the management of the company until the latter is not able to pay the dividends at the rate specified. So the holders of the preference shares have a right to a fixed income of $ 5 per share. That is their advantage, but on the other hand, if the holders of the preference shares anticipate only $ 5 per share, the holders of the ordinary shares can get better dividends provided the company does very well and vice versa: the dividends rate falls in the case of the decrease in the income of the company. Ordinary shares are fixed units of the company's share capital that provide a profit in the form of dividends related to the total profits of the company; holders of ordinary shares have voting rights.

Notes: 1. the shares in the proprietary interest in the company - паевые взносы

в капитал компании

2.par value - номинальная стоимость

3.provided the company does well - при условии, что компания процветает

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UNIT V

Text for Study: Expenses (Text A)

Grammar Guide:

The Present Participle;

The Gerund (V- ing forms);

Past Participle.

SupplementaryReading:

Purchases and Sales (Text B);

Incomes (Text C).

PRE-TEXT TASKS

I. Practise the pronunciation of the words and word combinations from Text A. Memorize them.

1.postage ['pqVstIG] - стоимость почтового отправления.

2.concisely [kqn'saIslI] - кратко

3.insurance [In'SV(q)rqns] - страхование

4.carriage inwards ['kxrIG 'Inwqdz] - затраты на ввоз товара

5.carriage outwards ['kxrIG 'aVtwqdz] - затраты на вывоз товара

6.advantage [qd'vQ:ntIG] - преимущество

7.authority [O:'TOrItI] - власть, полномочия

8.reduction [rI'dAkS(q)n] - снижение, уменьшение

9.refuse collection ['refju:s kq'lekS(q)n] - сбор отходов

10.advertising ['advqtaIzIN] - реклама

11.delivery charge [dI'lIv(q)rI "tSQ:G] - плата за доставку товаров

12.make an entry [meIk qn entrI] - сделать бухгалтерскую запись

II.Look through Text A and find the words which are equivalent to the following. Mind that their meanings are international:

бизнес, номер, рента, локальный, сорт, кредит, дебет, записывать, условие, сервис, интерес, функция, телефон.

III. Define what parts of speech the following words belong to:

payment, directly, benefits, owner, different, vary, postage,

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concisely, above, might, assume, premises, value, correct, reduction, own, open, salaries.

IV. Think of the best Russian equivalents to the following word combinations.

1.Business will have to make payments…

2.Accounts would be entitled…

3.Expenses you might have mentioned include…

4.You may be able to work out…

5.Expenses have been defined earlier

Find the sentences in Text A they belong to and translate them.

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All businesses will have to make payments for a number of benefits and services they receive but which do not directly provide an asset owned by the business. These are known as expenses. For example the owner may employ people to work for him. In return for services he will pay them wages or salaries depending on their conditions of service. He will need to open an account to record the amount they are paid. This will be called the wages or salaries account.

Services required by different businesses will vary but many will be the same. Some of the most common are: the use of another’s property, for which rent will be paid; use of local authority services such as refuse collection for which rates will be paid; the use of the Royal Mail, for which postage will be paid; and the use of a loan from someone else, on which interest will be paid. Each of these will be given its own account with a name which concisely explains its function. Accounts for the above services would be entitled “rent”, “rates”, “postage” and “interest on loan”.

Other expenses you might have mentioned include: lighting and heating, advertising, repairs, insurance, telephone, carriage inwards (the delivery charge on goods coming into the firm, i.e. purchases) and carriage

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outwards (the delivery charge paid to have goods going out of the firm, i.e. sales).

You may be able to work out what sort of entry will be needed in an expense account. Assume that a businessman who rents his premises makes his payments in cash. What sort of entry will he make in his cash account? Credit is the correct answer because this reduces the value of an asset. Each time the rent is paid, cash is reduced.

What sort of entry must be made, therefore, in the rent account? The answer must be debit because each transaction needs a debit and a credit entry. Expenses have been defined earlier as payments for services that do not directly provide an asset owned by the business. These services are advantages to the business, however, and very similar to assets in that respect. Therefore the rules for their entry are the same as for assets - a debit entry to record an increase and a credit entry-to record a reduction in

COMPREHENSION CHECK

I. Find synonyms among the following words:

expenses, benefit, income, amount, purchase, item, profit, costs, revenues, quantity, buy, entry, reduce.

II.Match the words (1-6) with the explanations (a-f).

1.insurance

2.advertising

3.interest

4.rent

5.salary

6.wages.

a.Making a product or a service known to the public, especially in order to sell it.

b.A regular monthly payment to an employee doing administrative work or carrying out managerial responsibilities.

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c.The earnings of weekly-paid employees who work with their hands or do the simpler jobs in an office as opposed to monthly salaries of supervisers and managers.

d.The extra amount earned or expected to be earned, by a capital asset, after paying for its capital cost.

e.The sum of money received by the owner of property in land or buildings as a periodic payment from an occupier or tenant.

f.Written contract that transfers to an ensurer the financial responsibility for any losses.

III.Say whether these statements are true or false.

1.The owner of the business employs people and pays them wages or salaries.

2.There is no need for the employer to open an account to record the amount the workers are paid.

3.Each account is given a name which explains its function.

4.The most common services required by different businesses are: the use of another’s property, the use of Royal Mail and the use of a loan.

5.Each time the rent is paid, cash increases.

IV. Answer the questions on Text A. 1.What are expenses?

2.What type of account will the employer need to open for recording the amount paid to his workers?

3.What are services required by different businesses?

4.Are the rules for the entry of services the same as for assets?

V.Find the predicate and define its tense and voice. Translate the sentences into Russian.

1.The owner of a business receives a number of benefits and services for which he has to make payments.

2.These services are known as expenses.

3.Other expenses include advertising, insurance, heating and lighting.

4.Services required by different businesses will vary but many will be the same.

5.Each of these services will be given its own account with a name which concisely explains its function.

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V. Find 11 verbs in the Passive Voice, define the Tense of the verbs. Translate the sentences.

GRAMMAR GUIDE

The Present Participle and the Gerund

The Present Participle combines the properties of the Verb with those of the Adjective or the Adverb, while the Gerund combines the properties of the Verb with those of the Noun.

Look trough the Table 1.

Table 1

The Present Participle (active and passive) can be used in the function of: 1) an attribute;

e.g. The persons forming a company are required to submit documents to the Register of Companies.

e.g. The theatre being built here will be one of the largest in our city.

2)an adverbial modifier;

e. g. Smiling she showed me a letter.

e. g. Being asked for her opinion she blushed.

Note: The Perfect and Perfect Passive Participles can only be adverbial modifiers. These forms indicate actions happening before the actions of the main verbs.

e.g. Having passed the last examination he began to look round for a job. e.g. Having learnt the 1st law of supply and demand many students then

automatically associate an increase in price with a fall in the quality demanded and vice versa.

The Gerund can perform the functions of: 1) a subject;

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e. g. Crying will do you no good.

Discounting is the process of buying a security for less than its face value.

2)a predicative;

e. g. The main thing is getting there in time.

3)an object (direct or prepositional); e. g. We discussed opening a new business.

I heard of the experiment having been started last month. We have succeeded in entering a new competitive market.

4)an attribute;

e. g. I like his way of doing this.

5)an adverbial modifier.

e. g. He left without saying good bye.

By increasing the minimum deposit and reducing the period allowed for repayment, the government has a quick acting method of reducing the demand for consumer durables.

Note: When an ing-form is used with an article it becomes a Verbal Noun. e. g. A good beginning makes a good ending.

There are two participles in the English language - Participle I and Participle II. They are also called the present and the past participles though they differ in voice rather than in tense.

Participle II has only one form: written.

Participle II can be used:

1)in the function of an attribute;

e. g. 1. Proceeds from the sale of fixed assets is one of the sources of cash.

2.Gross profit is the difference between the revenue earned from sales and the cost of the goods sold.

Note: When used as an attribute Participle II can precede the noun, it modifies, and follow it.

2)in the function of an adverbial modifier (обстоятельство).

e. g. When properly done the internal auditing helps the firm avoid losses

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due to the theft or the misuse of funds, products or equipment.

Note: Participle II in the function of an adverbial modifier may be introduced by the conjunction when, if, as.

Ex. 1. Translate the following sentences into Russian.

1.The quantity of labour derived from a given stock of population depends upon several factors.

2.Put simply, a business process is the set of activities performed to serve a customer.

3.Taxes placed on goods and services are known as indirect taxes as opposed to direct taxes which are placed on income and wealth.

4.The information obtained is very valuable.

5.Data transmitted during flight are usually provided to the experimenter on magnetic tape.

6.The house restored by the Johnsons is quite unusual.

7.Exhausted from the long hike, he decided not to go to the party.

VI. State the function of the ing-forms in the following sentences.

1.Many businesses are involved in buying and selling.

2.Putting purchases account and purchases returns in a separate account helps keep things simple.

3.If payment is made immediately the credit will be entered in the cash and bank accounts, showing the reduction of an asset.

4.Renting its property to another firm will enable a business to gain useful income.

5.An income which many businesses enjoy come from settling the amounts due to their suppliers promptly.

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Read Text B and do the tasks given after it. Ask questions on the

text for your partners to answer. Make up a summary of the text based on these questions.

Text B

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PURCHASES AND SALES

Many businesses are involved in buying and selling. The stock accounts of these businesses are therefore going to be very busy indeed, with large numbers of transactions to be entered. To keep things simple, four additional accounts are used to record the different events that change the amount of stock. These are: purchases account, purchases returns account, sales account and sales returns account. They may be thought of as subdivisions of the stock account.

Purchases

Purchases of stock increase the value of an asset. What kind of entry in the stock account shows this? The correct answer is “debit”. Instead of making the debit entries in the stock account, we are going to enter all such debits in a purchases of stock account, which for convenience will be called the purchases account.

In which account will the corresponding credit entry be found? This will depend on the method of payment. If payment is made immediately the credit will be entered in the cash or bank accounts, showing the reduction of an asset. If the goods (as stock is sometimes called) are bought on credit then the credit will be entered in the account of the supplier, who is a creditor to the purchaser. This shows the increase of a liability.

Purchases Returns

Sometimes goods which have been bought are later returned by the purchaser. This usually happens when something is found to be wrong with them. These purchases returns are also known as returns outward because they are being sent out from the firm which bought them. Sometimes, therefore, the account is called the returns outward account.

If all purchases and returns of goods bought were entered in the stock account the type of entries would be the same, i.e. a debit entry to record an increase of stock when goods are bought and a credit entry to show a reduction of stock when goods are returned6. Putting purchases account and purchases returns in a separate account helps keep things simple.

Sales

Sales of stock decrease the value of an asset. What kind of entry in the stock account would show this? The correct answer is “credit”.

In which account will the corresponding debit entry be made? This

6 see: Grammar Guide p. 93-94, the second type of Conditional Sentences 60