Accounting | Accounting; JBHIFI Limited Company


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Part A (20 marks)
Refer to the 2014 annual report of JB Hi-Fi Limited on its website,,
and answer the following questions:
1. What is the total value in the consolidated financial statements for each of the
following items at the end of the year?
Cash and cash equivalents
Sales revenue
Other income
Plant and Equipment
Interest Expense (finance costs)
Sales and marketing expense
Occupancy expenses
Trade and other payables
Borrowings (non-current)
2. What is the normal balance for each of the accounts listed above? What side of the
account, debit or credit, is affected in order to decrease each item?


  1. JBHIFI Limited is an Australian/New Zealand Retailer based retailer dealing in the supplies of Electronics, hardware, DVDs, home appliances, Blu-rays and video games(JB Hi-Fi, 2016). The company has showcased immense growth and performance over the years. From its consolidated financial statements, the following is reported as the total value of each item at the end of the year;
  2. Cash and Cash equivalents- $43.45M
  3. Inventories – $458.63M
  4. Sales revenue- $3.48B
  5. Other income- $128.36M
  6. Plant and equipment- $366.29M
  7. Interest expenses (Finance Cost)- $7.91M
  8. Sales and marketing expense- $532.26M
  9. Occupancy expense- $82.21M
  10. Trade and other payables- $244.44M
  11. Borrowings (Non-current) – $179.65M
  12. In the classification of the accounts of an item, accounts are classified according to the effect the pose to the overall financial statement (general ledger) that is either a credit balance or a debit balance, termed as the ‘normal balance’ (Weil, et al., 2012, p. 73). Pegged on the effect the accounts pose, the accounts may either get recorded in the debit or the credit side of the firm’s general ledger. In this case, we consider how an increase in the reported items would be classified in their entry in the general ledger and how they shall be recorded;