Accounts Olevel Important topics and problem discussion

[Ammy]

Important topics for may june 2012
Manufacturing accounts
Control accounts
Suspense
Fixed assets accounting
Non profit organizations
company accounts definations

Any queries related accounts can be solved in here

 

[AlphaBeta]

Important topics for may june 2012
Manufacturing accounts
Control accounts
Suspense
Fixed assets accounting
Non profit organizations
company accounts definations

Any queries related accounts can be solved in here

problem with subscripition a/c

 

[Ammy]

what kind of problem boi??

 

[muzirox]

Ammy
i've a prb in accounting basics like effects of transaction on capital employed,owner's capital,working capital or net profit so can u help me.

 

[AlphaBeta]

what kind of problem boi??

lik bad debts in it

 

[Manzah.R]

hey people....hw was ur xam..??

 

[kamidada]

Ammy
i've a prb in accounting basics like effects of transaction on capital employed,owner's capital,working capital or net profit so can u help me.

All u need to remember are the formulae for the items u named:
1) CAPITAL EMPLOYED =All Assets (Current and Non Current) - Current Liabilities
OR
CAPITAL EMPLOYED = Capital + Non Current Liabilities
2) OWNER'S CAPITAL = Assets - Liabilities
3) WORKING CAPITAL = Current Assets - Current Liabilities
4) NET PROFIT = Incomes - Expenses

Next u need to see; what elements in the formula are affected with the transaction and are they going up or down. Accordingly decide the effect on the Capital Employed or Owners Capital etc.

 

[kamidada]

problem with subscripition a/c

Remember, Subscription is an Income Account
Any Subscription (Income) due but not received is an asset (Subscription in Arrears/ Subs Owing)
Any Subscription (Income) received in advance is a liability (Subscription in Advance)
Subscription (Income) Received during the year (period) will be credited to Subscription (Income) A/c
Hence the account would appear as follows:


Subs in Arrears b/d** XXX Subs in Advance b/d** XXX
INCOME & EXPD A/c XXX Subscription Recd* XXX
Subs in Advance c/d** XXX Subs in Arrears c/d** XXX

*Subs Recd can be found in Receipt and Payments Account.
**These are NOT compulsorily be given in the question. If given just put on the respective sides else ignore.
Questions can be asked in other ways also but I thnk u shud practice Jun 94 Q.4, Jun 96 Q.4, May02 Q.4, Nov 04 Q.3 this first and the I can snd u more variety

 

[AlphaBeta]

Remember, Subscription is an Income Account
Any Subscription (Income) due but not received is an asset (Subscription in Arrears/ Subs Owing)
Any Subscription (Income) received in advance is a liability (Subscription in Advance)
Subscription (Income) Received during the year (period) will be credited to Subscription (Income) A/c
Hence the account would appear as follows:


Subs in Arrears b/d** XXX Subs in Advance b/d** XXX
INCOME & EXPD A/c XXX Subscription Recd* XXX
Subs in Advance c/d** XXX Subs in Arrears c/d** XXX

*Subs Recd can be found in Receipt and Payments Account.
**These are NOT compulsorily be given in the question. If given just put on the respective sides else ignore.
Questions can be asked in other ways also but I thnk u shud practice Jun 94 Q.4, Jun 96 Q.4, May02 Q.4, Nov 04 Q.3 this first and the I can snd u more variety

include bad debts i ur explanation thats my doubtnd do we put da whole receipts in sub a/c for da year

 

[AlphaBeta]

ready to help anyone

 

[scouserlfc]

Important topics for may june 2012
Manufacturing accounts
Control accounts
Suspense
Fixed assets accounting
Non profit organizations
company accounts definations

Any queries related accounts can be solved in here

Where did u get these important points from ??? Just asking no need to be mad !

 

[Ammy]

Where did u get these important points from ??? Just asking no need to be mad !

well its mine own guess

 

[Ammy]

for subscrption rememeber appa..
mean arears bd on debit side prepaid bd on crdit side prepaid cd on debit side and arears cd on crdit side
wat ever income u will recieve during the year will be credited.. and the balance will charged to income and expenditure account

 

[scouserlfc]

well its mine own guess

Hmmm thanks anyways !

 

[muzirox]

Hi,where can we do working in paper 2 like for calculating current a/c balance,etc.

 

[kamidada]

include bad debts i ur explanation thats my doubtnd do we put da whole receipts in sub a/c for da year

Bad or irrecoverable subscriptions will be credited to subs a/c. Whatever amount u receive during the year shud be credited to the subs a/c

 

[kamidada]

Hi,where can we do working in paper 2 like for calculating current a/c balance,etc.

In case the qs does not provide any space u can use blank pages and even the pages given for the final accounts qs, as those are now given in much more no. than needed. For anything which u cancel at the given space can also be done in those pages

 

[muzirox]

In non profit organization question,gift (for purchase of specific equipment) given in receipts so plzzz tell wt will b it's accounting treatment in balance sheet & income & expenditure.
One more question, does department account include in our syllabus??

 

[kamidada]

In non profit organization question,gift (for purchase of specific equipment) given in receipts so plzzz tell wt will b it's accounting treatment in balance sheet & income & expenditure.
One more question, does department account include in our syllabus??

Yes, Departmental A/cs is there in the course
Donation/ Legacy/Gift given in general without a given purpose is an income for the year and would appear in the Inc and Expd A/c whereas gift (for purchase of specific equipment) given in receipts would not appear in the Inc and Expd A/c but in the Balance Sheet After the calculation of Accumulated Fund at the end as follows'


FINANCED BY:
Accumulated Fund (Opening) XXX
Add Surplus of Income over Expenditure XXX
Accumulated Fund (Closing) XXX

Add: Gift or Donation given specific purpose XXX
XXX

 

[muzirox]

Yes, Departmental A/cs is there in the course
Donation/ Legacy/Gift given in general without a given purpose is an income for the year and would appear in the Inc and Expd A/c whereas gift (for purchase of specific equipment) given in receipts would not appear in the Inc and Expd A/c but in the Balance Sheet After the calculation of Accumulated Fund at the end as follows'


FINANCED BY:
Accumulated Fund (Opening) XXX
Add Surplus of Income over Expenditure XXX
Accumulated Fund (Closing) XXX

Add: Gift or Donation given specific purpose XXX
XXX

Thnk you very much,
ALLAH BLESS YOU