IGCSE Accounting 0452

[MnMz]

Yup! was pretty simple! but there are also some accounts we have to make such as fixtures a/c.....so what do we do there?

could you attach a question? Like some doubt you have?

 

[umair1161]

In the machine account u always apply historical cost concept... therefore it shows the value of machinery if it is a machinery account, so I guess this can be used and then subtract from it the value of asset at the end...
MnMz Please coorect me if I'm wrong

hmm....alright! but can u please tell me what was the historical cost concept??

 

[umair1161]

could you attach a question? Like some doubt you have?

i dont have any doubt but when i go back to my notes from school....i just dont understand them!


thanks anyways!

 

[Rahma Abdelrahman]

hmm....alright! but can u please tell me what was the historical cost concept??

It means throughout the life of the asset, we use the historical cost of the asset (cost at the time of purchase), i mean we dont write the depreciation in the asset account...

 

[umair1161]

It means throughout the life of the asset, we use the historical cost of the asset (cost at the time of purchase), i mean we dont write the depreciation in the asset account...

ah alright! thanks!

 

[Rahma Abdelrahman]

ah alright! thanks!

You are welcome

 

[Timi Adeg]

Yup!! once in income statement and once in balance sheet!!

In the balance sheet you simply subtract it from the debtors figure right?

 

[MnMz]

In the balance sheet you simply subtract it from the debtors figure right?

Yes

 

[Ebby_SaLeem]

I'm pretty fine ALHAMDULILLAH in the numerical parts... preperation of balance sheets etc but I have problems in errors, and theoretical questions where we have to show affect on working capital, understated/overstated, and accounting policies.

 

[Timi Adeg]

Yes

Thanks !

 

[umair1161]

In the balance sheet you simply subtract it from the debtors figure right?

Yup!

 

[Rahma Abdelrahman]

Do we include debenture interest in Profit and loss appropriation account of a company?

 

[MnMz]

Do we include debenture interest in Profit and loss appropriation account of a company?

yes it's an expense

 

[Rahma Abdelrahman]

yes it's an expense

http://papers.xtremepapers.com/CIE/Cambridge IGCSE/Accounting (0452)/0452_w12_qp_22.pdf
http://papers.xtremepapers.com/CIE/Cambridge IGCSE/Accounting (0452)/0452_w12_ms_22.pdf
Q3 (c)
Then why here they didn't include it?

 

[MnMz]

http://papers.xtremepapers.com/CIE/Cambridge IGCSE/Accounting (0452)/0452_w12_qp_22.pdf
http://papers.xtremepapers.com/CIE/Cambridge IGCSE/Accounting (0452)/0452_w12_ms_22.pdf
Q3 (c)
Then why here they didn't include it?

there is no interest.

 

[Rahma Abdelrahman]

there is no interest.

 

[Rahma Abdelrahman]

MnMz I am afraid I didn't ask for all this! Can u get to the point please?

 

[MnMz]

You need to treat Debentures ledger separate to the interest applicable since Debentures are "non-current liabilities" where as the interest for these is an expense.

The ledgers would be approached something like this. I will type our journal entries for ease.

Create a debenture (i.e. long term liabilities are increased and cashbook is increased)
- DR Cashbook
- CR Debentures (perhaps a name of who liability is to if more debentures are held)

Repayment of debentures in full or part:
- DR Debentures
- CR Cashbook

Loan Interest for period (treat as an expense account)

DR Debenture Loan Interest
CR Cashbook
(This may be carried out several times per period when paying in installments.)

At the end of the period to account for the "charge for the year" accounting for any accruals and/or prepayments of loan interest.

DR P+L (an expense for the period)
CR Loan Interest (reduces the expense but this is normal when charging the amount to the p+L for the period end.

 

[GuardianSoul]

1,000 Motor Vehicles - Part ex. proportion of value of new van (debit vehicle account)
266 Disposals - The loss on the valuation (swap if it's a profit)

Add in new vehicle
3,000 Vehicles - Balancing amount paid

(3,000) Bank - Actual payment

did you get it???

Didn't get that bit ._.

 

[mak kings]

Do we include debenture interest in Profit and loss appropriation account of a company?

no v dont in the appropriation ...its just in the profit and loss account as its an expense!!