Accounts; Economics; Business; Post your doubts here!

[doctormani]

Hmm bro u r getting wrong! U recorded 10000 ( that is loan from sure) that is a long term liability.... Which will b lessed after taking out working capital! In current liabilities u have to take accrued interest.... As it says in 3rd adjustment that yearly interest is 12% of loan that will b 1200.... N in abv records... Interest expense is recorded as 900 so it meanz that 300 is accrued!

 

[Waleed007]

THanks! Bro Got it you made my life Easy! ...The balance sheet Has been Balanced

 

[doctormani]

Np bro we are alwayz here

 

[sweetiepie]

finally people are getting help

 

[doctormani]

Yea i thought to help otherx n m back to this forum after 1 year

 

[hashim2]

I'm confused in credit and debit notes. I always get credit/debit errors wrong. Please clarify credit and debit notes

 

[SalmanPakRocks]

I'm confused in credit and debit notes. I always get credit/debit errors wrong. Please clarify credit and debit notes

ok
credit notes are the notes which are send to the customer when he/she returns goods.
debit notes are send to the supplier when returning back the goods

 

[scouserlfc]

Some help in Accounts please !

The following are syllabus wordings which i want help on !
1.comment upon the significance of the inter-relationship of the Balance Sheet items
What do u mean by this ??


• recognise that net profit (or loss) is the increase (or decrease) in the net value of assets during a financial
year
Can anyone tell me how it increases the net value of assets a proper explanation or a pg no. in a book will do as well ?

Also is it right that Loan Interest account in general ledger has a debit balance like all expenses and the loan account a credit balance like all liabilities and that when repayment of loan is done the account is debited to cancel the loan out !

Thanks and it would be kind of u if u use the reply button on this post because i want to know when u reply !

 

[SalmanPakRocks]

Some help in Accounts please !

The following are syllabus wordings which i want help on !
1.comment upon the significance of the inter-relationship of the Balance Sheet items
What do u mean by this ??

This means how are the Non-Current Assets, Current Assets, Liabilities in the balance sheet related to each other. In simplier words what is the affect on liability if non-current asset is purchased on Credit or similar way on asset if its purchased from Cash.

Some help in Accounts please !

• recognise that net profit (or loss) is the increase (or decrease) in the net value of assets during a financial
year
Can anyone tell me how it increases the net value of assets a proper explanation or a pg no. in a book will do as well ?

I will search the book and let u know! better explanation is present there.

Some help in Accounts please !

Also is it right that Loan Interest account in general ledger has a debit balance like all expenses and the loan account a credit balance like all liabilities and that when repayment of loan is done the account is debited to cancel the loan out !

Yup That is what is done!
Just make Ledgers and then make general ledger, just post the entries oppositly

 

[mohammadusman96]

THanks! Bro Got it you made my life Easy! ...The balance sheet Has been Balanced

the balance was coming 71440???

 

[scouserlfc]

Thanks for the help and yeaah please tell me that after searching !

One more thing in company accounts we have to calculate the Return on Capital Employed by the shareholders so what is the formula,i know the formula but wanna confirm this !
the net profit used is the one before appropriation and is the years whose ROCE is required,

Capital Employed consists of what can u please just tell me this and confirm what i wrote above !

 

[SalmanPakRocks]

Thanks for the help and yeaah please tell me that after searching !

One more thing in company accounts we have to calculate the Return on Capital Employed by the shareholders so what is the formula,i know the formula but wanna confirm this !
the net profit used is the one before appropriation and is the years whose ROCE is required,

Capital Employed consists of what can u please just tell me this and confirm what i wrote above !

U want to know the formula of Return on Share holder's fund?
N.P before appropriation/ Capital Employeed * 100..
There are two type of Captials. One is the one Authorised Share Capital and other one is called up one! we take called up share capital

 

[scouserlfc]

U want to know the formula of Return on Share holder's fund?
N.P before appropriation/ Capital Employeed * 100..
There are two type of Captials. One is the one Authorised Share Capital and other one is called up one! we take called up share capital

Yeah this thing so what comes in capital employed thing !
its general reserve the carried forward one and not this years,profit carried forward not this years and the share and authorised capital the one paid right ???

 

[SalmanPakRocks]

Yeah this thing so what comes in capital employed thing !
its general reserve the carried forward one and not this years,profit carried forward not this years and the share and authorised capital the one paid right ???

yup! and do focus on the theory of accounts specially Company Accounts! I could have gotten A* if my theory was stronger!

 

[scouserlfc]

yup! and do focus on the theory of accounts specially Company Accounts! I could have gotten A* if my theory was stronger!

you mean the things they say in syllabus to describe and those small questions they ask in end of questions those right ?

 

[SalmanPakRocks]

you mean the things they say in syllabus to describe and those small questions they ask in end of questions those right ?

Yeah for e.g: they will be like What are General Reserves for?

 

[scouserlfc]

Yeah for e.g: they will be like What are General Reserves for?

thanks i hope i remember to concentrate on this !

 

[SalmanPakRocks]

thanks i hope i remember to concentrate on this !

yeah plz do its really important

 

[Waleed007]

the balance was coming 71440???

its 81440

 

[zeshan huq]

"Describe the problems connected with the growth of a business" which topic or chapter is this i can't find it in igsce Business studiess book by karen borrington and peter stimpson???