Accounts; Economics; Business; Post your doubts here!

[scouserlfc]

Another little question related to accounts !

1.Can it be possible to have an account of fixed asset in which depreciation is directly charged because i saw a question in which they gave the net book value as 8000 of an asset and said this has a debit balance now record the deprecition of this month so is this possible ?? if yes then how to we transfer to profit & Loss account !

2.Another question if we recieve for a payment of a debt from a debtor a fixed asset which repays some of the debt and the remaining is written off what is it,is it a capital or revenue expenditure i think its both ? ?

3.One last question what happens to the Working capital and Owners equity when an asset bought for sale like in an office retail selling business,this asset is used for business use and not sold so what happens ??
Thanks for the help !

 

[scouserlfc]

its 81440

Which balance sheet is this i think i did this one tell me the year !

 

[SalmanPakRocks]

First of all bro use the new terminologies
Fixed Assest = Non- Current Assests
Stock = Inventory

 

[Waleed007]

Which balance sheet is this i think i did this one tell me the year !

May/June 2003 Q5

 

[scouserlfc]

First of all bro use the new terminologies
Fixed Assest = Non- Current Assests
Stock = Inventory

Yeah i know this but anyways can u answer my question !

 

[scouserlfc]

May/June 2003 Q5

And yes balance is 81,440 and not that 77.... something !

 

[Waleed007]

And yes balance is 81,440 and not that 77.... something !

yup dude 3rd adjustment was a bit tricky

 

[scouserlfc]

yup dude 3rd adjustment was a bit tricky

It was tricky but its very common !

 

[muzirox]

Hi can sm1 help me in this mcq
source: nov-10 (accounts) qs. 9
On 1 September the bank statement showed an overdrawn balance of $2015.
A refund for insurance, $74, and bank charges, $86, have not been entered in the cash book.
What was the balance on the cash book on 1 September before it was updated?
A $2003 credit
B $2003 debit
C $2027 credit
D $2027 debit

second is from da same paper

Zafar purchased a motor vehicle for $4800. He estimated the residual value will be $300. Zafar
decided to write off the motor vehicle over 4 years.
What was the net book value of the motor vehicle after 2 years?
A $2100 B $2250 C $2400 D $2550

it is from da sm paper too

Inventory (stock) at 31 December 2008 was overstated by $6000.
What was the effect on the gross profit for the year ended 31 December 2009?
A $6000 overstated
B $6000 understated
C $12 000 overstated
D $12 000 understated

 

[scouserlfc]

Hi can sm1 help me in this mcq
source: nov-10 (accounts) qs. 9
On 1 September the bank statement showed an overdrawn balance of $2015.
A refund for insurance, $74, and bank charges, $86, have not been entered in the cash book.
What was the balance on the cash book on 1 September before it was updated?
A $2003 credit
B $2003 debit
C $2027 credit
D $2027 debit



second is from da same paper

Zafar purchased a motor vehicle for $4800. He estimated the residual value will be $300. Zafar
decided to write off the motor vehicle over 4 years.
What was the net book value of the motor vehicle after 2 years?
A $2100 B $2250 C $2400 D $2550


it is from da sm paper too

Inventory (stock) at 31 December 2008 was overstated by $6000.
What was the effect on the gross profit for the year ended 31 December 2009?
A $6000 overstated
B $6000 understated
C $12 000 overstated
D $12 000 understated

1.Shudnt it say after updating ! ! if thats the case then its 2027 credit !


2.Its D first u see this is the straight line method so we proceed finding the dep for each of the four years :
2*(4800-300)/4 =2250
i multiplied 2 for finiding the total for 2 years !
4800-2250=$2550


3.Cost of sales are minused thus by 6000 more so the turnover is therfore minused by a much smaller figure so the gross profit attained is overstated by $6000

 

[TheEconomist]

Hey Everyone. My names mariam.
I need some help in accounting. I find it really boring but easy too,
all i need is help with some chapters like Incomplete records , Goodwill , company accounts.
Reading from Frankwood's is no help. would some one help me please..?

 

[Waleed007]

Hey Everyone. My names mariam.
I need some help in accounting. I find it really boring but easy too,
all i need is help with some chapters like Incomplete records , Goodwill , company accounts.
Reading from Frankwood's is no help. would some one help me please..?

Sure..Post ur doubts here

 

[TheEconomist]

Thanks waleed =)!
okay.. so
I understand the basic things about incomplete records like we have to make up the financial statements without a complete trialbalance,
i dont understand what is the chakar with finding out capital at the end, and the formulas of calculating net profit..
Help me yar cie is scaring me...

 

[SalmanPakRocks]

Thanks waleed =)!
okay.. so
I understand the basic things about incomplete records like we have to make up the financial statements without a complete trialbalance,
i dont understand what is the chakar with finding out capital at the end, and the formulas of calculating net profit..
Help me yar cie is scaring me...

Any specific question? I studied accounts for 3 months and got an A.

 

[Waleed007]

^^ Exactly post a question

 

[TheEconomist]

What is the statement of affairs?
what is the format for the statement of affairs?
How do we find out capital(opening AND closing)?
Why do we need to find out the capital introduced during the year?
How do we find out sales and purchases? @salman pk

Edit:
One economics question.
Can the concept of cetris paribus be applied to training of workers?

 

[Waleed007]

What is the statement of affairs?

Statement of Affairs is just basically a name given to a Balance Sheet, but its the name when you are dealing with incomplete records..If the Statement of affairs is made using Opening Assets and Opening Liabilities,Capital (Balancing figure) would be the opening capital,Like wise if the Statement of affairs is made using Closing Assets and Closing Liabilities Capital (balancing figure) would be the Closing Capital

 

[Waleed007]

How do we find out capital(opening AND closing)?

Computation of Capital Start
Total Assets xxx
Less:Total Liabilites( xxx)
Capital at start xxx

Computation of Capital End
Capital at start xxx
Add: Profit xxx
Additional INV xxx
Less: Drawing (xxx)
Capital at End xxx

 

[TheEconomist]

"Additional INV" what does this mean? investment?
some examples would be really helpful

 

[scouserlfc]

What is the statement of affairs?
what is the format for the statement of affairs?
How do we find out capital(opening AND closing)?
Why do we need to find out the capital introduced during the year?
How do we find out sales and purchases? @salman pk

Cmon on now who said u need to find introduced capital everytime if the ques tells u then u do this otherwise no ,whenever finding something u will always be given some info utilize that by using the ratios given in book if u dont know !