Accounts P12 discussions

[HelloIGCSEStudents]

i wrote capital /:
but isnt a capital expenditure also something you buy to improve the efficiency of a existing asset or improve efficiency of business?

yeah, but i think it's revenue.. because when we repair an asset its revenue
When a building is painted for the first time, its capital.. but then, when it is repainted later, its revenue
I guess its the same here? when we are REplacing the hard disk.. its considered revenue

But then again, this is just my view

 

[HelloIGCSEStudents]

ur almost write but answer is $135 because the question said that the dividends were paid in 2 summesters remember? they asked how much paid for the first term, meaning half of 270 which is 135

What'd you get for the Net Profit in the income statement?

 

[ken99]

What'd you get for the Net Profit in the income statement?

well unfortunately i made some mistakes so mine is wrong, i got 2120, and many of my peers have gotten different ammounts as well

 

[HelloIGCSEStudents]

well unfortunately i made some mistakes so mine is wrong, i got 2120, and many of my peers have gotten different ammounts as well

ohh kayy :/ i got 5600.. not sure if its right eitherr

 

[ken99]

yeah, but i think it's revenue.. because when we repair an asset its revenue
When a building is painted for the first time, its capital.. but then, when it is repainted later, its revenue
I guess its the same here? when we are REplacing the hard disk.. its considered revenue

But then again, this is just my view

yes u r correct however a revenue expense is day to day expense, u do not replace the hard disk on ur computer on a day to day basis, the question stated that there was a problem in the hard disk therfore they replaced the hard disk, which isnt actually a repair but is adding value which to me seems as a capital expense

 

[Zeus]

http://accounting-simplified.com/financial/fixed-assets/capital-and-revenue-expenditure.html. This should help.

 

[bfc_3ray]

ohh kayy :/ i got 5600.. not sure if its right eitherr

yeaa..i gt the sm...i guess its right ans...

 

[Jigar]

what was the depreciation and the net profit.................divendends

 

[Ashay]

Hard disk was revenue expenditure and the dep value was $1650
Net profit was $5600

 

[Advait Halve]

ohh kayy :/ i got 5600.. not sure if its right eitherr

You're correct.

 

[Ashay]

Yo advait

 

[Advait Halve]

Yo advait

is this Ashay Gupta lol?

 

[Ashay]

Ya

 

[SRKfan]

You had to multiply 6000 by $1.50=9,000
and then find 3% of that =$270

what i did was: 6000 x $1.5 = $9000
9000 x 1.5% = $135
you were supposed to half the 270 to get equal installments

 

[SRKfan]

oh btw, how much did you get as net profit in the income statement?

was it $1760?

 

[SRKfan]

revenue. because it said replacing the hard disk

really? but how can it be revenue expenditure? cause capital expenditure means extending or improving a fixed asset so isnt it capital expenditure?

 

[SRKfan]

but if you say its a fixed asset and you arent charging dep then arent you fixed assets overstated, and + doesnt the cost of it just add on the computer so indirectly you would normally charge dep?

exactly i added the replace of the hard disc and the cost of da printer and the computer and calculated the slm thing n it gave me a final dep. of $1800

 

[bfc_3ray]

what ws da ans 4 ledger where suppliers acc can be found?

 

[SRKfan]

what ws da ans 4 ledger where suppliers acc can be found?

purchases ledger

 

[bfc_3ray]

sure?