Accounts P12 discussions

[fishcook]

i think hard disk was capital expenditure, cause anything bought to improve current fixed assets or efficiency of business is regarded as a capital expenditure.

 

[Ashay]

Yeah but it said replace. So that means that the failed hard disk brought down the value of the computer which was originally 4800 and when the hard disk was replaced, the value was restored to 4800 so there was no improvement

 

[fishcook]

the question didnt really say that....
cause it only said that it bought a new computer, a laser printer and replaced an old hard disk.. so i dont think that thee failed hard disk brought the value of the new computer down /:

 

[Haleema Khawar]

Printer and computer are both capital while the replaced hard disk was revenue. The dep was $1650

I did that too but how're you so sure about that? I read somewhere that replacement costs are regarded as capital expenditure?

 

[Ashay]

When the previous hard disk failed, the value of the fixed reduced by some amount. When the hard disk was replaced, the value if the fixed asset was brought back to its original value because there was no improvement in technology of the hard disk. It was the same version, just a new piece. So the value of the fixed asset didn't increase

 

[Ashay]

It did bring the value of the computer down because now the computer isn't functional

 

[Haleema Khawar]

It did bring the value of the computer down because now the computer isn't functional

smart thinking. appreciated

 

[Ashay]

Thank you

 

[fishcook]

i dont know.. a computer can work without a hard disk.

 

[Haleema Khawar]

i dont know.. a computer can work without a hard disk.

The next paper's here so I think we should get over our 1st paper. Lets do well tomorrow and hope for A*s InshAllah

 

[Ashay]

What times your paper tomorrow?

 

[fishcook]

The next paper's here so I think we should get over our 1st paper. Lets do well tomorrow and hope for A*s InshAllah

im aware of it.. lol

 

[Haleema Khawar]

im aware of it.. lol

Good for you.

 

[Maria.23]

Hey, how was preference dividend calculated? And how was cash book?

it was capital expenditure

 

[Haleema Khawar]

it was capital expenditure

I just saw its marking scheme and it was neither Capital nor Revenue. We had to leave that blank

 

[Haleema Khawar]

Paper 22 discussions!
Anyone remembers the Cost of Production? Were drawings to be subtracted from the Purchase of Raw Materials as well?
What was the additional debenture interest and preference dividend?

 

[SRKfan]

Paper 22 discussions!
Anyone remembers the Cost of Production? Were drawings to be subtracted from the Purchase of Raw Materials as well?
What was the additional debenture interest and preference dividend?

we cannot discuss now ryt? it has to be aftr 24 hours....

 

[Haleema Khawar]

why? :S

 

[Meg]

It was a tough paper :/
Not so great -_-

 

[Haleema Khawar]

how was manufacturing account?