Economics, Accounting & Business: Post your doubts here!

[mimiswift]

Can anyone say the difference between shareholder's equity and fund. I found that in some places it is the same and in others it is different.

could u give some papers reference that showed different answers!?

 

[MnMz]

Can anyone say the difference between shareholder's equity and fund. I found that in some places it is the same and in others it is different.

Shareholder funds is all the money belonging to common stock shareholders which includes the balance of share capital, all profits retained and money classified as reserves ( e.g from revaluation increase of assets). It can be positive and negative (resulting from continuous losses incurred by a corporation.)

Shareholders' equity comes from two main sources. The first and original source is the money that was originally invested in the company, along with any additional investments made thereafter. The second comes from retained earnings which the company is able to accumulate over time through its operations. In most cases, the retained earnings portion is the largest component.
Share holders equity = Total Assets - Total Liabilities
OR
Shareholders equity = Share capital + Retained Earnings - Debentures
Also known as "share capital", "net worth" or "stockholders' equity".

Read more:
Read more:​

 

[Anusuya]

No the thing is that debenture was paid annually and we had to assume that it is paid evenly. BTW you wrote 10,000 but it will be 1000,000.

ya i meant 100 000. okay so the debenture paid previously was 20 000 n yet to be paid is 20 000??
thanx

 

[wajiman]

Can anyone say the difference between shareholder's equity and fund. I found that in some places it is the same and in others it is different.

MnMz said it right

 

[SUMMERLOV35]

@SUMMERLOV35 Are you giving AS and A2 together?

yes

 

[Anusuya]

so Closing stock is at selling price .......
do it like this....
Sale value Cost price
550000 450000
50000 x

cross multiply and u get x=40909
GP=500000-(450000-40909)
=90909

where did the sale valu 550 come from??

 

[mimiswift]

where did the sale valu 550 come from??

see we need to find CS at cost price so we have to add back CS to sales so that we can find the cost price as Purchases already includes stock value!

 

[mimiswift]

we can't really compare them if purchases has stock included and sales doesn't
get it?

 

[Saiyan]

yes

That is tough, well best of luck. Which country?

 

[SUMMERLOV35]

That is tough, well best of luck. Which country?

um not really, managed it somehow
saudi arabia but
but im not saudi though

 

[wajiman]

guys what does capitalising development cost mean?

 

[MnMz]

guys what does capitalising development cost mean?

expenditure on the development and extraction of minerals, oil, natural gas, and similar resources​

 

[Anusuya]

accounts m/j 2009 Q20 how 240, 000??

 

[wajiman]

accounts m/j 2009 Q20 how 240, 000??

the answer to this question is here:

Answer of 20 is C. Creditors budget = 80,000+80,000 x 50% = 120,000
At November - 120,000 (To be paid in in Jan.)
At December- 120, (To be paid in Feb)
So total creditors becomes 240,000. The others have already been paid. Note that payment period is 2 months.

I hope this helped I tried my best. Anything else?

 

[MnMz]

Which yr do you guys think was the hardest fr acc p3??

 

[memyself]

expenditure on the development and extraction of minerals, oil, natural gas, and similar resources​

hey, how does capitalising development expenditure affect gearing?

 

[WaleedUQ]

it will not effect :\ gearing

 

[reina81]

I think you need to choose the price...that will give a rise to the same contribution ... and it will use existing machinery to make a contribution of 400000 ..... that means there will be definitely some variable costs....so 1000000 will give rise rise to a contribution of 400000 using the variable cost 600000 (frm the machinery) that will be able to cover the fixed costs as they will not change....

I hope you gt my explanation.....

so everytime there's a question like this we choose the price that gives the same contribution?

 

[Echelon94]

Can anyone say the difference between shareholder's equity and fund. I found that in some places it is the same and in others it is different.

Shareholder funds...................stockholders' equity.

i think MnMzshare holder funds.......share holder equity is share holder funds + all other capital items

could u give some papers reference that showed different answers!?

Nov2009(12):15 answer is C, implying Ordinary Shareholders' Funds = Issued Ordinary Shares + Issued Preference Shares + Reserves
Syllabus: Equity = Issued Ordinary Shares + Reserves
Nov2010(32):18 implying Equity = Issued Ordinary Shares + Issued Preference Shares+ Reserves

 

[youzair]

check TABLE 1 in the question paper...according to that
existing direct material cost= 4.25m (3m+1.25m)
add them all together and you get existing total costs 6.45m
now even if you buy from AAP, you will still have to pay
the management salaries and admin and selling overheads
so new costs will 6.5m (4.3+1.45+0.75)m
net profit+existing costs will give you the selling price
1.2m(see line 3 in the question paper)+6.45m=7.65

new net profit 7.65-6.5(new costs) 1.15m

Thanks bro/sis...
But my Question was how to ignore MANAGEMENT salaries? what will we assume for this? bcoz if we ignore mangment salary we get the rise in profits.....:/
i also calculate the $1.15m but in mark scheme there is one more figure of profit that is $1.9m.

I also assume the same, Indirect Costs are still liable to pay as they are not directly related to production they can be cut off but they cant entirely eliminated...but still i am confused from markscheme option of profit though we have to give any one profit figure but i want to know how to calculate the other one i mean logic....