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Economics, Accounting & Business: Post your doubts here!

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as salam alikum
all accounting students,
does anybody hav an ideia what these principals are?, this is in core section, page 9 of syllabus
 

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as salam alikum
all accounting students,
does anybody hav an ideia what these principals are?, this is in core section, page 9 of syllabus
Materiality is when a business moves away from general accounting principles and makes own estimates because it thinks that the asset is not very significant (material) and so will not make a significant difference in final statements.
never done any of the other highlighted ones and they are not there in the textbook also :S
 
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Okey I need some help in paper 3 critical evaluation.I need to know about a market based system of trade.I cannot understand the meaning.
 
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Okey I need some help in paper 3 critical evaluation.I need to know about a market based system of trade.I cannot understand the meaning.
market based system of trade simply means the use of price mechanism to allocate resources in a free market efficiently using the forces of demand and supply
 
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guys, plz someone answer this question
In the manufacturing account, after taking out the cost of production and the profit from the production, comes the amount transferred to the trading account, the question is = What is the other treatement of the profit from production??
 
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guys, plz someone answer this question
In the manufacturing account, after taking out the cost of production and the profit from the production, comes the amount transferred to the trading account, the question is = What is the other treatement of the profit from production??

Lets say you transferred 100000 worth of goods from manu.acc. And the profit element say 25% mark-up. So the transfer value anyways includes it!! So profit element = (100000/125)*25 = 20000. This has to be credited under other income!
Buh dont forget the entire 100000 will be recorded in the trading acc as cost of production!
And then you sometimes might have to adjust for unrealised profit :)
 
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Lets say you transferred 100000 worth of goods from manu.acc. And the profit element say 25% mark-up. So the transfer value anyways includes it!! So profit element = (100000/125)*25 = 20000. This has to be credited under other income!
Buh dont forget the entire 100000 will be recorded in the trading acc as cost of production!
And then you sometimes might have to adjust for unrealised profit :)

thnx understoood :)
but that profit which is 20000, where it goes?? other than in the manufacturing account?
 
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