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Economics, Accounting & Business: Post your doubts here!

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wajiman

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Jet Nicholos said:
THANKS A LOAD. :D in the same paper... http://www.xtremepapers.com/papers/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_w03_qp_1.pdf ...... Q17... in the manufacturing account they included the PRODUCTION WAGES in prime cost... but excluded PRODUCTION OVERHEARDS~ isnt the prime cost supposed to include both DIRECT LABOUR AND DIRECT EXPENSES?? xD
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production overheads are fixed cost not a direct expense as they do not increase as output increases where as production wages do increase as output increases. so production overheads are not included in prime cost where as production wages are
 
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Vinita Manek

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cn u guys tell me in wich is d profit mre???? FIFO or LIFO???? n wt to do with cheques issued nt yet presented n bnk charges fr bth a balnce n an overdraft.....i never seem to understnd BRS.....pls help me wid dat
 
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Mohammed Hassan

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Guys, plz someone answer
When there is interest on loan to a partner... Its is placed in the profit and loss a/c but not the appropiation a/c and its also recorded in the current a/c of that partner at the credit side.. Am I right?
 
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wajiman

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Vinita Manek said:
cn u guys tell me in wich is d profit mre???? FIFO or LIFO???? n wt to do with cheques issued nt yet presented n bnk charges fr bth a balnce n an overdraft.....i never seem to understnd BRS.....pls help me wid dat
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FIFO is said to be more profitable than LIFO. it also depends on the nature of the product. for eg. Stores selling perishables always want FIFO - that way, they get rid of stuff that might go rotten on them as quickly as possible. If they went LIFO, then the old stuff might never be sold, and they'd lose money. So, FIFO is more profitable than LIFO.

NOTE: LIFO will no longer be tested in CIE exams as it has now been deemed outdated by the IAS standards

if there is a debit balance as per the bank statement, we add uncredited as the bank has not credited it to our bank account ( credit in bank means increase in our cash in the bank account ) and less unpresented, which are those cheques which we have given to the creditors but they havent yet issued it in the bank or are under process.

bank charges are already included in the bank balance, so if we are going to adjust the cash book balance, then we will perform the same step as above but will also deduct bank charges from it, if it says the bank charges are not included in the cashbook
 
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