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Economics, Accounting & Business: Post your doubts here!

WaleedUQ

WaleedUQ

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I just need to ask some basics questions,
just refreshing my mind.
How Goodwill is recorded in a limited company?
Goodwill Dr
and what should be credit ?
Secondly if it says in additional information that tax of total 31000 has been paid for the year
and the ending balance are listed below.
$31000 will be charged to income statement or $39000 ?
2010 2011
$34000 42000$


Third
in dissolution if it says all partnership assets and liabilities are taken
which mean that bank account is also included right ?
for exp.
bank = 8000
and Ltd company which is a newly form pays 50 000 as a part of P.C
so 42000 will be Bank O\D in the new balance sheet of NEW LTD. ??
 
Z

zarasattar

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Echelon94 said:
you just have to calculate the debtors at the end of August (Sept 1st same thing). They'll comprise of the people who purchased goods in August & also the 50% of July's Debtors who haven't paid till the end of August. So it'll be $190 x [(800x50%)+1050] = $275500. (if you still have confusions do it by making T-account)
Click to expand...

why don't we subtract cash discount from (800x50%)?
Thanks! :)
 
Echelon94

Echelon94

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zarasattar said:
why don't we subtract cash discount from (800x50%)?
Thanks! :)
Click to expand...
Cash Discount does not have any effect on Debtors' figures. When a debtor pays money, the Debtors A/c is credited with the complete amount, the Bank A/c is debited with the money received & the Discounts Allowed A/c debited with the discount.
 
WaleedUQ

WaleedUQ

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Echelon94 said:
Only Purchased Goodwill is shown in the accounts (compared to Inherent Goodwill, which a trader personally thinks reflects the reputation of business), bank account being credited & goodwill account debited.

I think I have done it, but not like recently. Why you asking?
Click to expand...
Agar karsaqte ho tou batao !
Acha listen i need your help
I'm having problem in making these balance sheets questions like FROG PLC mj 11 v3
my teacher just told me that FROG PLC mark scheme is incorrect can you help me with this
additional information waley questions any tips ?
like they add and minus profits from currents assets and retain earning samajh nahi atta
 
M

Manesh

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Z

zarasattar

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Echelon94 said:
Cash Discount does not have any effect on Debtors' figures. When a debtor pays money, the Debtors A/c is credited with the complete amount, the Bank A/c is debited with the money received & the Discounts Allowed A/c debited with the discount.
Click to expand...

got it! thanks a tonne! :D
 
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