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Economics, Accounting & Business: Post your doubts here!

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t
they are adding because its a liability
which is deducted from non-current assets
therefore to calculate trade payables they'll do the reverse
so add 117,000


But the depreciation has already been deducted from the non-current assets. Now why would we add it again to the liabilities ? I don't get it
 
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Aren't we supposed to deduct dividends in the section after profit after interest? I was talking about the 'Interim dividend paid for year ended 30 June 2011: $125'
Noo there asking you to make a profit and loss account in that just subtract interest and tax. They've not asked you to make an appropriation.
 
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But the depreciation has already been deducted from the non-current assets. Now why would we add it again to the liabilities ? I don't get it

prepare this balance sheet in horizontal format , you'll understand the addition and subtraction... trust me
 
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shaahid You asked about interest on loan to partner,right ? According my knowledge only the interest on loan due is to be credited to the partner's current aacount
 
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And also is Prepare a reconciliation of net cash to movement in net debt: in our course anymore?
 
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prepare this balance sheet in horizontal format , you'll understand the addition and subtraction... trust me

Man. I understand all the addition and subtractions but I don't understand why we added 117 to the net current assets. If it's a liability it should be deducted from the net current assets, but we instead added it. Which makes it a current asset. :/ Don't have any idea what's going on here.
 
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Man. I understand all the addition and subtractions but I don't understand why we added 117 to the net current assets. If it's a liability it should be deducted from the net current assets, but we instead added it. Which makes it a current asset. :/ Don't have any idea what's going on here.


If it's a liability it should be deducted from the net current assets,
therefore when it comes to liability we add
non-c-assets = 50000
deprication -= 10000
current liability = 40000

balance sheet rule is assets = liabilities
therefore,
50000(NON-current assets)=50000(current liability + provision for depreciation)
hope you get it
if you don't
think of the treatment in trading a/c of closing stock its similar to this
 
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hi
i believe this is how we have to do the trade payable thing
first ,we know that net assets are 983 at opening
so, if we add this year's all cash flows, we will get the closing net assets
so, the profit for the year is 170, and depreciation is 117, add back depreciation as its not paid in cash( similar like we do in cash flow statements)
less, all the cash payments we made, thats 110 for redemption, 95 dividends paid
we get 1065, so our net assets should have been 1065, and our assets are 1610, meaning the difference is the current liabilities
hope this helps,
 
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hi
i believe this is how we have to do the trade payable thing
first ,we know that net assets are 983 at opening
so, if we add this year's all cash flows, we will get the closing net assets
so, the profit for the year is 170, and depreciation is 117, add back depreciation as its not paid in cash( similar like we do in cash flow statements)
less, all the cash payments we made, thats 110 for redemption, 95 dividends paid
we get 1065, so our net assets should have been 1065, and our assets are 1610, meaning the difference is the current liabilities
hope this helps,


I got half of it.. You're saying to add (170+117) as it is the cash flow from operating activities ??
 
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Why haven't fixed costs apportioned for Work in progress in october november 2009 paper 42 q 3c-process 3.
 
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ohh okay thanks alot :) you've cleared alot of doubts for me!


Hey I'm really really sorry...I was doing a paper and I realised I was wrong. Interest on loan to partner is credited to the the partner's current account (whether due or not) . I'm so very sorry..

student92 please correct me if I'm wrong
 
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Hey I'm really really sorry...I was doing a paper and I realised I was wrong. Interest on loan to partner is credited to the the partner's current account (whether due or not) . I'm so very sorry..

student92 please correct me if I'm wrong

you are correct, its just that its not taken in the appropriation account, its taken as an expsnse in the income statement
 
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