Economics, Accounting & Business: Post your doubts here!

[zainabkhann]

The cost for equipment is given as 17400 and NBV opening is 28400 and NBV closing is 27600 and motor vehicle cost is 19200 NBV opening is 65000 and NBV closing is 68200

How do I calculate depreciation for this given these values ?

lol ok
5620+122460+22000+3560+19200+17400+27560=246800
246800-(16800+203200+18510)=8290

 

[David Hussey]

I got it I got it , thankyou for letting me know this!

This was tricky I would have never figured it out, can you also let me m
Know how they got the capital?

And what would be the depreciation for motor vehicles and equipment?

make a T a/c
for motorvehicles
balance brought down is 65000
enter it on the debit side
purchases is 19200
enter it on the debit side
carried down balance is 68200
enter it on the credit side
so
65000+19200-68200=16000, which is the depreciation for motorvheicles
do same for equipment

 

[zainabkhann]

Omg you are a life saver thankyou!! What about capital though? How did they get that in the balance sheet ?

make a T a/c
for motorvehicles
balance brought down is 65000
enter it on the debit side
purchases is 19200
enter it on the debit side
carried down balance is 68200
enter it on the credit side
so
65000+19200-68200=16000, which is the depreciation for motorvheicles
do same for equipment

are

 

[David Hussey]

Omg you are a life saver thankyou!! What about capital though? How did they get that in the balance sheet ?

are

haha thank u
do you mean the opening capital? then you should add up all the "opening" assets and minus all the "opening" liabilities
that should give you opening capital
if you want closing capital, do same thing except it should be the closing balances

 

[zainabkhann]

No I mean the capital capital in the balance sheet after it says financed by and it gives you the capital of 212880

Attached the screenshot of the balance sheet marking scheme question

How did they get that?

haha thank u
do you mean the opening capital? then you should add up all the "opening" assets and minus all the "opening" liabilities
that should give you opening capital
if you want closing capital, do same thing except it should be the closing balances

 

[David Hussey]

No I mean the capital capital in the balance sheet after it says financed by and it gives you the capital of 212880

Attached the screenshot of the balance sheet marking scheme question

How did they get that?

yea thats the opening capital
you add all your assets you had on 1 Jan 2011
and add up all your liabilities you had on 1 Jan 2011
the difference will be the capital
assets include prepayments and liabilities should include the accruals (owings)

 

[David Hussey]

liabilities should also include your opening bank overdraft of 5620
(remember it will be a current asset if the bank balance is not an overdraft)

 

[David Hussey]

hey rent received prepaid is a liability, and rent received accrual is an asset
sorry i forgot to mention this
its like a subscription account
beacuse rent received is an income, and the tenants would have paid extra amount, so its like we owe them the money because they paid more
but when they owe us money, that money belongs to us, so its an asset
hope you got it
here is the capital
22300+100000+28400+65000+22400+1100=239200 this is the opening assets on 1 Jan
17500+2400+5620+800=26320 which is the open liab on 1 Jan
difference is 212880 which is opn capital
i hope i didnt confuse you :/

 

[zainabkhann]

I did that and I got the wrong answer, I did 100,000+ 28400+ 65000+ 22400+ 1100: 216900
And opening liabilities : 800( rent received prepaid, I was told that income prepayment comes under current liabilities so added this in CL then I added 17500+2400 : 20700

216900-20700: 196200

The answer is 212880 and I'm Getting that

 

[David Hussey]

I did that and I got the wrong answer, I did 100,000+ 28400+ 65000+ 22400+ 1100: 216900
And opening liabilities : 800( rent received prepaid, I was told that income prepayment comes under current liabilities so added this in CL then I added 17500+2400 : 20700

216900-20700: 196200

The answer is 212880 and I'm Getting that

you forgot to put 22300 for inventory

 

[David Hussey]

and u forgot opn bank overdraft for liabilities

 

[zainabkhann]

Doesn't make a difference because the answer will be 218500

you forgot to put 22300 for inventory

e a diff

 

[David Hussey]

Doesn't make a difference because the answer will be 218500

e a diff

-_-
22300+100000+28400+65000+22400+1100=239200 this is the opening assets on 1 Jan
17500+2400+5620+800=26320 which is the open liab on 1 Jan
difference is 212880 which is opn capital

 

[David Hussey]

why dont you read properly?

 

[David Hussey]

oh god
look at paper 3 accounts from 2016 onwards 3 hours!
http://cie.org.uk/images/166885-2016-paper-3-specimen-paper.pdf

 

[Fahadcm5596]

Kesa dia hai nahi dia acha...a....***** The most unexpected paper of all times :/

 

[:: A^]

How do you identify positive and normative statements?

 

[David Hussey]

How do you identify positive and normative statements?

not good at econ

what is the transaction for interest on loan, if a partner has given the loan?

 

[AlphaBeta]

How do you identify positive and normative statements?

positive statements can be tested and can prove to be either correct or incorrect
normative statements are opinions of people

 

[SamiaSaad]

oh god
look at paper 3 accounts from 2016 onwards 3 hours!
http://cie.org.uk/images/166885-2016-paper-3-specimen-paper.pdf

Feeling bad for the O level students now