Igcse accounting 11??

[Adham-amr]

It DID say omitted from the ( drawings account ) cash withdrew for 200$ and since it didn't say it was wrongly entered in the cash book or was omitted, therefore it's correctly entered, and yes the owner's account is called capital and we do write drawings in the capital account, but not ( owner's name ) account. Anyway it's only 1 mark for the journal entry to correct the error because you only got the second side wrong, I have paper 2 tomorrow too, good luck to both of us

 

[Numnum]

It DID say omitted from the ( drawings account ) cash withdrew for 200$ and since it didn't say it was wrongly entered in the cash book or was omitted, therefore it's correctly entered, and yes the owner's account is called capital and we do write drawings in the capital account, but not ( owner's name ) account. Anyway it's only 1 mark for the journal entry to correct the error because you only got the second side wrong, I have paper 2 tomorrow too, good luck to both of us

Yea I get it now thank yu so much btw can yu pls answer this questions for me it's oct/nov 2011 22 last questions last part. Why is there no effect on the current assets?

 

[Numnum]

Question**

 

[Adham-amr]

Yea I get it now thank yu so much btw can yu pls answer this questions for me it's oct/nov 2011 22 last questions last part. Why is there no effect on the current assets?

Because at 31 July 2011 when you compare the cost and NRV, the cost is lower and in the heading of the question it said that he took the cost, and since it's lower therefore it's correct, but if he took the NRV in the last part, the current assets would be overstated by the difference which is 210

 

[IGCSE O/L student]

Yea that transaction was completely omitted? So I did debit drawings and credit Hans lee or whatever the name was.

it should be credit cash, and this error cannot be adjusted in the suspense account, because omitted transactions do not affect the agreement of the trial balance

 

[Adham-amr]

it should be credit cash, and this error cannot be adjusted in the suspense account, because omitted transactions do not affect the agreement of the trial balance

The transaction wasn't completely omitted, check my previous posts.

 

[Numnum]

it should be credit cash, and this error cannot be adjusted in the suspense account, because omitted transactions do not affect the agreement of the trial balance

*completely omitted don't. One entry omitted does.

 

[Numnum]

Because at 31 July 2011 when you compare the cost and NRV, the cost is lower and in the heading of the question it said that he took the cost, and since it's lower therefore it's correct, but if he took the NRV in the last part, the current assets would be overstated by the difference which is 210

Yea okay thank yu and this is because we are supposed to take the lower of cost or NRV right? And we took the lower of cost I get it but then if we took NRV current assets will be overstated so why not understated now?? Cause we took the lower value?

 

[IGCSE O/L student]

It DID say omitted from the ( drawings account ) cash withdrew for 200$ and since it didn't say it was wrongly entered in the cash book or was omitted, therefore it's correctly entered, and yes the owner's account is called capital and we do write drawings in the capital account, but not ( owner's name ) account. Anyway it's only 1 mark for the journal entry to correct the error because you only got the second side wrong, I have paper 2 tomorrow too, good luck to both of us

thanks and same to you!

 

[Adham-amr]

Yea okay thank yu and this is because we are supposed to take the lower of cost or NRV right? And we took the lower of cost I get it but then if we took NRV current assets will be overstated so why not understated now?? Cause we took the lower value?

Because the prudence concept states that stock should be valued at lower of cost and NRV, which means that you compare them, take the lower figure to the income statement and balance sheet, but if we took the NRV that means that the current assets will be more than should be by the difference

 

[Numnum]

Because the prudence concept states that stock should be valued at lower of cost and NRV, which means that you compare them, take the lower figure to the income statement and balance sheet, but if we took the NRV that means that the current assets will be more than should be by the difference

Okay got it thank you I'm so sorry can you pls explain why gross profit is decreasing also?? :$

 

[Omar Mihilmy]

just saying omitted means omitted that it's omitted from one account ?
does the examiner have to mention completely omitted so it would affect the agreement ?

 

[Numnum]

just saying omitted means omitted that it's omitted from one account ?
does the examiner have to mention completely omitted so it would affect the agreement ?

Yea I guess so. Idk I didn't really read the statement carefully.

 

[Omar Mihilmy]

ratios in the exam can someone tell us who had better ratios ?

 

[Numnum]

ratios in the exam can someone tell us who had better ratios ?

I forgot the business's name I wrote corell or whatever it was.

 

[Adham-amr]

Okay got it thank you I'm so sorry can you pls explain why gross profit is decreasing also?? :$

That's what I don't understand :/ that's the only question i got wrong in the exam

 

[IGCSE O/L student]

ratios in the exam can someone tell us who had better ratios ?

Cole Limited

 

[Numnum]

That's what I don't understand :/ that's the only question i got wrong in the exam

In the exam?? Yu gave 2011??

 

[Adham-amr]

In the exam?? Yu gave 2011??

No I mean when solving.

 

[JimmyCarter]

Adham-amr you messed up things,