I understand everything but can you pls explain why you didn't include Trade discount in the entries even thought you deducted it. It would be a great helpthese all things go on debit side
Returns Outwards (180) , Bank (5170) , Discount ( 190) , set off from sales ledger (350) ,Balance c/d (3270)
These all things go on credit
Balance b/d (2580) , Purchases (6480) ,Refund of cash (60) , Balance c/d (40)
the totals of both debit and credit sides is 9160
Hope u get it and i hope u dont have a problem in the second part
Only Cash discount (allowed/recieved) is recorded...am I right?trade discount is a discount which is not recorded in the books of a buyer or a seller it is just a discount to allow for more buyers and make them buy in bulk make sure u see the difference between cash and trade discount
can you help me with this question please?Yes exactly they are recorded and no problem ill be privileged to help u again
I think u do this like thiscan you help me with this question please?
Pradeep is a trader. The following information is provided.
Stock at cost on 1 August 2005 $1600
For the year ended 31 July 2006
Purchases $ 39200
Sales $ 48000
On the evening of 31 july 2006 a fire destroyed a quantity of stock.
The cost of the stock salvaged from the fire was $700.
Pradeep marks up the goods by 25% on cost when calculating the selling price.
Calculate, by means of a trading account, the cost of the stock which was destroyed.
Thank you so much...This meant a lot to me ...I think u do this like this
And it looks quite simple first use the mark up thing and find the gross profit and then make a trading account with the figures u have and now find the closing stock by using the trading account that is first find all cost of sales and then the cost of sales are minused from the opening stock and purchases to give the closing stock, now as we know that 700 was remaining of the closing stock after fire the 700 is minused from ur closing stock value found and u have ur stock destroyed !
I hope i didnt confuse u !
See goodwill is to be provided in his capital account because the goodwill the trader has built up is taken as a benefit which will provide more than usual profits to the other trader so his capital is increased by adding the goodwill and then if u see that when he is given the Interest on Capital he gets more profits due to goodwill when its added to his account ! on the other hand you can think of goodwill as being owned by one trader who when amalgamates adds this goodwill to increase his capital and as a result provides compensation for himself as the other trader now benefits from his business due to the goodwill he builtPlease help me in this,
Explain why a sole trader's capital account is adjusted for goodwill before his business is amalgamated with that of another sole trader?
State 2 reasons why 2 sole traders may amalgamate their businesses?
I had a bit of an idea..but thanks a lot for clearing everything for meSee goodwill is to be provided in his capital account because the goodwill the trader has built up is taken as a benefit which will provide more than usual profits to the other trader so his capital is increased by adding the goodwill and then if u see that when he is given the Interest on Capital he gets more profits due to goodwill when its added to his account ! on the other hand you can think of goodwill as being owned by one trader who when amalgamates adds this goodwill to increase his capital and as a result provides compensation for himself as the other trader now benefits from his business due to the goodwill he built
Very confusing i know it took me 6 months to get this idea
two reasons are simple !
they want to expand their business,looking for extra capital,more and new expertise of different traders ,they will share losses equally ,a decision will be taken after a long thought process between both trader making them mostly successful businesses and not close down soon
Please help me with this question....It's Question 3 in this linkisnt it 1900 !
Please help me with this question....It's Question 3 in this link
http://www.xtremepapers.com/papers/CIE/Cambridge International O Level/Principles of Accounts (7110)/7110_w02_qp_2.pdf
This is my working but it's not balancing..please point out my mistakes
Yea...I still don't get it...If you can pls post the answer because then I can figure out what to doDude in the capital acount that u draw now u didnt account for the adjustment no 1 u dont take hills building and dales loan and also u messed up the capital account equipment in Hills account is to be 30000 take all the adjustments in account man !
Start all over again and look at the adjustments and make the Capital account the adjustments are not only for balance sheet !
if u dont get it ill scan my answer to this question that i had done for my preparation to CIEs !
Well you just have to go through the book once with the syllabus and cover all its points from the book and as soon as u finish one topic do past papers for that topic i used to do 80s and 90s past papers when i finished a topic and then when everything was finished i completed all 2000s past papers read all ers and then i revised the book with the points i am weak in being the most thoroughly revised BTW accounts is not a subject to get scared ofwould you tell me plz how i do my preparation of principle off accounts i am giving exam in this oct nov and i completely for get near about every thing