Economics, Accounting & Business: Post your doubts here!

[moiz warraich]

How to treat inventory drawings in income statement and balance sheet?

 

[ZohaKhan]

Don't know but u can find past papers on Max papers as well

Acha tel me something.. What do you suggest if someone asks u between accounts and eco? Which should be taken? is eco difficult or accounts? I have heard mixed reviews

 

[Ram97]

Acha tel me something.. What do you suggest if someone asks u between accounts and eco? Which should be taken? is eco difficult or accounts? I have heard mixed reviews

If you have studied any of these in O Levels then you would find them easy though accounts is a lil bit difficult in AS than A2 whereas the case for economics is reversed
Being an accounts student and taken it for the first time in AL I found it difficult in the beginning but as the session progressed I was able to cope up with it. Financial accounting is tough than cost accounting so u might find it easy at the end

I do not have economics but as far as I've heard from first timers is that its not that difficult and I've seen them coping up with the subject quite nicely.
Btw, both are based on concepts and analysis. The stronger you are with it the easier it would be for you to cope up with the subject.

 

[ZohaKhan]

If you have studied any of these in O Levels then you would find them easy though accounts is a lil bit difficult in AS than A2 whereas the case for economics is reversed
Being an accounts student and taken it for the first time in AL I found it difficult in the beginning but as the session progressed I was able to cope up with it. Financial accounting is tough than cost accounting so u might find it easy at the end

I do not have economics but as far as I've heard from first timers is that its not that difficult and I've seen them coping up with the subject quite nicely.
Btw, both are based on concepts and analysis. The stronger you are with it the easier it would be for you to cope up with the subject.

Hey thankyou so much

 

[Romeo Sheikh]

How to treat inventory drawings in income statement and balance sheet?

This transaction effects the drawings and purchases accounts. In the ledgers drawings is debited and purchases is credited therefore in I/S drawings value will be deducted from purchases (in cost of sales) and in the balance sheet, in financed by sections the value of inventory drawings shuld be added with the current drawings amount
hope it answers your query

 

[moiz warraich]

This transaction effects the drawings and purchases accounts. In the ledgers drawings is debited and purchases is credited therefore in I/S drawings value will be deducted from purchases (in cost of sales) and in the balance sheet, in financed by sections the value of inventory drawings shuld be added with the current drawings amount
hope it answers your query

Thanks

 

[azaanahsan]

Acha tel me something.. What do you suggest if someone asks u between accounts and eco? Which should be taken? is eco difficult or accounts? I have heard mixed reviews

depends on u , I like accounts becoz i think in accounts if u understand no need to remember things or eco. mjhaa thora boring lagta hai ... Accounts acha hai

 

[Sana Adnan]

Acha tel me something.. What do you suggest if someone asks u between accounts and eco? Which should be taken? is eco difficult or accounts? I have heard mixed reviews

ZohaKhan
As someone who had both economics and accounting, I can tell you that both have more or less same level of difficulty and both are based on conceptual applications. Economics also requires analytical abilities. The major difference is that economics is more theoretical while accounting is all numbers. So at the the end of the day your decision should be based on:
A: what you are better at handling (theory or numbers)
B: What degree are planning to pursue in future and what subject has more relevance to your future degree/ career?

 

[job wilson]

Someone post accounts 9706 oct 2014 paper here.??? Need it urgent

 

[Sana Adnan]

Someone post accounts 9706 oct 2014 paper here.??? Need it urgent

job wilson
http://www.gceguide.com/search/label/AS & A Level : Accounting (9706)

 

[ZohaKhan]

depends on u , I like accounts becoz i think in accounts if u understand no need to remember things or eco. mjhaa thora boring lagta hai ... Accounts acha hai

I see,
thanks muchhh

 

[ZohaKhan]

ZohaKhan
As someone who had both economics and accounting, I can tell you that both have more or less same level of difficulty and both are based on conceptual applications. Economics also requires analytical abilities. The major difference is that economics is more theoretical while accounting is all numbers. So at the the end of the day your decision should be based on:
A: what you are better at handling (theory or numbers)
B: What degree are planning to pursue in future and what subject has more relevance to your future degree/ career?

Hey Sana, thank you for such a detailed response U were of great help, indeed!

 

[lxelle]

azaanahsan Hi! http://onlineexamhelp.com/wp-content/uploads/2012/06/9706_w08_qp_4.pdf I would like to clarify some things in question 1 i). How do you calculate the revaluation and goodwill? It seems that there were no goodwill previously until the new partnership agreement drawn up?

 

[Sana Adnan]

Hey Sana, thank you for such a detailed response U were of great help, indeed!

NP

 

[azaanahsan]

azaanahsan Hi! http://onlineexamhelp.com/wp-content/uploads/2012/06/9706_w08_qp_4.pdf I would like to clarify some things in question 1 i). How do you calculate the revaluation and goodwill? It seems that there were no goodwill previously until the new partnership agreement drawn up?

there are two types of goodwill, One is inherent and second purchased goodwill. Inherent goodwill can not be shown as it does not qualify as an asset because cost can not be measured for it. Same thing u can apply here also, Wong did had goodwill but was not written because cost couldn't be measured, it will be written when business is sold to other party, as in this case business is sold to GWG which is paying Wong 57000 (Average of 5 years profit * 3). Amount paid is 57000 where as Asset taken are worth 55000 only as u can see in additional info. so now we can measure goodwill which is 57000 - 55000 = 2000 , Same is the case with partners as well but they have negative goodwill (500) so total goodwill is 1500 (2000 - 500), Hope u understand..... u can ask any doubts

 

[Tushar968]

For this u hav to find increase or decrease in debt


Opening Balance (580-500) 80
(-)Cash increase/(decrease) during year (667)
(+)Debenture repurchase 140 (this will decrease your debt)
= Closing debt which is (360 + 87) (447)

Decrease in debt is added and increase in debt is subtracted

thank you so much

 

[lxelle]

there are two types of goodwill, One is inherent and second purchased goodwill. Inherent goodwill can not be shown as it does not qualify as an asset because cost can not be measured for it. Same thing u can apply here also, Wong did had goodwill but was not written because cost couldn't be measured, it will be written when business is sold to other party, as in this case business is sold to GWG which is paying Wong 57000 (Average of 5 years profit * 3). Amount paid is 57000 where as Asset taken are worth 55000 only as u can see in additional info. so now we can measure goodwill which is 57000 - 55000 = 2000 , Same is the case with partners as well but they have negative goodwill (500) so total goodwill is 1500 (2000 - 500), Hope u understand..... u can ask any doubts

Oops, I think I gave the wrong link. http://onlineexamhelp.com/wp-content/uploads/2012/06/9706_s08_qp_4.pdf So yeah, once again, how do you calculate the goodwill and revaluation for this?

 

[azaanahsan]

Oops, I think I gave the wrong link. http://onlineexamhelp.com/wp-content/uploads/2012/06/9706_s08_qp_4.pdf So yeah, once again, how do you calculate the goodwill and revaluation for this?

First let me tell u about revaluation .... As u see in question they have said that Some Assets are valued more than book values at 8000 and some Assets are valued at 2000 less than book values so this mean revaluation over here is 6000 (8000-2000) but some students make mistake and they forget that goodwill is also valued & value of goodwill is 72000 so revaluation will become (72000+6000 = 78000) now u divide this 78000 in old profit sharing ratio which is 78000/3 = 26,000 for each partner. Now they told us to remove goodwill through capital account so this 72000 will be written off with new ratio which is (3:2:1).

Remember old ratio is 1:1:1 because all three partners get equal share of residual profit as given above 38,500
If u deal goodwill separately as u write it with old ratio n then u remove it u should get same answer & i think should be acceptable
Opening bal. of their capital account can be found by working backwards


for instance Ahmed got interest of 6000 on his capital at 8%

So x * 8% = 6000
x = 6000 * 100 / 8
x= 75000

In this way u can find for others also

Hope i answer ur query

 

[lxelle]

First let me tell u about revaluation .... As u see in question they have said that Some Assets are valued more than book values at 8000 and some Assets are valued at 2000 less than book values so this mean revaluation over here is 6000 (8000-2000) but some students make mistake and they forget that goodwill is also valued & value of goodwill is 72000 so revaluation will become (72000+6000 = 78000) now u divide this 78000 in old profit sharing ratio which is 78000/3 = 26,000 for each partner. Now they told us to remove goodwill through capital account so this 72000 will be written off with new ratio which is (3:2:1).

Remember old ratio is 1:1:1 because all three partners get equal share of residual profit as given above 38,500
If u deal goodwill separately as u write it with old ratio n then u remove it u should get same answer & i think should be acceptable
Opening bal. of their capital account can be found by working backwards


for instance Ahmed got interest of 6000 on his capital at 8%

So x * 8% = 6000
x = 6000 * 100 / 8
x= 75000

In this way u can find for others also

Hope i answer ur query

So, for goodwill, previously there were no goodwill, until they drawn up a new agreement right?

 

[azaanahsan]

So, for goodwill, previously there were no goodwill, until they drawn up a new agreement right?

there was but not valued i guess...