Accounting Paper 1 and 2

[Meg]

if you get one brought down on the credit side, it means that is the amount you owe creditors. if you get a brought down on the debit side, it means either you were provided with faulty goods, you were overcharged, or you returned some of the goods

Yeah! See..its like creditors' accounts right?
Its the cumulation of it!
U owe them money so it'll be cr!
Debtors' owe u money..it'll be dr
GEt it?

 

[Meg]

it's the other way around:
Sales ledger account is the total debtors account
Purchases ledger control account is the total creditors account.

Oh shit!
Type mistake sorry!
I meant the other way
Apologies

 

[IGCSE O/L student]

Yeah! See..its like creditors' accounts right?
Its the cumulation of it!
U owe them money so it'll be cr!
Debtors' owe u money..it'll be dr
GEt it?

that's right

 

[IGCSE O/L student]

Oh shit!
Type mistake sorry!
I meant the other way
Apologies

it's fine. we understand!
human error!

 

[Meg]

it's fine. we understand!
human error!

Corrected the post
Thanks

Ps. hun..how are you preparing for accounts?
Subscriptions and Manufacturing scares me :/

 

[IGCSE O/L student]

Corrected the post
Thanks

Ps. hun..how are you preparing for accounts?
Subscriptions and Manufacturing scares me :/

just practise as many questions as many questions as possible.
and keep the format in your mind
do them over and over again to make sure you can go against the time.

 

[Meg]

I've done so many past papers lol
Almost all done XD

Manufacturing fucks my head :/
I CANT remeber the format at all!
Any tips to tackle that shit?

 

[IGCSE O/L student]

I've done so many past papers lol
Almost all done XD

Manufacturing fucks my head :/
I CANT remeber the format at all!
Any tips to tackle that shit?

re-do the hard questions

 

[Muzammil100]

re-do the hard questions

Just try to learn the format first!

 

[IGCSE O/L student]

Just try to learn the format first!

you should get used to it by practising questions over and over again.

 

[Muzammil100]

you should get used to it by practising questions over and over again.

No you should learn it! Then practice!

 

[IGCSE O/L student]

No you should learn it! Then practice!

learn while practising!

 

[Meg]

Um okay
I'll manage thanks

 

[IGCSE O/L student]

Um okay
I'll manage thanks

you are most welcome. if you need anything else, just ask me!

 

[ThatReallyReallyWeirdDude]

Can someone help me tackle Manufacturing Account, Subscription Account, Accounts of Clubs and Societies and Goodwill?
Those are my weakpoints :/
Especially Manufacturing!
Any tips?

Sure!
I'll inbox you

 

[Muzammil100]

you are most welcome. if you need anything else, just ask me!

You can ask everyone here!

 

[ThatReallyReallyWeirdDude]

Alright then.
Just typed up notes for Manufacturing Accounts & Accounts of Clubs & Societies.
Can find them here
I may make more. Any specific chapters which are required?

 

[ThatReallyReallyWeirdDude]

As for Goodwill Meg
I'm creating a collection of theory Q's & A's and it'll be included there but I'll say it here just incase you want to learn it sooner than later:
The money measurement concepts states that only things with a monetary value should be recorded in accounting; however, that does not mean when it comes to business purchases that things without fixed monetary value is dismissed.
A business may have net assets of 200,000 but to buy it you may have to pay 250,000 - the extra 50,000 is called goodwill (i.e. amount paid for business minus net assets)
Goodwill includes the following things (directly from past paper):
Location of business
Reputation of business
Possession of trademarks and brand names
Number of regular customers
Experienced and reliable staff

Contacts with regular suppliers ​

All these things help the business greatly (infact except net assets, what's the difference between McDonalds and the random burger joint down the street? The trademark, the reputation, the staff, etc.) and so people purchasing businesses will pay extra. They don't say something like, "Oh, 100 dollars for every experienced staff member..." No, they agree on a price e.g.
"My business has a net asset worth of 300,000. However, we also have excellent relations with our customers...and this sheet shows...etc. etc." And then the person buying would maybe pay 400,000 , the extra being for the goodwill. Hope you got it!
All they ask for is definition of goodwill, things which are included and at max to calculate the goodwill amount when they give you net assets and amount paid by purchaer.

 

[fifooo]

As for Goodwill Meg
I'm creating a collection of theory Q's & A's and it'll be included there but I'll say it here just incase you want to learn it sooner than later:
The money measurement concepts states that only things with a monetary value should be recorded in accounting; however, that does not mean when it comes to business purchases that things without fixed monetary value is dismissed.
A business may have net assets of 200,000 but to buy it you may have to pay 250,000 - the extra 50,000 is called goodwill (i.e. amount paid for business minus net assets)
Goodwill includes the following things (directly from past paper):
Location of business
Reputation of business
Possession of trademarks and brand names
Number of regular customers
Experienced and reliable staff

Contacts with regular suppliers ​

All these things help the business greatly (infact except net assets, what's the difference between McDonalds and the random burger joint down the street? The trademark, the reputation, the staff, etc.) and so people purchasing businesses will pay extra. They don't say something like, "Oh, 100 dollars for every experienced staff member..." No, they agree on a price e.g.
"My business has a net asset worth of 300,000. However, we also have excellent relations with our customers...and this sheet shows...etc. etc." And then the person buying would maybe pay 400,000 , the extra being for the goodwill. Hope you got it!
All they ask for is definition of goodwill, things which are included and at max to calculate the goodwill amount when they give you net assets and amount paid by purchaer.

Thanksssss bro! ur so helpful. can u please explain Incomplete Records (Control Accounts) i.e: when it asks calculate credit sales. You will find it in may june 2011 11 Q3. ??

 

[Meg]

As for Goodwill Meg
I'm creating a collection of theory Q's & A's and it'll be included there but I'll say it here just incase you want to learn it sooner than later:
The money measurement concepts states that only things with a monetary value should be recorded in accounting; however, that does not mean when it comes to business purchases that things without fixed monetary value is dismissed.
A business may have net assets of 200,000 but to buy it you may have to pay 250,000 - the extra 50,000 is called goodwill (i.e. amount paid for business minus net assets)
Goodwill includes the following things (directly from past paper):
Location of business
Reputation of business
Possession of trademarks and brand names
Number of regular customers
Experienced and reliable staff

Contacts with regular suppliers ​

All these things help the business greatly (infact except net assets, what's the difference between McDonalds and the random burger joint down the street? The trademark, the reputation, the staff, etc.) and so people purchasing businesses will pay extra. They don't say something like, "Oh, 100 dollars for every experienced staff member..." No, they agree on a price e.g.
"My business has a net asset worth of 300,000. However, we also have excellent relations with our customers...and this sheet shows...etc. etc." And then the person buying would maybe pay 400,000 , the extra being for the goodwill. Hope you got it!
All they ask for is definition of goodwill, things which are included and at max to calculate the goodwill amount when they give you net assets and amount paid by purchaer.

Thanks love :*