Accounting Paper 42.

[3fatak]

I heard you guys were asked to make a fixed assets schedule in your P4? :O

yess that part was easy

 

[Hammad Suhail]

It was easy? Do they teach you that at A Levels?

 

[3fatak]

it was in the previous pastpapers, 2011 or 2012 i think
so i knew how to do it

 

[Hammad Suhail]

it was? can you give me the reference of the paper in which it was?

 

[3fatak]

they've made one in question 2 in ON 2012 P43
and they ask us to make one in MJ 2013 P41 Q2

 

[SalmanPakRocks]

i took the lower of cost in both the income statement and balance sheet
what were ur component grades in AS? if u dont mind can u tell the marks too.

We don't get the marks in Pakistan. I had B in P1 and A in P2 while overall was A.

 

[SalmanPakRocks]

for

the schedule of non current asstes it was needed

Oh yeah, used it in that.

 

[SalmanPakRocks]

WHAT??!

It was to be used in the Non-current asset schedule.

 

[Hammad Suhail]

Oh I see. Nice observation!

 

[asenfire]

It was to be used in the Non-current asset schedule.

how did you use that in that schedule?

 

[IGCSE Abdullah]

For that last part? $24000

24000? is this the profit?

 

[SalmanPakRocks]

24000? is this the profit?

Yup.

how did you use that in that schedule?

We had to prepare a schedule for non-current assets. In that schedule, all of the assets value b/d + assets acquired - assets disposed are calculated.

 

[asenfire]

Yup.


We had to prepare a schedule for non-current assets. In that schedule, all of the assets value b/d + assets acquired - assets disposed are calculated.

yes i know but what did you do with the 16000

 

[SalmanPakRocks]

yes i know but what did you do with the 16000

Disposed it off?

 

[IGCSE Abdullah]

Yup.


We had to prepare a schedule for non-current assets. In that schedule, all of the assets value b/d + assets acquired - assets disposed are calculated.

but it didnt say about say motor vehicle.. only asked for equipment and property

 

[SalmanPakRocks]

but it didnt say about say motor vehicle.. only asked for equipment and property

Really? Thanks for letting me know. The thing is, I hardly remember what I did. Especially in case of Question no. 2.
I just remember stuff which I was stuck at.

 

[SalmanPakRocks]

To end with, if you had disposed it off then you probably subtracted it from 65000 the cost that was given which contradicts with the fact that the amount 16000 was already adjusted which you said while calculation of depreciation. If it was adjusted then then you cannot subtract again in schedule.

Apparently so, but they never asked us to prepare a schedule for motor vehicle. I'd have known this before but my memory deceived me.
What I said earlier, I still stand to it as it's the right treatment and you can ask you teacher that.

 

[IGCSE Abdullah]

Really? Thanks for letting me know. The thing is, I hardly remember what I did. Especially in case of Question no. 2.
I just remember stuff which I was stuck at.

some people saying that the dividend yield thing 8% was on the share not on the profit??

 

[asenfire]

Apparently so, but they never asked us to prepare a schedule for motor vehicle. I'd have known this before but my memory deceived me.
What I said earlier, I still stand to it as it's the right treatment and you can ask you teacher that.

it also said 'property' but was there anything like property? NO so it meant land and buildings and all other non-current assets INCLUDING motor vehicle, a schedule is all about non-current assets according to IAS 16, how can a 'schedule' be a schedule excluding a non-current asset.

 

[SalmanPakRocks]

it also said 'property' but was there anything like property? NO so it meant land and buildings and all other non-current assets INCLUDING motor vehicle, a schedule is all about non-current assets according to IAS 16, how can a 'schedule' be a schedule excluding a non-current asset.

Property included Lands and buildings? IAS 16 you are quoting is about Property, plant and equipment. Motor vehicle is nowhere mentioned.
http://www.iasplus.com/en-gb/standards/ias/ias16
Also, before going to the IAS, you should revise how entries are posted into Trial balance. If that depreciation would 'not' have been recorded like you claim then how in the world is loss included into trail balance? That is the point I am raising, as far as that schedule is concerned, I messed it up as well.