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Economics, Accounting & Business: Post your doubts here!

Hasnain1sds

Hasnain1sds

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WaleedUQ said:
GUYS I KNOW YOU WON'T BELIEVE ME
but i have done this question of manufacturing account.
It was in the past papers of OCR
OCR (Oxford, Cambridge and RSA Examinations[1]
i'll show you this question
Depreciation was to be charged on NON CURRENT ASSESTS!
on building as well, if the depreciation is not provided is doesnt mean that building was not supposed to be depreciated.
It could be bought in the year end, or in the start of the year
Their was no PROFIT
their was in fact NET LOSS 11000
depreciation of fact equip was 40k
depreciation for building was 120k
depreciation for office was 20.8 k
Goodwill was 85k
Bank balance was 196000
Aiden capital was 286 000
434 of Mahiria
balance sheet was balancing at 762000
PROFIT of 86K was supposed to be added minus drawings 44

One OAR was 6.7 something and assembly one was 4.53 something dont know the exact!
Indirect wages were apportioned on the basics of No. of employees
Repair and maintenance of machine on the basics of Cost of machinery
Machine was under absorbed and Assembly was over or vice versa. I dont remember much
Click to expand...

This is exactly what i got although I can't remember over and under absorption part. And those who are worried about depreciation on buildings I would say just calm down.
There can be reasons for both charging depreciation and not charging it:
For: The question said 'on non-current assets' and didn't exempted buildings from it.
Against: The question did not give Provision for deprerciation on buildings so technically it means depreciation was not charged in previous years (however it may be the case that building was bought during the year).

Concluding this issue i would say that this was an error in question not specifying what the company's policy regarding depreciation on building was (remember when the boss says jump you don't ask 'why?' but you ask how 'high?') there fore the examiner may not give marks for this part of the question and on profit or loss figure remember this is would not be unique case as the same has been done by examiner in past.
Cheers!
 
M

Mohammed Hassan

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Hasnain1sds said:
This is exactly what i got although I can't remember over and under absorption part. And those who are worried about depreciation on buildings I would say just calm down.
There can be reasons for both charging depreciation and not charging it:
For: The question said 'on non-current assets' and didn't exempted buildings from it.
Against: The question did not give Provision for deprerciation on buildings so technically it means depreciation was not charged in previous years (however it may be the case that building was bought during the year).

Concluding this issue i would say that this was an error in question not specifying what the company's policy regarding depreciation on building was (remember when the boss says jump you don't ask 'why?' but you ask how 'high?') there fore the examiner may not give marks for this part of the question and on profit or loss figure remember this is would not be unique case as the same has been done by examiner in past.
Cheers!
Click to expand...
HOPE that every single word u said! comes true :/
 
V

vita199

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heyy can u guys suggest good websites where i can revise 4 A2 eco?? nd i already noe tutor2u nd scool economics...
 
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