Qualification > Commerce

plz the exam is after 1 day answer the questions 4 r left go to page 2 directly

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Monica:
Ok for the first question i don't really get wat u mean...but then if they give u a debit bank balance it means that ur gonna add it under the current assets column But if the gave u a Cradit balance for the bank this means that it is a n overdraft so it is treated as a current liability in the balance sheet.

Always remember this for the club and societies lesson:

Non-Profit organization: Profit organization

Income and Expenditure account: Profit and loss account

Receipts and payments: cash book

Deficit: Net loss

Surplus: Net profit

Accumulated fund: Capital


so then if u dont have the capital u use this formula: u first find the opening capital= assets-liabilities(of previous year)

then the net profit and drawings to calculatte the capital end....

the same goes for the accumulated fund which in other words means capital....

and then use the drawings and the surplus/deficit to get it.

7ooD:
yes i understand that debit balance means under the assets but in another question it was under liabilities is because they said there were bank charges which were not recorded so he treated it as an overdraft and put it under liabilities

Bani:

--- Quote from: 7ood on May 30, 2009, 08:00:25 pm ---yes i understand that debit balance means under the assets but in another question it was under liabilities is because they said there were bank charges which were not recorded so he treated it as an overdraft and put it under liabilities

--- End quote ---

hahah, I thought you needed the answers to those questions on that page itself! :D Please go check there, Im answering ur questions there :)

Monica:
ok then wat u dont understand??

when they give u a bank and write beside it credit u should always know that it is an overdraft...

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