help in accounting paper 3 plz

[Bani]

Ok, for the now Q2, see, the 300 debit represents the money in the bank. Then, it says that the bank statement debited the business's bank account with 1050. Now, this means that for the bank, the business is the debtor (it owes the amount charged). therefore, it will have to be deducted from the current bank balance, which is 300. So, 300-1050= -750, indicating that its a bank overdraft now.
And for the question 5 in M/J 07 and for the question 1 , the debit balance again represents the money in the bank
 I hope its cleared. If there is still any confusion regarding this question, please ask I'll be more than happy to clear it.

[7ooD]

it is related to question 3 cmon answer fast dude

[7ooD]

aha thanks i understood it  u r the man of the match aside with monica the woman of the match u r heroes :d :d :d

[7ooD]

one question is left and this will show who is the winner of the fight if bani wins he gonna have a free trip to the guntanmo prison palm beach if monica wins she will see a picture of a cöol makeup collection :p

[Monica]

ok wait give me time....i am a bit busy...BUT WAIT PLZ!!

[Bani]

Ok, for your last question, in Oct/November 2005, the question says that half of the credit balance of the person's account needs to be transferred. Right now, its 10000 credit in the current account. We want 5000 credit balance in the current account. The rest of 5000 needs to be debited to the capital account. Therefore, we will debit the current account with 5000 (which would mean 10000 (credit)-5000(debit), leaving 5000 credit in the current account.)
In M/J 08 paper, the whole amount neds to be transferred to capital a/c from current a/c. This means that the right now 2200 debit balance in the current account should be credited with 2200, to get the balance to 0, as the WHOLE 2200 is needed to be transferred to the capital a/c. Consequently, the capital a/c will be debited with 2200.
I hope all is cleared. Any more confusion, met me know.

P.S Im a she So u better not call me dude

[Monica]

ok bani y did u answer??!!

lol just kidden thx anyway for answering him...lol i already answered 3 questions b4!!

thx 7ood these questions made me practice!!

[Bani]

To make it more easier for you to understand, for the Oct/Nov question, once you understand why we debit the current account, then, just think that for every debit entry, there has to be a credit entry. Therefore, when we debit the current account with 5000, we will have to credit it somewhere else, which is obviously the capital account. And for the M/J 08 question, the same applies. We credit the current account (to get the a/c balance to 0). Then, for this credit entry, there has to be a debit entry, which is the capital account.
I hope this made it clearer

[Bani]

ok bani y did u answer??!!

lol just kidden thx anyway for answering him...lol i already answered 3 questions b4!!

thx 7ood these questions made me practice!!

hehehe
Oh yeah, me too, thanks 700d, I also got more practice. If you have any more questions, please feel free to ask. We'll get more practice then

[7ooD]

THANKZZZZ......Zzz...ZzZ ladies so much ya i have a small doubt that in provision for doubtful debts if we had been given last year provision which for example was 200 and this year 150 i memorized the enteries in the provision accöunt but never understood them the enterie r deßit balance c/d 150 and credit ßalance b/d 200 so do i have to memorize it  or there is a point behind dat

[7ooD]

loool sry bani i thought u r a boy now this is an error of commision correction is debit female bani credit male bani :p

[Monica]

ok when the provision for last year was 200 and now it is 150, this means u will decrease the provision which is an income for the business... so like this a balance b/d will 200 on the credit side of the provision account and then becuz u want to decrease it by 50., u will put P/L on the debit side as 50... now the balance c/d will be 150...... hope u got that..

[Bani]

THANKZZZZ......Zzz...ZzZ ladies so much ya i have a small doubt that in provision for doubtful debts if we had been given last year provision which for example was 200 and this year 150 i memorized the enteries in the provision accöunt but never understood them the enterie r deßit balance c/d 150 and credit ßalance b/d 200 so do i have to memorize it  or there is a point behind dat

Ok, provision for doubtful debts is simply recording the probable non-payments by the debtors. Now, using your example, the question would probably mention that On 1st May 2009(for example) a trader had a provison for doubtful debts amounting to $200 (meaning that the 200 is the last year's b/d balance.
provison for doubtful debts is a credit balance. I'll tell you the reason in a  moment.
               So, first write down the balance $200 in the credit side. Then the question mentions that the provison for doubtful debts was reduced to $150 (this means that at te end of the year, the provision for doubtful debts will have a credit balance of $200) Now, its a credit balance because its going out of the account and being debited (subtracted from gross profit) in the trading account. Now, you know that the balance at start is $200 credit and the balance at the end is $150, what amount needs to be debited to lower the credit balance to 150?
            (200-150=50), so, you would debit the provison for doubtful debts with $50 after entering the opening balance of $200, to get the bredit balance of $150.
Now, in this case, if u see, the prov for doubtful debts has decreased. Which, means this would be an income in the trading account; the decrease of $50 would be added(credited) to the gross profit. The decrease is an income because the business would be transfering some of the provision back into the firm's revenue
I hope this helped. Any confusions regarding this, please feel free to ask.
    

[Bani]

ok when the provision for last year was 200 and now it is 150, this means u will decrease the provision which is an income for the business... so like this a balance b/d will 200 on the credit side of the provision account and then becuz u want to decrease it by 50., u will put P/L on the debit side as 50... now the balance c/d will be 150...... hope u got that..

hahaha I just saw you replied after I had posted my long description hmmmmmmm

[Bani]

loool sry bani i thought u r a boy now this is an error of commision correction is debit female bani credit male bani :p

Hahahahahaha  We all are too full of Accounting, aren't we ? hehehehe I like ur sense of humour keep it up, by practicing more for Accounting