Accounting HELP !!!

[holtadit]

When calculating capital for a firm do we minus LONG TERM LIABILITIES ?

Or is it just total assets - current liabilities.

No love man....   

[holtadit]

Long term Liabilities are NEVER subtracted in the Financed By section - you can lose marks for that.

Okay heres a question :

I have $1000 as a long term loan from a friend.

Supposing I take a further $2000 long term loan,

What affect (if any) will this have on my CAPITAL ?

[holtadit]

Yeah your answer is correct. Your explanation made sense.


I have the same text book - if you read a few of the MS in 2003-2004 you will lose marks for showing Longterm Liabil. in the  Financed By section.

Just deduct it from total assets.

[holtadit]

Can anyone explain to me why the answer to this question is $15000?

Amounts owed by a trader for electricity are given below:
1 January $2000
31 December $2500

The charge for electricity shown in the profit and loss account for the year ended 31 December was $15 500. What was the amount paid for electricity during the year?

Work backwards.

amunt payed for expense/income less amounts owing at the start of the year add amounts owing at the end of the year = P&L charge

[DaaDoo]

Can anyone explain to me why the answer to this question is $15000?

Amounts owed by a trader for electricity are given below:
1 January $2000
31 December $2500

The charge for electricity shown in the profit and loss account for the year ended 31 December was $15 500. What was the amount paid for electricity during the year?

31 December (end) - 1 January (beginning) = 2500 - 2000 = 500
amount shown in the p/l account - 500 = 15500 - 500 = 15000
I guess? I dont really know!  

Can some one tell me, when you make a T account, when is it that you balence it, and when is it that you trasfer it?
I have had a few questions saying once you prepare it, either transfer it to the T/P/L account or balence it and bring it down what do i do?
 

[holtadit]

Okay


Start with P&L charge :15500

Minus amount owing at year end 2500                                      I minus since we are working BACKWARDS

= $13000

THEN add amt. owing at beginning of year 2000

= 15000                Hope you got it form a formula with X if you dont get it

[contraentry]

i'm going to lose marks on theory i just know it

same here

[DaaDoo]

Can you tell me which paper that question came from anyway?
I will try and have a go at it now i understnd it better!

[abdjed2]

In the specimen 2010 paper 1...How do we do Q3 b). I got $590 on the "expected balance..." but the mark scheme says $710.

Please explain..

[YNWA]

Accounting Paper 3, M/J 2007 Q2.
The Bad Debt Recovered A/c
The mark scheme says "cash" on the credit side. Should it not be W.Blanco, who is the debtor?

[contraentry]

When bad debts are recognized, the debtors account is closed by Posting PnL as a loss on the credit side of the debtor (in this case W.Blanco)

Accepting that, W. Blanco's account no longer exists in your books of accounts.

However, later on, when you have recovered the money lost, it comes in as a way of cash / bank, in this example it is Cash.

Hence the journal entry:  Cash Dr.
                                  Bad Debts Rec A/C : Cr.

At the end of the year, the Bad Debts Rec account balance will transfer into the profit and loss account as an income, just the way discount received does.

[holtadit]

Accounting Paper 3, M/J 2007 Q2.
The Bad Debt Recovered A/c
The mark scheme says "cash" on the credit side. Should it not be W.Blanco, who is the debtor?

There are two ways to reinstate a debt - read the MS (scroll down a bit) and you'll see what I mean.

[YNWA]

Thanks to you both.
One more thing, what is the difference between owner's capital & capital employed?

[Alpha]

Thanks to you both.
One more thing, what is the difference between owner's capital & capital employed?

Owner's capital + Long Term Liabilities = Capital Employed.

[holtadit]

When a LOAN is provided by a PARTNER :

we debit bank a/c

and CREDIT what ? the partner's current/capital account ?





PLEASE HELP !!!!!!!