Qualification > Commerce

Accounting HELP !!!

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holtadit:

--- Quote from: Ari Ben Canaan on May 23, 2010, 02:49:26 pm ---When calculating capital for a firm do we minus LONG TERM LIABILITIES ?

Or is it just total assets - current liabilities.

--- End quote ---

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:

--- Quote from: aangel42 on May 23, 2010, 03:14:51 pm ---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?

--- End quote ---

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:

--- Quote from: aangel42 on May 23, 2010, 03:14:51 pm ---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?

--- End quote ---

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!  :D

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?
 ;D

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