Author Topic: all acc doubts here !! (Read 13016 times)

exam · « **on:** May 13, 2010, 10:29:58 pm »

There are very less people taking acc and even lesser who can solve doubts

so i decided make this thread so that all acc doubts can be posted here and its easy for everyone to locate.
cuz many small threads here and there makes it difficult to locate and creates more mess in sf

i hope all doubts are posted here !!!!

pastyear · « **Reply #1 on:** May 14, 2010, 03:50:39 am »

ya , i agree

pastyear · « **Reply #2 on:** May 14, 2010, 04:40:42 am »

Q1) net asset = fixed asset + current asset -current liability

if the question got long-term liability, do we need to deduct to get net asset?

Q2) Can someone explain Provision for unrealised profit and factory profit ? About the double entry and how its put on profit and loss a/c , balance sheet

Monica · « **Reply #3 on:** May 14, 2010, 05:43:07 am »

Quote from: pastyear on May 14, 2010, 04:40:42 am

Q1) net asset = fixed asset + current asset -current liability

if the question got long-term liability, do we need to deduct to get net asset?

Q2) Can someone explain Provision for unrealised profit and factory profit ? About the double entry and how its put on profit and loss a/c , balance sheet

Provision for unrealised profit

-Be made on the closing stock valued at production cost plus a percentage of factory profit.

-Provision for unrealized profit = Mark up% / 100%+ Mark up(%)

Check the file attached it is explaining the Manufacturing account lesson PERFECTLY. You will find full explanation there for Provision for unrealized profit.

Monica · « **Reply #4 on:** May 14, 2010, 05:49:14 am »

Quote from: pastyear on May 14, 2010, 04:40:42 am

Q1) net asset = fixed asset + current asset -current liability

if the question got long-term liability, do we need to deduct to get net asset?

Net assets = Total assets - total liabilities of an individual or company.

So, yes to your question, we need to deduct the long term liability.

immortal · « **Reply #5 on:** May 14, 2010, 09:54:40 am »

Cn any1 give standard format for absorption costing... because different questions in past papers regarding this topic, da MS haz solved it wit varying format/

exam · « **Reply #6 on:** May 14, 2010, 10:21:08 am »

@mony : Thanks although i knew manufacturing acc but the ppt was a great revision

and absorption costing i dont understand it at all is there any reference material to learn about it

pastyear · « **Reply #7 on:** May 14, 2010, 10:34:05 am »

When we calculate OAR how do we find the Budgeted overhead if thequestion is not given directly but they give the variable production overhead, fixed production overhead, fixed selling and administrative expenses.
Which one do we include ? and why include and not include?

exam · « **Reply #8 on:** May 14, 2010, 10:40:50 am »

i think only variable production overhead and fixed production overhead are taken into acc but m not sure

lets wait 4 others to answer

pastyear · « **Reply #9 on:** May 14, 2010, 10:47:32 am »

immortal do you know why only include fixed and variable production cost but not the sellind and administrative overhead?

I will post the format later..

pastyear · « **Reply #10 on:** May 14, 2010, 01:36:22 pm »

The upper part as usual normal p/l account but at thelast part before you get your net profit you have to less under-absorption of fixd overhead or add over-absorption of fixed overhead.
Remember absorption costing is based at full cost.

pastyear · « **Reply #11 on:** May 14, 2010, 01:41:53 pm »

Questions again. Pls explain.Thanks.

Q1) When we calculate OAR how do we find the Budgeted overhead if thequestion is not given directly but they give the variable production overhead, fixed production overhead, fixed selling and administrative expenses.
Which one do we include ? and why include and not include?

Q2)At the year-end a cash book shows a credit balance of $4800.
The bank statement included bank charges of $25 which had not been included in the cash book.
Cheque payments entered in the cash book before the year end to the value of $250 had not yet
cleared the bank.
How would the bank balance be shown in the balance sheet?

Ans: current liability $4825

Q3)The wages of staff employed in manufacturing goods have been debited in the profit and loss
account.
What is the effect of this error?

Ans: gross profit -overstated ; net profit- no effect

immortal · « **Reply #12 on:** May 14, 2010, 03:23:53 pm »

Q2) Wen u reconcile da cash book wit da bank statement, da up-2-date cash book will show -4800-25=4825(CL).
While da bank reconciliation statement wit da bank statement bal of (-)4550 will decrease by 250.

Q3) The wage should b charged in a manufacturing a/c, not da P&L.
Due 2 da error Maun a/c is overstated(production cost) thus G/P is overstated.
regardless of where da expense is shown,it wont effect da final profit N.P.

Prince007 · « **Reply #13 on:** May 14, 2010, 05:06:13 pm »

hey guys got a question In the ratio chapter are the gearing ratios in syllabus of 2010 in a AS level.

skywalker112233 · « **Reply #14 on:** May 14, 2010, 05:19:53 pm »

hey man..i was just goin thru this site and sum threats and i found this...i am actually really glad that i found this threat because i need help in accounts...i am not bad at it...bt at times i forget certain things....i can do the past papers...bt i take time...a lott of timee..and can u help plss...can u like suggest wt i should practice inorder to get speed and perfection at this subject...plss..thankzz (i hope i get a quick replyy)

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