periqueta replied to the topic ** F3 Exam Results June 2013 and Genius Hunt Competition ** in the forum F3 Financial Accounting Forums 8 months, 2 weeks ago
I found this answer in the forum:
No need to incorporate 900 at the beginning because in order to calculate allowance for receivables you start with your gross unprovided receivables. The confusion is maybe coming from Y Co – its receivable is 1,600 and the company provided 60% for this receivable – since the specific provision is made…[Read more]
19. Andrea started her business by transferring her car, worth $5,000, into the business.
What are the accounting entries required to record this?
Dr Car $5,000; Cr Drawings $5,000
Dr Capital $5,000; Cr Car $5,000
Dr Drawings $5,000; Cr Car $5,000
Dr Car $5,000; Cr Capital $5,000
Many thanks for your help
49. In the course of preparing a company’s Statement of Cash Flows, the following figures are to be included in the calculation of net cash from operating activities:
Profit on sale of non-current assets
Increase in inventories
Decrease in receivables
Increase in payables
What will…[Read more]
20. Apple owns her own business selling dolls to stores. At 30 June 2008 she had the following balances in her books:
Trade receivables: 62,900
Allowance for receivables: (900)
A balance of $2,000 due from X Co is considered irrecoverable and is to be written off. Y Co was in financial difficulty and Apple wished to provide an allowance for…[Read more]
Gareth, a sales tax registered trader purchased a computer for use in his business. The invoice for the computer showed following costs related to purchase:
Additional memory 95
Maintenace 1 year 25
Sles tax 182
How much should Gareth capitalise as a non current asset in relation to the…[Read more]
Yes, you are rigth! I finally understood it. In fact it is very simple… I think I just needed a brake to think more clearly.
Many thanks for your help. It has been very useful.
I found this through internet. Someone arrived to the same conclusion ?¿
The correct answer in the book is A, which at a glance might seem obvious, but here is my problem. Both items are included in cost of sales, so you take the £50k out of purchases and the £10k out of closing inventory, this will reduce your costs by £40k and…[Read more]
Sorry, thinking about it I am still confused…
By Including the stationery expense as closing inventory by mistake, we are reducing the cost of sales, so the impact of 50000 expenses is reduced by 10000. Therefore the effect on gross profit is “understated by 40,000″. I understand that. But, in relation to the net profit, the fact of not…[Read more]
1. A company issues 100,00 3% $1 irredeemable preferrence shares at 98c per share. What is the correct entry to account for this transaction?
2. A company issues 100,00 3% $1 redeemable preferrence shares at 98c per share. What is the correct entry to account for this transaction?
Many thanks for your answers.
After calculating your company’s profit for 2003, you discover that
a) A non-current asset costing £50,000 has been included in the purchases account
b) Stationery costing £10,000 has been inclued as closing inventory of raw materials, instead of inventtory of stationery. The two errors have the effect of
A) Understating gross profit by…[Read more]
I may be also sitting for F2 in June. I have the BPP text and revision kit for December 2012. Do you think I can use it? or it would be better to buy another “updated” book? I am trying to compare […]