Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Capital question
- This topic has 5 replies, 2 voices, and was last updated 8 years ago by John Moffat.
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- June 2, 2015 at 4:32 pm #251973
Hi Sorry if I am being silly.. but ive been staring at this question for 30 mins now.. and super confused!
I no C=A+L
And Net asset= Current asset-current liabilities.. but stuck using this principle to answer the below! ;-(Mike had net assets of $19,000 at 30 April 20X7. During the year to 30 April 20X7, he introduced $9,800 additional capital into the business. Profits were $8,000, of which he withdrew $4,200.
What was the balance on Mikes capital account at 1 May 20X6?
June 2, 2015 at 5:00 pm #251987whoops I mean c= A-L
June 2, 2015 at 6:49 pm #252095I do not understand why you are asking this question. Partly because presumably you have an answer in the same book as you found the question.
Also (and more importantly) this website contains an entire course of lectures for every paper – free of charge. You are obviously not bothering using our course but simply coming here to ask questions! Why are not you not following our course of free lectures? 🙂This Ask the Tutor Forum is intended for people who are following our course to be able to ask about problems that they are having. Not for people who choose to learn elsewhere!
Net assets does not mean current assets – current liabilities!!
It means total assets – total liabilities.Have you watched the free lectures on this? Our lectures cover the whole syllabus for Paper F3.
If you watch the lectures then you will know that:
Increase in net assets = capital introduced + profit – drawings.
You know what the net assets are at the end of the year, you know what the capital introduced, the profit, and the drawings were during the year. Therefore you can calculate the net assets at the start of the year.
(and, as you will also know from the lecture, the net assets at the start of the year are equal to the capital at the start of the year)
June 3, 2015 at 9:31 am #252339thanks i will watch the lecture. sorry i am not studying acca. i am studying cima.. and i have just started c02 which is similar to F3. I just started the syllabus and i am a distance learner… so everything is new to me… sorry if the question is silly. i have not watched the lectures for F3, i was just looking for an online forum for some help thats all.
June 3, 2015 at 9:35 am #252343i feel you were being a bit harsh and rude in your comment sir. i am just a student trying to understand accounting.. all i needed was a little support, you didnt have to be rude about it, a simple referal to the lectures would have been ok..
June 3, 2015 at 11:34 am #252393Sorry – I didn’t intend to be rude.
(I was tired after spending six hours answering questions 🙁 )However, please do watch the lectures!
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