- This topic has 3 replies, 2 voices, and was last updated 4 years ago by
.
- Posts
1. If a machinery is purchases for business entity and sales tax is paid on it and the entity is registered for sales tax .Does input for that sales tax will be given ( the cost of machinery will be by excluding the sales tax).
2. If dividend is declared before the period end(does this period means accounting period or reporting period) . where will be it disclosed under statement of financial position or statement of equity change
3. At 31 December 20X2 the following matters require inclusion in a company’s financial statements:
(1) On 1 January 20X2 the company made a loan of $12,000 to an employee, repayable on
30 April 20X3, charging interest at 2 per cent per year. On the due date she repaid the loan and
paid the whole of the interest due on the loan to that date.(2 )The company has paid insurance $9,000 in 20X2, covering the year ending 31 August 20X3.
(3) In January 20X3 the company received rent from a tenant $4,000 covering the six months to
31 December 20X2.For these items, what total figures should be included in the company’s statement of financial position at
31 December 20X2?Receivables and prepayments
Payabless and accruals$. $
A 22,000. 240
B 22,240. NIL
C 10,240. NIL
D 16,240 6,000
This is bpp book question I want to ask why they have included loan amount in receivables . Loan given is a non current asset as it will be matured after 1 year period
1. The machine account is debited with the cost net of sales tax, and the sales tax is debited to the sales tax account. I explain this in my free lectures.
2. Accounting period and reporting period are the same thing. The dividend is not recorded until it is actually paid (and doesn’t appear in the SOPL or the SOFP anyway – only in the SOCE when it is paid). Again, I explain this in my free lectures.
3. The loan was given to the employee, and so the money is owed to the company by the employee. It is not a non-current asset. It is a current asset (the repayment is due 3 months after the 31 December X2).
It does seem that you are not watching my free lectures and you cannot expect me to type them out here 🙂
Sir I watched your lectures
but in Kaplan book I read somewhere the dividends declared before period end are deducted from statement of change in equity
- You must be logged in to reply to this topic.