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Preference Shares – ACCA Financial Accounting (FA) lectures

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    • redeemable preference shares are share that is quest similar to a loan and it is under Non current liability in SOFP, because they can be redeemed when ever they want , and the irredeemable preference shares are shares that cannot be redeemed.

      • 120000-36000-14000-42000+6000
        ?1?irrecoverable debts should be removed from receivables ,and according to the double entries,we should DR irrecoverable&doubtful expenses,but there isn’t cash out,so we need less 14000?
        (2)the profit had been netted off expense,so the expenses are low ,but there isn’t cash out,so we need to plus 6000?
        Am I right?

      • sorry,(2)the profit netted off expenses,so the expenses are lower,but there isn’t cash flows in (not out),so we need to plus 6000?

  5. I had a little doubt regarding the comprehensive income statement.
    If we incur a loss on revaluation of any asset, is the amount of loss deducted from the profit of the year in the statement?
    Kindly help me out here.

  6. If dividends deduct from retained earnings in SOCIE so it should also appear in SOFP in retained earning portion. so why not it came in SOFP in this question:
    The following information is available about a company鈥檚 dividends:
    (Declared August 20X5)
    Sept 20X5 Final dividend for the year ended 30 June 20X5 paid $ 100,000
    March 20X6 Interim dividend for the year ended 30 June 20X6 paid $ 40,000
    (Declared August 20X6)
    Sept 20X6 Final dividend for the year ended 30 June 20X6 paid $120,000
    Statement of profit or loss Statement of financial position
    What figures, if any, should be disclosed in the company鈥檚 statement of profit or loss for the year ended 30 June 20X6 and its statement of financial position at that date?
    a) $160,000 deduction $120,000
    b) $140,000 deduction Nil
    c) Nil $120,000
    d) Nil Nil
    Its answer is D

    • In future you must ask this sort of question in the Ask the Tutor Forum and not as a comment on a lecture.

      Of course dividends affect the retained earnings (and they affect the cash balance as well) but it is the retained earnings (and the cash balance) that appear on the SOFP – not the dividends. Dividends will only appear on the SOFP if they have been declared but not yet paid, in which case they appear as a liability.

  7. building cost 25000 and residual value 500 and building is revalued at 30000 how can complete through double entry .plzz tell me double entry with solution. 10% straight line method.
    25000-500=24500*10%=2450
    sir have revalued amount 30000 next how solve question.and prepareT account. or double entry.

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