The Statement of Financial Position and Income Statement (part b) – ACCA (FA) lectures
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Dear Professor, I find the phrase “8% loan” in Non-current liabilities confusing.
Is $25,000 only the interest gained by the bank for 8% loan and we have to pay more for our loan or that money is the total money (loan + 8% interest) that we have to pay?
The non-current liability is the original amount of the loan. The interest will be paid each year and so is an expense in the SOPL but because it will have been paid is not a liability in the SOFP. (If they are late paying the interest then it will be a current liability in the SOFP).
Nice lectures sir, Easily put and easy to understand.
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Anything the owner takes is called drawings and should not be treated as expense. Is it because the owner and the business are the same?
Yes (as I explain in the first chapter of our free notes, and the lecture on that chapter).
hi sir
sir in compulsry liquadation in case of debt while weare not able to pay debt so creditor apply to court while in case ofjust and equitable member apply to the court as it right or wrong and the second is that sir what is the answer of below question andi can’t understand please explain?
4 Which of the following persons or bodies can petition to the court for a compulsory
liquidation?
A The company itself
B Any creditor
C Any director
5 When a liquidator is appointed, he becomes the agent of which of the following?
A The members
B The creditors
C The company
These are Paper LW questions, not Paper FA. And you should be posting questions in the Ask the Tutor Forums and not as comments on lectures!
By the rule owner and business are separate entities, and because they are separate drawings are treated as an expense and as other expenses, they increase on debit and decrease on credit . So if the owner took the money it will be deducted from the asset (Credit asset ) and added to Drawings ( goods taken by the owner ) It’s like the business paid money to the owner ( Like expense ). i don’t know if this was helpful
Thank you Sir , it’s amazing it was conceptual session by you. All doubts clear.
Thank you Sir, this was a conceptual lecture my all doubts has been cleared.
Again Thanks to you sir.
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Thank you for the amazing lectures . Really appreciate ?
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nice lectures sir, well appreciated.
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