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April 17, 2020 at 5:34 pm
Is there any need to refer study text after referring free videos and open tuition notes
December 16, 2019 at 9:27 pm
The question asks, “Show how Lyon would account for the above ….”
Can this be demonstrated by detailing the Dr’s and Cr’s or is there a need to show the extracts in the FS?
Dr PPE 6 Cr Bank 6
Dr Dep. Costs 0.6 Cr PPE 0.6
Dr Op. Costs 0.6 Cr Payables 0.6
Dr Receivables 12 Cr Revenue 12
Dr Dir Costs 8.8 Cr Payables 8.8
October 18, 2018 at 8:21 pm
In Group SFP, PPE – 5400 Receivable – 12000 Total assets – 17400
Profits(R.E) – 2000 Payables – 9400 Total equity & liabilities – 11,400
There will be a difference in group SFP of 6000/-, which I believe is of investment in PPE. should we show that 6000 as Bank O.D and tally the SPF.
Is my understanding correct?
October 18, 2018 at 8:30 pm
Or I think we should treat it as share capital – 6000/-
Because it’s mentioned in question “accounted for it’s share of the construction cost”.
Help me in understanding this?
January 12, 2019 at 9:35 am
You cannot draw up an SFP as you’ve done above as you do not have a cash balance that has been adjusted following the initial entry to account for the share of the PPE. You need to process the journals and it all will still balance.
October 15, 2018 at 7:29 pm
hi sir i thought the 600 deprction is supposed to be apportioned based on share holding of 40%
January 12, 2019 at 9:36 am
The value of the PPE has already been apportioned and so the depreciation calculated will therefore be apportioned too.
September 28, 2018 at 1:28 pm
hi sir, i dint quite get the 600 payables added with 8800
October 2, 2018 at 3:57 pm
operating cost 1500*40%=600
And that 600 has been paid after the year-end
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