[Azai]

Hello Sir,

Not recorded expenses $4000
Over recorded expenses $5000 (Prepaid)
So, effect is increase in net profit $1000
Am i right?

[Azai]

Extracts from the accounting records of Andratx Co relating to the year ended 31 December 20X6 are as follows:

Revaluation surplus $230,000 Equity interim dividend paid $12,000 Profit before tax $178,000 Estimated tax liability for year $45,000 8% $1 Preference shares $100,000 Under provision for tax in previous year $5,600 Proceeds of issue of 2,000 $1 equity shares $5,000 Final equity dividend proposed $30,000 What was the total of equity reported in the statement of changes in equity at 31 December 20X6?

A $312,400 B $356,000 C $348,000 D $342,400

What is the correct answer ?

[Azai]

Dear Sir,
Greetings,

Why we do not add preference share in equity fund

[Azai]

Why caSh not deducted sir?

[Azai]

As you say only sales ledger control account appear in trial balance.
How the answer of first example ‘D” is right , Is purchase account and purchase control account is same?

[Author]

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