[Quốc Anh]

Thanks you alot:)

[Quốc Anh]

And then could you explain for me why the petty cash book balance if it’s omitted from trial balance then we have to open the suspense account to correct?

[Quốc Anh]

Thanks for your advice, I missed out the chapter Books of Prime Entry so let me review it again.

[Quốc Anh]

So, for whatever transaction the refund always treats as the cash we received or paid for supplier/customer…by means in each transaction, Cash Account instantly appear and double entry with Receivable or Payable a/c..is this right?

[Quốc Anh]

Hix, but one things I still didn’t know is that if the $838,100 is the closing stock of the 31/12/20X4 so which side this value will be in? Debit or credit side? Because largely the closing stock of inventory current year will be the value of opening inventory in next year…so why value of closing stock $838,100 have to substract the purchase, plus the cost of goods and plus the goods return? That is contrary!!

[Quốc Anh]

But, the value of 838,100 is the closing stock of inventory at the year ended 31/12/20X4?

[Quốc Anh]

I see, thanks so much 🙂

[Quốc Anh]

That is my problem, i am still confused that we do not account for on Non-current Asset account because having misstatement is on Repair account, so why do we still have the depreciation account ? And then no need to depreciate…

[Quốc Anh]

Oh i forgot that i had the question involved in this question:

Y purchased some plant on 1 January 20X0 for 38000, the payment for the plant was correctly entered in the cash book but was entered on the debit side of the plant repair account.
Y charge depreciation on the straight line basis at 20% per year, with the proportionate charge in the year of acquisition and disposal, no scrap value at the end of life of asset

How will the profit for the year end 31 March 20X0 be affected by error?

I know that the profit totally will be understated but why it won’t be equal to 38000 otherwise it had to deduct for accumulated depreciation until 31 March??

[Quốc Anh]

Yeah, now i am studying about F7, but it’s so hard:(, i have to practice everyday to understand, and i am very glad to your help:).

[Quốc Anh]

So, it is just related on profit?, what else will be affected if we mistate to debit on current asset instead of non-current asset

[Quốc Anh]

yah:), now i get it. Thanks so much

[Quốc Anh]

It means it is a original value balance??

[Quốc Anh]

Thanks you 🙂

[Quốc Anh]

Hi, there. Now, i understand your instruction, but i dont know how to state that on statement of profit or loss?
I did as you said: 950,000 -11,750 + 13000(14,950×100/115) + 1500 = 952,750

Once again, could you please write clearly the answer is? I am still a bit confused about that…hix

[Quốc Anh]

thanks so much, my tutor:)

[Quốc Anh]

Thanks too much:).

[Quốc Anh]

Thanks:) Now i got the answer for my question.

[Quốc Anh]

Yes, i mean like what you say is that when the share are issued, the entry is to debit cash and credit capital.
Anyway, thanks for your help.

[Quốc Anh]

Thanks. 🙂

[Quốc Anh]

Yes, now i understand. Thank you so much.

[Quốc Anh]

Thanks you:). Your explain shows me meticulously about the problem i have. Because the answer in book is too concise to be difficult for me to understand.

[Quốc Anh]

Thanks for your help

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