Forum Replies Created
- Posts
When using the reducing balance method, the residual value is not relevant.
So the depreciation in the first year is 1,000 (I do not know why you write ‘CA’) and the written down value is 4,000 (I do not know why have you written ‘DEP”).
The opening balance on 1 October is indeed a credit balance of 11,900, and it is this that should appear on the trial balance on 1 October.
So the correct answer is D.
For receivables the opening balance is on the debit side.
The closing balance appears on the credit side of the account as the balancing figure (and is carried forward to the debit side as the opening balance of the next period.All in reverse for the payables account.
This is all explained in my free lectures.
Thanks.
I think this previous reply of mine will explain it:
https://opentuition.com/topic/pault-co-sep-dec-16/#google_vignetteNo, there is no lecture.
It is not a common topic although it was relevant in one past question.
If you remind me of the date of the question then I will explain what they have done and why 🙂
What you have written for the three scenarios is OK.
As far as the value attributable to the acquiree is concerned, the depending on the scenario it is either the increase in the value of the equity or the increase in the value of the firm. If it is the increase in the value of the firm then this will be the same as the increase in the value of the equity assuming that the debt in the acquired is unchanged.
We have not changed anything and have no control over it.
Either clear the cache on your browser or try a different browser.
I don’t know how you are arriving at your tax loss. Have you checked your answer against the printed answer?
Please do not expect instant replies – I always reply within 24 hours but I do not sit permanently at my computer 🙂
If the question gives contract sizes then you should use contracts. (If the instruments are ‘over the counter’ (so there are no contract sizes given) then we use the exact amount.
We do not supply a Revision Kit. You need to buy one from BPP or Kaplan (and from this Friday our students can get a 40% discount on BPP books).
We do not supply a Revision Kit. You need to buy one from BPP or Kaplan (and from this Friday our students can get a 40% discount on BPP books).
It is really impossible for me to say because it so much depends on how much time you have available in the 3 weeks (are you able to study all of the time, or are you working?) and also how hard or difficult you find the topics.
If you are able to spend whole days studying then do give it a go and hopefully you will make it OK. (But do watch our free lectures – our notes are only lecture notes and are meant to be used while watching the lectures. They are not a Study Text to be used on their own.)
It will be based on interest rates (unless, in the exam, the question specifically says to use a different rate, which is unlikely).
We use the ex div value (which is the cum div value less the dividend about to be paid).
Working capital once paid for as an outflow does not disappear. It stays there and changes are only needed if we are told that the total requirement changes. In that case (such as where the level of working capital is given as a % of the next years revenue) then we only need to deal with the change required i.e. the incremental amount.
If, on the other hand, the question states that a specific amount of additional working capital is needed then this additional amount has to be dealt with.In the MJ2019 question, the answer is showing the incremental working capital required (a change in each year equal to 10% of the change in the revenue).
Lectures are updated when there are syllabus changes.
For some papers, there are many topics in the syllabus that never change and so there is no need to record new lectures for those topics.
All of our lectures are up-to-date for the current syllabuses for all the exams.All of our lectures are free of charge – we do not have any paid lectures.
If something is capitalised then it means that it is treated as being a non-current asset.
Intangible assets can be capitalised if they were purchased (e.g. purchased goodwill), but not if internally generated.
This is explained in my free lectures on intangible assets.
Because it is a reduction in a liability. It reduces the amount owed to the proprietor. The amount owing to the proprietor at the end of the year is the capital (which is a credit balance) less the drawings (which are a debit balance).
