[Koey]

understood

thank you sir!!

[Koey]

No, I cannot

[Koey]

I finally realised that the question is mentioning the estimated COST instead of sales value. I misread the question.

thanks for your answer!

[Koey]

yes, the ans is B sorry for my careless.

[Koey]

Sorry, please ignore my above question,

What I wanna ask is how to calculate the deferred cash (30+3-1.25).

Thanks!

[Koey]

ok thanks!

[Koey]

yes it is question to ask us to prepare the cash flow from operating activities using both direct and indirect method.

Could I conclude as below?

Direct method, bad debt written down will be considered to calculate cash receipt from customers

Indirect method, bad debt written down will not considered in both adjustment to the operating profit and increase/decrease in receivable as it is already included in the receivable figure.

[Koey]

it sums up as 33,500 (1,750+ 31,750) instead of 33,600.

[Koey]

Sorry, I was typing it wrong, it should be receivable instead of inventory…so even it is receivable, I cannot answer in this way too?

Cash flow from operating activities
adjustment: bad debt written off 17

decrease in receivable (625-17-491)) 117

Instead of

decrease in receivable (625-491) 134

[Koey]

OK thank you Mike!

[Koey]

for the above question, can I write in the below format because I found it is easier for me to understand.

Cash flow from operating activities
adjustment: bad debt written off 17

decrease in inventory (625-17-491)) 117

Instead of

decrease in inventory (625-491) 134

[Koey]

understood thank you sir

[Koey]

Dear Sirs,

Refer to the above example,

There is finance charge 1,750 expenses and 31,750 still accrued. However why adding this two amount together not equal to 36,300?

Thanks!

[Koey]

Thanks Sir

[Koey]

Thanks all!

[Koey]

Thanks John

[Koey]

Thanks John

[Koey]

Thanks John. I really appreciate you spare your previous time to answer my questions.:)

[Koey]

Thanks John!

[Koey]

Thanks John:)

[Koey]

??

[Koey]

Whilst carrying out reconciliation between the payables’ ledger control account and the payables’ ledger, Betty found that a purchase of goods for $575 had been recorded in the purchase day book as $557

How should this error be corrected in the payables’ ledger control account and the list of balances per the payables’ ledger?

The answer is control account credit $18 and list of ledger add$18

i am wondering why the list of ledger have to add $18 as we are taking the individual amount of the invoice to enter to the individual account. Therefore, why the incorrect entry of purchase day book would affect the list of ledger?

[Koey]

Thanks John!!

[Koey]

Thanks John.

Therefore originally we deduct $400 from profit already implies that $2000 cost in not included in the inventory?

[Koey]

Thanks John’s reply.

[Author]

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