[minhnguyen@abc]

I want to ask on this question that why investment income is dissapeared in consolidated statment of profit or loss

Tks very much

[minhnguyen@abc]

Sorry if I have translation misunderstanding ” The cost of goods sold for 20X7 includes the $4.2m
error in opening inventory” is meaning the the closing inventory in 20X7 is added to 4.2 m?

And in calculating retained earnings in 20X7 , the answer is

Opening retained earnings 21,950
Correction of prior period (2,940) (4,200-1,260)
I don’t understnad the correction of prior period

Thank you

[minhnguyen@abc]

Why the tutor in FR forums do not reply user’ question like in the FA forums

[minhnguyen@abc]

I also want to ask part (I) and part (IV) in this question :
Part IV , this is the answer
Deferred tax $’000
Balance required at 31.3.X6 (27m ? 25%) 6,750
Current balance (2,600)
Deferred tax on revaluation (15m ? 25%) (3,750)
Charge to current tax 400

I don’t understand balance required, current balance and why it is charge to current tax

And in part I, this is the answer

As this is a convertible loan note, it has to be split between debt and equity:
$’000
Interest years 1–3 (2,400 ? (0.91 + 0.83 + 0.75) 5,976
Repayment year 3 (30,000 ? 0.75) 22,500
Liability component 28,476
Equity component 1,524
Cash received 30,000

Liability component 28,476
Interest (28,476 ? 10%) 2,848
Less interest paid (2,400)
Balance at 31.3.20X6 28,924

I don’t understand ” As this is a convertible loan note, it has to be split between debt and equity”

And how can we calculate equity component =1,524

The interest is 2,848 and company paid 2,400 so why the interest is not = 0,448

Thank you so much

[minhnguyen@abc]

I don’t know why the depreciation of purchased vans is 160000×20% =32000
Since it was purchased in 30/6 so in 31/12 it should be 160000×20%x6/12=16000

[minhnguyen@abc]

thanks so much

[minhnguyen@abc]

CASH BOOK (this is the answer)
$ $
20X3 20X3
31 May Balance b/d 873 31 May Bank charges 630
Error $(936 – 693) 243 Trade journals 52
Balance c/d 2,098 Insurance 360
Business rates 2,172
3,214 3,214
1 May Balance b/d 2,098
Sorry if i miss something but why balance b/d is 873
Thanks

[minhnguyen@abc]

Sorry i have some problems about languages
I dont get the question meaning : “Ordan Received a statement from one its suppliers , Alta , showing a balance due of $3980.” . Is it mean ordan owe Alta 3980 in bank statements?

“The amount due according to the payablesle ledger account of Alta in Ordan’s records was only $230” . Is it mean Alta also owe Ordan 230 in payable ledger account of Alta?

Thanks in advance sir

[minhnguyen@abc]

Thanks so much

[minhnguyen@abc]

i don’t know why we have to add bank charge and 4200 twice as two of these are credited to cash book(it means we have to deduct it)
thank you

[minhnguyen@abc]

thank you so much

[minhnguyen@abc]

thanks a lot

[minhnguyen@abc]

can the tutor help darina pls because this question also confuses me
thank you

[minhnguyen@abc]

i think OVERDRAFT is a liability so the LODGMENTS( income) have to subtract OVERDRAFT(liability) and subtract UNPRESENTED cheques => the balance will NEGATIVE and it will be credited right??

And is overdraft and overdrawn the same?

[minhnguyen@abc]

sorry can you explain me why when the bank statement is an overdraft , we have to subtract lodgments and add unpresented cheques

and can how can we adjust the above case that is corret without adjustments.

[minhnguyen@abc]

(iv) The bank has credited the account in error with $425 which belongs to another customer is the error of cash account or bank statement sir ?

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