[nesiann]

D 3 years 2006-2008
27000*0.20*3=16200
27000-16200=10800
12000-10800=-1200

[nesiann]

D. 56000-54000+45000=47000
Don’t think the bonus issue should be included since its not a cash item.

[nesiann]

C. Contingent liabilities must not be recognized in financial statements but they should be disclosed according to IAS 37.

[nesiann]

@pannanikt shouldn’t it be provide a provision instead of accrual

[nesiann]

D
173760*0.02=3475.2
3475.2+2040=$5515.2

Note:the irrecoverable debt of $2040 was not included in the receivable balance if it was the correct thing to do is minus the irrecoverable from trade receivables then find the new allowance on the balance, both figures would then be added and included in the income statement for the year.

[nesiann]

Dont the question was stated correctly i meant using previous and current retained earnings figure, aside from the difference is there any adjustments to consider?

[nesiann]

how is it that the new depreciation will be $6000? Can u post calculation please

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