[noxchi]

thank you 🙂

[noxchi]

thank you sir,it’s clear

[noxchi]

i appreciate your efforts for my question.thanks sir

[noxchi]

it’s 30 sep 2001.so old

[noxchi]

if it wasn’t short term then we should have net it off and included it in investing activities
right?

its in kaplan kit session 2013/2014 question number is 61
i couldn’t find the attempt

[noxchi]

sir
i did it correctly then as you said but in kit its opposite of that
they just net off the opening and closing of treasury bills and included as purchase in investing activities (120-50) 70.
they didn’t include it in cash and cash equivalents
c & c eq bf 122
c & c eq eq (136)
like this
there was not note or any maturity date given
it was just shown as short term treasury bills

[noxchi]

okay .i understood that very well.thanks

[noxchi]

yes,i understood just the presentation is different.
what if i follow the first method debit asset and credit accumulated depreciation
in first method the accumulated depreciation account will remain 3000 and if i follow second method then accumulated account becomes zero

in previous question what will it effect if i followed the first method

[noxchi]

sir almost clear.just one thing i am thinking about the revaluation i-e 5000
the 2000 figure comes because of it useful life was revised and the 3000 comes of increase in asset value?

[noxchi]

sir you said increase in receivable (32)
cash and cash equivalent c/f(17+32) 49

[noxchi]

i have problem in understanding these workings or i am not getting that paragraph
like display has 10 million cost and written down by 9 million.it means its is depreciated by 9 million?

also during the year the company revalued the carrying amount of its property upwards by $5 million,the accumulated depreciation on these properties of 2 million was reset to zero.
it means we need to debit the 2 million in accumulated depreciation and credit depreciation account?

i have watched the answer of this question in kit but i am not getting it how its done.

[noxchi]

sir another problem facing in cash flows question
COALTDOWN
2009 2008
nca *000 *000
at cost 93500 80000
acc dep (43000) (48000)

revaluation.r 7500 2500

note
during the year the company redesigned its display areas in all of its outlets.the previous displays had cost 10 m and had been written down by 9 million.there was an unexpected cost of 500,000 for removal and disposal of old display areas.also during the year the company revalued the carrying amount of its property upwards by $5 million,the accumulated depreciation on these properties of 2 million was reset to zero.

sir i found it difficult to solve
depreciation (specially)
profit/loss on sale
purchase of nca

[noxchi]

about first point:yes i have done the examples which were given in notes but i confused myself with asset register because asset is removed from there always at cost.

second:clear and understood. i was confused with the 25 million figure

thanks sir

[noxchi]

26:00 and 27:25

[noxchi]

thanks sir 🙂

[noxchi]

i got my answer for that
12000-3000=9000*6/18=3000
so 9000-3000=6000+residual value3000
9000 should be shown as nca

[noxchi]

yes and residual value 3000

[noxchi]

sorry sir it was because of my browser which didnt work properly.i ve changed my browser.

[noxchi]

yes ,i understood sir.the difference is that in llama it was not accounted for.thanks

sir i studied f8 in last session june attempt bit i didn’t appear in exam now i am sitting in dec for f7 and f8.my f7 is going well i almostly covered cosolidation and ias 1 ,remaining part is statement of cash flows and interpretations.on other side i didnt started study f8. i am planning to start it after completing my two main topics in f7.what would you suggest me.your experienced advice must be appreciated allot.

thanks to you and opentuition that they are assisting us in a good way

[noxchi]

sir here is another qustion

cavern
$000
equity shares of 20 cents each note 1 50000

(1) cavern has accounted for fully subscribed right issue of equity shares made on 1 april 2010 of one new share of every four share in issue at 42 cents each

llama
$000
equity share of 50 cents each fully paid 60000
suspense account note 4 24000

(4)the suspense account contains the corresponding entry for the proceeds of right issue of share made on 1 july 2007.the term of the issue were one share for every four held at 80 cents per share.

1 for 4 is common in both questions
but it is solved differently

cavern solution llama solution
50000/.20=250000 60000/.50=120000
250000*1/5=50000 120000*1/4=30000
my question is why are we taking 1 by 4 in llama.it should be 1by 5 because if a person has four shares before issue so after issue he should have five like shown in cavern.
sir tell me what I am misunderstanding in this?

[noxchi]

thank you sir I was missing the purp at reporting date 🙂

[noxchi]

yes why there is difference in my post acquisition losses and what I am doing wrong in question so that makes the difference?
sorry if I didn’t explain my question well to you.
this is my first time here to ask question.

[noxchi]

like my reporting date retained earning at acquisition date are 14300 and at reporting date are 12000
so total of net assets are at acquisition 22300 and at reporting 19900

-19900+22300= -2400

so my answer of post acquisition did not match with standard answer because they have post acquisition losses of 3000

[Author]

Posts