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So if they didn’t specify then we automatically calculate for the year??
Think I understand. Thanks! ^^
I will view the lecture again.
So, unrealised profit is only split between the Parent and NCI only when the goods are purchased from the subsidiary?
Hi John.
Question: Unrealised profit is always shared up between the Parent n NCI once a percent is given to validate such right?
Also, why do we exclude just the profit from Inventory for goods left back from intra-group trading and not the entire goods cost??
Thanking you in advance. 😀
Another: A suspenders/c shows a credit balance of $130. Which of the following could be due to? A. Omitting a sale of $130 from the sales ledger. B. Recording a purchase of $130 twice in the purchases a/c. C. Failing to write off a bad debt of $130. D. Recording an electricity bill paid of $65 by debuting the bank a/c and crediting the electricity a/c. ( Don’t quite understand how the answer is b, I assumed A at first.) Thanks!
Good! :-)….thank u!!
One more question regarding this “awesome” topic…..are we always to assume that when a question ask for the balance on the revaluation a/c that we must minus the excess dep’n?
A question i did stated that “Banjo Co has a policy of transferring the excess dep’n on the revaluation from the revaluation surplus to retained earnings” so the excess dep’n was deducted form the revaluation reserve figure to get the revaluation surplus…
….but another question i did didn’t point that out but, we had to deduct it to get the balance on the revaluation a/c. (little confused with that 1).
Okay Mr Moffat i think i’ve got it.
They calculated 10 years of accumulated dep’n as $16,000 (800,000*2%)*10=$160,000
So the carrying amount is $800,000-$160,000=$640,000
And the revaluation surplus is $1,000, 000-$640,000=$360,000
Correct me if i’m wrong with the above workings and Question, how are we to know that 10 years of old dep’n was used up prior to the revaluation? I always thought the dates would give light to that…
The answer: Revaluation surplus- (1,000,000-(800, 000-(800, 000*2%*10))= $360,000
Dep’n Charge- (1,000,000/40) = $25,000Don’t quite understand the calculation for the revaluation surplus work out.
Hi Mr Moffat,
The above explanation is clear, but the answer in the revision kit for the revaluation surplus is $360,000. Not sure how they arrived at that conclusion.
Question: At Dec 20×3 Q, a limited liability company owned a building that had cost $800, 000 on the 1 Jan 20W4.
It was being depreciated at 2% per year.
On 31 Dec 20X3 a revaluation to $1,000,000 was recognised. At this date the building had a remaining useful life of 40 years.
What is the balance on the revaluation surplus at 31 Dec 20X3 and the depreciation charge in the income statement for year ended 31 Dec 20X4?
I was able to work out the dep’n charge as 1,000,000/40=25,000 but the second part is/a bit challenging.
Thanks for ur prompt reply.
So in other words we’re using the c/d side because that is the original side?
Think I understand a bit…I’m familiar with this in the topic Accruals and Prepayments.
This is the question: The following info relates to Eva Co’s sales tax for the month of March 20X3.
Sales (including sales tax). $109, 250
Purchases (net of sales tax?). $64,000
Sales tax is charged at a flat rate of 15%. Eva Co’s sales tax account showed an opening credit balance of $4,540 at the beginning of the month and a closing debit balance of $2,720 at the end of the month.
What was the total sales tax pd to regulatory authorities during the month of March, 20X3?
A. $6,470.00
B. $11,910.00
C. $14,047.50
D. $13,162.17
Question: How will this look in a “T” account?
I did listen to the lecture on bookkeeping but I’m still unsure as to why they credited the ending balance of $2,720.Thanking u a lot for ur assistance .
There is a question I did and they gave the opening balance figure which is a credit, and then they say the closing balance figure is a Debit but when I reviewed the answer that debit closing balance was actually on the credit side of the T account.
Is that a possible misprint? That has me confused.
Thanks much, totally understand.
I haven’t yet watched the lectures but i intend too. I failed miserably at my very first attempt, got a lousy 44%…terrible. Need advice cause i’m balancing work and school but i’m doing self study for this paper cuz tuition isn’t cheap.
I just need to study study study!
