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Hello!
Thank you so much. yes, I see it now, the annual payments are the cash paid and the liability would actually be 200,000
Much appreciated 🙂
Oh right, I get it now.
I was looking at it from the POV of the employee’s 30 hours.
But for the job, it would be a total o 110 hours, which would include the base pa of the overtime payment as well.Thank you so much sir!!
It makes sense now!
Hello Sir,
I would like to drop a massive thank you to you and OT for all the support and guidance. I just cleared my FA exam with 92%, despite all the long hours at work and self-study.
I just wanted to say that this wouldn’t have been possible without OT. While I’m aware I have a long way to go, I’m confident that this forum will provide me with the support I need.
I cannot thank you enough for breaking complex areas into such easily understandable topics.
Truly grateful for this forum and your constant support.Thank you so much Sir!! I was so confused, cause I thought it pretty straightforward.
Much appreciated!
Hello,
Yes I’ve copied the question exactly as given in the book.
The workings they’ve shown are as follows:
Revalued amt at 1st Jan 20×4. 400,000
Depreciation charge.(6years to disposal) 120,000
Carrying amount – 180,000
Disposal proceeds 500,000
Profit 320,000But, the final answer at the top shows a profit of 280,000 in the book.
Im very confused with this question.
The answer I got was 220,000.
Would really appreciate your help..
Thank you so much sir, was a bit confused. Thank you clarifying that we never use cost.
Much appreciated.
Thank you so much! I wasn’t aware that a purchase ledger control A/C was another name for the PLCA.
Thank you!
Oh ok, so they are in the SOFP because they are declared, and in this case, also paid.
But I came across some examples wherein they said dividends declared at YE but not paid at YE. So I assumed this would not be deducted from profit since it’s a payable.Could you please clarify the following:
If a declared dividend is recorded as a liability, do we assume that is it going to be paid before year end and that it is to be subtracted from profit, unless they mention that it is paid after YE?Thank you so much!
Hi,
Yes I have the query regarding Inventory. Do we add it? I added it and got the wrong answer.
Thank you for your help!
Oh ok, so it’s sort of a combination of both IASs. Understood!
Thank you so much sir! Really helped me to understand how to approach a question like this.
Hello Sir,
I believe I understood the question incorrectly.
Retained earnings, Revaluation surplus and Share premium are all equity reserves and when issuing bonus shares it doesn’t matter what reserve we use, but Capital reserves are preferred ie; revaluation surplus and Share premium.In the question above, since Cash plays no part in Bonus issue and as such the capital doesn’t increase, we are only left with Option B.
Is this understanding correct?
Apologies, I don’t meant to answer my own question.
Thank you sir, that makes sense now.
Yes, I’m afraid that’s why I got confused with point 4.
Also, just to clarify your explanation for point 3, Interest income(SOPL) is often termed as interest receivable? would you say that that unless otherwise stated we should consider the term Interest receivable to be an SOPL account in such cases?Thank you!
Yes, the question was exactly as I typed it. I thought I interpreted it wrongly or missed something while solving it.
Thank you so much for the clarification! It makes sense now.
Thank you for providing the explanation! Much appreciated!
However, while solving the question, I recorded the same entry you mentioned. But the solution did not include it on the Dr side, instead they recorded it as a sales return. Which is why I got the wrong answer.