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I mean I know that it will indeed affect decision making, but is it correct to classify it as ‘relevant cost’? Thank you sir!!
Hi sir, I got it, thank you! 🙂
But in task 3 of 19.1, why is SOPL not included in double entry?Sir, in task 2 of question 19.3, why is the carrying amount of buildings not the revalued amount — $1800,000?
Thank u so much sir!
Hi sir,
Question 19.1
I’m also not sure about the double entry of (b) in task 2. If we make a full double entry and disregard suspense account, is it should be:
Dr. Cash 600,000
Dr. SOPL 100,000
Cr. Disposal 700,000WOW.. I finally understand now
Thank you so much for your time and patience, sir!! 🙂
Hi sir,
I watched your lecture again regarding this point. However I still need some help to clarify:
Now I totally get your mean by ‘not charging $100 twice’. If we do in the second way, is last year’s SOPL also effected? I mean now we remove the expense and allowance from last year, so actually last year’s expense should be less 🙁
Sir, I’m also confused by answer of question 11.13 in BPP. I’ve read your reply to the same question before, but I still couldn’t understand:
In the previous year, we debit irrecoverable debt expense a/c and credit allowance for receivables a/c, as a result, the expense is included in last year’s SOPL. However, if the answer is (1000-850)+500, it means that we put the $100 in this year’s SOPL again, and it doesn’t make sense. Because we should only debit allowance for receivables a/c and credit receivables a/c this year and there’s nothing to do with irrecoverable debt expense. Could you please kindly explain..:(
Thank you so much!!
Sir, please also help to explain choice B of 32.4 in BPP kit. It says transferring cost of repairs to Purchase and wages account, why isn’t it correct to credit repairs and debit purchase and wages? I thought we should increase cost in purchase and wages and decrease it in repairs. Could you please help. Thank u!! 🙂
Hi sir, yes I’ve watched your lecture on this, that’s why I’m confused because in this question, it didn’t show cost and accumulated depreciation separately but only showed a single value. So I don’t know what this value is 🙁
Thank you sir!
But I’m so confused because I thought in the SOFP, the value of assets is always the original value. And in other questions, it is clearly shown in the SOFP whether the amount is carrying amount or original cost but in this one, it only says ‘non-current assets’. So how could we judge? Thank u so much sir
