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Paid 30 june 2003
For three months to 30 april 2003 $840
What is the accrual for year end 30 june 2003?
Sir I tried to do this question but j couldn’t figure it out
Are they saying from February to april 20p3 this payment covers up?
Sorry but you have not said what was paid on 30 June!
Ignoring that, the last payment was for 3 months to the end of April, so if there is no other information the accrual at the end of June will be the estimate for May and June which will be 2/3 of the payment for the three months to the end of April.
I have no idea why you are mentioning February?
I assume that the question is from a Revision Kit from one of the ACCA Approved Publishers, in which case you should have an answer and an explanation in the same book!
Sir I meant that they have paid the 840 on 30/june/2003
And yes sir this question is indeed a question from the kaplan text but I typed out the relevant part that asks for the accruals since I am confused in that right nowSir so I thought the payment is supposed to cover from february to april since it said 3 months till 30 april
So why are we talking about may and june when the payment is only supposed to cover till april?Yet again, you are obviously not watching my free lectures. So this is the final question of yours that I will answer – there is no point in you asking me any more questions.
The year end is 30 June. They have only paid up to 30 April. Therefore they need to estimate the amount owing for May and June. Just as I have explained in my previous reply.
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