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Sir
why the research and developments cost and loss on sales are put in the cost of sales? I put them in other operating cost after administration cost. does it matter in the exam where i put them if the question did not specifie?
for the SOFP do i have to add all tangible NCA asset or can i put each NCA alone like plan, building.. for current liabilities does the rank matter? can i put lets say tax payable before bank overdraft or vis versa?Current liabilities, no problem with the order
TNCA – I would be inclined to keep them separate – if you make a mistake adding up three asset totals for three marks, a marker won’t know why your aggregated figure is wrong so you’re in danger of losing three marks. Keep the three separate and there’s no risk of adding them up wrong – so minimise the chances of losing marks through careless mistakes
My copy of the question clearly says that research and development costs should be charged to cost of sales
Loss on disposals of assets arises because we haven’t charged enough depreciation in years gone by. In effect, it’s an adjustment for this undercharged depreciation
And, according to the question, depreciation is charged to cost of sales so a loss on disposal should also be charged against cost of sales
Ok?
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