Sir I need your help.
I was doing BPP section B questions when I confronted this problem(different Capital employed figures from same data).
...Below is a summary of the financial statementa for the business:
Sales 2,540
Cost of sales 1,425
Expenses 600
Interest 11
Share Capital and reserves 2,400
Long-term loan 250
Non current assets 1,650
Receivables 347
Inventory 180
Payables 318
Bank balance 36
Using Formula = Assets- current liability =
(1,650+347+180+36) - 318= 1,895
Another way = equity + non current liability =
2,400 + 250 =2,650
I got lucky for the first question until he picked the the different formula and I ended up lost.
Please I need to know why it is not giving same answer, I have MA exam tomorrow I need to use it?
Thank you so much.
Ask the Tutor ACCA MA
Capital employed
3y ago#1This is an error in the BPP Kit.
Both 'equations' will always give the same result - that fact that they do not here is the error.
In the exam it does not matter which you use (depending obviously on what information is available in the question).
Thank you very much sir.
3y ago#3You are welcome :-)
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