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- This topic has 7 replies, 2 voices, and was last updated 6 years ago by John Moffat.
- May 15, 2016 at 8:34 pm #315230
I have read that dividend received go only to the income statement and not the balance sheet.
I want to ask where it goes in income statement i.e. either in other income or somewhere else
and why not in the statement of changes in equity?
ThankyouMay 16, 2016 at 8:09 am #315268
I really do suggest that you watch our free lectures – they are a complete course for Paper F3 and cover everything needed to pass the exam well.
The Statement of financial position shows assets and liabilities, so dividends received will not appear (there is nothing owing by or from the business at the end of the period).
They will appear in the Statement of Profit or Loss as other income.
They do not appear separately in the Statement of changes in equity because the profit appears in the statement and this will already include the dividends received.May 19, 2016 at 9:22 am #315762
Can you provide me with the sample paper of ACCA
Thanks for helping a lotMay 19, 2016 at 12:00 pm #315791
You can find the specimen paper on the ACCA website.
However you really should buy a Revision Kit from one of the ACCA approved publishers, because they have lots of exam standard questions to practice on, and also contain the specimen paper.
Only practicing the specimen paper is not enough – you to need to practice lots and lots of questions to be sure of success.May 22, 2016 at 2:57 pm #316401
Sir, see this question
TRIAL BALANCE AS AT 31 MAY 2016
Drawings ……………………………………………………… 7800
Inventory as at 1 June 2015……………………………. 11927
Inventory at the close of business has been valued at $13,551.
According to me and as I perceived you said that COS in I/S should be
Opening inventory + carriage+ Purchases – Drawings – closing inventory
11927+ 2211 + 5144 – 7800 – 13551 = -2069
But at the end of the book such solution is given, and actually, we were supposed to make financial statements.
Opening inventory 11,927
Purchases (W1) 84,561
Less closing inventory 13,551
Cost of goods sold 82,937
Per trial balance 82,350
Add carriage inwards 2,211
Per statement of profit or loss 84,561
PLZ do suggest me some good advice bcz I am about to give examsMay 22, 2016 at 3:26 pm #316410
The following trial balance has been extracted from the ledger of Mr Yousef, a sole trader.
TRIAL BALANCE AS AT 31 MAY 20X6
Rent and insurance 6,622
Postage and stationery 3,001
Salaries and wages 26,420
Irrecoverable debts 877
Allowance for receivables 130
Cash on hand 177
Cash at bank 1,002
Inventory as at 1 June 20X5 11,927
Equipment at cost 58,000
Accumulated depreciation 19,000
The following additional information as at 31 May 20X6 is available.
1 Rent is accrued by $210.
2 Insurance has been prepaid by $880.
3 $2,211 of carriage represents carriage inwards on purchases.
4 Equipment is to be depreciated at 15% per annum using the straight-line method.
5 The allowance for receivables is to be increased by $40.
6 Inventory at the close of business has been valued at $13,551.
(a) Prepare a statement of profit or loss for the year ended 31 May 20X6. (8 marks)
(b) Prepare a statement of financial position as at that date. (7 marks)
Sir, also tell me that whether receivables should be 12120 – 877- 170 = 11073
or they should be
Less allowance for receivables 170
Net receivables 11,950
I answered 11073 and the book answered 11950
Am I following the wrong book or my concepts are really very weak.May 22, 2016 at 4:46 pm #316439
In future you must start a new thread when you are asking about a different topic. Your question has absolutely nothing to do with dividends!!
Either you have typed out the question wrongly, or there is something terribly wrong with the answer that you have in your book!!
You typed that the trial balance showed purchases as 5,144 but you say that the answer in your book shows purchases as 82,350 per the trial balance.
That is simply not possible!May 22, 2016 at 4:49 pm #316440
The answer from your book is correct.
Receivable are 12,120, and the allowance for receivables is 130 + 40 = 170.
Because the 877 irrecoverable debts appears in the trial balance, the entry for the irrecoverable debts must already have been made, and therefore receivables will already have been credited with the 877.
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