• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

Financial Accounting

Forums › ACCA Forums › ACCA FA Financial Accounting Forums › Financial Accounting

  • This topic has 2 replies, 3 voices, and was last updated 11 years ago by chiclarence.
Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • January 15, 2014 at 9:09 pm #154101
    gabbi08
    Member
    • Topics: 135
    • Replies: 181
    • ☆☆☆

    Hi

    How would you work out the below question?

    Following information available about X business at 30 Sept 20×6
    Motor van 14000
    Lon(Repayable in 4 equal annual instalments starting 1 january 20×7 100000
    Receivable 23800
    Bank Balance (debit of the bank statement) 3250
    accumulated depreciation 7000
    Payable 31050
    Inventory 12560
    Petty cash 150
    Rent due 1200
    Allowance for receivable 1500

    current liability current assest

    a 34300 38260
    b 32250 38260
    c 57250 38260
    d 60500 35010

    The correct answer shown by the book is D as

    Current asset current liability
    Recev 23800 overdraft 3250
    allow -1500 payables 31050
    inventory 1250 Rent accrual 1200
    Petty cash 150 Loan 25000

    Since when the petty cash is included in the current assets? shouldn’t the cash only be included?
    Why should the instalment of a long term loan (four annual instalment) be ncluded in the short financing? I understand that it repay within the year, but it is referering to long terms loan so long terms liability

    Please help

    thanks
    Gabbi

    January 16, 2014 at 3:19 am #154107
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54700
    • ☆☆☆☆☆

    Petty cash is simply ‘loose’ cash (i.e. coins and notes) as opposed to cash kept in the bank. Petty cash is always a current asset.

    Although the loan is long-term overall, part of it is payable within one year and part is payable in more than one year. Anything payable within one year is a current liability, and the amount payable in more than one year is a non-current liability.

    January 17, 2014 at 2:23 pm #154153
    chiclarence
    Member
    • Topics: 3
    • Replies: 24
    • ☆

    if you dont include petty cash as current asset, ask yourself the question, where should it be? A statementment of financial position has on the asset side non current and current assets. do you expcect it be among the non current assets?

  • Author
    Posts
Viewing 3 posts - 1 through 3 (of 3 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • umangkumbhat on What is Assurance? – ACCA Audit and Assurance (AA)
  • ahmadhoney on How to register with ACCA?
  • John Moffat on Interest rate risk management (1) Part 5 – ACCA (AFM) lectures
  • osman-the-zephyr@ on MA Chapter 1 Questions Accounting for Management
  • adebusola on MA Chapter 1 Questions Accounting for Management

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in