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This one is question from your mock exam so pls help with this in detail
Apple has her own business selling dolls to stores. At 30 June 2013 she has a bal on her trade receivables of 62900. A bal of 2000 due from X co is considered irrecoverable & is to be written off. Y co was financial difficulty & Apple wishes to provide an allowance for 60% of their bal of 1600. She has also decided to make general allowance for receivables of 10% of her remaining trade receivables
What is the allowance for receivables in her statement of financial position @ 30 June 2013?After writing off X, the balance on receivables if $60,900.
This includes $1600 owing from Y, and there is to be an allowance of 60% of this, which is $960.
In addition there is to be an allowance of 10% of ‘remaining’ receivables. Thos remaining (i.e. excluding Y) are 60,900 – 1,600 = 59,300. So the extra allowance is 10% x 59,300 = $5,930.
This means a total allowance of 5,930 + 960 = $6,890.
(In future, if you want me to answer then please ask in the F3 Ask the Tutor Forum – this forum is for students to help each other 🙂 )
Sir, Thank you so much actually i have asked for two more question on depreciation on the same forum so can you reply on that questions also
REALLY SORRY FOR THE INCONVENIENCE.Pls ignore my previous reply
there was a misunderstanding due to my internet connection
Thank you sir for your efforts….????Dear ALL,
ADDING-Up CORRECTION:
This means a total allowance of 5,930 + 960 = $6,890. (not $6,590)
with thanks to Mr.John MOffat.
Good evening!
Pls Help with this question in detail in MOCK EXAMSomersault Plc bought an asset three years ago costing 230,000. Total useful life estimated at the time of recognition was 5 years. After first year of its operation asset was revaluaed and a surplus was recorded. Current balance in the revaluation surplus account is 45,000.
During the year asset was sold for 180,000.
What is the gain on disposal of asset?a business non-current asset had a carring vale 125000.An asset had cost 12000 was sold 9000,make a profit on disposal 2000.
Whats the new carring valu of the non-current assets?
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