accg105 (1 Viewer)

[p.r.i.n.c.e.s.s]

ps. on page 147 with the worksheet, u see how we have the profit at the bottom in statement of financial performance and position...how come we are debiting profit in fin performance and CR it in financial position

Profit has a DR balance in statement of fin performance because the earnings side (CR side) is higher than expenses side (DR) hence filling the gap on the DR side.

As for the CR side on the financial position, its because profit is a liability(nb: what the firm owes to external parties) to the firm. Profit (being part of OE) belongs to owners, not the firm.

Hope it makes sense.
Now we should all happy. a Debit AND a Credit.

 

[scarecrow_of_oz]

i don't know guys my tutor seems to think the questions will be harder than just reading the first few pages - i mean he reckons they'll have easy questions like what was the guys name (and name 3 accounts receivable) etc but for some stuff he thinks u'll have to know how u apparently applied the methodology etc... i don't know u could probably get away with not doing the prac set, and if u just memorise the first couple of pages (and some names of accounts receivable/payable etc from inside the set) u'd probably do ok and get most of it right, but i'd still flick thru and have a think about it to be on the safe side

 

[CrashOveride]

elaborate on what you mean by methodology?

can ppl who did it last year say if there was any stuff that required u to actually do the practice set...or was it all from the first few pages?

 

[clairegirl]

does anyone know or have an idea on what the question on cash flows is gunna talk about?

Im lost

i hate accounting soo much

 

[scarecrow_of_oz]

what do i mean by methodology... good question... the thing is i can't remember exactly what he said - he was giving me egs of questions like 'how did u work out this part of ants pants eg the reconciliation statement' and u'd say how... oh wait i remember him saying they might ask stuff like 'wat adjusting entries did u have to do'... or 'did u have to adjust for depreciation for this biz' etc
so not looking forward to friday....
oh - and my tutor did it last year. so did my a few of my friends - they all say it'd definately be a good bet memorising mundane crap about the business eg the owner's name - i'm sure many of the questions will be on things like that

 

[CrashOveride]

yeah a lot of them will be.

i hope they dont ask stuff like on the date xx/xx/xx who did the business trade with ><

 

[clairegirl]

hey tash

what depreciation method do they use in antz pants... as in straight line and reducing balance or unit?

 

[scarecrow_of_oz]

from memory straight line but i'd definately check on that - i haven't done that part yet but i think andrew said it was sl

 

[clairegirl]

hey guys

do we hvae to remmeber the 5 irregular items...??