We did not include the entire purchase cost of the non current asset, we only included part of it that has been used during the year. This is equivalent to deducting depreciation on non current asset as part of expense in the statement of profit or loss.
10:38 / Why is it owing to customers on both sides? I didn't understand that. I get that liabilities are credits, but in a sales ledger one [debit] part has to be about how the customer is going to pay you back, is it not? Then how is it owing to customers on both sides? SOMEONE PLEASE EXPLAIN I'M STRUGGLING.
The owing to customers on both sides occur when the customer has paid an amount higher than the required one; in such cases, the receiving party has to return the extra amount received which we refer to as owing to customers.
Residual value is the expected value of the non-current asset at the end of its expected lifetime. In this case, we are told that it is expected to be sold for $5000 after 5 years. Here, 5 years is the expected lifetime of the machine and $5000 is its residual value.
Thank you for your hard efforts it helped me a lot and improved my marks !!
Glad to hear that!
In q10 why did we add the purchases non current assets aren’t a part of income statements only inventory right?
We did not include the entire purchase cost of the non current asset, we only included part of it that has been used during the year. This is equivalent to deducting depreciation on non current asset as part of expense in the statement of profit or loss.
Thank youi
Welcome!
10:38 / Why is it owing to customers on both sides? I didn't understand that. I get that liabilities are credits, but in a sales ledger one [debit] part has to be about how the customer is going to pay you back, is it not? Then how is it owing to customers on both sides? SOMEONE PLEASE EXPLAIN I'M STRUGGLING.
The owing to customers on both sides occur when the customer has paid an amount higher than the required one; in such cases, the receiving party has to return the extra amount received which we refer to as owing to customers.
@@studywithprashna Thank you sm!
@@minvs You're welcome!
Hi thank you so much . Can you do nov 2020 p11 also plzz
You're welcome! Yes, I'm planning to do the entire paper 1 series for 2020 before the exam day.
@@studywithprashna Ahh thxx a lot I'm will revise all your papers before going to exams
Great video as usual
Thank you!
hey plz solve p23 as well
7:07 what is residual value?
Residual value is the expected value of the non-current asset at the end of its expected lifetime. In this case, we are told that it is expected to be sold for $5000 after 5 years. Here, 5 years is the expected lifetime of the machine and $5000 is its residual value.
qn 21 which topic is it from??
It is from Costing Methods.
Question 18 was unclear😢
Thnxx a lot🥹❤️
You're welcome!