Dividend is not subtracted while calculating profit for the year, we only subtract it later within retained earnings in the statement of changes in equity.
Hi miss. In question 13, I am still confused about why do we need to add returns outwards as part of our credit purchases...I thought since we already made the purchases returns, we should exclude it from our credit purchases right?
Profit represents the total earnings before any personal withdrawals. By adding back the drawings, we can determine the true profit generated by the business. I think due to this
for Qs 18, why are we not subtracting dividends paid from profit?
Dividend is not subtracted while calculating profit for the year, we only subtract it later within retained earnings in the statement of changes in equity.
Can You solve eco papers as well ? If you can then I think it would be more helpful 🙂😇.
I'm not so confident in economics though.
But maam in q8 isnt the loan a liablility, so wont we subtract it since were calculating NET ASSETS??
But it was taken out on the last day of the financial year, so we don't record it as it is yet to be used.
Hi miss. In question 13, I am still confused about why do we need to add returns outwards as part of our credit purchases...I thought since we already made the purchases returns, we should exclude it from our credit purchases right?
Make purchase legger control acct purchase return are on debit side bcz double entry will be T.payable debit purchase return credit
Why did we add the drawings to calculate the profit in q12?
Profit represents the total earnings before any personal withdrawals. By adding back the drawings, we can determine the true profit generated by the business.
I think due to this
Very well explained
Thank you!
Can't understand the "C" for question 4😢
That C just indicates that we need to figure out the cost of the noncurrent asset.
❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤