[jessica_j]

yeah I hate schedule of fixed assets as well. u got to learn the structure and everything which I find hard to remember...and is it all valued at NBV or COST

[nakz_]

My predictions of what will come up is: Task 1: Stock Valuation Task 2: Partnership Accounts Task 3: Profit & Loss with Incomplete Records Task 4: Cash Flow Statements

I do think there will be 14 or 16 mark Q on either Cash flow or IAS's too, we'll see

[jessica_j]

hope IAS's dont come cos I struggle with them

[barcelona_786]

(Original post by A.A.T.)
piecemeal dissolution will not come up.

What's the difference between "dissolution of partnership" and "PIECEMEAL Dissolution?"Is it the same thing? Thanks

[sukhys]

we are laughing if sources of finance come up

[A.A.T.]

(Original post by barcelona_786)
What's the difference between "dissolution of partnership" and "PIECEMEAL Dissolution?"Is it the same thing? Thanks

Piecemeal refers to the way realisation of assets occurs.

Frequently the assets may take a long time to be turned into cash (i.e. ‘realised’). The partners will naturally want payments made to them on account as cash is received. They will not want to wait for payments until the dissolution is completed just for the convenience of the accountant. There is, however, a danger that if too much is paid to a partner, and he is unable to repay it, then the person handling the dissolution could be placed in a very awkward position. To counteract this, the concept of prudence is brought into play.

This is done as follows:
(a) Each receipt of sale money is treated as being the final receipt, even though more could be received.

(b) Any loss then calculated so far to be shared between partners in profit and loss sharing ratios.

(c) Should any partner’s capital account after each receipt show a debit balance, then he is assumed to be unable to pay in the deficiency. This deficit will be shared (failing any other agreement) between the partners using the Garner v Murray rule.

(d) After payments of liabilities and the costs of dissolution the remainder of the cash is then paid to the partners.

(e) In this manner, even if no further money were received, or should a partner become insolvent, the division of the available cash would be strictly in accordance with the legal requirements.

It will not be examined as there is not enough time to complete a decent question given the vast number of calculations.

[sukhys]

how did every1 find it?
personally i thought it was ok paper. did every1 get a net loss on the income statement?

[camlough1]

net loss of 23925

[MW94]

(Original post by sukhys)
how did every1 find it?
personally i thought it was ok paper. did every1 get a net loss on the income statement?

Nice joke....

and yeah a loss

[Hunt_erz]

(Original post by sukhys)
how did every1 find it?
personally i thought it was ok paper. did every1 get a net loss on the income statement?

i definately got the first question fully correct because the bank balanced off with the capital account and i know i did evrything right


for the p/l account i got a net loss of 23925, i used the given figure for cost of sales and divided it by 80 and multiplied it by 100 to get sales, then divided the sales figure by 5 to get gross profit (as it said the GP margin was 20%), but i dont know if its right.

how many expenses did you have, i only had like three or four, cash stolen, depreciation, wages and there might have been another one but i cnat rmeebr.

and what did you get for stock valuation i cant clearly rememberbut i think i got summat like 1515.60 and got summat like 4314.40 for gross profit

the question oncash flow i got 91880, what did you or anyone reading this get. please put any answers you got or think you got

[Hunt_erz]

(Original post by camlough1)
net loss of 23925

i got the same!! but can you remember how you worked out purchases and closing stock?

[Captivity of negativity]

i got like 100,819 and 8000 to balance realisation

used debentures and ordinary shares for source of finance

gross profit= 12025 stock 3025?

IAS 8 dont change the stock valuation

tax 32620? debenture interest 3000? loss on disposal add 800?

depreciationn for p/l 7112?

[camlough1]

(Original post by Hunt_erz)
i got the same!! but can you remember how you worked out purchases and closing stock?

to get purchases, you use the stock turnover figure which is (cost of sales/average stock) = 5 use this to get closing stock. Once gross profit, closing stock and opening stock is known, we can work out purchases.

[Captivity of negativity]

what was the depreciation in the p/l? 7112?

[Hunt_erz]

(Original post by Captivity of negativity)
i got like 100,819 and 8000 to balance realisation

used debentures and ordinary shares for source of finance

gross profit= 12025 stock 3025?

IAS 8 dont change the stock valuation

tax 32620? debenture interest 3000? loss on disposal add 800?

depreciationn for p/l 7112?

the sounds sounds very familiar and i think i got very similar answers, but my gross profit and stock was completely different :O

i was left with 70 units but i think i might have messed uo as i mite have used the selling prices instead of purchase prices

[markj1]

My cash flow looked like this... is anything wrong with it?
Profit from operations 140400
Adjustments for:
Depreciation 12900
Decreade in stock 2600
loss on disposal 800
Increase in debtors (4400)
Increase in creditors 3520

Cash from operations 155820
Tax paid (30660)
Intrest paid (2500)
Net cash from operations 122660

[Hunt_erz]

(Original post by camlough1)
to get purchases, you use the stock turnover figure which is (cost of sales/average stock) = 5 use this to get closing stock. Once gross profit, closing stock and opening stock is known, we can work out purchases.

ok thanks for that, but i think i messed up on both the clsoing stocka nd puchases but i got the right net loss cos i used the COS figure that was given ah well i think i need to stop driving myself crazy and just wait till march lol

[Hunt_erz]

what did people get got the cashflow, i got 91880 but not sure if i did it rite???

and what about stock valuation and the gross profit for the same question?

[markj1]

(Original post by Captivity of negativity)
i got like 100,819 and 8000 to balance realisation

used debentures and ordinary shares for source of finance

gross profit= 12025 stock 3025?

IAS 8 dont change the stock valuation

tax 32620? debenture interest 3000? loss on disposal add 800?

depreciationn for p/l 7112?

yh i also got stock as 12025, and i got depreciation as 7110?

[Captivity of negativity]

was not the profit for the year 105000? why would you add the tax on ???? its tax free profit