Plz help!
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I cant beleive it i can't do this!<BR><BR>My minds just gone blank lol! Itz sooo easy but still i can't beleive it. <BR>I was looking at a accounts question generally and need help. lol<BR><BR>Question<BR>you have recently prepared the annual accounts of a small manufacturing business. the owner of the business, James Dawson, is puzzelled by certain of the items in the accounts and has written to you asking for an explanation of the following points: <BR><BR>you show my factory in the balance sheet at a value of £47, 500. that is the amount i paid for it many years ago. it is now worth at least double that figure so i think you ought to increase the value to £95,000. <BR><BR><BR>My answer would be:<BR>Unrealised gains and losses are â??unrealisedâ?? because you do not feel the real impact until a sale occurs, but you must keep tract of increases or decreases for accounting valuation purposes. Calculate this out by computing the difference between what you paid for the asset, or what it was worth as last yearâ??s balance sheet creation, and what the market value of the asset is at the time the balance sheet is created for this year.<BR><BR>or am i completely wrong. lol<BR><BR>I dont beleive it when you come to something after a long time<BR>
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Plz help!
During a lesson today at technician level, we covered the subject of revaluation. This has to be done every so many years to comply with FRS's Accounting Standards for a true and fair view etc... The example in class was for a limited company, fixed assets was updated with new cost then to balance - at the bottom of the balance sheet the difference between old valuation and new valuation was entered under re-valuation heading. That could be of some help to you.0 -
Plz help!
Hey Diesel,<BR><BR>Thankz for the recap!<BR><BR>Your right cause i remember now FRS 15. Revalution!<BR><BR>Thanks once again<BR><BR>Goran0