11-02-2005, 03:16 AM
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11-02-2005, 05:17 AM
Hi, are u a student of CA? if yes then i must ask u that r u serious abt this question?
bcoz in 6th grade i learnt that PROFIT=REVENUE-COST.
The Game Can Never End Until And Unless I Win It~Genitcaly Genius
bcoz in 6th grade i learnt that PROFIT=REVENUE-COST.
The Game Can Never End Until And Unless I Win It~Genitcaly Genius
11-02-2005, 06:52 AM
sorry,i already know that. what i wanted was a discussion about the treatment for the calculation of profit.
Current net value of business is £91,400.00
The amount put into the business by the owner at the start of the year was £50,000.00.
The profit for the year is £41,400.00 (£91,400 - £50,000)
How would you asses the way in which profit has been calculated above?
Current net value of business is £91,400.00
The amount put into the business by the owner at the start of the year was £50,000.00.
The profit for the year is £41,400.00 (£91,400 - £50,000)
How would you asses the way in which profit has been calculated above?
11-02-2005, 02:34 PM
current net value of business can also increase due to a no. of factors other than net profit e.g further investment, capitalisation of reserves etc
Ice Blue
Ice Blue
11-02-2005, 03:37 PM
What type of profit you are talking about the profit accumulated since the business started..... ? clarify it...
Muhammad Zuanir Ibrar
Muhammad Zuanir Ibrar
11-02-2005, 09:15 PM
just the profit for that above scenerio. it was just for one year. do you have any information that would help.
11-02-2005, 09:23 PM
i have just started an accounting course in the uk, and we have a lousy teacher, so i need all the help i can get,
what is the current net value of business
what is the current net value of business
11-02-2005, 09:30 PM
by the way,when is it eid in pakistan. in the uk we might have eid on thursday or friday
Increase your faith
"On the Day you shall see the believing men and the believing women - their light running forward before them and by their right hands. Glad tidings for you this Day! Gardens under which rivers flow, to dwell therein forever! Truly, this is the great success." [Soorah al-Hadeed (57)12]
Increase your faith
"On the Day you shall see the believing men and the believing women - their light running forward before them and by their right hands. Glad tidings for you this Day! Gardens under which rivers flow, to dwell therein forever! Truly, this is the great success." [Soorah al-Hadeed (57)12]
11-03-2005, 05:15 AM
Sales less cost of sales you will get = GROSS PROFIT
GROSS PROFIT LESS Expenses you will get = NET PROFIT OR LOSS
( Profit is the excess of income over expenditure.When expenditure exceeds income, the business is running in loss. )
BUT KINDLY EXPLAIN YOUR ORIGINAL QUESTION ,,, U JUST mention ANSWER OF your question kindly write full and brief question
islamabad_@hotmail.co.uk
GROSS PROFIT LESS Expenses you will get = NET PROFIT OR LOSS
( Profit is the excess of income over expenditure.When expenditure exceeds income, the business is running in loss. )
BUT KINDLY EXPLAIN YOUR ORIGINAL QUESTION ,,, U JUST mention ANSWER OF your question kindly write full and brief question
islamabad_@hotmail.co.uk
11-04-2005, 05:40 AM
ok.i will show u all the info.
Your friend, who started a small building business a year ago (1st september 2004) has asked you to have a look at his financial records for the year to 31st August 2005. He has made an attempt to calculate his profit for the year, but is not sure if it is correct. He has given you the following data on which he based his calculations
Business Assets
Premises. Small unit on industrial estate. Cost £55,000 in september 2004. A similar one has just been sold for £65,000, but this is in better condition and should be worth around £70,000. Owner's valuation is £70,000
Van.Bought second hand for £9000 in september.Is still in good condition and should last for at least three more years. Owner's valuation £9,000
Equipment. Purchased in a closing down sale. Price paid £15,000, but would have cost at least £25,000 if not bought in sale. Owner's value £25,000
Stock. Cost £12,000 before trade discount of £1000. 20% is added on to cost before charging to customers. Owner's Value £ 14,400
Amounts due. At the present time customers owe in total £18,000. This includes £2,400 for a job done in november 2004, and the customer has now moved. It is hoped that this can still be calculated. Owner's value £ 18,000
Goodwill. The business is generating a good reputation and this is adding value to the business, estimated at around £15,000. Owner's value £15,000
Total value of business assets £151,400
Amounts Owed.
Bank Overdraft. This has been agreed at a limit of £10,000. The balance was £8,000 overdrawn on 31st August 2005. The latest bank statement received in september 2005 shows interest and charges for the quarter to 30th september 2005 of £240. Owner's Valuation -£8,000
Loan. Borrowed from a relative £40,000 in september 2004. Interest agreed at 5% per year.Owner's valuation -£40,000
Creditors. Owed to various suppliers. Owner's valuation -£12,000
Current net value of business £91,400
The amount put into the business by the owner at the start of the year was £50,000. The profit for the year is £41,400 (£91,400 - £50,000). The owner took out £1,200 per month for living expenses.
Discuss the accounting treatment for the calculation of profit and the valuation of assets and liabilities, and assess the way in which profit has been calculated in the above scenario.
Increase your faith
"On the Day you shall see the believing men and the believing women - their light running forward before them and by their right hands. Glad tidings for you this Day! Gardens under which rivers flow, to dwell therein forever! Truly, this is the great success." [Soorah al-Hadeed (57)12]
Your friend, who started a small building business a year ago (1st september 2004) has asked you to have a look at his financial records for the year to 31st August 2005. He has made an attempt to calculate his profit for the year, but is not sure if it is correct. He has given you the following data on which he based his calculations
Business Assets
Premises. Small unit on industrial estate. Cost £55,000 in september 2004. A similar one has just been sold for £65,000, but this is in better condition and should be worth around £70,000. Owner's valuation is £70,000
Van.Bought second hand for £9000 in september.Is still in good condition and should last for at least three more years. Owner's valuation £9,000
Equipment. Purchased in a closing down sale. Price paid £15,000, but would have cost at least £25,000 if not bought in sale. Owner's value £25,000
Stock. Cost £12,000 before trade discount of £1000. 20% is added on to cost before charging to customers. Owner's Value £ 14,400
Amounts due. At the present time customers owe in total £18,000. This includes £2,400 for a job done in november 2004, and the customer has now moved. It is hoped that this can still be calculated. Owner's value £ 18,000
Goodwill. The business is generating a good reputation and this is adding value to the business, estimated at around £15,000. Owner's value £15,000
Total value of business assets £151,400
Amounts Owed.
Bank Overdraft. This has been agreed at a limit of £10,000. The balance was £8,000 overdrawn on 31st August 2005. The latest bank statement received in september 2005 shows interest and charges for the quarter to 30th september 2005 of £240. Owner's Valuation -£8,000
Loan. Borrowed from a relative £40,000 in september 2004. Interest agreed at 5% per year.Owner's valuation -£40,000
Creditors. Owed to various suppliers. Owner's valuation -£12,000
Current net value of business £91,400
The amount put into the business by the owner at the start of the year was £50,000. The profit for the year is £41,400 (£91,400 - £50,000). The owner took out £1,200 per month for living expenses.
Discuss the accounting treatment for the calculation of profit and the valuation of assets and liabilities, and assess the way in which profit has been calculated in the above scenario.
Increase your faith
"On the Day you shall see the believing men and the believing women - their light running forward before them and by their right hands. Glad tidings for you this Day! Gardens under which rivers flow, to dwell therein forever! Truly, this is the great success." [Soorah al-Hadeed (57)12]
11-07-2005, 03:30 AM
in this question u has just need to make a Profit/Loss account to calculate the profit
and also need to make balance sheet TO calculate the valuation of assets and liabilities )
GOOD LUCK
if u feel any difficulty to make it you can ask me again )
islamabad_@hotmail.co.uk
and also need to make balance sheet TO calculate the valuation of assets and liabilities )
GOOD LUCK
if u feel any difficulty to make it you can ask me again )
islamabad_@hotmail.co.uk
11-07-2005, 07:27 PM
for this question i have to write a essay,i am not supposed to do any calculations yet.so i am asking if you know which way i should go around this. to discuss the calculation of profit in that scenerio. without using any calculations.
Increase your faith
"On the Day you shall see the believing men and the believing women - their light running forward before them and by their right hands. Glad tidings for you this Day! Gardens under which rivers flow, to dwell therein forever! Truly, this is the great success." [Soorah al-Hadeed (57)12]
Increase your faith
"On the Day you shall see the believing men and the believing women - their light running forward before them and by their right hands. Glad tidings for you this Day! Gardens under which rivers flow, to dwell therein forever! Truly, this is the great success." [Soorah al-Hadeed (57)12]
11-09-2005, 05:42 AM
accountant 1, how do u make a profit and loss account without the sales? the above scenerio does not mention the sales or the value of sales . please look at the scenerio and post a reply please.
Increase your faith
"On the Day you shall see the believing men and the believing women - their light running forward before them and by their right hands. Glad tidings for you this Day! Gardens under which rivers flow, to dwell therein forever! Truly, this is the great success." [Soorah al-Hadeed (57)12]
Increase your faith
"On the Day you shall see the believing men and the believing women - their light running forward before them and by their right hands. Glad tidings for you this Day! Gardens under which rivers flow, to dwell therein forever! Truly, this is the great success." [Soorah al-Hadeed (57)12]
11-11-2005, 04:11 AM
yes i read this question deeply ,,,,, in that type of question u can judje profit by makeing Balance sheet....
BELIEVING IN YOURSELF IS THE FIRST STEP TO SUCCESS.
never tell Allah how big ur worris are?...........just tell ur worries how big ALLAH is .....
islamabad_@hotmail.co.uk
BELIEVING IN YOURSELF IS THE FIRST STEP TO SUCCESS.
never tell Allah how big ur worris are?...........just tell ur worries how big ALLAH is .....
islamabad_@hotmail.co.uk
11-11-2005, 04:19 AM
"never tell Allah how big ur worris are?...........just tell ur worries how big ALLAH is ....."
no disrespect but Allah has no size. Allah is unseen and we humans have no idea at all what Allah looks like so how can we assume that Allah is big or small.
Increase your faith
"On the Day you shall see the believing men and the believing women - their light running forward before them and by their right hands. Glad tidings for you this Day! Gardens under which rivers flow, to dwell therein forever! Truly, this is the great success." [Soorah al-Hadeed (57)12]
no disrespect but Allah has no size. Allah is unseen and we humans have no idea at all what Allah looks like so how can we assume that Allah is big or small.
Increase your faith
"On the Day you shall see the believing men and the believing women - their light running forward before them and by their right hands. Glad tidings for you this Day! Gardens under which rivers flow, to dwell therein forever! Truly, this is the great success." [Soorah al-Hadeed (57)12]
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