Advanced Accounting for A2 (2nd Edition) - download pdf or read online

By Ian Harrison

ISBN-10: 0340973595

ISBN-13: 9780340973592

Complicated Accounting for A2 has been written particularly to aid scholars, who've already been brought to Accounting, to appreciate totally the intricacies of this complicated topic. it truly is damaged down into attainable devices, each one explaining an issue in actual fact utilizing available language and together with interspersed inquiries to motivate scholars to use what they've got learnt. Illustrations and diagrams are used all through to help reasons. every one unit is rounded up with a sequence of routines and exam-style questions making sure that scholars get lots of perform within the parts during which they need to be trained to go the A2 examination.

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Additional resources for Advanced Accounting for A2 (2nd Edition)

Sample text

Answer Ash and Ben Income statement extract for the year ended 31 July 20*9 £ £ Profit for the year 36,450 Share of profit Ash (24,300) (36,450) Ben (12,150) Note the heading – ‘for the year ended’. Fairly straightforward! If a partner is entitled to a partnership salary, this is taken from the profit for the year before the residual profit shares are calculated. WORKED EXAMPLE Charlie and Divya are in partnership, sharing residual profits in the ratio 3:2 respectively after crediting Divya with a partnership salary of £4,200.

Partnership accounts 41 PARTNERSHIP SALARIES WORKED EXAMPLE Ash and Ben are in partnership, sharing residual profits in the ratio of 2:1 respectively. Their net profit for the year ended 31 July 20*9 was £36,450. Required An extract from the income statement for the year ended 31 July 20*9. Answer Ash and Ben Income statement extract for the year ended 31 July 20*9 £ £ Profit for the year 36,450 Share of profit Ash (24,300) (36,450) Ben (12,150) Note the heading – ‘for the year ended’. Fairly straightforward!

The net profit for the year ended 31 March 20*9 was £32,269. Required Prepare an extract from the income statement for the year ended 31 March 20*9. Answer Ed and Fred Income statement extract for the year ended 31 March 20*9 £ £ Profit for the year 32,269 Less Interest on capital Ed ( 2,400) ( 4,000) Fred ( 1,600) 28,269 Share of profit Ed (18,846) Fred ( 9,423) (28,269) Note the use of the ‘inset’ to show clearly the individual appropriations and the total appropriation. ■ ■ Ed’s share of the profit is £21,246 (interest £2,400 and £18,846 share of residual profit).

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Advanced Accounting for A2 (2nd Edition) by Ian Harrison


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