Topic 20 Flashcards
1
Q
capital
A
= net assets
2
Q
supplier paid in cash
A
- capital will not change
- assets & liabilities reduce
3
Q
raw materials purchased on credit
A
- capital will not change
- assets & liabilities increase
4
Q
wages paid in cash
A
- capital will change
- assets decrease… profit decrease so capital decreases
5
Q
development exoenditure
A
- not an expense but should be capitalised
6
Q
amortisation & loss on disposal
A
expense
7
Q
revaluation accounting entry
A
Dr NCA- property
Dr accumulated depreciation
Cr revaluation surplus
8
Q
COS
A
also include
- carriage in
- depreciation
