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by classifying by functionunder this format the expenses of the company are classified into 5 major categories iecost of sales opening stock
the income statementit shows the financial performance of the company during the given financial period it discloses the income and expenses and thus
ias 1 contents of financial statementsias 1 prescribes the contents of published financial statements the major reports that are included as part of
ias 1 rulesias 1 requires companies to observe the following rules in preparing published financial statements1 the financial statements should
presentations of financial statementsthe objective is to give guidance regarding the preparation of published financial statements and prescribe the
ifrs guidelinesifrss gives the guideline on the content and the accounting statements of certain events and transactions in the financial statements
preparation and presentation of financial statements of limited companiesthis is a chapter dealing with company financial statements a topic
illustration for company conversionkamau maneno and rotino have carried on partnership for several years sharing profits and losses equally after
company conversion featuresif the formation costs are to be bourne by the company then the profit or loss on realization will be the same as the
conversion into a companythe partners may convert their business and trade in form of a company this may be due to some of the advantages a company
amalgamationstwo sole traders and a partnershiptwo or more partnerships or a sole trader and other partnerships may combine or join together to forma
statement of surplus capitalv behaviorurldefaultvmlo behaviorurldefaultvmlw behaviorurldefaultvmlshape behaviorurldefaultvml normal 0 false false
illustration of maximum possible loss methoda b and c have been partners for several years sharing profits and losses in the ratio 221 they decided
the maximum possible loss methodunder this method a table is set up to compute the amounts payable to each partner the results of the computation may
problems due to piecemeal realizationsthese interim distributions give rise to two problemspartners have not always contributed capitals in the same
piecemeal realizations and distributionspartnership dissolutions may take a substantial number of days even months so it is unlikely that all cash
illustrations of dissolutionsx y and z have been trading as partners sharing profits and losses in the ratio of 221 on the 1st july 2005 they decided
dissolutions situationsthere are two situations that need to be considered under dissolutions these are-1 where the assets are sold at once one
journal entries for dissolutionsthe following journal entries are relevant for the purpose of recording all dissolutions1 dr
dissolutionsa partnership may be dissolved due to various reasons which includepoor trading that has led to lossesa partner dying or leaving the
illustration of admissions and retirementsjim and ken have been trading in partnership for several sharing profits or losses equally after allowing
as an expense and an assetthis approach tries to resolve the differences between the two methods by ensuring that we show an asset that may
as an assetthe argument for this statement is that the survivorship policy is an investment because eventually the partnership will receive either
survivorship policythe partners may take out a survivorship policy to safeguard against future cashflow problems incase a partner dies or the
revaluationspartners rarely revalue their assets and any revaluations may be carried out when a new partner is being admitted or an old partner is