Help please, stuck with question

[gfb]

Hi guys and girls,

I have a few things that I am stuck with.
1. For part 1 (analysing accounting equations) , do we include the 2007 amounts from the balance sheet for 2006 & 2007 , and analyse them in terms of the effects they have.

e.g. from the balance sheet given (column with 2007 amounts), do we include 133,100 and the rest of the assets, liabilities and OE into the calculations in part 1. i.e. 133,100 bank increases (asset) and OE increases by 133,100. Do we add this into the analysis or ONLY use the transactions from 1-10.

I just needed this clarified for part 1.

Also, I am unsure on how to treat the taxation on net profit, no.10 in the transaction summary. Do we include the amount obtained into part 1, i.e less the net profit tax from cash @ bank and OE?.

I am confused on how to approach these questions.

Any help will be appreciated. Thanks in advance.

[gfb]

anyone ? .

[nbalakers24]

is this uni accounting?

[Fyrefly]

It wants u 2 analyse them independently... my guess would b something like this:

↑ A $1,200,000 (Inventory) = ↑ L $1,200,000 (Accounts Payable) + OE + R - E

Like... obviously set out a bit nicer than I can manage on a computer... but basically they jst want 2 make sure u understand that every transaction affects at least two accounts, the accounting equation will always be balance, and that u know wot accounts a particular transaction affects.

Bcoz it says 'independently', u don't need 2 somehow combine it all 2gether with information from the Balance Sheet.

With the tax... the transaction will ↓ Assets (Cash) and ↓ Liabilities (either GST Clearing or GST Collected - depending on the accounts used) by the amount paid in tax.
You will need to calculate this amount when u prepare the 07/08 classified Income Statement (Question 2).