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Toyosi paid £6,600 for insurance during the year ended 31/03/2014. The "insurance prepaid" account showed a balance of £390 as at 01/04/2013 and a balance of £450 as at 31/03/2014. Calculate the insurance expense for the year ended 31/03/2014.

Intuitively, the £390 prepaid balance at the beginning of the year should go to this year's income statement in full (it was paid last year but relates to this year; "prepaid"). In addition, we ...

Answered by Joseph C. • Accounting tutor

3420 Views

“Provision for depreciation is made to provide funds for replacement of a fixed assest” discuss this statement (6 marks)

Depreciation is not a movement of cash so therefore does not provide funds for a replacement of a fixed assest. Depreciation is a book keeping entry, debiting the income statement (P+L) and crediting prov...

Answered by Shane C. • Accounting tutor

2323 Views

what is the difference between management and financial accoounting?

Management accountingcollecting and analysing internal information which are used by internal stakeholders such as managers. This help them with decision making to help them achiev...

Answered by May Z. • Accounting tutor

2030 Views

A car costs £10,000 and it has a depreciation policy of 15% each year, reducing balance method. what is the net present value at the end of year 3?

Year 1£10,000 * 15% = £1,500 (Depreciation for year 1)£10,000 - £1,500 = £8,500 (Net present value at the end of year 1)
Year 2£8,500 * 15% = £1,275 (D...

Answered by • Accounting tutor

2473 Views

What are 3 accounting concepts used when preparing a set of accounts?

Accruals concept. The accruals concept is a concept used in the preparation of accounts. The accruals concept states that revenue (sales) should be recorded when the revenue is earned, not when the cash i...

Answered by James P. • Accounting tutor

2601 Views