Economics, Accounting & Business: Post your doubts here!

[Saad Ghori]

So the correct the error we post it on the credit side???explain ppz

Yes cos you have to close the suspense account.

 

[parthrocks]

Yes cos you have to close the suspense account.

Ohhhh ya bro...then i gt it..thanks and best of luck for ur paper

 

[urvesh]

Stock is valued in the balance sheet at lower of cost or net realisable value. The latter is calculated by deducting the the repairs that have to be undertaken from the price that it could be sold at. That is it would be, 2200-400=1800
This is lower than the cost so the answer would be A.

Thanks man, these sums always mess me up!

 

[Wanzi21]

how do you this?

 

[urvesh]

how do you this?

Answer is A.

Method:

(Cost - scrap value) / Number of years

Therefore: (2200-280)/4 = $480!

 

[wajiman]

how do you this?

the answer is A

 

[Mohammed Hassan]

guys, plz help me in this question :S
A company issues for cash 50000 shares of $5 each at a premium of $15 each and $300000 4% debentures.
By what amount will the net assets of the company increase?
A. $250000
B. $550000
C. $1000000
D. $1300000

 

[sonamali]

what does cost plus percentage mean?

 

[Wanzi21]

thanks guys I didnt realise there was a scrap value.. P1 exam is tomorrow btw

 

[shanky631]

guys, plz help me in this question :S
A company issues for cash 50000 shares of $5 each at a premium of $15 each and $300000 4% debentures.
By what amount will the net assets of the company increase?
A. $250000
B. $550000
C. $1000000
D. $1300000

is C the answer

 

[Mohammed Hassan]

is C the answer

yup! why? plz explain?

 

[wajiman]

guys, plz help me in this question :S
A company issues for cash 50000 shares of $5 each at a premium of $15 each and $300000 4% debentures.
By what amount will the net assets of the company increase?
A. $250000
B. $550000
C. $1000000
D. $1300000

we will ignore debentures over here, as debentures would raise the same amount of cash, the effect will be nullified whereas the shares would introduce $1,000,000. so C is the answer

what does cost plus percentage mean?

Cost plus percentage means markup added in cost.

 

[Mohammed Hassan]

we will ignore debentures over here, as debentures would raise the same amount of cash, the effect will be nullified whereas the shares would introduce $1,000,000. so C is the answer




Cost plus percentage means markup added in cost.

how did the share introduced 1000000??

 

[wajiman]

how did the share introduced 1000000??

50,000 shares * $5 face value = $250,000
Share premium on issue = 50,000 shares * $15 = $750,000

add $250,000 and $750,000 = $1,000,000. cash also increase and on the other had equity increased

 

[Anusuya]

http://www.xtremepapers.com/papers/...AS Level/Accounting (9706)/9706_w09_ms_12.pdf

Q. no 8 and 22 ??

 

[shahz_h]

Could any1 solve my following doubts??
Here is da link:http://www.xtremepapers.com/papers/... AS Level/Accounting (9706)/9706_s06_qp_1.pdf
Q. 20 ans is a
Q. 22 ans is a
Q. 28 ans is a
Q. 29 ans is b
Thanx in advance!!

 

[Mohammed Hassan]

50,000 shares * $5 face value = $250,000
Share premium on issue = 50,000 shares * $15 = $750,000

add $250,000 and $750,000 = $1,000,000. cash also increase and on the other had equity increased

Thnx understood, didnt know that i have to include the 50000 at $5

 

[urvesh]

Q19 here - http://www.xtremepapers.com/papers/...AS Level/Accounting (9706)/9706_s11_qp_12.pdf

Bugging me!

 

[wajiman]

http://www.xtremepapers.com/papers/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_w09_ms_12.pdf

Q. no 8 and 22 ??

mcq no.8:
as overdraft should be credit, we will credit the bank account with double the amount. first to cancel the debit entry and second to record the debit entry and debit the suspense account by $200. as purchases are understated by 10, we will debit purchases and credit suspense account, giving us the balance of credit $190

mcq no.22:
not in AS level syllabus, its A2

 

[Mohammed Hassan]

guys, plz help! why the answer for this is D???