Economics, Accounting & Business: Post your doubts here!

[fahadzaidi96]

dude, whats the answer of the marginal and absorption question??

ABSORPTION AND MARGINAL

 

[Mohammed Hassan]

ABSORPTION AND MARGINAL

ok what about the vehicle question? was it 4000 or 1500?

 

[fahadzaidi96]

ok what about the vehicle question? was it 4000 or 1500?

1500 ..just tell me what was the question asking in 1 was it asking about cr balance or dr balance i dont remember which one i marked... i think i marked dr balance carriage

 

[Mohammed Hassan]

it was carriage inwards Cr
carriage outwards Dr
or vice versa, i cant remember, but the answer is B

 

[Mohammed Hassan]

the answer of the clubs or society question?

 

[fahadzaidi96]

it was carriage inwards Cr
carriage outwards Dr
or vice versa, i cant remember, but the answer is B

so the ans was dr balance right

 

[Mohammed Hassan]

so the ans was dr balance right

Yup!

 

[fahadzaidi96]

club ans was a

 

[Mohammed Hassan]

club ans was a

what about the last question?? D?

 

[WaleedUQ]

DUDE THE ANSWER STATED IN MY PREVIOUS STATMENT ARE CORRECT. I STAND BY MY STANCE AND BTW THESE ANSWERS ARE APPROVED BY MY TEACHER AND HE IS ALSO THE EXAMINER OF ACCOUNTS SO PLEASE DONT ARGUE WITH ME AND STEPPED COST WAS 85000

I just need justification from you. I dont care what your teacher is bro
Just tell me HOW ABSORPTION COSTING HOW!
reason tou bataya hoga na teacher ney?
tumharey sir Zahid Surti tou nahi ? moo kay fire hain woh

 

[WaleedUQ]

Well guys i think we need to clear some thoughts!
most of you are arguing over Q1 ans
The question was asking that, what is a Credit entry in books of account
I heard candidates saying It wasn't return outwards it was carriage outwards or inwards
it was not C it was B
Well just to make your mind clear
CARRIAGES are expenses. Expenses are always debit
Investments are assets, assets are increased with a debit.
Return outwards = credit
Return outwards is a contra-purchase account. A contra-account is an account that decreases another.
When you make a purchase it is debited as an asset. So when you return a purchase, the return outwards account is credited to decrease the purchase account.
Return inwards = debit
Return inwards is a contra-sales account.
When you make a sale, the sales account is credited. So when an item is returned the return inwards account is debited to decrease the sales account.
Carriage outward and inwards are cost associated with sale and purchase.
though they evolve from outwards and inwards but are treated as Debit entry in the books of account
^^ SOURCES : WIKIPEDIA

 

[WaleedUQ]

Marginal costing may be defined as the technique of presenting cost data wherein variable costs and fixed costs are shown separately for managerial decision-making. It should be clearly understood that marginal costing is not a method of costing like process costing or job costing. Rather it is simply a method or technique of the analysis of cost information for the guidance of management which tries to find out an effect on profit due to changes in the volume of output.
Stock/Inventory Valuation :-Under marginal costing, inventory/stock for profit measurement is valued at marginal cost. It is in sharp contrast to the total unit cost under absorption costing method.

Further, absorption costing is dependent on the levels of output which may vary from period to period, and consequently cost per unit changes due to the existence of fixed overhead. Unless fixed overhead rate is based on normal capacity, such changed costs are not helpful for the purposes of comparison and control.
Absorption costing not good for comparison tool
Marginal costing best for decision making
so whats the ans ?
D

Read more: http://wiki.answers.com/Q/What_is_the_Difference_between_Marginal_Costing_and_Absorption_Costing_only_headings#ixzz1vjtnteYQ​

 

[Anusuya]

1500 ..just tell me what was the question asking in 1 was it asking about cr balance or dr balance i dont remember which one i marked... i think i marked dr balance carriage

It is carriage outward debit.

 

[Anusuya]

club ans was a

Even i wrote A for this...bt someone said clubs do not make trading ac. and its suppose to be the one with subscriptions and bad debt. But i am still confused....were we asked abt the trading by the club or the trading account???

 

[helloboy]

Hello boy dnt say damn

sorry for that... newbie mistake!

 

[WaleedUQ]

Even i wrote A for this...bt someone said clubs do not make trading ac. and its suppose to be the one with subscriptions and bad debt. But i am still confused....were we asked abt the trading by the club or the trading account???

Anushya ans is A
it is because the option said they 1)
2) they might suffer bad debts
3) subscription received is credited to income and exp Acc.. as a INCOME
1) They may have a trading account.

Secondly subscription received is not credited to income and expenditure account directly.
Subscription received includes Arrears and Prepayments on subscriptions, so receiving and crediting it to Income does not make any sense.
We need to make a income account to determine amount of subscription to be transferred to I and Exp account.

 

[WaleedUQ]

It is carriage outward debit.

I got the paper ill put a video on youtube with all correct ans with relevant explanation just wait till sunday

 

[Esme]

i need help with profit/volume graphs and cost-volume analysis.
Please provide me with some notes

 

[saimaiftikhar92]

Anushya ans is A
it is because the option said they 1)
2) they might suffer bad debts
3) subscription received is credited to income and exp Acc.. as a INCOME
1) They may have a trading account.

Secondly subscription received is not credited to income and expenditure account directly.
Subscription received includes Arrears and Prepayments on subscriptions, so receiving and crediting it to Income does not make any sense.
We need to make a income account to determine amount of subscription to be transferred to I and Exp account.

A CLUB OR A SOCIETY DOES NOT HAVE A TRADING ACCOUNT!!!

 

[urvesh]

A CLUB OR A SOCIETY DOES NOT HAVE A TRADING ACCOUNT!!!

Yes it does, for any trading activities it may carry out such as a canteen or a shop.