Economics, Accounting & Business: Post your doubts here!

[Apex-Kill]

I was having a doubt on a same kind of a question.....thanx for clearing it out xD

 

[Apex-Kill]

I wanted to ask...how often are the marking schemes wrong? Like give me a percentage value or something....cus it would make it harder if ur doing a tough question and knowing the ms is wrong makes it even more troublesome.

 

[amandeep04]

my ans to mcq no. 4 is A.

thanks

 

[SalmanPakRocks]

I wanted to ask...how often are the marking schemes wrong? Like give me a percentage value or something....cus it would make it harder if ur doing a tough question and knowing the ms is wrong makes it even more troublesome.

Marking Schemes are not wrong, the probability of any wrong answer present would be 1/100.

 

[Anique]

1) A business omitted discounts allowed of $700 from its trial balance. During the year a machine
had been sold for cash of $500 but the only accounting entry made was a debit in the Bank
account.
What is the balance on the Suspense account?
A $200 debit B $1200 debit C $200 credit D $1200 credit


2) The table gives data about rental income for the year ended 31 March 2003.

rents owing 31 March 2002 1 400
rents received in advance 31 March 2002 1 300
cash received 13 700
rents written off 560
rents owing at 31 March 2003 1 750
rents paid in advance at 31 March 2003 1 600

Which figure for rental income will appear in the Profit and Loss Account for the year ended
31 March 2003?

A $14 010 B $14 210 C $14 310 D $14 510

Please explain with double entry system

 

[amandeep04]

2) The table gives data about rental income for the year ended 31 March 2003.

rents owing 31 March 2002 1 400
rents received in advance 31 March 2002 1 300
cash received 13 700
rents written off 560
rents owing at 31 March 2003 1 750
rents paid in advance at 31 March 2003 1 600

Which figure for rental income will appear in the Profit and Loss Account for the year ended
31 March 2003?

A $14 010 B $14 210 C $14 310 D $14 510

So the answer is C - 14310. (I think so ) You should put the answer too so I don't have to see the markscheme.

 

[SalmanPakRocks]

1) A business omitted discounts allowed of $700 from its trial balance. During the year a machine
had been sold for cash of $500 but the only accounting entry made was a debit in the Bank
account.
What is the balance on the Suspense account?
A $200 debit B $1200 debit C $200 credit D $1200 credit


2) The table gives data about rental income for the year ended 31 March 2003.

rents owing 31 March 2002 1 400
rents received in advance 31 March 2002 1 300
cash received 13 700
rents written off 560
rents owing at 31 March 2003 1 750
rents paid in advance at 31 March 2003 1 600

Which figure for rental income will appear in the Profit and Loss Account for the year ended
31 March 2003?

A $14 010 B $14 210 C $14 310 D $14 510

Please explain with double entry system

For your second query, I've already solved it in the previous page, see it.
And it's C for the 1st one.

 

[Dudu]

http://papers.xtremepapers.com/CIE/... AS Level/Accounting (9706)/9706_y10_sp_2.pdf

Question 1, how do you calculate Capital?

 

[Daniel_777]

Hello! What is better to take: Accounting or Economics? What will be easier?

 

[SalmanPakRocks]

Hello! What is better to take: Accounting or Economics? What will be easier?

It entire depends on what career you want to pursue.

 

[SalmanPakRocks]

http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_y10_sp_2.pdf

Question 1, how do you calculate Capital?

Use the trail balance, Dr and Cr should be equal so arrage them like that.

 

[student92]

as salam alikum
A2 Accounting
can someone please tell me the difference between
participating preference shares
cumulative preference shares

thanks

 

[Esme]

as salam alikum
A2 Accounting
can someone please tell me the difference between
participating preference shares
cumulative preference shares

thanks

walaikum as salam
cumulative preference shares: If cumulative shareholders do not receive the entire amount of dividends they are supposed to in any particular year (because enough profits aren't made), then in the future years the company has to pay them these dividends when they make excess profits.
participating preference shares : If a company has excess profits after paying all dividends, participating shareholders have a right to claim these profits.

 

[student92]

Thanks alot

 

[SalmanPakRocks]

I can't understand why this is coming wrong? Can anyone please explain? I've showed my working below, please correct me if I made any mistake.
In Jan 2009, the company issued bonus shares and as we all know, if bonus shares are issued, there's no change bank balance involved. So therefore this is what I did;
12000/4 = $3000 bonus shares
New share capital $15,000
Profit and loss account $1000
Now, company makes right issues.
15000/2 = 7500 shares are bought
They are issued at premium so
Capital is now
Ordinary share capital $15000 + $7500 = $22500
Profit and loss account $1000
Share premium $ 4500
So the bank balance should increase by 7500 + 4500 = $12000 But the answer in marking scheme is $12800, how?

 

[SalmanPakRocks]

And why is preference share included in 'Ordinary share holders' funds?

 

[student92]

Shareholder funds (also known as stockholders' equity or shareholders' capital) represent the amount of capital invested by stockholders into the company, including equity share capital, preference share capital, surplus and all reserves.

these issued share can either be oridanry or prefernce shares
i guess you are confusing prefernce shares with Redeemable prefernce shares, these are the specific type of prefernce shares which are treated liike debentures and taken as a non current liability

and , i have no idea for the first mcq, are you sure the answer is c? it makes all resoanable sense to be b

 

[SalmanPakRocks]

Shareholder funds (also known as stockholders' equity or shareholders' capital) represent the amount of capital invested by stockholders into the company, including equity share capital, preference share capital, surplus and all reserves.

these issued share can either be oridanry or prefernce shares
i guess you are confusing prefernce shares with Redeemable prefernce shares, these are the specific type of prefernce shares which are treated liike debentures and taken as a non current liability

and , i have no idea for the first mcq, are you sure the answer is c? it makes all resoanable sense to be b

I know right, the answer for the first query should be B
And as far as second one is concerened, ordinary is mentioned with shareholder's fund, so my question is, why is preference included?

 

[Esme]

View attachment 24080
I can't understand why this is coming wrong? Can anyone please explain? I've showed my working below, please correct me if I made any mistake.
In Jan 2009, the company issued bonus shares and as we all know, if bonus shares are issued, there's no change bank balance involved. So therefore this is what I did;
12000/4 = $3000 bonus shares
New share capital $15,000
Profit and loss account $1000
Now, company makes right issues.
15000/2 = 7500 shares are bought
They are issued at premium so
Capital is now
Ordinary share capital $15000 + $7500 = $22500
Profit and loss account $1000
Share premium $ 4500
So the bank balance should increase by 7500 + 4500 = $12000 But the answer in marking scheme is $12800, how?

Yes your working is correct. The answer in the marking scheme is wrong.
As for your second query, I'm not sure but I don't think preference shares should be included. Have you come across any other similar mcqs? You can check if they're adding preference shares in those questions too.

 

[Anique]

7 The table shows details relating to a company’s banking transactions at 31 December.
$
balance at bank as per bank statement 22 650
uncleared lodgements 3 110
unpresented cheques 6 290
bank credit recorded twice by bank in error 650
Which balance for cash at bank should appear in the statement of financial position at
31 December?
A $18 820 B $20 120 C $25 180 D $26 480

Ans is A

I don't get why we have to subtract 650 to get the cash book figure.