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Economics, Accounting & Business: Post your doubts here!

husnain99

husnain99

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Mohammad Farzanullah said:
yes. u r correct. explain plz! :)
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AD is increasing means people are able to purchase more ...
When interest rate is high, people save more into their saving accounts etc on the other hand when there's decrease in interest rate they won't be encouraged to save more .. So they will spend more and ultimately AD rises ..
I might be wrong but I guess this would be the reason :)
 
Sana Adnan

Sana Adnan

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Mohammad Farzanullah said:
someone plz help!
Thanks in advance!
View attachment 52938
Click to expand...

Mohammad Farzanullah
The movement from J to K shows that output is increasing and price levels are reducing. This means that interest rates will be falling. One effect of the falling interest rates is that people will have lesser incentive to save and cost of borrowing will also be reduced so they will spend more as explained by husnain99
Apart from that, reduced interest rate will also reduce the cost of investment for firms and therefore the demand for investment will increase encouraging the firms to produce greater output levels at lower price levels.
Hope that explains.
 
azaanahsan

azaanahsan

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lxelle said:
I hope you didnt miss this again!
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In ques. 1(c ii) Current Assets are as follows
2008
(Current Assets) 82150 + 66340 + 510
(Current Liabilities) 64300 + 61000 (Bank overdrawn)
2009
(Current Assets) 76500 + 60870 + 510 + 17930 (Normal balance of bank)
(Current Liabilities) 71200

In ques. 2(B)
goods are sold at 30% mark-up, the value given for sale is at sale price, u have to find at cost price.
Cost:Sale
100:130
x :25740

25740 * 100 = 130 * x

25740 * 100 / 130 = x

x = 19800

For sale return also same thing

Cost:Sale
100:130
x : 273

273 * 100 = x * 130

273 * 100/130 = x

x = 210

Same for water damaged :)
Cost:Sale
100:130
x : 390

390 * 100 = x * 130

390 * 100/130 = x

x = 300

I hope i answer ur ques. Sorry for late reply.
 
azaanahsan

azaanahsan

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Tushar968 said:
hi
can someone help me with Q2 (b) getting the depriciation and Q2 (c) getting the value of stock
http://studentbounty.com/pastpapers/Cambridge International Examinations (CIE)/International AS and A Level/Accounting (9706)/2007 Nov/9706_w07_qp_4.pdf
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First ummm sorry for late reply :(

1) Stock matter

As we know that stock should be recorded at lower of cost & NRV .

If we calculate the cost of these 6 items it will be 6 * 220 = 1320

Now if we calculate NRV of these item it will be 6 * 250 = 1500 - 400 = 1100

Now we come to know that it should be recorded at NRV (1100) becoz it is less than Cost.

So this means in stock 220 more is recorded ( 1320 -1100 ) So we will adjust this 220 in profit & make it correct. Remember 1320 is already included in stock.

Now as far as inventory is concerned ... Original inventory is 60,000, In this 60,000 stock of 1320 is included which has NRV of 1100.

So now my friend u hav 2 options:

First 60,000 - 1320 (which is wrongly included) + 1100 (which should have been included)

Second 60,000 - 220 (Difference b/w these two as 1320 is already included so if u minus 220 u will get 1100)

2) As far as revaluation matter is concerned, Remember when Asset is revalued dep. is charged on Revalued amount.
the technical point over here is they are saying premises are depreciated at 2 % and revaluation is not included so this mean 500 is already depreciated no need for depreciating it again just dep. amount which is not included & that is 250,000 * 2 % = 5000

Hope i answer ur questions.....
 
N

newgirl007

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hey guyysss... I need help! I was solving the May/June 2012 paper 22... Question number 3, sub-question (c) got me confused. I have attached the qp as well as the ms below so that it's more convenient for you :)
Basically, I know that the actual overheads is $1,410,000 but I'm getting $1,345,305 (6.899*195,000) for the absorbed overheads whereas the mark scheme says $1,345,500. I'm, not getting how that's possible. Someone kindly help me ASAP please. I have my paper 2 board exam tomorrow :O
 

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azaanahsan

azaanahsan

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newgirl007 said:
hey guyysss... I need help! I was solving the May/June 2012 paper 22... Question number 3, sub-question (c) got me confused. I have attached the qp as well as the ms below so that it's more convenient for you :)
Basically, I know that the actual overheads is $1,410,000 but I'm getting $1,345,305 (6.899*195,000) for the absorbed overheads whereas the mark scheme says $1,345,500. I'm, not getting how that's possible. Someone kindly help me ASAP please. I have my paper 2 board exam tomorrow :O[/QUO
Click to expand...
they have used rounded figure 6.90... but i think ur answer is also acceptable....
 
H

Haseeb T Khawaja

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If anybody has created a whatsgroup for study -plz add me in group 00923434113132 or send me ur no we will make a group- checking xtremepaper everytime is nt easy and boys turned girls beware
 
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