accounting difficult question P3

[ks136]

Post in difficult questions of accounts p3....

 

[ks136]

can sm1 help me in these

http://www.xtremepapers.me/CIE/Internat ... 6_qp_3.pdf

here's d ms
http://www.xtremepapers.me/CIE/Internat ... 6_ms_3.pdf

Q 2,5,7,17,25

PLZ ITS URGENT

 

[nirajgrg]

for q no 5,
no of ordinary shares converted = 40 X (2 000 000 / 100) = 800 000
value of those shares in $ = 800 000 X $ 0.5 = $ 400 000
the remaining value of debenture stock is credited to share premium = $ 2 000 000 - $ 400 000 = $ 1600 000
ans D

 

[ks136]

THANKS CAN U HELP WITH OTHER QUESTIONS 2

 

[nirajgrg]

q no 7
net assets to be taken over = 10+20+15-5 = $ 40 000
value of 1 share = 1+0.25 = $ 1.25
no of shares received = 40 000 / 1.25 = 32 000
ans C

 

[ks136]

this is where i get confused.....if a business is being purchased...and it already has goodwill..then do we pay 4 it...and is it included in our balance sheet...and ???????
its really confusing

 

[nirajgrg]

for 17, i think the premium on debenture is deducted from share premium account
for 25, marketing costs is fixed, direct material and direct labour are variable, production overhead is semi variable, calculate costs for 1200 units

 

[nirajgrg]

this is where i get confused.....if a business is being purchased...and it already has goodwill..then do we pay 4 it...and is it included in our balance sheet...and ???????
its really confusing

purchased goodwill is shown in the balance sheet, i think we have to pay for the goodwill

 

[ks136]

ok

 

[ks136]

http://www.xtremepapers.me/CIE/Internat ... 7_qp_3.pdf

http://www.xtremepapers.me/CIE/Internat ... 7_ms_3.pdf

q 2,29

 

[nirajgrg]

q no 2,
taxation brought forward from 2005 = 100 000
taxation for the year 2006 = 110 000
tax paid 2006 = 96 000
balance sheet figure for tax= 100+110-96 = 114 000

 

[nirajgrg]

q no 29,
ARR uses profit,
NPV,IRR and payback use cash flow

 

[ks136]

http://www.xtremepapers.me/CIE/Internat ... _qp_31.pdf

q 3,5,7

 

[nirajgrg]

for q 3, the share premium may be used to pay premium on debenture, it is allowed i guess
for q 5, debenture with premium = 50000 X 1.04 = 52000, debenture interest (8%) = 4000, total paid = 56000
q 7, total payment = 150 000, cash payment = 20 000, remaining amount = 130 000, value of 1 share = $1.3, no of ordinary shares issued = 130 000 / 1.3 = 100 000, since par value is $0.5, increase in ordinary share capital is 50 000