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accounting difficult question
- Thread starter ks136
- Start date
You have to draw a capital account for A:
A's cap a/c
----------------------------------------------------------------------------
.................................|balance b/d.....................6000
goodwill................4000|goodwill..........................6000
balance c/d...........8000|
What I have done here is taken the total of goodwill ($12000) and divided equally among A and B becuase that's the old profit sharing ratio. Then the share for A (12000/2=$6000) has to be credited (old profit sharing ratio). THen now since there are 3 partners we have to divide goodwill equally between all 3. THat's 4000 each. And this has to be debited to the capital account (new profit sharing ratio. THis is done to make up for the efforts of the old partners and since they have said not tto keep goodwill in the acocunts of the bizness.
hope that helped.
ps. oh and the answer is the carried down balance ($8000)
A's cap a/c
----------------------------------------------------------------------------
.................................|balance b/d.....................6000
goodwill................4000|goodwill..........................6000
balance c/d...........8000|
What I have done here is taken the total of goodwill ($12000) and divided equally among A and B becuase that's the old profit sharing ratio. Then the share for A (12000/2=$6000) has to be credited (old profit sharing ratio). THen now since there are 3 partners we have to divide goodwill equally between all 3. THat's 4000 each. And this has to be debited to the capital account (new profit sharing ratio. THis is done to make up for the efforts of the old partners and since they have said not tto keep goodwill in the acocunts of the bizness.
hope that helped.
ps. oh and the answer is the carried down balance ($8000)
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about the waste thing...we deduct the sale of waste becauze its the waste or by product of the production process not the goods themselves getting wasted, ie damaged. its like saying u cut some pictures out of the newspaper, but u then sold the torn up newspaper also for money...
and so the waste sales gets us revenue, and that reduces costs and so its subtracted.
and so can any1 please solve this one? couldnt calculate this shit...
21 A company balance sheet shows the following: {From Winter 2006}
$
$1 ordinary shares 500000
retained earnings 400000
10% debentures 300000 TOTAL - 1200000
TOTAL net assets............................1 200000
A fully subscribed 1 for 4 rights issue at $2 per share is made and 50 % of the debentures are repaid at par. What are the net assets following these changes?
A $1 100 000 B $1 175 000 C $1 225 000 D $1 300 000 [Ans-D]
and so the waste sales gets us revenue, and that reduces costs and so its subtracted.
and so can any1 please solve this one? couldnt calculate this shit...
21 A company balance sheet shows the following: {From Winter 2006}
$
$1 ordinary shares 500000
retained earnings 400000
10% debentures 300000 TOTAL - 1200000
TOTAL net assets............................1 200000
A fully subscribed 1 for 4 rights issue at $2 per share is made and 50 % of the debentures are repaid at par. What are the net assets following these changes?
A $1 100 000 B $1 175 000 C $1 225 000 D $1 300 000 [Ans-D]
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The answer is :
NUMBER OF ORDINARY SHARES ARE 500,000
NOW IT SAYS THAT A RIGHT ISSUE IS MADE ON 1 FOR 4 BASIS FOR $2 PER SHARE
THIS MEANS :
TOTAL NUMBER OF RIGHT ISSUE SHARES ARE 500,000/4 = 125,000
NOW THIS WILL INCREASE SHARE CAPITAL BY:
125,000 x 2 = 250,000
NEW SHARE CAPITAL IS 500,000+250,000 = 750,000
ADD RETAIN EARNINGS OF 400,000 YOU WILL GET 1,150,000.
NOW 50% DEBENTURES ARE REPAID. THIS MEANS DEDUCT 50% FROM DEBENTURES.
NEW DEBENTURES ARE 150,000
TOTAL NET ASSETS ARE 1,150,000 +150,000 = 1,300,000.
NUMBER OF ORDINARY SHARES ARE 500,000
NOW IT SAYS THAT A RIGHT ISSUE IS MADE ON 1 FOR 4 BASIS FOR $2 PER SHARE
THIS MEANS :
TOTAL NUMBER OF RIGHT ISSUE SHARES ARE 500,000/4 = 125,000
NOW THIS WILL INCREASE SHARE CAPITAL BY:
125,000 x 2 = 250,000
NEW SHARE CAPITAL IS 500,000+250,000 = 750,000
ADD RETAIN EARNINGS OF 400,000 YOU WILL GET 1,150,000.
NOW 50% DEBENTURES ARE REPAID. THIS MEANS DEDUCT 50% FROM DEBENTURES.
NEW DEBENTURES ARE 150,000
TOTAL NET ASSETS ARE 1,150,000 +150,000 = 1,300,000.
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GUYS NOW ITS MY TURN
CAN ANY ONE DO THESE QUESTIONS:
http://www.xtremepapers.me/CIE/Internat ... _qp_12.pdf
QUESTION NO 11
http://www.xtremepapers.me/CIE/Internat ... _qp_12.pdf
QUESTION NO 17
PLZ HELP MEEE NOW!!!!
CAN ANY ONE DO THESE QUESTIONS:
http://www.xtremepapers.me/CIE/Internat ... _qp_12.pdf
QUESTION NO 11
http://www.xtremepapers.me/CIE/Internat ... _qp_12.pdf
QUESTION NO 17
PLZ HELP MEEE NOW!!!!
@naavo.1234:
for Q11 of O/N 2010 12:
First find out cost of sales for the month of september which is:
cost of sales(for september only) = 6303+8844-7370=7777 then use that to find the gross profit for that month only.
since margin is 30%:
sales - cost of sales = GP
100% - 70% = 30%
therefore cost of sales is taken as 70%. Then gross profit (for september only) = (7777/70)x30 = 3333
then find the gross profit for the first 11 months ended august 2009:
(109340/100)x30 = 32802 {we divide sales by 100 because in margin sales is taken as 100%}
then add both 3333 + 32802 = 36135 (answer B)
for Q11 of O/N 2010 12:
First find out cost of sales for the month of september which is:
cost of sales(for september only) = 6303+8844-7370=7777 then use that to find the gross profit for that month only.
since margin is 30%:
sales - cost of sales = GP
100% - 70% = 30%
therefore cost of sales is taken as 70%. Then gross profit (for september only) = (7777/70)x30 = 3333
then find the gross profit for the first 11 months ended august 2009:
(109340/100)x30 = 32802 {we divide sales by 100 because in margin sales is taken as 100%}
then add both 3333 + 32802 = 36135 (answer B)
ardon:So when the bonus issue is made the share capital increases by $10m and that makes $110m before the rights issue. We have the year end balance which is $130m, so to get the value of the rights issue simply subtract $110m from $130 which is $20m. Same with premium account. However, premium account should be deducted by $10m because of the bonus issue (bonus issues are funded by reserves). Therefore to get the value incremented by the rights issue to the share premium account first find the share premium account balance after the bonus issue which is $50m-$10m=$40m. then subtract $40m from $80m (the year end balance). That gives you $40m increase. Therefore the cash receieved from the rights issue would be the addition of $20m and $40m which is $60m. answer is D.
Q29:
Add budgeted fixed prodn costs and budgeted variable costs and divide by no. of budgeted units:
(1200000+800000)/10000=200
answer A
This is done because for absorption cost the fixed prodn cost is also included
Q30:
First find OAR: budgeted fixed OH divided by budgeted no. of units: 354000/118000=$3 per unit
Then find the absorbed OH which is actual fixed OH minus under absorption of OH: 360000-3000=357000
Then divide absorbed by OAR to get actual activity 357000/3=119000
answer is B
Add budgeted fixed prodn costs and budgeted variable costs and divide by no. of budgeted units:
(1200000+800000)/10000=200
answer A
This is done because for absorption cost the fixed prodn cost is also included
Q30:
First find OAR: budgeted fixed OH divided by budgeted no. of units: 354000/118000=$3 per unit
Then find the absorbed OH which is actual fixed OH minus under absorption of OH: 360000-3000=357000
Then divide absorbed by OAR to get actual activity 357000/3=119000
answer is B
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for question no 4
it means find the Overhead absorption rate
OAR =(total budgeted production overheads/total budgeted output)
2,000,000/10,000 = 200 so option A
we did not take fixed selling overheads because it is not related to production.....!!!!!
for quesion 30 just follow the format below:
actual overheads = 360,000
less overheads absorbed
[actual activity x OAR]
[ A x (354/118)] = 3A
under absorbed over heads = 3000
360,000 - 3A = 3000
A = 357,000/3 = 119,000 units. so option B
it means find the Overhead absorption rate
OAR =(total budgeted production overheads/total budgeted output)
2,000,000/10,000 = 200 so option A
we did not take fixed selling overheads because it is not related to production.....!!!!!
for quesion 30 just follow the format below:
actual overheads = 360,000
less overheads absorbed
[actual activity x OAR]
[ A x (354/118)] = 3A
under absorbed over heads = 3000
360,000 - 3A = 3000
A = 357,000/3 = 119,000 units. so option B
13 A company calculates factory profit at a mark-up of 20 % on the cost of production. The following
information is available.
$
inventory (stock) of finished goods at cost at 31 December 2007 40 000
cost of goods produced for the year to 31 December 2008 240 000
closing inventory (stock) of finished goods at cost plus factory profit at
31 December 2008
54 000
How much will be shown as factory profit in the accounts for the year ended 31 December 2008?
A $39 000 B $40 000 C $47 000 D $48 000
information is available.
$
inventory (stock) of finished goods at cost at 31 December 2007 40 000
cost of goods produced for the year to 31 December 2008 240 000
closing inventory (stock) of finished goods at cost plus factory profit at
31 December 2008
54 000
How much will be shown as factory profit in the accounts for the year ended 31 December 2008?
A $39 000 B $40 000 C $47 000 D $48 000