accounting difficult question

[fahima313]

@whatsmyname
ROCE = (netprofit before interest/capital employed)*100

capital enployed = fixed assets + netcurrent assets

capital = 485000 + 27000 = 512000
ROCE = 128000/512000*100 = 25%

therefore the answer is D

 

[ks136]

@ whatsmyname,,,,if fc isnt included in stock then gp wud be affected...but as it wud be deducted in p@l a/c ....how will bw d np affected

and ur formula is np b4 tax but after int and pref div/equity+l.t liabilities+current liabilities

 

[whatsmyname]

how'd it go guys? so many repeated it went kickass!

 

[ahsan99]

Anwer for June 2006 paper 1 question no 28

We all know that the formula to calculate over head absorption rate (in terms of machine hours worked) is:

Total budgeted overheads/Total budgeted machine hours

Don't calculate it because it already given which is 2.20. it is not 2.25 because OAR is based on budgeted figures not actual figures

Now to find the over or under absorbed overheads just follow the simple format below:



Actutal overheads incurred=261000
Less Over heads absorbed
[actual activity x OAR]
[116 000 x 2.20] = (255200)
Under absorbed overheads = 5880

THUS PART A IS THE ANSWER

PLEASE NOTE THAT WHEN EVER EXPENDITURE IS LESS THAN BUDGETED IT MEANS THAT THE DIFFERENCE IS UNDER ABSORBED

AND WHEN EVER ACTIVITY (NO OF GOOD PRODUCED OR SOLD) IS GREATER THAN BUDGETED THAN STILL THE DIFFERENCE IS UNDER ABSORBED.
FOR OVER ABSORBED IT IS THE REVERSE.



THE ANSWER FOR UNDER ABSORB WILL BE A POSITIVE WHILE FOR OVER ABSORB IT WILL BE A NEGATIVE. (A TRICK)

Just saw this...although there is no need for it right now ( but for future reference) , when actual expenditure is less than budgeted it is over absorbed not under absorbed ....When actual activity is less than budgeted activity it is under absorbed ..check cie book[/quote]

 

[Echelon94]

Mohsinsrk can u do question number 17 paper 12 november 2009? PLEASEEE!!

hey I also went through the same question. I've done all of the papers of last 10 years, & thats the only question for which theres a mistake in the marking scheme as well as examiner report. The correct answer is B. & u can check that out too cuz the question 17 in variant 12 is question 18 in variant 11, & the examiner report & marking scheme both give B as the correct answer for it....

 

[Echelon94]

seems like i m alone wandering in forum
no one to solve my queries???

hey everybodi
just compare MJ 2009 q9
and MJ 2003 q10

they are quite alot same but still
different approaches used at marking scheme
someone pls help out??
thnx

hey I also got a bit confused in the June09 question. But anyways theres just a tiny little difference in the wordings of the question. In the 2003 paper, it says "The balance on the Sales Ledger Control account amounting to...". This means that its written correctly in the SLCA & the error was just in the Trial Balance.

On the other hand, in the 2009 paper, it says "The correct balance on the purchases ledger control account is...". Well I think this means that it is just telling us the value that should have been there, but it doesn't say that this is the value that was actually posted. Therefore in this question we treat it as if the error was made in PLCA as well as Trial Balance, & thats why we correct both.

 

[Echelon94]

its very easy hamza...just make d T a/c

sm1 plz help with 27 th qstn of specimen?

27 is a difficult question I think. I haven't read anything about Inventory Levels anywhere, but logically it seemed it should be Closing Stock. But It can't be that cuz you know reducing closing stock reduces gross profit.
Anyways, I did 27 by eliminating the other 3 options. You can eliminate B & C because increasing or decreasing sales doesn't have an effect on the G.P. ratio. Option D talks about overheads in the income statement & you know they don't have any effect on Gross Profit. Therefore option A is left...

 

[Echelon94]

and 29th also

Well I think you weren't able to solve it cuz you don't know the formulae.
Break-even Point in terms of revenue= Fixed Costs / Contribution to Sales Ratio

(the contribution is Fixed Cost + Profit .i.e. $15000)

 

[ruzache]

@whatsmyname
ROCE = (netprofit before interest/capital employed)*100

capital enployed = fixed assets + netcurrent assets

capital = 485000 + 27000 = 512000
ROCE = 128000/512000*100 = 25%

therefore the answer is D

lol... i think i saw this today

 

[aaakhtar19]

Is this thread reserve only
for accounting p1 ??
can i ask about Accounts p4 ??

 

[luissuarez7]

http://www.xtremepapers.com/CIE/Interna ... 8_qp_1.pdf

Can anyone explain question number 22? I have no idea what gearing is.

 

[luissuarez7]

ALSO, in the same paper Question 10 is D, but why can't it be A?

 

[darenchamp08]

what does it mean when a company's policy is 'to keep reserves in its most flexible form' ???

 

[raza-rocker]

what does it mean when a company's policy is 'to keep reserves in its most flexible form' ???

it means the way company can keep its capital and reserves in the most flexible form for the purpose of dividends , payments for purchasing new asset for the company if bank has an overdraft
below is a typical example

heading would be SHARE CAPITAL AND RESERVES $
500,000 Ordinary Shares of $1 each 500,000
300,000 7% Redeemable Preference Share of $1 each 300,000
Share Premium 50,000
Capital Redemption Reserve (if any preference shares redeemed) 150,000
Debenture Redemption Reserve (if any debentures redeemed) 80,000
General Reserves 40,000
Profit and (Loss) Account 250,000

 

[Jet Nicholos]

can someone please help with Q23. OCT NOV 2007????? urgently!! would be greatful~~~