Accounting doubts & Queries

[economist2]

I am an Accounts teacher and open to your queries. I will try my best to answer each one of you.

The financial statements of a company shows the following.
$
ordinary shares of $1 each 1 200 000
share premium 100 000
retained earnings 150 000
10% debenture 150 000
The directors of the company carry out the following actions.
issue 50 000 ordinary shares of $1 each at a premium of $0.20
repay $100 000 of the debenture at a premium of 20%
What is the equity of the company after these transactions have taken place?
A $1 490 000 B $1 500 000 C $1 510 000 D $1 540 000

Ans is A sir....How?

 

[economist2]

papers.xtremepapers.com/CIE/Cambridge%20International%20A%20and%20AS%20Level/Accounting%20(9706)/9706_w12_qp_32.pdf

No.20....Sir please help me with this question....

 

[hitler575]

The financial statements of a company shows the following.
$
ordinary shares of $1 each 1 200 000
share premium 100 000
retained earnings 150 000
10% debenture 150 000
The directors of the company carry out the following actions.
issue 50 000 ordinary shares of $1 each at a premium of $0.20
repay $100 000 of the debenture at a premium of 20%
What is the equity of the company after these transactions have taken place?
A $1 490 000 B $1 500 000 C $1 510 000 D $1 540 000

Ans is A sir....How?

Equity = O.shares + S.Prem + Retained Earnings.

Issue 50000 shares: Shares will increase by $50000, S.Premium will increase by $10000(0.2 into 50000)
Repay $100000 at 20% prem: Loan decrease by $100000, R.Earnings will decrease by $20000(100000 into 20%).

Therefore Equity= 1250000+110000+130000= $1490,000

 

[hitler575]

papers.xtremepapers.com/CIE/Cambridge%20International%20A%20and%20AS%20Level/Accounting%20(9706)/9706_w12_qp_32.pdf

No.20....Sir please help me with this question....

First Calculate Equivalent Units:

DM= 1000 units
DL= 900+( 100 into 50%)=950 units
OH=900+(100 into 50%)=950 units

Therefore the costs given are on these units.
Now calculate the rates of each DM, DL ,OH and multiply it by F.G units:

D.M= 3000/1000=$3 into 900= $2700
D.L= 3800/950=$4 into 900= $3600
OH= 1900/950= $2 into 900= $1800
__________________________
Cost of finished goods = $8100

 

[hitler575]

I have heard P3 was easy.

 

[economist2]

I have heard P3 was easy.

thank you sir.you were very helpful.P3 was easy,but I made some silly mistakes.Sir, does interest payable go in the cash flow st.?

 

[hitler575]

No, Interest payable is not taken to cash flow statement. Even I made silly mistakes at my time so that's natural. So just relax and stop thinking about the paper.

 

[ICCWC2015]

A business purchased a crane for 40,000 on 1 Jan 2008. The crane was depreciated at the rate of 30% per annum using reducing balance method. The crane was sold on 31 dec 2010 for 7,750. a full year's depreciation was charged in the year of disposal. what was the profit or loss on disposal?
A. 3750 loss
B. 3750 profit
C. 5970 loss
D. 5970 profit

 

[ICCWC2015]

The following information relates to the non-current assets of a business.
Cost at 1 april 2010 32,000
Accumulated depreciation at 1 april 2010 13,600
Non-current assets purchased in year ended 31 march 2011 7,000
Depreciation charged for the year ended 31 march 2011 4,200
Depreciation is calculated on the reducing balance basis at the rate of 30%. What was the net book value of the assets that were disposed of in the year ended 31 march 2011?
A. 11,400
B. 16,800
C. 18,400
D. 25,400

 

[ICCWC2015]

The following information is extracted from the books of a business.
At 31 Dec 2009 At 31 Dec 2010
Non-current assets (at cost) 230,000 275,000
Less accumulated depreciation 85,000 98,000

Further information for the year ended 31 Dec 2010 is as follows:
Depreciation charged in the income statement 25,000
Additions to non-current assets (at cost) 60,000
Loss on sale of non-current assets 1,000

How much was received from the sales of non-current assets?
A. 2,000
B. 3,000
C. 4,000
D. 5,000

 

[cool Asviva]

hello sir please help me in this question.
http://papers.xtremepapers.com/CIE/... AS Level/Accounting (9706)/9706_s07_qp_4.pdf question 3 part a.

http://papers.xtremepapers.com/CIE/... AS Level/Accounting (9706)/9706_s07_ms_4.pdf

 

[Heyyy]

I don't understand how to do Incomplete Records.
I mean I do know the steps and all,but when it comes to the questions,I fail miserably.
Would you please help me in trying to prepare for them?
Any tips?

I really need help,please someone help me

 

[Extra Kabil]

Salams, I have a very general query. What is the best way to prepare for Accounting through self study? ** There is no experienced teacher in my city **

I am an Accounts teacher and open to your queries. I will try my best to answer each one of you.

 

[ICCWC2015]

Please consider my problems too.

 

[panoramafolks]

The following information is extracted from the books of a business.
At 31 Dec 2009 At 31 Dec 2010
Non-current assets (at cost) 230,000 275,000
Less accumulated depreciation 85,000 98,000

Further information for the year ended 31 Dec 2010 is as follows:
Depreciation charged in the income statement 25,000
Additions to non-current assets (at cost) 60,000
Loss on sale of non-current assets 1,000

How much was received from the sales of non-current assets?
A. 2,000
B. 3,000
C. 4,000
D. 5,000

Hence the answer is $2000 ie, A

 

[ICCWC2015]

O

View attachment 33343
Hence the answer is $2000 ie, A

Oh my God...your working is like Magic to me...I understood everything thanks to you...Could you please try to help me out with my last 3 problems?

 

[ICCWC2015]

Before any end of the year adjustments had been made, the trial balance of a business at 31 may 2011 included : Trade receivables 13,400 (Debit), Provision for doubtful debts 500(Credit).
at 31 may 2011, it was found that trade receivables included a bad debt of 650. it was decided to adjust the Provision for Doubtful Debts to 4% of trade receivables. A debt of 420, which had been written off in january 2010 was recovered in january 2011.
what was the effect of these events on the income statement for the year ended 31 may 2011?
A. DEBIT 384
B. DEBIT 410
C. CREDIT 430
D. CREDIT 456

 

[Evil Philanthropist]

http://papers.xtremepapers.com/CIE/...AS Level/Accounting (9706)/9706_s11_qp_22.pdf

Can you please help me with Q1) (b) part? How do we get 2/3 or the other available method?

 

[hitler575]

I am really sorry for the delay in my response. You will have to wait till 10th dec and then I will be answering all your queries.

 

[hitler575]

I am really sorry for the delay in my response. You will have to wait till 10th dec and then I will be answering all your queries.