Accounting Doubts

[AlphaBeta]

http://papers.xtremepapers.com/CIE/Cambridge%20International%20A%20and%20AS%20Level/Accounting%20(9706)/9706_s05_qp_1.pdf
Question 28 ....can u explain please
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Explain the use of bonus shares,share premium

 

[AlphaBeta]

Anyone .... please ....

 

[panoramafolks]

http://papers.xtremepapers.com/CIE/Cambridge%20International%20A%20and%20AS%20Level/Accounting%20(9706)/9706_s05_qp_1.pdf
Question 28 ....can u explain please
+
Explain the use of bonus shares,share premium

Sales - Costs =Profit
Costs = Sales - Profits

output of 750 units=> Costs=750-100=650
output of 1000 units => Costs = 1000-250 = 750

Finding the variable cost per unit by formula ( ( total cost at high level of output - total cost at low level of output) / difference in level of output)
V.C = (750-650)/(1000-750)
= 100 / 250 = 0.4

Finding sales price per unit ( 1000/1000=1) or (750/750 =1)
Contribution = 1- 0.4 =0.6
C/S ratio = (0.6/1) * 100 = 60%

Thus answer is C.

 

[AlphaBeta]

Sales - Costs =Profit
Costs = Sales - Profits

output of 750 units=> Costs=750-100=650
output of 1000 units => Costs = 1000-250 = 750

Finding the variable cost per unit by formula ( ( total cost at high level of output - total cost at low level of output) / difference in level of output)
V.C = (750-650)/(1000-750)
= 100 / 250 = 0.4

Finding sales price per unit ( 1000/1000=1) or (750/750 =1)
Contribution = 1- 0.4 =0.6
C/S ratio = (0.6/1) * 100 = 60%

Thus answer is C.

thanks and do u know how to do may/june 2005 question 3 C)
http://papers.xtremepapers.com/CIE/... AS Level/Accounting (9706)/9706_s05_qp_4.pdf