accounting MCQ...

[Mohammad Hasham]

24 Winston started business on 1 April 2008. His purchases for his first year of trading amounted to
$59 400. His stock on 31 March 2009 was valued at $9000. Winston’s profit mark-up is 25%.
What were the sales for the year ended 31 March 2009?
A $60 480 B $63 000 C $71 280 D $74 250 ........... can anybody tell me how to solve it??????

 

[rosogolla993]

any advice for as accounting mcq and how to be better in mcq calculations and revise all topics in 2 days exams up ahead on 7th may

 

[rosogolla993]

aww u guys r soo kind and active thanx

 

[M.Hamza]

24 Winston started business on 1 April 2008. His purchases for his first year of trading amounted to
$59 400. His stock on 31 March 2009 was valued at $9000. Winston’s profit mark-up is 25%.
What were the sales for the year ended 31 March 2009?
A $60 480 B $63 000 C $71 280 D $74 250 ........... can anybody tell me how to solve it??????

Hi muhammad Hsham,answer is b 63000.let me explain calculation.firstly,calculate cost of sales(or cost of goods sold) which is 59400_9000=50400.
Then calculate gross profit (50400x25/100=12600)markup formula(gross profit/cost of salesx100),thus gross profit will be subject in this formula.Then (12600=x(sales)-50400)it will give 63000. To calculate sales,i have assumed x in place of sales to calculate it.i hope u have understood.
note;
as this was first year of business traading,there will be no opening inventory or stock.

 

[Mohammad Hasham]

Hi muhammad Hsham,answer is b 63000.let me explain calculation.firstly,calculate cost of sales(or cost of goods sold) which is 59400_9000=50400.
Then calculate gross profit (50400x25/100=12600)markup formula(gross profit/cost of salesx100),thus gross profit will be subject in this formula.Then (12600=x(sales)-50400)it will give 63000. To calculate sales,i have assumed x in place of sales to calculate it.i hope u have understood.
note;
as this was first year of business traading,there will be no opening inventory or stock.

thanks yar........

 

[Lostsoul]

any advice for as accounting mcq and how to be better in mcq calculations and revise all topics in 2 days exams up ahead on 7th may

Maybe solve ALL the questions so that you can know whats gonna come..
Anyyone else to give a contribution? Any more useful tips?

 

[Mohammad Hasham]

Hi muhammad Hsham,answer is b 63000.let me explain calculation.firstly,calculate cost of sales(or cost of goods sold) which is 59400_9000=50400.
Then calculate gross profit (50400x25/100=12600)markup formula(gross profit/cost of salesx100),thus gross profit will be subject in this formula.Then (12600=x(sales)-50400)it will give 63000. To calculate sales,i have assumed x in place of sales to calculate it.i hope u have understood.
note;
as this was first year of business traading,there will be no opening inventory or stock.

thanks yar.......but i need more assistence...........26 Donald’s rate of inventory turnover was 10 times. The inventory on 1 January was $800 and the
inventory on 31 December was $1000.
What were his purchases?
A $8800 B $9000 C $9200 D $10 800 ............. HOW TO DO THIS

 

[Waleed Ali]

10=(800+x-1000)/(800+1000/2)
this makes x=9200.. means opt B.
Its simply the formula for calculating stock turnover.

 

[M.Hamza]

thanks yar.......but i need more assistence...........26 Donald’s rate of inventory turnover was 10 times. The inventory on 1 January was $800 and the
inventory on 31 December was $1000.
What were his purchases?
A $8800 B $9000 C $9200 D $10 800 ............. HOW TO DO THIS

U r welcum hasham,for this question,firstly calculate cost of sales by inventory turnover formula(cost of sales/average inventory),thus(10=x/900)and cost of sales is 9000.now to calculate purchases assume it X in cost of sales formula(cost of sales=op.inventory +purchases-closing inventory),thus(9000=800+X-1000)and ur purchases r 9200.i hope u understand this.
note=average inventory formula(opening inventory+closing inventory/2)

 

[Mohammad Hasham]

U r welcum hasham,for this question,firstly calculate cost of sales by inventory turnover formula(cost of sales/average inventory),thus(10=x/900)and cost of sales is 9000.now to calculate purchases assume it X in cost of sales formula(cost of sales=op.inventory +purchases-closing inventory),thus(9000=800+X-1000)and ur purchases r 9200.i hope u understand this.
note=average inventory formula(opening inventory+closing inventory/2)

thanks again......

 

[M.Hamza]

u r welcum

 

[Mohammad Hasham]

thanks again......

r u giving o level accounting paper in may/june 2013

 

[Mohammad Hasham]

34 The following relates to Z Ltd:
$
Authorised share capital 250 000
Issued and paid up share capital 200 000
General reserve 30 000
Profit and Loss Account 15 000
10% Debentures 20 000
What is the total of Z Ltd’s shareholders’ funds?
A $245 000 B $265 000 C $295 000 D $315 000.......... i m facing difficultu in solving it........

 

[M.Hamza]

Hi Hasham,i am A level graduate of may/june 2012.R u an o level student?

 

[M.Hamza]

34 The following relates to Z Ltd:
$
Authorised share capital 250 000
Issued and paid up share capital 200 000
General reserve 30 000
Profit and Loss Account 15 000
10% Debentures 20 000
What is the total of Z Ltd’s shareholders’ funds?
A $245 000 B $265 000 C $295 000 D $315 000.......... i m facing difficultu in solving it........

Hi Hasham,its simple.Firstly,u shuld knw that shareholders fund=Total issued share capital(ordinary+preference at par value)+revenue reserves+capital reserves.
So,here (200000+15000+30000=245000)and A is answer.Debenture is a non-current(long-term)liability so it is just given to confuse u.Also,authorised share capital is maximum amount of share capital which a limited company is allowed to raise by government,so it will nt be taken into calculation,rather issued capital which is share capital issued by a company under limit allowed in authorised share capital.

 

[Sarah Paul]

wat is the equation for mark up?

 

[M.Hamza]

wat is the equation for mark up?[

wat is the equation for mark up?

Hi Shara Nafaz,gross profit mark-up is(gross profit/cost of salesx100)

 

[Sarah Paul]

K thankyou

 

[M.Hamza]

it

K thankyou

its ohk