Accounting Paper 42.

[:: A^]

better wait for a few hours na.. just to be on the safe side.. If you are really desperate inbox someone who has already done the paper.

 

[IGCSE Abdullah]

Oki no probs... Waiting is the solution!

 

[SalmanPakRocks]

It's okay. You guys can discuss now.
I'll start.
The Q1 asked us to make income statement, not appropriation account? Why did you guys found out the share of profits?

 

[:: A^]

It's okay. You guys can discuss now.
I'll start.
The Q1 asked us to make income statement, not appropriation account? Why did you guys found out the share of profits?

for the current A/c.. only for Tan.

 

[SRKfan]

Was the ARR 17. Something?? And the IRR 30.sumthng?? And in year zero was net cash outflow 20000 bcuz of interest?

 

[SalmanPakRocks]

for the current A/c.. only for Tan.

Yup Did that separately.

 

[SalmanPakRocks]

Was the ARR 17. Something?? And the IRR 30.sumthng?? And in year zero was net cash outflow 20000 bcuz of interest?

Mine ARR was 25% something while IRR was around 15% something.

 

[:: A^]

Mine ARR was 25% something while IRR was around 15% something.

great.. repayment of loan was not included in Year 5 yeah?

 

[mania _ manal]

Mine ARR was 25% something while IRR was around 15% something.

Yeahh me too

 

[mania _ manal]

Why

great.. repayment of loan was not included in Year 5 yeah?

wont it be included ?

 

[SalmanPakRocks]

great.. repayment of loan was not included in Year 5 yeah?

Yup, it won't be included.

 

[IGCSE Abdullah]

Profit for question 2?

 

[SalmanPakRocks]

Why

wont it be included ?

It was the most difficult decision I had to take in the paper. It won't be included because logically, if you do, the outflow would surpass the inflow. In short, the project would create a vast outflow instead of any inflow at all. And the second project had a positive NPV, so I thought it was logical not to include the outflow of 200,000 in the last year.

 

[mania _ manal]

Why wont

Yup, it won't be included.

it be included ? Nd was there any cashflow for 0 year ?

 

[:: A^]

It was the most difficult decision I had to take in the paper. It won't be included because logically, if you do, the outflow would surpass the inflow. In short, the project would create a vast outflow instead of any inflow at all. And the second project had a positive NPV, so I thought it was logical not to include the outflow of 200,000 in the last year.

same here.. you just gave me a glimmer of hope <3 especially when like 3/4 of the people in my centre included it..

 

[SalmanPakRocks]

Why wont

it be included ? Nd was there any cashflow for 0 year ?

There was an outflow of $200,000.

 

[mania _ manal]

Wait

It was the most difficult decision I had to take in the paper. It won't be included because logically, if you do, the outflow would surpass the inflow. In short, the project would create a vast outflow instead of any inflow at all. And the second project had a positive NPV, so I thought it was logical not to include the outflow of 200,000 in the last year.

noo i mean the interest payment will ne included nt the complee loan ?

 

[SalmanPakRocks]

Wait

noo i mean the interest payment will ne included nt the complee loan ?

Oops Sorry, I thought you were talking about complete loan figure.
Yes, the interest of 20,000 was included from Year 1 to Year 5

 

[:: A^]

Wait

noo i mean the interest payment will ne included nt the complee loan ?

Yeah they will.. they gave u a seperate column for that.. Some good thing they did in that paper

 

[mania _ manal]

Oops Sorry, I thought you were talking about complete loan figure.
Yes, the interest of 20,000 was included from Year 1 to Year 5

Okay but i got a negative Npv for the second ? Nd why would $200000 be inuded in net cashoutflow we usually dont include ot when calculating the net cash flows ?