• We need your support!

    We are currently struggling to cover the operational costs of Xtremepapers, as a result we might have to shut this website down. Please donate if we have helped you and help make a difference in other students' lives!
    Click here to Donate Now (View Announcement)

Accounts p3 doubts

Messages
191
Reaction score
175
Points
53

Part C and D are invalid as on date of issue convertible loan stock isn't equity , it's a non current liability.
Part B is invalid as on conversion the fixed cost capital will decrease and total cost capital will increase ie, gearing ratio's numerator will decrease and denominator will increase which reduce gearing on conversion not increase it.
Part A is thus valid.
 
Messages
59
Reaction score
152
Points
33
the company issued shares at $20 so you multiply $10000 by $20 and substract it form 156000 of loan that is repaid so u will get 44000
for may june 2006
 
Messages
59
Reaction score
152
Points
33
for may june 2005 q11
the company paid 150000 consideration that follows payment of cash 20000 and 130000 of shares that are issued at premium so u divide 1.3 by 1300000 and u will get 100000 so you will multiply it by 0.5 at which the shares are issued so u will get 50000
 
Messages
191
Reaction score
175
Points
53

9.
Till the end of 31Dec08 20,000 of Debenture is redeemed.
20000 is due at 31 Dec 2009 ie, within one year so current liability is 20000.
Non-current liability remains =100 - 20 -20 = 60000.
This makes ans. A.

12.
I dont know this but i know that its related to trial and error type.

25.
Standard prime cost = $30
Production O/H = X = 1000000 / (200000/3) = $15
Y = 1200000 / (300000 / 5) = $20
Total standard cost = $65 so it's D

30.
A gives NPV of = 1.2 + 1 + 0.6 = 2.8
B gives NPV of = 1+ 2.5 = 3.5
C gives NPV of = 1.2 + 1+ 1.2 = 3.4
D gives NPV of = 1.2 + 1.2 + 2.5 = 4.9

Thus , D has highest NPV and its the ans.
 
Messages
85
Reaction score
58
Points
28
Where do you Disclose the Directors Remuneration?
Directors Report?
 
Messages
191
Reaction score
175
Points
53

22.
First find the contribution for each product:
Y1: 64 - 18 - (37-(0.75 * 36)) = 36
Y2: 68 - 24 - (30 - (36 * 0.5)) = 32
Y3 : 84 - 27 - ( 36 - ( 36 * (2/3)) = 45
Y4 : 100 - 30 - (33 - (36 * 0.5 ) = 55

Find the material per kg used:
Y1: 18/6 = 3 kg
Y2: 24/6 = 4 kg
Y3: 27/ 6 = 4.5 kg
Y4: 30/6 = 5 kg

Find the contribution / kg:
Y1 = 36/3 = 12
Y2: 32/4 = 8
Y3: 45/4.5 = 10
Y4 = 55/5 = 11

The highest contribution per kg is from Y1 so A is the ans

23.
Production = Budgeted closing inventory + sales - budgeted opening inventory
= (600*0.5) + 300 - (300 * 0.5) = 450
450 is 0.9 of total ie, not faulty
required production = 450 / 0.9 =500 so ans. is D.

25.
Per unit cost of DM and DL = ((20000 + 30000)/1000) = 50 ( Total = 50*1200 = 60000)
Total cost of marketing = 40000
Production O/H's : variable part = ((50000-40000)/500) = 20 / unit (Total = 20 * 1200 = 24000)
Production O/H's : fixed part = (40000 - (20*1000)) = 20000

Per unit cost of 1200 units = (60000 + 40000 + 24000 + 20000 ) / 1200 = $120 ... so the ans. is D.
 
Messages
191
Reaction score
175
Points
53
Messages
99
Reaction score
83
Points
18
19.
Profit at 10 students = ((100 -20 ) * 10 )-480 = 320
Profit required at 20 students is also 320
Late new course fee be x
320 = (20x) - (20*20) - 480
320 + 480 + 400 = 20x
x = 1200 / 20 = 60

Maximum reduction = 100 -60 =$ 40 so ans. is C.
Thanx alot
 
Top