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Business Studies, November 2011 variant 1
Q#2(a)
how to calculate increase in profit in this que?
as shown in mark scheme
m/j 09 q 5...i didnot even get the ques. how is it done
I think, you are asking too many questions.
ehh okay...i got it....thnx !!The answer is B right?
This is how its done
Share capital will increase by 600000 ( because convertible stock was converted to share capital)
Share capital = 2100000
They are asking for the value of a share on a net assets basis
= Net Assets/ share capital
= (2700-810)/2100 = 0.90 =)
check TABLE 1 in the question paper...according to that
existing direct material cost= 4.25m (3m+1.25m)
add them all together and you get existing total costs 6.45m
now even if you buy from AAP, you will still have to pay
the management salaries and admin and selling overheads
so new costs will 6.5m (4.3+1.45+0.75)m
net profit+existing costs will give you the selling price
1.2m(see line 3 in the question paper)+6.45m=7.65
new net profit 7.65-6.5(new costs) 1.15m
see......we subtract the residual value here!!!!!!!!!(90000-10000)/2 + 30000 = 70000
hence ---- 15000/70000 * 100 = 21.4 (rounded figure) =)
accounts m/j 09 (33) Q9 why is the long term loan 60 000?
see......we subtract the residual value here!!!!!!!!!
i was right!
so it was an old method and the new method adds it!see......we subtract the residual value here!!!!!!!!!
i was right!
how can we say 20,000 was already paid. as in...1st jan debenture was 10000 nd 20000 was payable that year right?? so how 60000?That's because 20, 000 was already paid from 100,000 and another 20,000 has been as current liabilities to be paid next year. So the remaining 60,000 is therefore a long term loan.
so Closing stock is at selling price .......
how can we say 20,000 was already paid. as in...1st jan debenture was 10000 nd 20000 was payable that year right?? so how 60000?
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