Economics, Accounting & Business: Post your doubts here!

[Mad Gal]

in question 10, the answer is B, because there was a overstated amount in the debit side of $9000, in order to decrease it, only a suspense account is opened and it has the amount which is a shortage in the credit side

I have the same problem in question 19 :S sry :S
and yeah, question 21 tooooo :S :S

I know that i didnt help u enough but hope u managed to understand question 10 :/

Que 10 it says that sales ledger control a/c balance has been entered as 34000 instead of 43000. So the debit side is short of 9000 right???? so a suspense a/c will be opened with 9000 on the debit side and according to the question, correcting the error, dont you credit suspense a/.c and debit sales ledger control a.c balance??????

 

[Mad Gal]

Can someone plz clear my other doubts????

 

[shanky631]

fine.
if dollar appreciated aginst yen.

US exports(a.k.a Japan's imports) will be expensive?right?

yes, right.

 

[kazi hamza]

ppl i am having problems with limited companies in accounts p1 what is shareholders fund? n how do q's regarding bonus n right issue plz reply asap

 

[Esme]

Can someone plz clear my other doubts????

sowie..i have the same doubt..

 

[mimiswift]

yes, right.

then should value compared in $ rise rather than fall

 

[mimiswift]

ppl i am having problems with limited companies in accounts p1 what is shareholders fund? n how do q's regarding bonus n right issue plz reply asap

shareholder's fund is the total capital belonging to ordinary shareholders.....that is in equity part of balance sheet :- the ordinary shares+share premium+retained earning+all other reserves!
always remember that bonus issue never increases the equity of the company......so if you increase and decrease the by the same amount in the equity part.....say Ordinary shares increase and retained earnings fall!....total equity remains unchanged
whereas right issue increases the equity of a company!.....increases ordinary shares by the jumber of shares issued times the nominal value of shares......usually right issue is at a premium so share premium increases by the amount of right issue per share minus the nominal value of shares!

did'ya get it?

 

[mimiswift]

Can someone plz clear my other doubts????

what is your doubts???

 

[Mad Gal]

what is your doubts???

http://www.xtremepapers.com/papers/... AS Level/Accounting (9706)/9706_s03_qp_1.pdf - Que 10 and 19

http://www.xtremepapers.com/papers/... AS Level/Accounting (9706)/9706_s05_qp_1.pdf - Que 21 (nobody answered it for me)

 

[kazi hamza]

shareholder's fund is the total capital belonging to ordinary shareholders.....that is in equity part of balance sheet :- the ordinary shares+share premium+retained earning+all other reserves!
always remember that bonus issue never increases the equity of the company......so if you increase and decrease the by the same amount in the equity part.....say Ordinary shares increase and retained earnings fall!....total equity remains unchanged
whereas right issue increases the equity of a company!.....increases ordinary shares by the jumber of shares issued times the nominal value of shares......usually right issue is at a premium so share premium increases by the amount of right issue per share minus the nominal value of shares!

did'ya get it?

thnx a lot got it!!!

 

[Mad Gal]

what is your doubts???

A worker can make 10 hats or 5 pairs of shoes in a day. In the market three hats can be sold at
the same price as two pairs of shoes.
The worker should make
A 4 hats and 3 pairs of shoes daily.
B 6 hats and 2 pairs of shoes daily.
C hats only.
D shoes only.
Explain?

Answer is C

 

[kazi hamza]

i think by selling hats he can make more revenue therefore more profit this could be linked with the time taken to produce. In addition if the worker only makes hats he/she can earn more i understood this makes sense to me what about u?

 

[Mad Gal]

i understood the 10th and 19th ones ppl
buh not the 21st..to those helping me out

 

[kazi hamza]

i understood the 10th and 19th ones ppl
buh not the 21st..to those helping me out

revaluation of fixed assets upward mean increasing their value this increases the capital employed and reduces our profits because due to the increase in maintenance costs n depreciation on the asset i think this is the only reason

 

[Mohammed Hassan]

Que 10 it says that sales ledger control a/c balance has been entered as 34000 instead of 43000. So the debit side is short of 9000 right???? so a suspense a/c will be opened with 9000 on the debit side and according to the question, correcting the error, dont you credit suspense a/.c and debit sales ledger control a.c balance??????

Imagine with me the trial balance, there is the debtors with 43000 and it should have been 34000, so we put 9000 in the credit side of the trial balance with the name suspense to balance it up....
so suspense is now credited with 9000 and thats the only entry

 

[Mad Gal]

revaluation of fixed assets upward mean increasing their value this increases the capital employed and reduces our profits because due to the increase in maintenance costs n depreciation on the asset i think this is the only reason

yes i understood your explanations. Thank you!

 

[Mad Gal]

Can someone tell me how negative goodwill is accounted for, in the financial statements?

 

[Esme]

Can someone tell me how negative goodwill is accounted for, in the financial statements?

i hope this isnt in AS

 

[mbon]

I am finding 9708_s02_ms_1. Please help me!

 

[Esme]

there you go.