Economics, Accounting & Business: Post your doubts here!

[Esme]

we have to calcute the interst cost for each year, and then take the average of it over the life span of this debt
so its
100 000 for year 1 and 2, and 120 000 for year 3 4 5
so its 560/5 = 112 000
now, i dont know the reasoning why we have to do so, i belive, in accordance with the accruals concept, we should have take the different interest payment for each year

Yes even I thought different interest should be taken for each year.
Anyway, thanks for explaining the other question

 

[shahz_h]

Could anyone help me out wid these qustions
http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_w12_qp_33.pdf
Q.7, 11, 21, 22, 26
answrs r B,C,C,D,A respectively
Thanx in Advanc

 

[study chick96]

i have a doubt in Oct/nov 2003 economics p1 question 9 ...... can some 1 help me? i dont know how to calculate it ;((

 

[student92]

plss can any1 explain how to do this mcq?? pllsss urgenttt!! the ans is ''D"... HOW???

1 There was a bonus issue, ( 1/10 X100 = $10m
so now we know that there was $20 rights issue( 100+10 - 130 = 20)
and the difference between the share premium is 30, so we know that (20+30) $50m was received in cash

bonus issue is an issue an of shares to existing shareholders, by transferring reserves, so no cash is earned, but a rights issue is when shares are sold to exsiting shareholders, ie they buy the shares, therefore cash is generated, equal to the nominal value of the shares(20) plus the share premium(30)

 

[student92]

Could anyone help me out wid these qustions
http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_w12_qp_33.pdf
Q.7, 11, 21, 22, 26
answrs r B,C,C,D,A respectively
Thanx in Advanc

7 we know there are non redeemable preference shares 100 000 of $1 so this means now they will be ( 0.4X 100 000 = $40 000)
as for ordinary shares, they will be 400 000 X 0.05 = $20 000
So now the total is 20+40 =$60 000

 

[Apex-Kill]

V
How is the answer A?

 

[Apex-Kill]

And for q6 how do we get C as the answer?

 

[SalmanPakRocks]

plss can any1 explain how to do this mcq?? pllsss urgenttt!! the ans is ''D"... HOW???

I did this last night, it's easy.
We're issuing bonus shares of $10 (100/10)
That would increase the share capital to 110 and decrease share premimun by $10 so share premium would be $40
There was also right issue which increased the share capital to 130 means It was equal to $20.
Also, it was issued at premium as the share premium got increased from $40 to $80.
This means total net assets (working capital) would increase by 40 + 20 = 60 so it'd be D

 

[SalmanPakRocks]

i have a doubt in Oct/nov 2003 economics p1 question 9 ...... can some 1 help me? i dont know how to calculate it ;((

Please paste the link.

 

[SalmanPakRocks]

View attachment 24626

And for q6 how do we get C as the answer?

It's easy, Income and expenditure account is basically income statement, the value for Subscriptions would therefore be
$12 x 100 = $1200
4 have not paid their dues so 4 x $12 = $48 are in arrears which is our current asset.

 

[amandeep04]

Doubt here! :s
http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_s07_qp_1.pdf
Q # 14, 16, 17, 29

 

[Apex-Kill]

What was the purpose of putting those 2 variables out when u can just calculate directly? Cus this confused me...i thought we should add accruals to the creditors

 

[Hasa321]

I hav a doubt in accounts paper 1
The question is. MJ 2010 p12 question 13 and 14.

How do you get B for 13 and C for 14

 

[Esme]

View attachment 24636

What was the purpose of putting those 2 variables out when u can just calculate directly? Cus this confused me...i thought we should add accruals to the creditors

Those are there to do just that, confuse you. You don't have to add accruals.

 

[Hasa321]

Cn any 1 tell hw the answer is B ? ITS URGENT PLZ

 

[xmariam3x]

Can i learn the Economics notes given in this sites Revision section for paper 1?? i only need to use them for Macro since i keep forgetting stuff because my own notes are very lengthy... so will Xtremepapers be enough??

 

[Waleed007]

View attachment 24639

Cn any 1 tell hw the answer is B ? ITS URGENT PLZ

Actually the answer is not B. Here's the working:
Factory markup 20% is on cost..
so stock of finished goods are at cost (start) 40000x20%=8000
Cost of goods produced 240000x20%=48000
and Stock of FG's (end) is at cost plus factory profit.. 54000x20/120= 9000
so, Op stock - Cl.Stock, 8000-9000=(1000).
Now, Cost of goods produced 48000-1000=$47000=C

 

[SalmanPakRocks]

Doubt here! :s
http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_s07_qp_1.pdf
Q # 14, 16, 17, 29

Read the questions carefully;
for 14:
Total share = Share of profits + what he gets from partnership agreement.
Residual profit = $50100 x 1/3 = $16700 + $500 = $17200 (D)

For 16:
It'd be C because $93500 x 20% = $18700
This would be shown in the Income Statement but in the balance sheet, unrealised profit would not be shown due to subjectivity conflict.
Therefore in the balance sheet it'd be shown as $17000

For 17:
It's tricky but read the question carefully
In April, you'll get 20% of the sales value = 220,000 x 20% = $44000
You'll get 50% of the march which would be = 270,000 x 50% =$135000
And 30% of what you sold in Feb = $240,000 x 30% =$72000
Add them up, and you'll get $251,000 and that is D

For 29:
Budgeted overheads are $11500 000
Patients are 25000
Thereover OAR = $460 but as each patient stays for 10 days, divide it by 10
so it'd be $46 per patient day and that makes A the right answer.

 

[SalmanPakRocks]

For all those who have doubts, please paste the link for the question paper as mentioned on the first page of the thread.

 

[student92]

A notice to all Accounting students 9706
if an occasion occurs where the majority of students think that the marking scheme is wrong, Please do verify answers in the marking scheme with the examiner reports
for instance, here in on 2012 p33, the er states that the answer for 18 is B, however, it just contradicts itself as the comments below hint that the correct answer is D, which, when i checked the marking scheme, was actalyy correct, as the marking scheem did agree with this.
i dont know why Cambridge is disappointing us with such errors, its ought to be such a reliable and prestigious examination board, didnt expect such errors from them

 

[Rizwanjubail]

AsalamoAlaikum
Can anyone please confirm that there is no A grade for AS as the gt suggests total of 170 for AS although the total are 120