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Economics, Accounting & Business: Post your doubts here!

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w08
Q8: 720 is set-off. correctly set off is credited in SLCA so here it's debitted. to correct it we will credit the double amount which will be subtracted from the debit balance of SLCA (92460 - 720 -720) = option B

w09
Q17 ( B is correct, i asked the same Q but others told me B is correct)
Q29. OAR=overheads/units
extra overheads due to absorption costing=120300 -100800 =19500
these overheads are overcharged because of increase in inventory. (we deduced it from the fact that marginal costing does not include them) increase in inventory = closing inventory - opening inventory = 3000
OAR = 19500/3000 =6.5 hence D is correct =)
 
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where the hell does long-term liability comes? na to wo net assets men se subtract hui hoti hai, na wo share capital and reserves men include hoti hai. har question men uska koi naya hi rule apply ho raha hota hai! i don't understand it!!



http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_w07_qp_1.pdf
Q 16, i donot understand the reserves part. ans is C
Q 22, ans is D mine was B
Q 23, ans is B mine was C


HELP NEEDED!!
 
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View attachment 24820
How do we get the answer as A?o_O
ROCE= operaating profit/CE

CE= retained earnings + share capital
we are supposed to take avg retained earnings which are = (100000+90000)/2 =95000
CE= 95000 +20000=115000
operating profit = profit for the year = 100000

ROCE= (10000 x 100)/115000 = 8.696% ~ 8.70%
 
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w08
Q8: 720 is set-off. correctly set off is credited in SLCA so here it's debitted. to correct it we will credit the double amount which will be subtracted from the debit balance of SLCA (92460 - 720 -720) = option B

w09
Q17 ( B is correct, i asked the same Q but others told me B is correct)
Q29. OAR=overheads/units
extra overheads due to absorption costing=120300 -100800 =19500
these overheads are overcharged because of increase in inventory. (we deduced it from the fact that marginal costing does not include them) increase in inventory = closing inventory - opening inventory = 3000
OAR = 19500/3000 =6.5 hence D is correct =)
Thnx alott
:)
 
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HOW DO WE GET "" B ""?? View attachment 24828
net profit %age =(NP x 100)/revenue
this is net profit margin. we have to convert it into net profit mark up. margin into mark up = a/b-a = 20/100-20 =1/4
now total cost = cost of sales + overheads = (800000-200000) + 400000 = 1000000
NP = 1 000 000 x (1/4) = 250 000
Revenue - COS - Overheads = NP
Revenue -600000 - 400000 = 250000
Revenue = 1 250 000
 
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th
net profit %age =(NP x 100)/revenue
this is net profit margin. we have to convert it into net profit mark up. margin into mark up = a/b-a = 20/100-20 =1/4
now total cost = cost of sales + overheads = (800000-200000) + 400000 = 1000000
NP = 1 000 000 x (1/4) = 250 000
Revenue - COS - Overheads = NP
Revenue -600000 - 400000 = 250000
Revenue = 1 250 000
thnkss aloot :)
 
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Accounts.
Can someone please tell me how to find Right Issue with an example?
I know how to adjust with the Bonus Shares but I find it difficult with Right Issues.

In the below question, I got it until the Bonus Issue part, that is:
200000 x 1/4 = 50000
Ordinary Share = 200000 + 50000 = 250000

What do I do next? :)
 

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Accounts.
Can someone please tell me how to find Right Issue with an example?
I know how to adjust with the Bonus Shares but I find it difficult with Right Issues.

In the below question, I got it until the Bonus Issue part, that is:
200000 x 1/4 = 50000
Ordinary Share = 200000 + 50000 = 250000

What do I do next? :)

after bonus issue the ordinary share is 250000 . to find the right issue 250000/2=125000, then add 250000+125000(right issue)=375000 * 0.50=187500
 
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ROCE= operaating profit/CE

CE= retained earnings + share capital
we are supposed to take avg retained earnings which are = (100000+90000)/2 =95000
CE= 95000 +20000=115000
operating profit = profit for the year = 100000

ROCE= (10000 x 100)/115000 = 8.696% ~ 8.70%
Thanks alot
 
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where the hell does long-term liability comes? na to wo net assets men se subtract hui hoti hai, na wo share capital and reserves men include hoti hai. har question men uska koi naya hi rule apply ho raha hota hai! i don't understand it!!







HELP NEEDED!!
In q.9 as purchas ledger cntr a/c lets us knw da creditors balance it wud come on da credit side of the trial balance as 63000, but it was understated by 27000(63000-36000) so suspense ac had arised on da credit side of T.B. now to correct it v ll credit purchas ledger cntrl ac by 27000 nd debit suspense acc inorder to cancel it by 27000. Therefor ans is D
Now ur qustions in 2007 paper
Q.16 here da opening inv was overvalued which wud increse da cost of sales resulting in lower profit. now aftr correction it wud increase da net profit.
Now reservs b/d part. da reserves on 1st may 2006 wud b brought down 4rm last years's profit. so as dis yr's openin inv is last yr's closin inv which had been overvalued wud overstat da net profit. but aftr crrction da closing inv of last yr wud decrease resulting in a decrease in net profit as well leading to less reservs.
Q.22 here da sales revenue incresd by 50% but da COGS incrsd by 60%.Opt .A doesnt hav any link with COGS as da mrketing xpenseswud nt b included there.Then opt b nd opt c wud only effect sales revenue not the COGS.So therefor opt d wud b right.(nt sure if my reasoning is crrct)
Q.23 here firstly subtrct da loan stck intrst i.e 15/100*400=60 den 260000-60000=2000000
den 2000000/600000*100=33.33%
U hav got to apply da ROCE formula here
I hope u get it
 
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