Economics, Accounting & Business: Post your doubts here!

[CЯeScɘnt]

CЯeScɘn in the inventory question y do they have a different thing called normal salles and u do they deduct the clearence sales return inwards frm the original sales value?

normal sales are those that are sold as routine, wont include sales return n clearance should be deducted

 

[Sarah Paul]

normal sales are those that are sold as routine, wont include sales return n clearance should be deducted

Bt arent they including the clearence cost under cost of sales?

 

[CЯeScɘnt]

Bt arent they including the clearence cost under cost of sales?

they included clearance SALES in normal sales so we duducted them to arrive at normal sales which have a profit element in them.
got it?

 

[Sarah Paul]

they included clearance SALES in normal sales so we duducted them to arrive at normal sales which have a profit element in them.
got it?

So y do they have to add it back to cost of sales ?

 

[CЯeScɘnt]

So y do they have to add it back to cost of sales ?

cus they were sold on cost
we subtracted it from normal cost to get the cost of normal goods which were having a mark-up,but their cost will be included in cost of sales...

 

[Sarah Paul]

cus they were sold on cost
we subtracted it from normal cost to get the cost of normal goods which were having a mark-up,but their cost will be included in cost of sales...

Okay i got it sis
Jazakallah Khair

 

[CЯeScɘnt]

Okay i got it sis
Jazakallah Khair

my pleasure sis
n good luck for tomorrow

 

[Sarah Paul]

my pleasure sis
n good luck for tomorrow

Hmm thanks
To you too good luck

 

[Sarah Paul]

Hw to find absorbed overhead?
Q3c.
Anyone
http://papers.xtremepapers.com/CIE/...AS Level/Accounting (9706)/9706_s12_qp_22.pdf

 

[SamiaSaad]

Hw to find absorbed overhead?
Q3c.
Anyone
http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_s12_qp_22.pdf

Machining:
Overheads Absorbed = Actual Activity (Machine hours) * Overhead Absorption rate
$1345500 =195000 * $6.9

Assembly:
Overheads Absorbed = Actual Activity (Labour hours) * Overhead Absorption rate
$1335600 =318000 * $4.2

 

[Sarah Paul]

Machining:
Overheads Absorbed = Actual Activity (Machine hours) * Overhead Absorption rate
$1345500 =195000 * $6.9

Assembly:
Overheads Absorbed = Actual Activity (Labour hours) * Overhead Absorption rate
$1335600 =318000 * $4.2

Thanks alot sis

 

[SamiaSaad]

Thanks alot sis

No prob

 

[Sarah Paul]

No prob

 

[Tushar968]

hey
Had a problem in May june 2013.link is attached.Q1 part b,how do you get the sales,gross profit and expenses?
Please help..Thanks from advance.
http://papers.xtremepapers.com/CIE/...AS Level/Accounting (9706)/9706_s13_qp_22.pdf

 

[Sarah Paul]

Enter cost of sales
Then based on mark up find gross profit
Then u van find sales
Yhen u can find net profit based on NP Ratio then get the expenses

 

[Tushar968]

thank tou very much and what about May june 2011 p2 q1a
http://papers.xtremepapers.com/CIE/...AS Level/Accounting (9706)/9706_s11_qp_21.pdf

 

[Tushar968]

do u hv ny notes on limited companies?
i dont understand the shares stuff at all

 

[Sarah Paul]

Dr current ac Henry 6600
Cr current ac Robin 1000
Dr current acc henry 10400
Cr current acc Intrst on capital Henry 120000*8%
Robin 80000*8%
Dr current acc Drawings Henry 120000*10%
Robin 80000*10%
Dr current acc int on drawings Henry and Robin (drawings amount * 5%)
Cr current acc Salry of Henry and Robin
Find ou NP and divide the share of profits according to the ratio of capital invested and cr it to current ac

Find the remaining balance

 

[Sarah Paul]

do u hv ny notes on limited companies?
i dont understand the shares stuff at all

Reffer txt book

 

[Tushar968]

how do u find mark up

Enter cost of sales
Then based on mark up find gross profit
Then u van find sales
Yhen u can find net profit based on NP Ratio then get the expenses