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Oh, Im referring to the ques 2b. Sorry, idk why my words didnt come out properly eveerytime.Formula is Current Asset minus Current Liabilities
I am not sure that u r referring to some question or telling me generally
its v simple...
THANKSSS!http://onlineexamhelp.com/wp-content/uploads/2012/06/9706_s10_qp_43.pdf Question 2b also. Net Current Assets. How is it 420? Isn't it 380?its v simple...
Make Statement of financial position full format n put things which are available
In the end the balancing figure will be bank
See first u have to find Non-current Asset, u will use Asset turnover ratio which is Sales/fixed assets So
870,000/Fixed Assets = 2
Now 870,000 = Fixed Assets * 2
870,000 / 2 = Fixed Assets (435,000)
Now closing Inventory which is 60,000 (From Part A)
For receivables use Formula Rec./Cr.Sales * 365
x/435,000 * 365 = 45
x = 45/365*435,000 = 53,630
Next is Bank which will be balancing figure as per question so we will leave this
then Creditors same like receivable use formula Payables/Cr. Purchase * 365
x/555,000 * 365 = 40
x= 40/365*555,000 = 60,822
Non current liability Deb. is given in question as 100,000
In equity Ordinary shares and preference shares are given in question.
Retained earning u can see from Part A
So now just put values total equity u will get is 426,233
Debentures 100,000 added back u will get 526,233
Now 526,233 - 435,000 u will get net current assets which is 91233
Now current Asset - current liabilities = Net current Assets
current asset - 60,822 = 91,233
current asset = 91233 + 60,822
current asset = 152055
So 152055 - 53630 (Receivables) - 60,000 (Inventor)
38425 balancing figure is bank
Please note closing inventory is 60,000 written as 13,000 in Marking scheme
Any doubts u can ask !!!
Iv) Material usage variance:
Sorry, I meant AS AccountingOctober/November 2014 marking schemes?? Does anyone have them ??
y guess paper , u should prepare every thing.... my suggestion
Bro. avoid predictions & try to prepare all topics
thank you so much
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