Economics, Accounting & Business: Post your doubts here!

[Mohammed Hassan]

Thanks!!I understood.
Can any1 solve the other doubts pleeeez!!

in question 6, u will add the credit sales only to the trade debtors ( 64000+23000 = 87000 )
for the payment of 56840, see, this amount is deducted from it the cash discount! so we need to get the original amount and the cash discount, as they appear in the credit side of the debtors account
to do this, u have ( 56840/98 *100 = 58000 ) why 98? because we made a discount of 2%, regualarly, u make this ( 58000*2% and then take the result and minus it from the original amount which 58000 - 1160 = 56840 ) but I saved all these steps and just did this ( 58000 * 98% = 56840 )
SO, u have 98% and the 56840, and the only thing u have to take out is X. ( X * 98% = 56840, X = 56840/98%, and then X = 58000, and thats the full amount which is paid by debtors + cash discount and so, decrease that amount from the total debtors obtained above ( 87000 - 58000 = 29000 ) and the answer is C.

Hope that was understandable and helpful

 

[Mohammed Hassan]

Thanks!!I understood.
Can any1 solve the other doubts pleeeez!!

in question 7 , the cost price is 1200, and the old selling price is 1800 but the new selling price is 1700 , then u deduct the repairs cost of 1000, giving the net realisable value of the stock which is 1100, the last line of the question which says (
To replace the stock would cost $1000.) it actually means that new stock will be purchased, which is not our problem,
and u should know that the stock is valued at the lower of cost or net realisable value, and so the we will take the 1100, and the asnwer is B

in question 23, u were told that half of the earnings are dividends so, ( 0.32 * 0.50 = 0.16 ) and 0.16 is our dividend obtained,
now u have 4% dividend from each share price, and u have 0.16 dividends, what is the share price ? let the share price be X
( 0.16/X *100 = 4, 0.16*100/ 4= X , and so X = 4 ) and thats the answer, which is B

 

[Somia uddin]

Hi,
my doubt M/J 2003 Q4 p1

 

[Mohammed Hassan]

Hi,
my doubt M/J 2003 Q4 p1

( 10500-4900+2500-700 ) * 25%
u have the cost less the accumulated and add the purchases and less the disposals, because we want to get the net value of the fixed asset, and finally, multiply it by the rate.....

 

[student92]

student92
thanks for he examiners tips.. i was going through them last night and they were very helpful.
n no i dont hav for economics. however if you manage to get your hands on it please do share before tuesday.

Your welcome. I could not find. It for eco on the internet, and best of luck for your exams

 

[Somia uddin]

thanks 4 my dobtd another one M/J 2003 Q 14

 

[Mohammed Hassan]

thanks 4 my dobtd another one M/J 2003 Q 14

anytime

for question 14, i'm not very sure about my explaination... but at least i'm trying..
see, imagine with me the goodwill account before Z join, its the debit side with the capital old ratio by amounts we dont know...
when Z came, he paid 30000, which means that there was a goodwill of 3oooo before he came, so on the debit side, with the old capital ratio , X and Y will have 15000 which will be transferred to the credit side of the capital a/c with 15000 for X and Y only,
and now, we go for the new ratio to close the account, and here u divide the 30000 by 3, giving 10000 each on the credit side of the capital account, the question asked the increase only, so i think that the answer is C
i dont know whether what i'm saying is correct or no :S
hope it was helpful

 

[Somia uddin]

yes the ans is coreect but i dont understand the increase part

 

[Mohammed Hassan]

yes the ans is coreect but i dont understand the increase part

neither I :S plz anyone help in this question :S
http://www.xtremepapers.com/papers/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_s03_qp_1.pdf
its question 14 and the answer is C!

 

[Somia uddin]

A company has an authorised share capital of 2 million $0.25 ordinary shares of which 1.6 million
are in issue. It is proposed to pay a dividend totalling $40 000.
Which correctly describes the amount of dividend?
A an ordinary dividend of 8 %
B an ordinary dividend of 10 %
C an ordinary dividend of $0.08 per share
D an ordinary dividend of $0.10 per share

 

[parthrocks]

A company has an authorised share capital of 2 million $0.25 ordinary shares of which 1.6 million
are in issue. It is proposed to pay a dividend totalling $40 000.
Which correctly describes the amount of dividend?
A an ordinary dividend of 8 %
B an ordinary dividend of 10 %
C an ordinary dividend of $0.08 per share
D an ordinary dividend of $0.10 per share

I THINK IT SHOULD BE B......BECAUSE 1.6 MILLION SHARES IS EQUAL TO 1600000 INTO 0.25 WILL GIVE U THE VALUE OF ISSUES CAPITAL THATS 400000 AND SO 40000/400000 INTO 100.....WILL GIVE U b...

 

[Esme]

Your welcome. I could not find. It for eco on the internet, and best of luck for your exams

Thanks and same to you !
And remember me in your prayers !!

 

[Mohammad Taymur]

can ny 1 help me in ques no 30

 

[Mohammed Hassan]

parthrocks
page 605 from the PDF not the book, page 605 from the PDF not the book

 

[shahz_h]

in question 6, u will add the credit sales only to the trade debtors ( 64000+23000 = 87000 )
for the payment of 56840, see, this amount is deducted from it the cash discount! so we need to get the original amount and the cash discount, as they appear in the credit side of the debtors account
to do this, u have ( 56840/98 *100 = 58000 ) why 98? because we made a discount of 2%, regualarly, u make this ( 58000*2% and then take the result and minus it from the original amount which 58000 - 1160 = 56840 ) but I saved all these steps and just did this ( 58000 * 98% = 56840 )
SO, u have 98% and the 56840, and the only thing u have to take out is X. ( X * 98% = 56840, X = 56840/98%, and then X = 58000, and thats the full amount which is paid by debtors + cash discount and so, decrease that amount from the total debtors obtained above ( 87000 - 58000 = 29000 ) and the answer is C.

Hope that was understandable and helpful

in question 7 , the cost price is 1200, and the old selling price is 1800 but the new selling price is 1700 , then u deduct the repairs cost of 1000, giving the net realisable value of the stock which is 1100, the last line of the question which says (
To replace the stock would cost $1000.) it actually means that new stock will be purchased, which is not our problem,
and u should know that the stock is valued at the lower of cost or net realisable value, and so the we will take the 1100, and the asnwer is B

in question 23, u were told that half of the earnings are dividends so, ( 0.32 * 0.50 = 0.16 ) and 0.16 is our dividend obtained,
now u have 4% dividend from each share price, and u have 0.16 dividends, what is the share price ? let the share price be X
( 0.16/X *100 = 4, 0.16*100/ 4= X , and so X = 4 ) and thats the answer, which is B

Thanx alot I understood it.

 

[Somia uddin]

what is revaluation reserve?

 

[shahz_h]

http://www.xtremepapers.com/papers/... AS Level/Accounting (9706)/9706_s09_qp_1.pdf
Could any1 solve my following doubts in this paper. The link is above:
q.6 ans is A
q.19 ans. is B
Thanx in advance!!

 

[shahz_h]

What is meant by rights issue of shares??

 

[nats]

Could someone please help me with Q4 & Q10 of the paper thats linked.
Thankyou
http://www.xtremepapers.com/papers/...AS Level/Accounting (9706)/9706_w10_qp_13.pdf

 

[Mohammed Hassan]

what is revaluation reserve?

An account used to record gains and losses when assets are revalued, for example, the machinery at 1/1/2010 was valued at $12000, then at the year end it is revalued at 14000, so the 2000 difference goes to the revaluation account in the credit side, and it is shown in the Reserves section at the balance sheet