Economics, Accounting & Business: Post your doubts here!

[Esme]

can sumone please explain part exchange allowance in detail ??

 

[student92]

as salam alikum
part exchange allowance is made when you exchange old assets for new one from the same dealer, for instance, you have a old car, you take it to a local car dealer and ask him to purchase your old car, and then you buy a new car from him, so basically he does not give you cash for your old car, simply he makes an part exchange allowance for it, so when you buy the new car, you dont pay him the full amount or value of new car, you pay him the value of new car less part exchange value.

http://www.xtremepapers.com/papers/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_s10_qp_22.pdf
for example in this paper, q2
2 Three new motor vehicles were purchased on 1 April 2010 for $280 000 each. Two motor
vehicles, which had been purchased on 1 March 2007, for $200 000 each, were taken in
part-exchange. The part-exchange allowance for each vehicle was $60 000.

simply,it the selling price the dealer puts on for the old assets, but the difference is you dont get hard cash for it.

 

[Esme]

W Salam
In this example we are exchanging 2 old vehicles for 3 new vehicle. 20000 is the allowance we get on each vehicle that we'r giving. So u mean dat we do not pay the total value of the asset. just the value minus the allowance and then we give our old vehiles n get the new vehicles. ?? did i interpret this correctly ??

 

[student92]

yes, bank account would decrease by the value of new assets minus allowance, BUT, the value of new assets would be recorded at full value, which is 3 motor vehicles at 280000each.

 

[student92]

i think it would be best if you would solve this question, making a full disposal account

 

[Muhammad Bin Anis]

Anyone please help me!!!
how to master in Accounts Mcqs (Paper 1- AS LEVEL)

 

[Esme]

yes, bank account would decrease by the value of new assets minus allowance, BUT, the value of new assets would be recorded at full value, which is 3 motor vehicles at 280000each.

Thank you. Yea i hav solved this pr i was jus not sure if i understood it correctly

 

[Esme]

Anyone please help me!!!
how to master in Accounts Mcqs (Paper 1- AS LEVEL)

First understand all the chapters fom the book. i mean your concepts should be clear , then practice as much as u can in the tme left now !

 

[Iqra Ali]

Assalam-alikum!
Does any1 of u have the mark scheme of accounting 9706 may/june 2002 paper?

 

[Esme]

The mark scheme for p2 n p4 is available on this website.

 

[Esme]

Please explain Q29.
The answer is D.

 

[2pac]

Hi,need urgent help in CIE A2 business studies November 2010 paper 33 Q4part(a)
thanks

 

[Iqra Ali]

Please explain Q29.
The answer is D.View attachment 6882

First u would have to find out the difference between opening stock and the closing stock, which is 3000 units. Then find the difference between the both the profit figures which is $19500. Divide this answer with 3000 units. U will get the fixed overhead rate!! And the mark scheme for accounting may/june 2002 paper is not on this website. I have checked it. So if u or any1 have it, pls post them here!!!!

 

[maryamshake94]

hi.
i need help with question 3 here. what are they asking, exactly? :s
http://www.xtremepapers.com/papers/...el/Business Studies (9707)/9707_w11_qp_13.pdf

 

[mariam_anwar]

Please post expected topics for cie
for economics business and accounts too ...!

 

[ferrycru]

Hi everyone, assalamoalaikum!!

To get things organized in a better way, I am making this thread. As othewise, some queries remain unanswered!

So post your AS/A2 Accounts, Business or Economics doubts in this thread. InshaAllah other people here will be there to help you around.

NOTE: If any doubts in the pastpapers, please post the link!

Thanks!
Jazak Allah Khair!

Salaam...I find it hard to follow the accounting part of this thread....Please guide me through...Shukraan

 

[Esme]

First u would have to find out the difference between opening stock and the closing stock, which is 3000 units. Then find the difference between the both the profit figures which is $19500. Divide this answer with 3000 units. U will get the fixed overhead rate!! And the mark scheme for accounting may/june 2002 paper is not on this website. I have checked it. So if u or any1 have it, pls post them here!!!!

i knw the method but i dont understand the logic behind it .i mean the difference between the profits diveded by the difference between the stocks: how does dat give us the OAR ??? sorry im not online from my laptop so im unable to post it here.

 

[student92]

Please post expected topics for cie
for economics business and accounts too ...!

as salam alikum
due to there being 3 variants for each paper, there is a very high probability anything can show up in your paper, so there is no use guessing what will come or not,
for data response, i think business studies would be on impact of Olympics on uk, for eco i think it would be on unemployment and related problems in spain or grecee, and the second one could be on inflation and economic unions, based on the current EU problems, that wheter one single currency is good etc
as for accounts, something on marginal would come,

 

[student92]

Salaam...I find it hard to follow the accounting part of this thread....Please guide me through...Shukraan

wa alikum as salam
please post any question you have difficulty in, with the link, and insha allah anybody will help you out

 

[student92]

i knw the method but i dont understand the logic behind it .i mean the difference between the profits diveded by the difference between the stocks: how does dat give us the OAR ??? sorry im not online from my laptop so im unable to post it here.

as salam alikum
its simple, the difference between the profits based on marginal and absorption is the overheads, you must be knowing that marginal profits is calculated by valuing stocks on variable costs only, so the difference would give you the overheads
now, you have the overheads,, to get the OAR, you need the total output ofr the year, which is simply the stock at star of year minus stock at end of year.