Economics, Accounting & Business: Post your doubts here!

[MnMz]

http://www.xtremepapers.com/papers/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_s10_qp_33.pdf
q 27?? how C??

This question has been explained ALOT!!
Anyways
the average investment .... (160+20)/2 = 90
Average profit = 64 - 14 - 35(dep.) = 15
Apply the formula of ARR
you'll get C =)

 

[sharfa riyaz]

http://www.xtremepapers.com/papers/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_s10_qp_33.pdf
q 27?? how C??

ARR= average profits/0.5(intial investment+scrap value)

when calculating average profits (cash inflow-outflow-depreciation)

 

[Anusuya]

ARR= average profits/0.5(intial investment+scrap value)

when calculating average profits (cash inflow-outflow-depreciation)

need to add the scrap value to the investment again??

 

[sharfa riyaz]

can sumone plz clear my doubt! i've posted it above

 

[wajiman]

http://www.xtremepapers.com/papers/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_s10_qp_33.pdf
q 27?? how C??

average investment=
160 + 20/2 = 90

depreciation = 160 - 20/4 = 35
profit= 64 - 14 - 35 = 15
average profit = 15*4/4= 15

arr= 15/90*100= 16.67%

 

[Anusuya]

Do you know the updated formula for ARR? Or should I explain to you directly.

updated formula???

 

[sharfa riyaz]

need to add the scrap value to the investment again??

yes dats the formula for ARR! if they have given working capital increase it wud be

average profits/0.5(intial investment+scrap value)+working capital


note dat u dont apply the o.5 for the working capital

 

[MnMz]

updated formula???

HERE YOU GO!! =)

 

[sharfa riyaz]

http://www.xtremepapers.com/papers/... AS Level/Accounting (9706)/9706_s04_qp_3.pdf

question 26! can someone explain to me why you take purchase price for Material Y!

ANYONE KNOW THE REASON FOR THIS! PLZ HELP

 

[MnMz]

ANYONE KNOW THE REASON FOR THIS! PLZ HELP

Material Y should be valued at current purchase price and material X at net realisable value.
Because Material X is used to make most of the products...why X is used fr one product....hence must be valued at its lowest! =)

 

[sharfa riyaz]

Material Y should be valued at current purchase price and material X at net realisable value.
Because Material X is used to make most of the products...why X is used fr one product....hence must be valued at its lowest! =)

IN wat part of stock valuation notes does it come? coz i have nly heard dat u value stock at lower of cost or NBV?

 

[MnMz]

IN wat part of stock valuation notes does it come? coz i have nly heard dat u value stock at lower of cost or NBV?

I didn't read it....My teacher told me about it...!

 

[sharfa riyaz]

I didn't read it....My teacher told me about it...!

thankz alot! ALL THE BEST FOR THE PAPER!

 

[Saiyan]

IN wat part of stock valuation notes does it come? coz i have nly heard dat u value stock at lower of cost or NBV?

sharfa riyaz is question is outdated in the sense they did use IAS-2

Always remember that inventories are valued at cost or nrv whichever is lower

 

[sharfa riyaz]

sharfa riyaz is question is outdated in the sense they did use IAS-2

Always remember that inventories are valued at cost or nrv whichever is lower

thanks alot! even i thought of dat! coz its 2004 paper! so if we get a question like this we take cost or NBV which ever is lower ryt?

 

[MnMz]

thanks alot! even i thought of dat! coz its 2004 paper! so if we get a question like this we take cost or NBV which ever is lower ryt?

Yep....you apply all the new IAS ......... not the old ones =)

 

[Anusuya]

Material Y should be valued at current purchase price and material X at net realisable value.
Because Material X is used to make most of the products...why X is used fr one product....hence must be valued at its lowest! =)

the material used for production of only one product should be valued at the lowest ?? i never heard abt it

 

[Saiyan]

I am logging out. Best of luck to everyone.

 

[MnMz]

the material used for production of only one product should be valued at the lowest ?? i never heard abt it

Old IAS.....use the new one =)

 

[MnMz]

I am logging out. Best of luck to everyone.

wait wait .... when do we decide whether to keep a department open or close it?
Like here
http://www.xtremepapers.com/papers/...AS Level/Accounting (9706)/9706_w10_qp_31.pdf
Q20

 

[Anusuya]

http://www.xtremepapers.com/papers/... AS Level/Accounting (9706)/9706_s03_qp_3.pdf
ques 19??