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Economics, Accounting & Business: Post your doubts here!

ktc

ktc

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abcde said:
The mark scheme wasn't released most probably. You should post you're answers and we'll all try to check those for you. :)
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So I got $180,500 as my working capital.

Hill's capital amounted to $80,000 and Dale's was $100,500.

The figures all make sense - the working capital is equal to the total capital invested by both partners.

Just want to confirm, though.

Oh, and its Q.3 :p
 
Sarkerms

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ktc said:
So I got $180,500 as my working capital.

Hill's capital amounted to $80,000 and Dale's was $100,500.

The figures all make sense - the working capital is equal to the total capital invested by both partners.

Just want to confirm, though.

Oh, and its Q.3 :p
Click to expand...

You sure? Cause I am getting Hill's Capital as 66000 and David's as 87500. See whether your balance sheet balances.
 
Sarkerms

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abcde said:
Ho
Why is B the answer? :S
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Ah sorry about that i made a mistake. I didnt notice that it is the avg product. A business will move away when their marginal cost is greater than the marginal revenue product. So since revenue is 1 no need to adjust the figures. Now they gave the avg product so multiply 20*1 18*2.... and get the total product and calculate the marginal product (the diff between the total of 1 and 2, 2 and 3 etc). You will see that the marginal product of 3 employees is 12 so the revenue earned is 12*1 12 but if the wage rises from 10-14 then the cost is more so they will move back to 2 employees. I hope this rectifies the confusion I have created with my earlier mistake.
 
ktc

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Sarkerms said:
You sure? Cause I am getting Hill's Capital as 66000 and David's as 87500. See whether your balance sheet balances.
Click to expand...
Well, my balance sheet does balance with the capital figures I got.

Hill's total assets = total liabilities; $90,000
Dale's total assets = total liabilities $ 109,500.

Do you mind explaining how those capital amounts for Hill and Dale each, were calculated?
 
L

Lostsoul

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Accounting:
A company has an authorised share capital of 100,000 ordinary shares of $0.05. It has issued 70,000 shares. The directors recommend a dividend of 6%. What will be the amount of dividend?
Answer states $2100. How? Detailed working please
 
Sarkerms

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Z.S said:
Accounting:
A company has an authorised share capital of 100,000 ordinary shares of $0.05. It has issued 70,000 shares. The directors recommend a dividend of 6%. What will be the amount of dividend?
Answer states $2100. How? Detailed working please
Click to expand...

Are your figures right? Cause I am getting $210 instead.
 
ktc

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Bose Ltd. provides the following information.

Authorized capital:
200,000 6% $1 preference shares
500,000 $1 ordinary shares

Issued capital:
100,000 6% $1 preference shares
300,000 $1 ordinary shares

General reserve 1 January 20-6:
$130,000

Profit and loss account balance 1 January 20-6:
$22,000 (credit)

Net profit for year ended 31 December 20-6:
$125,000

During the year ended 31 December 20-6, an interim dividend of 3% was paid on the preference shares, but no interim dividend was paid on the ordinary shares.

On 31 December 20-6, the directors agree to:

1. Transfer $25000 to the general reserve

2. pay the final dividend on the preference shares

3. pay the final dividend of 8% on the ordinary shares

Prepare the profit and loss appropriation account of Bose Ltd. for the year ended 31 December 20-6.
 
Sarkerms

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ktc said:
Bose Ltd. provides the following information.

Authorized capital:
200,000 6% $1 preference shares
500,000 $1 ordinary shares

Issued capital:
100,000 6% $1 preference shares
300,000 $1 ordinary shares

General reserve 1 January 20-6:
$130,000

Profit and loss account balance 1 January 20-6:
$22,000 (credit)

Net profit for year ended 31 December 20-6:
$125,000

During the year ended 31 December 20-6, an interim dividend of 3% was paid on the preference shares, but no interim dividend was paid on the ordinary shares.

On 31 December 20-6, the directors agree to:

1. Transfer $25000 to the general reserve

2. pay the final dividend on the preference shares

3. pay the final dividend of 8% on the ordinary shares

Prepare the profit and loss appropriation account of Bose Ltd. for the year ended 31 December 20-6.
Click to expand...


So you start off with your Net profit for the year, 125,000, and then deduct 25,000 transfer to reserve, then deduct the interim pref dividend (100,000 x 3%, we always take the issued value for calculations), then deduct the final dividend of another 3% of 100,000 and then deduct the final ordinary dividend (300,000 x 8%). After that whatever we get we add the retained profit b/f (22,000) and the value we get is the retained profit c/f

It would overall look like this 125000- 3000-3000-24000=95000+22000=117000
 
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sweetiepie

sweetiepie

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Q. Which of the following is not related to primary industry ?
A. Animals
B. Hunting
C. Seeds
D. Textile
 
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