Economics, Accounting & Business: Post your doubts here!

[Lostsoul]

I'll try:
Q28 Find the number of hours, that will be (200/20) 10hrs. The actual hours are 25% more so adding 25% to 10hrs gives you (10 x 125%) 12.5hrs. Now calculate total cost 680+(12.5 x 20)+(12.5 x 10)=1055. Deduct from the price to obtain profit of (1260-1055) $205

Q26 As your production is more than 20000 units you need to increase your rent by 50%, 6000 x 150% = 9000. So now your fixed costs will be 15000-6000+9000=18000. fixed cost per unit=18000/30000=0.6. Total cost per unit=0.6+0.6= 1.2.

Q25 We assume the fixed to be distributed equally so 24000 for product X. The contribution is 20-10-4=6. So break even will be 24000/6= 4000 units.

Do check the answers and lemme know if I'm wrong

Wow! MashAllah all your answers are absolutely correct! Thanks for the working. It definitely helped me a lot!

 

[Lostsoul]

Wow! MashAllah all your answers are absolutely correct! Thanks for the working. It definitely helped me a lot!

For the last I am disturbing you, number 19 please. Answer says B

 

[SalmanPakRocks]

For the last I am disturbing you, number 19 please. Answer says B

This isn't very complicated but it requires our ability to read throughly.
Okay so:
Ordinary Share Captial = $150,000
Bonus Issue = 150,000/3 = $50,000
This would give us the bonus share captial and you must know that bonus issue in this case would be financed by share preimum.
Now the Ordinary Share captial is $200,000
Right issues are now decleared.
So therefore 200,000/4 = $50,000
They are issued at preimum of $0.20 so 50,000 x 0.20 = $10,000
Now let's calculate the total assets
Ordinary share would be now 200,000 + 50,000 = $250,000
Share premim = $75000- $50,000 = $25,000 + $10,000 = $35,000
General Reserve = $125,000
Profit = $25,000
Total = $435000
This would make B, the right option, hope you get it.

 

[Dudu]

Can Someone tell me any Past papers that have "Final Accounts" Questions?

 

[Sarkerms]

Can Someone tell me any Past papers that have "Final Accounts" Questions?

Which type? Partnerships, Company accounts, manufacturing? The new ones, 2k10-12 has them, try solving those.

 

[Dudu]

Which type? Partnerships, Company accounts, manufacturing? The new ones, 2k10-12 has them, try solving those.

Argh. I meant "Limited Companies". The Debenture, Share Cap stuff. No idea why i wrote Final accounts. Face Palm.

 

[Sarkerms]

Argh. I meant "Limited Companies". The Debenture, Share Cap stuff. No idea why i wrote Final accounts. Face Palm.

June 2002 q2 is capital reconstruction
nov 2006 q1 is capital reconstruction
june 2011 41 Q2 is redemption
june 2011 43 q1 is redemption

try solving these, if you want more questions try AQA papers.

 

[shaahid]

Economics oct/nov 2009 paper 41 Q3 a). Can someone help me with this?

 

[Narcotic]

so i suck at accounting. help me with MCQs please
http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_s03_qp_1.pdf
Q- 14, 15, 22, 27

http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_s04_qp_1.pdfQ- 15, 18, 27, 29.

http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_s05_qp_1.pdfQ- 4, 8, 21, 22, 28, 29

(was fed up after so many mistakes, didn't do any further)

and i have totally forgotten that OAR stuff, can someone please give me a review of that topic?

 

[Esme]

so i suck at accounting. help me with MCQs please
http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_s03_qp_1.pdf
Q- 14, 15, 22, 27

http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_s04_qp_1.pdfQ- 15, 18, 27, 29.

http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_s05_qp_1.pdfQ- 4, 8, 21, 22, 28, 29

(was fed up after so many mistakes, didn't do any further)

and i have totally forgotten that OAR stuff, can someone please give me a review of that topic?

2003:-
Q14- If Z pays 30000 for his share of goodwill and the profits are shared equally, each partner has to 30000 for their share of goodwill so our total good will would be 30000x3 = 90000. Before writing off this goodwill it was credited in the existing partner's (X and Y) capital accounts and (shared equally) each partner got 90000/2= 45000. So after deducting 30000 the remaining balance is 15000. Your answer would be C.

Q15- It's quite simple. Calculate the closing stock using FIFO and then information for sales and purchases is given and you have no opening stock so then you can find he gross profit. (sorry, too lazy to work it out)

Q22- The credit purchases are 186000 and the creditors are 24000. The formula for payment period is ( creditors/credit purchases x 365). So the calculation would be 24000/186000 x 365 = 47.0968 days. You take it as 48 days and your answer is C.

Q27- I use algebra for these type of questions. let the closing stock be x. so average stock is (10000+x)/2. now substitute in the formula for stock turnover. you have 200000 divided by (10000+x)/2 which equals to 10. I'm not sure how to show the solvings for this one. But if you're able to solve it you should closing stock i.e. x as 30000.

 

[Esme]

Also it would be helpful if you mention the answers next to your queries because I use this website from a mobile device and then I have to go all way to the page and download the mark schemes.

 

[Narcotic]

2003:-
Q14- If Z pays 30000 for his share of goodwill and the profits are shared equally, each partner has to 30000 for their share of goodwill so our total good will would be 30000x3 = 90000. Before writing off this goodwill it was credited in the existing partner's (X and Y) capital accounts and (shared equally) each partner got 90000/2= 45000. So after deducting 30000 the remaining balance is 15000. Your answer would be C.

Q15- It's quite simple. Calculate the closing stock using FIFO and then information for sales and purchases is given and you have no opening stock so then you can find he gross profit. (sorry, too lazy to work it out)

Q22- The credit purchases are 186000 and the creditors are 24000. The formula for payment period is ( creditors/credit purchases x 365). So the calculation would be 24000/186000 x 365 = 47.0968 days. You take it as 48 days and your answer is C.

Q27- I use algebra for these type of questions. let the closing stock be x. so average stock is (10000+x)/2. now substitute in the formula for stock turnover. you have 200000 divided by (10000+x)/2 which equals to 10. I'm not sure how to show the solvings for this one. But if you're able to solve it you should closing stock i.e. x as 30000.

thankyou so much Esme. umm but i asked question 27 not 22. u solved 22, the closing stock one, and i also use algebra or it

27 What will result in under-absorption of fixed production overhead?
A absorption based on actual expenditure and actual activity
B actual expenditure below budget expenditure
C actual activity above budget activity
D actual activity below budget and expenditure as budgeted

the MS ans is D

 

[Narcotic]

19 A company has issued non-cumulative preference shares and ordinary shares.
Which statement is correct?
A If no preference dividend is paid, it is carried forward to a future year.
B Preference shareholders always get a dividend.
C Preference shareholders and ordinary shareholders always get a dividend.
D Preference shareholders may get a dividend.
someone please take a look at this question and tell me what would be the answer..

 

[shanky631]

19 A company has issued non-cumulative preference shares and ordinary shares.
Which statement is correct?
A If no preference dividend is paid, it is carried forward to a future year.
B Preference shareholders always get a dividend.
C Preference shareholders and ordinary shareholders always get a dividend.
D Preference shareholders may get a dividend.
someone please take a look at this question and tell me what would be the answer..

D as the preference shares are non-cumulative.

 

[SalmanPakRocks]

19 A company has issued non-cumulative preference shares and ordinary shares.
Which statement is correct?
A If no preference dividend is paid, it is carried forward to a future year.
B Preference shareholders always get a dividend.
C Preference shareholders and ordinary shareholders always get a dividend.
D Preference shareholders may get a dividend.
someone please take a look at this question and tell me what would be the answer..

This MCQ is wrong, the answer is D but in Marking Scheme, it's given A which is wrong.

 

[SalmanPakRocks]

http://papers.xtremepapers.com/CIE/...AS Level/Accounting (9706)/9706_s11_qp_22.pdf
Fixed overheads are absorbed on basis of 50% D.M.
I've a query, when we find the contribution per unit, we would take D.M 50% to variable cost and 50% to Fixed but in the marking scheme, whole of Direct material is taken in variable cost.

 

[Esme]

http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_s11_qp_22.pdf
Fixed overheads are absorbed on basis of 50% D.M.
I've a query, when we find the contribution per unit, we would take D.M 50% to variable cost and 50% to Fixed but in the marking scheme, whole of Direct material is taken in variable cost.

This is because they didn't say the direct material has to be halved. 50% of direct material will have to be used to calculate the OAR. that piece of information is not going to effect your variable costs.

 

[Muhammad Bin Anis]

estimated life of project = 5 yrs​

cost of machine = 90,000​

estimated proceeds of disposal of machineafter 5 yrs = 10,000​

additional working capital requred throughout the project = 30,000​

additional annual revenue (net) = 15,000​

what will be the accounting rate of return?​

 

[shahz_h]

Does any1 hav Marking Scheme 4 dis ppr??
http://papers.xtremepapers.com/CIE/... AS Level/Accounting (9706)/9706_w02_qp_1.pdf

 

[Zhamed]

Need help !
Paper: O/N 2009 P22
Question No.: 2 (a)

I have done 2(a) (i) and (ii) correctly and I checked with the marking schemes, it is correct
But for (iii) to (vi), I do not know how to get the disposal value. On the MS, it says $90000 but I cannot seem to find a way to get that. Same with the rest of the questions.
I am not good in the Depreciation and Disposal section. I always had problems with it. :/

Please help