• We need your support!

    We are currently struggling to cover the operational costs of Xtremepapers, as a result we might have to shut this website down. Please donate if we have helped you and help make a difference in other students' lives!
    Click here to Donate Now (View Announcement)

Economics, Accounting & Business: Post your doubts here!

shahz_h

shahz_h

Messages
143
Reaction score
43
Points
38
Narcotic

Narcotic

Messages
414
Reaction score
1,129
Points
153
shahz_h said:
In q.9 as purchas ledger cntr a/c lets us knw da creditors balance it wud come on da credit side of the trial balance as 63000, but it was understated by 27000(63000-36000) so suspense ac had arised on da credit side of T.B. now to correct it v ll credit purchas ledger cntrl ac by 27000 nd debit suspense acc inorder to cancel it by 27000. Therefor ans is D
Now ur qustions in 2007 paper
Q.16 here da opening inv was overvalued which wud increse da cost of sales resulting in lower profit. now aftr correction it wud increase da net profit.
Now reservs b/d part. da reserves on 1st may 2006 wud b brought down 4rm last years's profit. so as dis yr's openin inv is last yr's closin inv which had been overvalued wud overstat da net profit. but aftr crrction da closing inv of last yr wud decrease resulting in a decrease in net profit as well leading to less reservs.
Q.22 here da sales revenue incresd by 50% but da COGS incrsd by 60%.Opt .A doesnt hav any link with COGS as da mrketing xpenseswud nt b included there.Then opt b nd opt c wud only effect sales revenue not the COGS.So therefor opt d wud b right.(nt sure if my reasoning is crrct)
Q.23 here firstly subtrct da loan stck intrst i.e 15/100*400=60 den 260000-60000=2000000
den 2000000/600000*100=33.33%
U hav got to apply da ROCE formula here
I hope u get it
Click to expand...

Q22 o7 paper: in this question it seems u r confused too :p

for the rest of it, thanks a zillion!!
 
Narcotic

Narcotic

Messages
414
Reaction score
1,129
Points
153
shahz_h said:
http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_s05_qp_1.pdf
ps somebdy hlp me.
Q.4 Ans is B. i had dne C but totally:confused:
Q.5 Ans is B .Y wud 760 b added with 10600 wasnt it accrued rent
Q.21 Ans is B. Y wud an upwrd revaluation affect da net profit
Q.22 Ans is D. absolutly no clue abt wat is dat
http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_w03_qp_1.pdf
Q.18 Ans is C
Click to expand...

s05
Q4. 17100 is the amount shown in b/s means provision is already subtracted. so use %age formula. 95% of x = 17100 (it will giv u thw amount before 5% provision had been calculated) x=18ooo. this implies that provision = 900 for Y1. in Y2 provision = 5% of 19000 = 950. increase = 50 so ans is B

Q5. it was a debit balance means bal b/d on debit side so it was a current asset i.e prepaid rent.

Q21. as the value of fixed ssets will increase so will depreciation on them. hence np will fall

Q22. no idea O.O i guess this was somehting in previous syllabus. at least i hope so..

w03
Q18. firstly. opening inventory will be sold this year so it must be profit inclusive in TPL. it's at cost so profit = 20% of 40000 = 8000
then take 20% of 240000 = 480000. but then comes closing inventory. it was not sold this year so it's profit must not be included in TPL. but keep in mind the figure of 54000 already in cludes profit so we'll find its profit like this. 120% of x = 540000 . this implies x(stock at cost) = 45000. so the profit = 90000

now simply add the profit of goods sold this year and subtract the profit od goods unsold(closing inventory) = 48000+8000-9000 = 47000
 
shahz_h

shahz_h

Messages
143
Reaction score
43
Points
38
Narcotic said:
s05
Q4. 17100 is the amount shown in b/s means provision is already subtracted. so use %age formula. 95% of x = 17100 (it will giv u thw amount before 5% provision had been calculated) x=18ooo. this implies that provision = 900 for Y1. in Y2 provision = 5% of 19000 = 950. increase = 50 so ans is B

Q5. it was a debit balance means bal b/d on debit side so it was a current asset i.e prepaid rent.

Q21. as the value of fixed ssets will increase so will depreciation on them. hence np will fall

Q22. no idea O.O i guess this was somehting in previous syllabus. at least i hope so..

w03
Q18. firstly. opening inventory will be sold this year so it must be profit inclusive in TPL. it's at cost so profit = 20% of 40000 = 8000
then take 20% of 240000 = 480000. but then comes closing inventory. it was not sold this year so it's profit must not be included in TPL. but keep in mind the figure of 54000 already in cludes profit so we'll find its profit like this. 120% of x = 540000 . this implies x(stock at cost) = 45000. so the profit = 90000

now simply add the profit of goods sold this year and subtract the profit od goods unsold(closing inventory) = 48000+8000-9000 = 47000
Click to expand...
Thnx alott. it hlpd :)
nd i just hope dat Q.22 is no more in da syllbus
 
M

meezan

Messages
4
Reaction score
0
Points
1
anyone appearing for as level accounting on 7th but the morning session?
please reply
 
Narcotic

Narcotic

Messages
414
Reaction score
1,129
Points
153
shahz_h said:
Help needed badly
http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_s12_qp_11.pdf
Q.17 Ans is C. cant undrstnd relationship between ROCE & wrking captal mgmt
Q.21 Ans is B. y not D
Q.22 Ans is A. wud b bettr if any1 cud giv me an xample of sunk cost.
Click to expand...

in Q 17. only rate of inventory turnover involves thngs that affect working cap so this must be the ans
Q21. my teacher explained something, but i do not remember it :(
Q22. sunk cost was supposed to be in our A2 syllabus, but nonetheless: first thing is to understand what is sunk cost. it is a cost which cannot be recovered nor is of any use now. eg we bought a plant which has current market value of zero and is obsolete so we cannot use it anymore. but it still is our fixed asset and will depreciate and stuff. but we will not make any decision based on this cost, i.e it is irrelevant for future.
 
shahz_h

shahz_h

Messages
143
Reaction score
43
Points
38
Narcotic said:
in Q 17. only rate of inventory turnover involves thngs that affect working cap so this must be the ans
Q21. my teacher explained something, but i do not remember it :(
Q22. sunk cost was supposed to be in our A2 syllabus, but nonetheless: first thing is to understand what is sunk cost. it is a cost which cannot be recovered nor is of any use now. eg we bought a plant which has current market value of zero and is obsolete so we cannot use it anymore. but it still is our fixed asset and will depreciate and stuff. but we will not make any decision based on this cost, i.e it is irrelevant for future.
Click to expand...
Thnx dat hlpd me.
 
shahz_h

shahz_h

Messages
143
Reaction score
43
Points
38
Hasa321 said:
http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_s05_qp_1.pdf

Can any1 tell how to do question 9 (answer is A) and how come the suspense a/c has a debit balance when it is corected according to answer A?
Click to expand...
da debit balance on suspense a/c of 450 had arised bcoz da credit side totalled more by 450.
so here the opt A says dat motor xpenses had been recorded correctly in cashbook(i.e they had been credited), & posted to Motor xpenses as a credit(which should hav been debited)i.e both a/c's had been credited resulting in overstating of credit side & hence suspense a/c arised on debit side.
I hope dis helped u
 
Narcotic

Narcotic

Messages
414
Reaction score
1,129
Points
153
shahz_h said:
http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_w12_qp_13.pdf
help required pleez
Q.15 Ans is A
Q.19 Ans is A
Click to expand...

Q15: As a result of the goods taken, X’s current
account would be debited with $2400. The current accounts of the two partners would also be credited with
the profit the goods taken in the ratio of 2:1. Thus X would be credited with $600 and Y with $300. At this
point X has a net debit on the current account of $1800. If the goods are reduced to their cost price, this will
result in X having a net debit of $1500. By crediting X with $300 this is achieved.
By debiting Y with the same amount the profit which no longer exists is eliminated from Y’s current account. (frm ER)

Q19.The key to this question was given as A. This was to indicate that despite the fact the preference shares are
non-cumulative the business may want to make up arrears of dividend from previous years. (ER) and according to me is cheating. what do they mean "may" want to make up.. it can also be "may not" want.. and ans woulb be B which according to me is correct. :/
 
shahz_h

shahz_h

Messages
143
Reaction score
43
Points
38
Narcotic said:
http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_w06_qp_1.pdf

Q25. why the ans is D. i chose C
Q30. my ans was A but the correct option was C. how?

p.s i got 22/30 on this MCQ paper!! is it just my stupidity or was this paper a bit tricky than usual?
Click to expand...
Q.25 last yr debtor ratio was 58.4 nd dis yr 73 so they r paying more slowly nd creditor ratio was 209 nd dis yr 91.25 so they r being paid faster
Q.30 here i assume da 400 units 50% complete as 200 units.
so 60000*600/800=45000
30000*600/800=22500
10000*600/800=7500
now v can get da total cost 4 600 completed units i.e 45000+22500+7500=75000
so cost per unit wud b 75000/600=125
 
You must log in or register to reply here.
Top