Economics, Accounting & Business: Post your doubts here!

[shahz_h]

http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_s10_qp_12.pdf
Can some1 plz explain briefly Q19 because i m really confused with Share Premium thingy, Plz explain to me that how Share premium is changed when rights issues or bonus issue takes place
PLZ ITS URGENT.I HAVE EXAM AFTER AROUND 14 HOURS.....

A share premim a/c is opened when the shares are issued at more than dere nominal value
Eg if a share is issued at $1.6 where as its nominal value was $1, then Share premium wud b $0.6
Nd concrning rights & bonus issue, if a rights issue is made at abov the nominal value its share premium wud be credited to da share premium A/c
nd 4 bonus issue as da shareholders donot hav 2 pay 4 them, they will b taken 4rm da reservs (share premium,general reserv, etc)

 

[Rizwanjubail]

Thnx a lot man
Can u plz explain the answer for q18?
I have attached the link above. Thnx in advance

 

[Areeba8593]

if production falls, how are total variable cost reduced? shouldnt they increse? plzz help!

 

[student92]

http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_s11_qp_11.pdf
Cud any1 help me out wid diz 1?plz ASAP
Q. 30 Ans A i had chosen B

if you closely analyse the graph in image a, the cure does not touch the vertical axis, meaning that the fixed costs are incurred irrelevant to the whether there is some production or not., whereas in b, the curve touches the vertical axis, impling that there are no fixed costs when threr is no production, this is not true, as fixed costs are paid wheter there is production or not

 

[student92]

if production falls, how are total variable cost reduced? shouldnt they increse? plzz help!

variable costs are directly linked with the level of production, therefore, if the production is reduced, total variable costs will also be reduced, as now less of direct matelai and direct labour will be employed. on the contrary, fixed costs are fixed within a specific time, and they do not vary with the level of production

 

[student92]

Thnx a lot man
Can u plz explain the answer for q18?
I have attached the link above. Thnx in advance

firstly, we know there was a rights issue of 20 000 shares of $1 each, they were issued at $36 000, meaning that the issues was made above par, therefore (20-36) $16 000 was the share premium
secondly, there was a 1/6 bonus issue made, this was on the ordinary shares of 120( 100+20) which is equal to $20 000, as bonus issue are free issue of share, the reserves are transferred into the share capital, therefore the share primum reduced by $20 000
so finaly, share premium is 30 + 16 - 20 =26 000


Hope this helps,
BEST of luck for the exams, may Allah help us all achieve our desired grades! Ameen

 

[student92]

1

 

[Hasa321]

http://papers.xtremepapers.com/CIE/...AS Level/Accounting (9706)/9706_s12_qp_13.pdf

Can any1 explain how to do the question 6?(Ans B) Plz its urgent

 

[Rizwanjubail]

firstly, we know there was a rights issue of 20 000 shares of $1 each, they were issued at $36 000, meaning that the issues was made above par, therefore (20-36) $16 000 was the share premium
secondly, there was a 1/6 bonus issue made, this was on the ordinary shares of 120( 100+20) which is equal to $20 000, as bonus issue are free issue of share, the reserves are transferred into the share capital, therefore the share primum reduced by $20 000
so finaly, share premium is 30 + 16 - 20 =26 000


Hope this helps,
BEST of luck for the exams, may Allah help us all achieve our desired grades! Ameen

AAmeen and IN SHA ALLAH and thanx a lot once again

 

[shaahid]

http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_s12_qp_13.pdf

Can any1 explain how to do the question 6?(Ans B) Plz its urgent

You need to include both Capital and revenue expenditure

 

[dishant.k]

can I get a.formula
sheet.for.business. studies ( ch5)

 

[Rizwanjubail]

firstly, we know there was a rights issue of 20 000 shares of $1 each, they were issued at $36 000, meaning that the issues was made above par, therefore (20-36) $16 000 was the share premium
secondly, there was a 1/6 bonus issue made, this was on the ordinary shares of 120( 100+20) which is equal to $20 000, as bonus issue are free issue of share, the reserves are transferred into the share capital, therefore the share primum reduced by $20 000
so finaly, share premium is 30 + 16 - 20 =26 000


Hope this helps,
BEST of luck for the exams, may Allah help us all achieve our desired grades! Ameen

Ameen

 

[Fatima33]

Alhamdulilah it was a good paper. What did you guys think?

 

[shahz_h]

My paper was gud as well Alhamdulillah
Cud som1 tell me crrct answrs 4 Q.4(u had to find da crrctd net profit)
Q.7 (bnk reconcilation statmnt)
Q.19(find da value at which da shares were to be issued inorder to keep da divdnd % as 10)

 

[Rizwanjubail]

My paper was gud as well Alhamdulillah
Cud som1 tell me crrct answrs 4 Q.4(u had to find da crrctd net profit)
Q.7 (bnk reconcilation statmnt)
Q.19(find da value at which da shares were to be issued inorder to keep da divdnd % as 10)

I think Bank reconciliation's answer was credit 40

 

[Rizwanjubail]

Alhamdulilah it was a good paper. What did you guys think?

Yes it was great Alhamdulillah
What was the answer for the last one??
Was it "C" i.e June and April

 

[MU2013]

Yes it was great Alhamdulillah
What was the answer for the last one??
Was it "C" i.e June and April

June June, D i think

I think Bank reconciliation's answer was credit 40

credit 550

 

[Narcotic]

My paper was gud as well Alhamdulillah
Cud som1 tell me crrct answrs 4 Q.4(u had to find da crrctd net profit)
Q.7 (bnk reconcilation statmnt)
Q.19(find da value at which da shares were to be issued inorder to keep da divdnd % as 10)

Q4. my np was 7000
Q7. 550 credit
Q19. $4.80 was the share price

these are my answers don't know if they are correct or not

Can u tell me Q9. who uses aging of debtors or something like that. i did B "Credit Controller" merely a guess...

 

[MU2013]

Q4. my np was 7000
Q7. 550 credit
Q19. $4.80 was the share price

these are my anwers don't know if they are correct or not

Can u tell me Q9. who uses aging of debtors or something like that. i did B "Credit Controller" merely a guess...

It is credit controller .

 

[amandeep04]

My last one was June June.
and the BRS question was credit 550.