Economics, Accounting & Business: Post your doubts here!

[:: A^]

View attachment 40123
may/june 2009 paper 3 > how to do this :/
And this ??? please help ....
View attachment 40124

Q12 - Like i said i cant seem to get the right words to explain this, but here goes..
Notice that in this question there is no opening stock.
So the purchased quantity should be equal to Sale quantity + C/Stock quantity (Agree on tht before you go ahead, else stop and ask)

Following this principle, the cost of purchasing, which is 450000 would be 550000 (Sales + C/Stock) with the profit.
Therefore the markup would be 550000-450000=100000
Use this to find the markup % = 100000/450000*100 = 22.22%
Now that you have the markup, find the cost price of the stock. Which would be = 50000/122.22 * 100 = 40909.83
Now all the hard work is done. Simply use the normal formula to find the GP now. i.e. Sales - COS
Then itll be like: 500000 - (450000-40909.83) = $90909 Hence C

Phew.

 

[Emadthegreat]

18 A balance sheet shows the following information.
$
100 000 ordinary shares of $0.50 each 50 000
50 000 5 % preference shares of $0.10 each 5 000
share premium 10 000
revaluation reserve 20 000
retained earnings 35 000
120 000
What is the balance sheet value of one ordinary share?
A $0.50 B $1.00 C $1.15 D $1.20

 

[David Hussey]

Q12 - Like i said i cant seem to get the right words to explain this, but here goes..
Notice that in this question there is no opening stock.
So the purchased quantity should be equal to Sale quantity + C/Stock quantity (Agree on tht before you go ahead, else stop and ask)

Following this principle, the cost of purchasing, which is 450000 would be 550000 (Sales + C/Stock) with the profit.
Therefore the markup would be 550000-450000=100000
Use this to find the markup % = 100000/450000*100 = 22.22%
Now that you have the markup, find the cost price of the stock. Which would be = 50000/122.22 * 100 = 40909.83
Now all the hard work is done. Simply use the normal formula to find the GP now. i.e. Sales - COS
Then itll be like: 500000 - (450000-40909.83) = $90909 Hence C

Phew.

i ddint understand but np ill ask my sir (Y)

http://papers.xtremepapers.com/CIE/...AS Level/Accounting (9706)/9706_w10_qp_43.pdf
q2)c)i
the formula is interest expense/profit before interst and tax * 100 right?
so answer should be 6000/130500 *100=4.6%
mark scheme says 1305% wth?

 

[Sarah Paul]

http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_w03_ms.pdf
How to get the depreciation of FA as 1600? Really confused
Its Q1 part b the workings
URGENT
And the QP link fr more convenience
http://papers.xtremepapers.com/CIE/... AS Level/Accounting (9706)/9706_w03_qp_2.pdf

 

[David Hussey]

http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_w03_ms.pdf
How to get the depreciation of FA as 1600? Really confused
Its Q1 part b the workings

its not 1600, its 56320
make a net book value T a/c

bal b/d 85600 grass cutter 1600
equipment 66000 depreciation 56320
equipment 26000
bal c/d 119680

177600 177600

grass cutter net book value is its cost minu its depreciation charged
therefore
4000-(20%*4000*3)=1600
it has been used for 3 years, 4th year no need to charge deprecation because thts the policy

hope u uderstood

 

[David Hussey]

sorry my T a/c got messed up
ignore that part and just look at the grass cutter

 

[David Hussey]

why are you doing so old past papers? :/
do the latest ones, and its variants

 

[Sarah Paul]

its not 1600, its 56320
make a net book value T a/c

bal b/d 85600 grass cutter 1600
equipment 66000 depreciation 56320
equipment 26000
bal c/d 119680

177600 177600

grass cutter net book value is its cost minu its depreciation charged
therefore
4000-(20%*4000*3)=1600
it has been used for 3 years, 4th year no need to charge deprecation because thts the policy

hope u uderstood

i understood the grasscutter part but fr the FA u are correct abt that bt they have minused 85600 from 1600 ryt? wat is that 1600? and hw did they get that?

 

[Sarah Paul]

why are you doing so old past papers? :/
do the latest ones, and its variants

But sice old papers have hard questions i feel that they are good

 

[David Hussey]

i understood the grasscutter part but fr the FA u are correct abt that bt they have minused 85600 from 1600 ryt? wat is that 1600? and hw did they get that?

dont follow mark scheme method

like i said make a t a/c for fixed assets net books value

b/d bal is 85600 (debit side)
on debit side equpiment and fixtures 92000
grass cutter (credit side) 1600
bal c/d (credit side) 119680

balancing figure will give you 56320 which is depreciation

grass cutter net book value is its cost minu its depreciation charged
therefore
4000-(20%*4000*3)=1600
it has been used for 3 years, 4th year no need to charge deprecation because thts the policy

the 1600 is the net book value of the grasscutter which has to be taken out of the net book value a/c, (which actually goes to the disposal a/c)

 

[Sarah Paul]

dont follow mark scheme method

like i said make a t a/c for fixed assets net books value

b/d bal is 85600 (debit side)
on debit side equpiment and fixtures 92000
grass cutter (credit side) 1600
bal c/d (credit side) 119680

balancing figure will give you 56320 which is depreciation

grass cutter net book value is its cost minu its depreciation charged
therefore
4000-(20%*4000*3)=1600
it has been used for 3 years, 4th year no need to charge deprecation because thts the policy

the 1600 is the net book value of the grasscutter which has to be taken out of the net book value a/c, (which actually goes to the disposal a/c)

Thank you so much

 

[Sarah Paul]

Some MCQs help pls:
http://papers.xtremepapers.com/CIE/... AS Level/Accounting (9706)/9706_w02_qp_1.pdf Q18 15 13

http://papers.xtremepapers.com/CIE/... AS Level/Accounting (9706)/9706_w03_qp_1.pdf Q5 11 14 21

 

[:: A^]

i ddint understand but np ill ask my sir (Y)

http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_w10_qp_43.pdf
q2)c)i
the formula is interest expense/profit before interst and tax * 100 right?
so answer should be 6000/130500 *100=4.6%
mark scheme says 1305% wth?

ill do that by evening In sha Allah!

 

[David Hussey]

Some MCQs help pls:
http://papers.xtremepapers.com/CIE/... AS Level/Accounting (9706)/9706_w02_qp_1.pdf Q18 15 13

http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_w03_qp_1.pdf Q5 11 14 21

q)18c
because bonus issue does not affect cash, net assets remains the same
reserves will decrease and ord, share captial increases, so reserves go down
15)i dont understand the question
13)for the new partner's account, gw will be debited, so it should be actually low, but ignoring this transaction would make it over stated
as for the conitnuing partners (which means old partners), their accounts should have been created if goodwill transaction had been taken place, but since it hasnt, their capital account is understated


q5- c make a T a/c like i said earlier everything will be on the credit side except for the bal b/d of 28000, so diff will be 10000

 

[David Hussey]

Some MCQs help pls:
http://papers.xtremepapers.com/CIE/... AS Level/Accounting (9706)/9706_w02_qp_1.pdf Q18 15 13

http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_w03_qp_1.pdf Q5 11 14 21

14-c
revaluation and goodwill is not realised gain
21-c
a cost is being capitalized, so expense is going down, profit increases
remember amortisation means (writing off)-its a term used for intangible assets like goodwill,

 

[Sarah Paul]

14-c
revaluation and goodwill is not realised gain
21-c
a cost is being capitalized, so expense is going down, profit increases
remember amortisation means (writing off)-its a term used for intangible assets like goodwill,

q)18c
because bonus issue does not affect cash, net assets remains the same
reserves will decrease and ord, share captial increases, so reserves go down
15)i dont understand the question
13)for the new partner's account, gw will be debited, so it should be actually low, but ignoring this transaction would make it over stated
as for the conitnuing partners (which means old partners), their accounts should have been created if goodwill transaction had been taken place, but since it hasnt, their capital account is understated


q5- c make a T a/c like i said earlier everything will be on the credit side except for the bal b/d of 28000, so diff will be 10000

Thanks

 

[Sarah Paul]

http://papers.xtremepapers.com/CIE/...nd AS Level/Accounting (9706)/9706_w03_ms.pdf Q2
What is that 16130 in the bank account and the realisation account?
The link for QP for convenience:http://papers.xtremepapers.com/CIE/... AS Level/Accounting (9706)/9706_w03_qp_2.pdf

 

[SalmanPakRocks]

http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_w03_ms.pdf Q2
What is that 16130 in the bank account and the realisation account?
The link for QP for convenience:http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_w03_qp_2.pdf

Realisation account is prepared when we dissolve the partnership or convert it into a limited company. It is a part of A2 accounting and I guess you're giving AS?

 

[AlphaBeta]

Q12 - Like i said i cant seem to get the right words to explain this, but here goes..
Notice that in this question there is no opening stock.
So the purchased quantity should be equal to Sale quantity + C/Stock quantity (Agree on tht before you go ahead, else stop and ask)

Following this principle, the cost of purchasing, which is 450000 would be 550000 (Sales + C/Stock) with the profit.
Therefore the markup would be 550000-450000=100000
Use this to find the markup % = 100000/450000*100 = 22.22%
Now that you have the markup, find the cost price of the stock. Which would be = 50000/122.22 * 100 = 40909.83
Now all the hard work is done. Simply use the normal formula to find the GP now. i.e. Sales - COS
Then itll be like: 500000 - (450000-40909.83) = $90909 Hence C

Phew.

jazakallah finally got it ..

 

[AlphaBeta]

oct/nov 2009 paper 1 > is da marking scheme wrong .. i get B ,12000 but marking scheme says C ...and so does the examiners report