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Economics, Accounting & Business: Post your doubts here!

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ok I'm confused about how a rational consumer is expected to behave cuz there's a data response question about bottled water and the mark scheme says that a consumer will behave rationally if he believes that he is maximizing his current wants regardless of whether this choice is thought of as unwise. so a consumer will be rational if he uses bottled water because it's fashionable and he thinks that he is fulfilling his current want even if there's cheap tap water available as a substitute.

And what are direct intervention policies!!!! they're being used in a number of mark schemes as policies to foster growth but no mention of them anywhere else.

And how would an increase in demand for our currency affect the speculative demand for money??
 
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8CeMNQf.png

O/N/2012 - Variant 13
Answer is A. How?
 
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8CeMNQf.png

O/N/2012 - Variant 13
Answer is A. How?
i thought answer was B, but looks like this question has some wording problem

sales was credited by 2400, which means the sales was overcast
so profit should go down by 2400
purchases was also overcast because it wast credited at all, so profit should go up by 1500
the net effect is 900 loss which should be shared as 2:1
so debit each X by 600 and y by 300
we have to assume that they also incorrectly entered the drawings figure which is 2400, but supposed to be 1500, so credit X account by 900, so answer will be A
 
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i thought answer was B, but looks like this question has some wording problem

sales was credited by 2400, which means the sales was overcast
so profit should go down by 2400
purchases was also overcast because it wast credited at all, so profit should go up by 1500
the net effect is 900 loss which should be shared as 2:1
so debit each X by 600 and y by 300
we have to assume that they also incorrectly entered the drawings figure which is 2400, but supposed to be 1500, so credit X account by 900, so answer will be A
so we have to enter drawings also as $2400 :eek: ?
 
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so we have to enter drawings also as $2400 :eek: ?
no, they have incorrectly entered drawings in the current account as 2400, but supposed to be 1500
so to correct this error, you need to credit X's current A/c by 2400-1500=900
 
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no, they have incorrectly entered drawings in the current account as 2400, but supposed to be 1500
so to correct this error, you need to credit X's current A/c by 2400-1500=900
but how do we know they hav entered in the current a/c? they mention only sales na :/
 
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7.
Ess gets net assets of Tee = 80000
Ess pays Tee = (100000)
Ess gets goodwill on aquisition = (100-80)=20000
Net assets movement = 0 so the ans is 250000 ie, same as before.

8.
Net assests taken over @ fairvalue = 400 + 120 - 200 = 320
Purchase consideration = 1500
Goodwill = 1500 - 320 =1180 so and. is D.

10.
according to IAS10, proposed dividends are no longer taken into account and only given as notes to accounts
so 40+30-15-10 = 45000.

11.
Book value of ordinary share = (Reserves + OSC balance) / Total no. of Osc. shares
(420000 + x) / 15000 = 50
x = (50 * 15000) - 420000
x = 330 000

Nominal value = OSC balance / No. of OSC.
=330000/15000 = $22.

19.
Bcoz equivalent units increase from 50000 to 60000 cost/unit increases and WIP total will icrease as its evident from incrase in no. of units in WIP.
 
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O/N/06 - P1
Why do we take 8000 instead of 12000?

opening capital + profit + fresh capital - drawings = closing capital
12000 + profit - 16000 = 30000 + Decr in value/impairment (12000-8000)
profit = 30+4-12+16
profit = 38000 so ans. is D
 
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Accounts M/j 2013/12
Ques 1. Can someone explain me the question as well as the answer (its B)
 

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Accounts M/j 2013/12
Ques 1. Can someone explain me the question as well as the answer (its B)
they are basically asking how there is a credit balance in X's account in the books of Y
use the double entry to help you, think you are person Y
for:
choice A- transaction would be, X account debit and credit purchases a/c

B-sales return a/c debit and credit X a/c

C-cash a/c credit and debit X a/c

D-purchases return a/c credit anddebit X's a/c

out of all options, only B shows that X's account is getting credited, so answ is B
 
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Ques 8 and 12 please,

Why is the suspense acc not created for (B) in q 8 and why is the ans C??
How is profit calculated for 12??
 

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