IGCSE Accounting 0452

[MnMz]

http://papers.xtremepapers.com/CIE/Cambridge IGCSE/Accounting (0452)/0452_w12_qp_11.pdf
Q2) (h)- Why and how is it 80 000?
Can somebody explain me this in details? I don't get this at all. :/

$40000 is the value of 80000 ordinary shares where the cost per share is $0.50.
So 80000 is the no. of shares is used to calculate the amount of dividends.

Note: read the question properly.
a $ sign shows the value of the shares not the no. of shares

 

[rawraxel1111]

List price is calculated in this manner:

Ex: The selling price of a good is $50
and the trade discount is 20%

then 100%-20% = 80% or 0.8

there the original price or list price = $50/0.8 = $62.5o

vice versa is applicable

So Wait, Is List price the price before discount or after discount?

 

[MnMz]

So Wait, Is List price the price before discount or after discount?

The manufacturer's suggested retail price
or
The price of an article as shown in a list issued by the manufacturer.

 

[Abdul Basit Arif]

S

http://papers.xtremepapers.com/CIE/Cambridge IGCSE/Accounting (0452)/0452_w12_qp_11.pdf
Q2) (h)- Why and how is it 80 000?
Can somebody explain me this in details? I don't get this at all. :/

See each share price is 0.5 and issued share capital is worth 40000 so 40000x0.5＝80000
So therefore dividend is 0.3x80000＝$24000

 

[ashvvay]

So Wait, Is List price the price before discount or after discount?

list price - trade discount = selling price

 

[Abdul Basit Arif]

L

So Wait, Is List price the price before discount or after discount?

list price is before deducting discount

 

[rawraxel1111]

list price - trade discount = selling price

So it's the price before discount? Like let's say i returned goods 100 and you gave me a trade discount of 20% so the goods that i returned would be recorded in the accounting records as 80 right? And the list price is the 100 and not the 80 right?

 

[Evil Philanthropist]

$40000 is the value of 80000 ordinary shares where the cost per share is $0.50.
So 80000 is the no. of shares is used to calculate the amount of dividends.

Note: read the question properly.
a $ sign shows the value of the shares not the no. of shares

Thanks alot!

 

[xpfaddict]

guys need some little help
as you all have done a lot of past papers
can you tell me
what topics have come in p1
and what topics have come in p2 ?
please help me friends.​

 

[MnMz]

guys need some little help​

as you all have done a lot of past papers​

can you tell me​

what topics have come in p1​

and what topics have come in p2 ?​

please help me friends.​

Honestly, the CIE could be very unpredictable.
So always be on the safe side
and practice all the topics
learn all the formats.
and read through the theories
and get your concept straight.

 

[Evil Philanthropist]

In the Trial Balance, only opening stock (Inventory) is included? Why not the closing stock (Inventory)?

 

[ashvvay]

So it's the price before discount? Like let's say i returned goods 100 and you gave me a trade discount of 20% so the goods that i returned would be recorded in the accounting records as 80 right? And the list price is the 100 and not the 80 right?

yes its before,
and... im confused about the return part.

 

[MnMz]

In the Trial Balance, only opening stock (Inventory) is included? Why not the closing stock (Inventory)?

Yes only opening inventory will appear in the trial balance.
closing inventory will be in the additional info.

 

[rawraxel1111]

Can someone answer M/J 2012 Question 5 D? and explain why the answer is as such? Because it doesn't make sense to me. If the Gross profit is overstated then the net profit will be overstated as well right? Why in the mark scheme is it understated?

 

[MnMz]

Can someone answer M/J 2012 Question 5 D? and explain why the answer is as such? Because it doesn't make sense to me. If the Gross profit is overstated then the net profit will be overstated as well right? Why in the mark scheme is it understated?

which variant?

 

[rawraxel1111]

which variant?

I forgot to mention it sorry. It's in varient 23.

 

[MnMz]

Can someone answer M/J 2012 Question 5 D? and explain why the answer is as such? Because it doesn't make sense to me. If the Gross profit is overstated then the net profit will be overstated as well right? Why in the mark scheme is it understated?

Again, read the question properly.
The overstatement was on the closing inventory in 2011.
This means that this overstatement becomes the opening inventory (because they are asking the effect on net profit of 2012)

If opening inventory is overstated then, gross profit will be understated and so will net profit. (because cost of goods sold will be overstated)

 

[rawraxel1111]

Again, read the question properly.
The overstatement was on the closing inventory in 2011.
This means that this overstatement becomes the opening inventory (because they are asking the effect on net profit of 2012)

If opening inventory is overstated then, gross profit will be understated and so will net profit. (because cost of goods sold will be overstated)

Okay i read it again and i see where i went wrong. >.< But what about the first part of D? They ticket overstated for the gross profit. Is it just an example and not the actual answer? That kinda confused me as well. >.<

 

[MnMz]

Okay i read it again and i see where i went wrong. >.< But what about the first part of D? They ticket overstated for the gross profit. Is it just an example and not the actual answer? That kinda confused me as well. >.<

because they asked the effect of the overstatement of the closing stock on the gross profit of the same year (2011)

so this is pretty straight.

when closing stock is overstated: cost of goods sold will be understated and hence gross profit and net profit of that year (2011) will be overstated.

 

[rawraxel1111]

because they asked the effect of the overstatement of the closing stock on the gross profit of the same year (2011)

so this is pretty straight.

when closing stock is overstated: cost of goods sold will be understated and hence gross profit and net profit of that year (2011) will be overstated.

Ah okay i get it now. The closing and opening got me confused which i believe is the point of this question haha. Thanks alot.