Rest of the answeres
1.m/j 2009 8,
700 discounts recieved not recorded in creditors ledger only in discounts recieved
account , which means its credited in discounts recieved but not debited
in the creditors a/c. So credit side balances are higher by 700 !
& the next entry also causes the credit side to be higher by 1000
so our trial balance shows an increase in credit side by 1000 , we enter
the balancing figure on debit as suspence (i.e 1700 debit),since both errors increase credit balance.
9,
here the ans is C !! , lol @ least thats wat i get :S , hmm i got it like
this since the 63000 in control ac is correct & only amount taken to suspence is
wrong> so only suspence shuld be corrected not the control a/c
wat did u get ?? as the ans !
16,
Debtors control a/cDr: Cr:Balance b/d 225000 Balance b/d 2800
Creditors control transfer 3200
Transfer to creditors contr.. 2800
balance c/d 228200
19,
many ways of doing the question , simplest way is , if u can take sales as x
& u knw that
Sales-cost of sales - expences = profit
X-(800-200) - 400 = 20% of(X) (i.e net profit %)
x-600-400=0.2X
x-0.2x=1000
0.8x=1000
x=1250 got it ?
or u could draw a prift & loss & work bakwards but takes time!! )
30)
OAR as per budjeted rate = 2.2
2.2 x actual machine hours worked=budjeted costs for the machine hours worked
2.2 x 116000 =255200
Reconsiliation:
budjeted = 255200
Add:under absorption = 5800
Actual cost incurred = 261000
2.o/n 2009 p119)
i.
causes the Debit side to be higher by 200 as the Bank o/d is shown as credit.
so suspence will be credited with 200 due to this
ii.
no effct to suspence or trial banlance , its an error of principal(errors not affecting
trial balance)
iii.
Debit entry of 160 enterd as 150 in purchases a/c, this causes the debit balance to be
lower & so this will require a debit entry of 10 in suspence a/c
credit 200
debit (10)
Final 190 (credit) Opening balance in suspence
14)
Add back all interest on capital & saleries & share of profit
Then deduct the intrest on drawings . This is the exact reverse of an appropriation a/c !!
3400-900+5000+20000 =27500
16)
share holders funds is reserves + share capital
here they ask ordinary share holders funds
so its Ordinary share capital + reserves
250+320+125=695
23)
Divident yeild here is 4% i.e dividents are 4% of the share price!
& earnigs here is 0.32 out of that half are paid as dividends i.e for every 1 share
0.32/2 is paid as dividents, if we knw that the divident is 4% of total price of the
share we knw hw to find the share price right >
0.16 is 4% so wat is for 100%
0.16/0.04 x 1 = $ 4
30)
here u can see that stock increased by 3000 units.& u also knw the only thing that
causes the change in profit in marginal & absorption costing is the change
in stocks !.
In absorption costing All costs are taken when calculating closing stock , so if closing stock
is high then cost of production(as we deduct slosing stock from purchases/ cost of sales)
goes down !& so profits are high.This increase in profits in absorption costing
was caused by the increse in stocks.
Profit increased by 19500
Stock by 3000
19500/3000 = 6.50 (fixed overhead rate )
3.2010 m/j p12
10,
invoive of 900 not recorded , recording it would increse debtors by 900
Total Debtors are 48500 + 3600 (before correction of error)
After correction its 48500+900+3600
=53000
29.
here A is out as x breaks even @ a lower output than y
B is out too as fixed costs of x is higher than Y , x has 20 + , while y has like 10!!
C is out too because the SP of X is > than SP of Y , (sales / ouput)
D seems to be correct because :
VC(total) of x is like 10
Average is 10/35 = 0.28
while:
VC of y is like 22
Average is 22/35 = 0.62
VC = Difference of total & FC
27.
Here we get the variable costs first:
Change in cost is 7000
change in quantity is 14000 units
so the Total varies by 7000 when output vaies by 14000
so varable costs are 7000/14000=0.5 per unit
Now substitute varable costs in the data already given to find FC!
i.e it takes 10000 x 0.5 =5000 variable costs for 10000 units
Take care there is 6000
Fc= 6000- 5000
Fc= 1000
Now u knw da FC
we can find the cost for 20000 units!
its 20000x .5 = 10000(VC)
+ FC = 1000
