Help Accounting AS Paper1

[pastyear]

Can someone help me to solve these Questions.Pls show your workingsor explanations.Thanks


Q1)  A business makes a provision for doubtful debts equal to 5 % of its debtors.
       At 31 March 2008 the provision for doubtful debts was $850.
       At 31 March 2009 the debtors after the provision for doubtful debts were $17 100.
       How much is the increase in the provision for doubtful debts for the year ended 31 March 2009?
       A $45   B $50    C $850   D $900


Q2)At 31 March the balance sheet of a company included the following.

          trade debtors 23 000
           provision for doubtful debts 1 200
     During April credit sales were $64 000 and cash sales were $256 000. Credit customers paid
     $56 840 net of a 2 % cash discount.
     What will be the trade debtors at 30 April?
      A $27 800    B $28 960  C $29 000       D $30 160

Q3)  A company has a share price that gives a dividend yield of 4 %. Earnings per share are $0.32 and
       half the earnings are paid out as dividends.
       What is the share price?
       A $2.00     B $4.00     C $6.00    D $8.00

[immortal]

in 5 min

[pastyear]

Thanks.
 

[immortal]

Q1> B
        (17100/0.95)*0.05
        900-850
Q2>C(not sure)
      56840/0.98=58000(credit customer paid)
      64000-58000=6000(increase in creditors)
       23000+6000=29000

Q3> B
       Divid per share=.32/2=0.16
      16%*(1/x)=4%
       x=4

[pastyear]

ya all correct.
But need more explanations on question 2.
Why debtors paid is 56840/0.98?
At the last step, why the trade creditors at 31 March is not 21800 ( 23000-1200 )?
 

[pastyear]

Anyone who takes Accounting AS and A2.
I suggest to form a group study to ask questions. Wherenever got a question just post it and members will try to solve it asap . Just our members. Members must contribute some efforts in helping others members.
Be fast to reply members' questions.

I am not selfish. when i see some post about accounting questions it was few ppl reply and very late in reply. Pls help yourself also help others.

If you are intersted just reply here.

[immortal]

ya all correct.
But need more explanations on question 2.
Why debtors paid is 56840/0.98?
At the last step, why the trade creditors at 31 March is not 21800 ( 23000-1200 )?
 

56840 after discount of 5%
X*95%=568400
X=58000(inclusive of da 5%)

#Dont deduct, as it haz already being done in da balance sheet, & 23000 is frm da balance sheet.
 

[the winner]

hey any body want importance for examination for free

[the winner]

yes does any one need importance for accounting examination

[***exam***]

check out subject doubts section 4 the thread all acc doubts here

[***exam***]

Q2
x - the amount paid by the credit customers   
    x-2x=56840
       100
       
100x-2x =56840   ( lcm)
       100     

98x=56840*100
x=5684000/98
= 58000
           
64000-58000 =6000

6000+23000=29000

thats long but thats how i got it

[***exam***]

people check out subject doubts section 4 the thread all acc doubts here

[pastyear]

Thanks
 

[pastyear]

ppl i had posted some questions on ***exam*** 's thread---its on subject doubt .

[Monica]

Okay...I posted in exam's thread replying to your doubt pastyear.

Now, soon I will be merging all the accounting doubts threads in that thread exam made.