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Help Accounting AS Paper1

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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.
 :D :D

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 )?
 

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