Qualification > Commerce
all acc doubts here !!
pastyear:
The upper part as usual normal p/l account but at thelast part before you get your net profit you have to less under-absorption of fixd overhead or add over-absorption of fixed overhead.
Remember absorption costing is based at full cost.
pastyear:
Questions again. Pls explain.Thanks.
Q1) When we calculate OAR how do we find the Budgeted overhead if thequestion is not given directly but they give the variable production overhead, fixed production overhead, fixed selling and administrative expenses.
Which one do we include ? and why include and not include?
Q2)At the year-end a cash book shows a credit balance of $4800.
The bank statement included bank charges of $25 which had not been included in the cash book.
Cheque payments entered in the cash book before the year end to the value of $250 had not yet
cleared the bank.
How would the bank balance be shown in the balance sheet?
Ans: current liability $4825
Q3)The wages of staff employed in manufacturing goods have been debited in the profit and loss
account.
What is the effect of this error?
Ans: gross profit -overstated ; net profit- no effect
immortal:
Q2) Wen u reconcile da cash book wit da bank statement, da up-2-date cash book will show -4800-25=4825(CL).
While da bank reconciliation statement wit da bank statement bal of (-)4550 will decrease by 250.
Q3) The wage should b charged in a manufacturing a/c, not da P&L.
Due 2 da error Maun a/c is overstated(production cost) thus G/P is overstated.
regardless of where da expense is shown,it wont effect da final profit N.P.
Prince007:
hey guys got a question In the ratio chapter are the gearing ratios in syllabus of 2010 in a AS level.
skywalker112233:
hey man..i was just goin thru this site and sum threats and i found this...i am actually really glad that i found this threat because i need help in accounts...i am not bad at it...bt at times i forget certain things....i can do the past papers...bt i take time...a lott of timee..and can u help plss...can u like suggest wt i should practice inorder to get speed and perfection at this subject...plss..thankzz (i hope i get a quick replyy)
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