IGCSE/GCSE/O & A Level/IB/University Student Forum

Qualification => Subject Doubts => IGCSE/ GCSE => Commerce => Topic started by: holtadit on April 14, 2010, 10:47:25 am

Title: Accounting HELP !!!!!!!!!!!!!!!!!!
Post by: holtadit on April 14, 2010, 10:47:25 am

Can someone explain how the answer is A ? I have no idea.

Please provide a thorough explanation.

Title: Re: Accounting HELP !!!!!!!!!!!!!!!!!!
Post by: nid404 on April 14, 2010, 10:56:11 am

I don't take accounts...
but from the little knowledge i have

See residual profit comes after detucting salary and interests.
salary+interests= 4000+1100+1300=6400
net profit-6400=residual profit=24200-6000=17800
residual profit shared equally...50% of 17800=8900

Title: Re: Accounting HELP !!!!!!!!!!!!!!!!!!
Post by: haris94 on April 14, 2010, 11:59:25 am

yup nid is right

this question is nothing but a mini profit/loss appropriation a/c
{net profit + interest on drawings - interest on capital - salary} will give u residual profit, then divide this into the share of profit
in this case there is no interest on drawings and share of profit is 50/50

Title: Re: Accounting HELP !!!!!!!!!!!!!!!!!!
Post by: holtadit on April 14, 2010, 12:26:30 pm

I get it. I was adding interest on capital because I thought it was interest on DRAWINGS.


Silly, stupid me  ;D

Title: Re: Accounting HELP !!!!!!!!!!!!!!!!!!
Post by: qwert on May 14, 2010, 06:39:27 pm

Plz can anybody tell me how to calculate the capital employed ? (especially if there is a list of all the assets and liabilities)

Title: Re: Accounting HELP !!!!!!!!!!!!!!!!!!
Post by: capricorn on June 03, 2011, 08:35:12 am

for finding capital employed....
fixed assets + ( curent assets - current laibilities )