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

Qualification => Subject Doubts => GCE O - Level => Commerce => Topic started by: Benjamin on May 14, 2010, 07:57:56 am

Title: Principles of Accounts for GCE O'levels
Post by: Benjamin on May 14, 2010, 07:57:56 am

Hello guys,
Suddenly I have come up to this question in which I cannot understand the way to solve it. I hope you may be able to do so.
The link for the past paper is;
http://www.xtremepapers.net/CIE/Cambridge%20O%20Levels/7110%20-%20Principle%20of%20Account/7110_s09_qp_2.pdf
,which is for 420kb. For your convinience I have it in a JPG format for 139kb, as well. The link for it;http://img341.imageshack.us/img341/3527/accounting.jpg
The problem lies in question no, 5 and additional materials number 2, Page no 14. Tell me how to calculate this part. I will be highly grateful to you.
Regards,
Ahmed

Title: Re: Principles of Accounts for GCE O'levels
Post by: raheem94 on May 21, 2010, 08:37:35 pm

I think that it will be done in the following way:

20% of the motor vehicle running expenses will be carriage inwards/carriage on purchase. So carriage inwards will be 20% * 6500 = 1300

80% of the motor vehicle running expenses will be carriage outwards/carriage on sale. So carriage outwards will be 80% * 6500 = 5200