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how many marks will be deducted for adding loan figures to capital employed and then getting wrong non current assets and for not showing workings?Okay, here are my answers.
I selected Business Y as computer manufacturer, which I know was wrong, I got Capital employed 1800,000 and 750,000 respectively while sales were 540,000 and 1500,000. Non-current assets had to be found by using working capital and deducting it from Capital employed.
In Question 2, I didn't see that interest was just for 3 months, so I took it whole and got wrong net profit of 18000 instead of 20,000 but that would cause a maximum of 3 marks. Good will was to be credited in the Grosz account but not to be written off. Appropriation account would be correct but I think I'll lose marks in theory as for why good will was arisin.
In Question 3, I got 2200 as break even and then got the Margin of safety in revenue. The total material was coming 48000 metres and the profit was coming $52,800. Examiner might deduct 1 or 2 in the last part but that's unlikely because I mentioned that different profits are reported due to change in inventory level as in Marginal costing, inventory is treated as period cost while in absorptional, it's treated as unit cost.
Which interest?In Q.1 6 marks was for free...as we have to jst copy pate the cost of sales of Business X and Y then the Interest part we have to jst copy paste and cash equaltiant so 6 marks was free and i will only get these 6 marks in 1st question
well the qs was for 7 mks.. they wont give u 7 mks for just copying figs..
Are sure about it. cause this would mean i would loose only 3 to 5 marks n get full in the rest of the questions even i used wrong profit?
Yeah check it out in the mark schemes of past papers, they provide 1OF.
True that, but I've done this kind of question before, and I did write off the good will, but it in the Marking scheme, it wasn't written off. I'll try to find that paper.well the qs was for 7 mks.. they wont give u 7 mks for just copying figs..
Loan had to be added to the capital to give capital employed. I don't know, I guess couple of marks?
Error carried forward, my friend.Me too
I know, but did they ask you to write it off?
acc. to prudence and IAS u should..
so when u had 7 mks and valid accnting reason for it.. y not?..
You're definetly correct, it should be written off, but if you see the questions of partnership, you'll notice how it's written to write off the good will.acc. to prudence and IAS u should..
In this question, it wasn't. And when I asked my sir, he told me I did correctly, but it's all up to the examiner.yeah right...You're definetly correct, it should be written off, but if you see the questions of partnership, you'll notice how it's written to write off the good will.
examiner should be explicit in qs ..
Yeah, he should because it created confusions. The internally generated good will should be written off, in the past however, it was clearly mentioned to write it off but there was nothing mentioned about good will's treatment in the question this yearyeah right...
that is exactly what i got
Same.that is exactly what i got
it said to prepare the capital accounts immediately after the admission of the partner....i wasnt going to write it off at first but i did, to find out the figure for the interest on capittal.
the interest on loan was 360 as it was for 4 months only
u get "of" (own figure) marks
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