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Economics, Accounting & Business: Post your doubts here!

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how have they apportioned the insurance expense in Q.3 and why have they used retained earnings for bonus issue( they've deducted it from retained earnings in the mark scheme) in Q.1. a) instead of using share premium account????
 

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how have they apportioned the insurance expense in Q.3 and why have they used retained earnings for bonus issue( they've deducted it from retained earnings in the mark scheme) in Q.1. a) instead of using share premium account????
do u mean q2?
 
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how have they apportioned the insurance expense in Q.3 and why have they used retained earnings for bonus issue( they've deducted it from retained earnings in the mark scheme) in Q.1. a) instead of using share premium account????
we normally use the retained earnings for bonus issue

make an insurance account

the ending part of the scan isnt visible sorry
it is
2000-12
X -3
2000*3/12=500
 

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Q17 - Answer is C because: Equilibrium level of income is where GDP/GNP = C+I+G+(X-M)
Therefore what you do is, add everything except GNP for all 3 years, minus it with the GNP value given, and if the answer is minus it means that X<M = Deficit. Hence, BOP Deficit.
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Q19 - Answer is B - Because in the short run, prices of all factor inputs are fixed.

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Q 30 C because in slump there will be Budget Deficit hence increase taxes to make it balanced budget
and lower taxes in boom because in boom there will be more revenue and less expenditure so lowering taxes will decrease govt revenue and maintainin balanced budget
 
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