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Accounting doubts & Queries

Crimson-Saint

Crimson-Saint

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:: A^ said:
Wont be doing this paper until Monday or Tuesday Morning In sha Allah. So not gonna work it out right now, jus gonna tell you how things work :p
Find total cost for both levels.
Use the difference in cost divided by difference in units to find VC/Unit, using which find contribution and then find C/S ratio.
Click to expand...

got it m8 thx.!
 
Crimson-Saint

Crimson-Saint

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but i gotta issue....if the dr balence in purchace ledger control a/c is added....as it is an asset.....will it also work for if we were trying to find thefigure for trade payables....meaning wont 2900 be a current liability that we should add aswell?
 
hitler575

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Crimson-Saint said:
and for this one:
View attachment 41153
Click to expand...
Balance sheet shows Finished goods at cost and trading account shows inventory at Transfer value. Transfer value= Cost+ factory profit(F.P). F.P= cost*F.P%

To calculate the amount of factory profit realised or credited we use the following formula: F.P on Opening Inventory + F.P on Cost of production - F.P on closing inventory. In this case F.P is 20%, Cost 100%,Transfer value will be 120%.

So using the above formula now: Realised F.P= (40000*20%)+ (240000*20%)-((54000/120%)*20%)=$47000.
 
Crimson-Saint

Crimson-Saint

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hitler575 said:
Balance sheet shows Finished goods at cost and trading account shows inventory at Transfer value. Transfer value= Cost+ factory profit(F.P). F.P= cost*F.P%

To calculate the amount of factory profit realised or credited we use the following formula: F.P on Opening Inventory + F.P on Cost of production - F.P on closing inventory. In this case F.P is 20%, Cost 100%,Transfer value will be 120%.

So using the above formula now: Realised F.P= (40000*20%)+ (240000*20%)-((54000/120%)*20%)=$47000.
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i still did not get it :/ can u try solving the questionthat i asked before this one aswell....cus maybe they might be related....cus i dont get the factory profitcost plus thing
 
Crimson-Saint

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in this question my doubt is....why were the intrest on capital not deducted.....and how was the profit share done?
upload_2014-5-5_15-56-30.png
 
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panoramafolks

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panoramafolks

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Crimson-Saint said:
in this question my doubt is....why were the intrest on capital not deducted.....and how was the profit share done?
View attachment 41279
Click to expand...

It is asking for share of total profits not residual profits.
Share of total profits = ?

Residual profit = 75000 - (60000 * 0.1) - (90000 * 0.1) = 60000

X: (60000 / 2) + ( 60000 * 0.1) = 36000
Y : (60000 / 2) + (90000 * 0.1) = 39000

so ans. is B.
 
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