i got 2800000 for net assets business x...dont remember the second one but is it correct?
capital employed doesnt include long term liabilities...
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Accounting paper 22 discussions here.
- Thread starter jaideep
- Start date
capital employed doesnt include long term liabilities...
52800 is correct...20000 net profit is correct and i also indicated business x as manufaturing
and i made the same mistake in question 1
what did you do with goodwill...did we have to right it off..we werent told to write it off???
and did we have to show the workings?????
the priorities in question 3 were apex 1...cord 2 and bond 3 with maximised profit coming 52800.
i did not write off the goodwill since it wasnt mentioned...
loan interest was 1000 and corrected net profit 20000
as for the question why goodwill has arisen....i just winged it and said that the net value of the business is greater then its net assets and good reputation and its a profit generating business.
tell me whats INCORRECT.
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Don't we take loan accrude as a deduction from net profit?
Since we only took 3 months from it, what about the remainder? Accrude at end is added to expenses correct?
Since we only took 3 months from it, what about the remainder? Accrude at end is added to expenses correct?
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I dont even remmbr the figures I got. Most of my figures are wrong. Im just worried :S I hope i get 1Of.I had no idea what I was doing and wrote about the current ratio
Sure i will by the night hopefully.
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the (e) part isn't even visible in this picture my dear friendQ3 Can someone answer the (e) part. Like the way you wrote it in the exam?
#poorquality #webcam #sorryformypoppingnails
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In part (e), we had to calculate the profit, right?Q3 Can someone answer the (e) part. Like the way you wrote it in the exam?
#poorquality #webcam #sorryformypoppingnails
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You did not have to treat the good will, I mean, it wasn't to be written off, just credited into Grosz capital account.
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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.
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.
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:O You mean we weren't supposed to debit it with the new ratio?!
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No, that's because the question didn't say so, though IAS says that internally generated good will should not be recorded due to subjectivity and objectivity concept, but CIE doesn't get the point!
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In the past, there was this question, which was exactly like that, good will wasn't to be written off.
Or else it's mentioned that it should be written off
Can you please post the entire paper? Especially paper 1?Q3 Can someone answer the (e) part. Like the way you wrote it in the exam?
#poorquality #webcam #sorryformypoppingnails
me tooooooofingers crossed X_X :'( i want gt to drop real low
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Paper 1 is already been given, I'll provide you!
Sorry, i meant qs1
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What about economics paper one? Has that been given too?
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are u sure that Q2 said that interest ws fr four months cause i think loan ws frm 1 march 2011