Accounting paper 22 discussions here.

[SRKfan]

What is that?

how many marks do u think ill lose if i considered gross profit ratio as markup...in question 1....?? i did some rough workings for calculating other stuff on the blank page... any idea??

 

[SalmanPakRocks]

how many marks do u think ill lose if i considered gross profit ratio as markup...in question 1....?? i did some rough workings for calculating other stuff on the blank page... any idea??

You'd lose all the marks available for that particular answer, but by ecf, the other marks would be given

 

[SRKfan]

yea even i thought so... i hope it is that way cuz every figure was related to the other... InshAllah wish to ace it.... but im still worried cuz q1 calculation part was 20 marks in total.... 12 for part a and 8 for part b.... btw how do u calculate the capital employed cuz under capital it only said loan... so i wrote capital employed as $1m... thats wrong?

 

[rizwan abdul razzak]

yea even i thought so... i hope it is that way cuz every figure was related to the other... InshAllah wish to ace it.... but im still worried cuz q1 calculation part was 20 marks in total.... 12 for part a and 8 for part b.... btw how do u calculate the capital employed cuz under capital it only said loan... so i wrote capital employed as $1m... thats wrong?

the roce ratio was given and you calculated the operating profit in the first part.. right?? you sustitute in the roce formula to get the capital employed which includes the long term loan.

 

[perfect1]

the roce ratio was given and you calculated the operating profit in the first part.. right?? you sustitute in the roce formula to get the capital employed which includes the long term loan.

And then we had to minus the loan right? If yes, how many marks will I lose if I added the loan?

 

[Numnum]

And then we had to minus the loan right? If yes, how many marks will I lose if I added the loan?

Add

 

[SRKfan]

the roce ratio was given and you calculated the operating profit in the first part.. right?? you sustitute in the roce formula to get the capital employed which includes the long term loan.

thanks dude

 

[Rizwanjubail]

Wasn't the value of Capital 1000000 im Q1? because we simply had to add L.T.Liabilities in Capital which was 1000000..Was there anything else to add?
PLZZZ REPLY....

 

[rizwan abdul razzak]

thanks dude

welcome.

 

[rizwan abdul razzak]

Add

Wasn't the value of Capital 1000000 im Q1? because we simply had to add L.T.Liabilities in Capital which was 1000000..Was there anything else to add?
PLZZZ REPLY....

nah. the figure you get already includes the loan and you need to add the current liabilty which were the trade payables and then deduct the current assets to get the figure for fixed assets. ​

 

[Rizwanjubail]

BUT Trade payables wasn't given right???
and there was no blank for C.Assets as far as i remember

 

[SalmanPakRocks]

BUT Trade payables wasn't given right???
and there was no blank for C.Assets as far as i remember

There was and trade payables had to be calculated by current ratio

 

[Rizwanjubail]

There was and trade payables had to be calculated by current ratio

I mean there was no blank fot trade payables in the Balance Sheet
Was there any??

 

[3fatak]

I mean there was no blank fot trade payables in the Balance Sheet
Was there any??

yes there was.

 

[khanofharyana]

does anybody have Q2s picture of the paper, to confirm whether the loan was for a year or 3 months

 

[Saad Amer]

Goodwill had to be written off in the second question although it wasn't mentioned. Yeah,in a past paper when the examiner didnt mention anything the marking scheme didnt write off the goodwill,but from now on we have to as only purchased goodwill can remain in the books of accounts and that's highly unlikely in this question.
The correct profit figure for q2 was 20,000 and hence the goodwill amount was 40,000.
q3 was fine.
q1 created a lot of confusions and uncertainties .. Was the long term liability being added or subtracted... From where it was placed,it looked like as it had to be added.

 

[razahayat777]

Goodwill had to be written off in the second question although it wasn't mentioned. Yeah,in a past paper when the examiner didnt mention anything the marking scheme didnt write off the goodwill,but from now on we have to as only purchased goodwill can remain in the books of accounts and that's highly unlikely in this question.
The correct profit figure for q2 was 20,000 and hence the goodwill amount was 40,000.
q3 was fine.
q1 created a lot of confusions and uncertainties .. Was the long term liability being added or subtracted... From where it was placed,it looked like as it had to be added.

It was going to be added to the Capital, which was going to be equal to Capital Employed.

 

[perfect1]

Goodwill had to be written off in the second question although it wasn't mentioned. Yeah,in a past paper when the examiner didnt mention anything the marking scheme didnt write off the goodwill,but from now on we have to as only purchased goodwill can remain in the books of accounts and that's highly unlikely in this question.
The correct profit figure for q2 was 20,000 and hence the goodwill amount was 40,000.
q3 was fine.
q1 created a lot of confusions and uncertainties .. Was the long term liability being added or subtracted... From where it was placed,it looked like as it had to be added.

The Balancing capital figure were 2,800,000 and 800,000 right?

 

[Saad Amer]

Mostly in paper 2,the marking scheme subtracts long term liability from net assets(working capital plus fixed assets) and then considers that as the balancing figure.. You can add the long term liability at the end too. But i'm not sure which way to follow..
And does anyone have the question paper because math papers have already been uploaded.

 

[adeela]

how many marks will I get in q3 profit maximization part if I only wrote the quantity and marking?