Economics, Accounting & Business: Post your doubts here!

[00mfr]

i think partnership accounts and partnership changes is most likely to come this year, in which we have to adjust goodwill by making its account.

yes most probably as it was added this year to the syllabus

 

[00mfr]

hi!!!
can some one help me with over and under absorbed overheads? i find it really confusing.

here is a link to some clear, short and simple notes with an example

 

[student92]

http://www.xtremepapers.com/papers/...AS Level/Accounting (9706)/9706_w11_qp_11.pdf
q14
the correct answer is a, i am getting b, please help me
thanks

 

[Esme]

The profit on closing stock is = 3000 x 20/120 = 500.
The profit on openig stock is = 2400 x 20/120 = 400.
The unrealised profit to be deducted from the income is the difference between the two (100)
which is a.

 

[student92]

i did it using 80% of 2400 and 3000,
can you please explain me why, this 80% does not give the correct answer,
80% of 2400 mean the cost of production,1920
so 2400 minus 1920 is 480, why is this not the profit
thankyou

 

[youzair]

i did it using 80% of 2400 and 3000,
can you please explain me why, this 80% does not give the correct answer,
80% of 2400 mean the cost of production,1920
so 2400 minus 1920 is 480, why is this not the profit
thankyou

brother its cost + profit which relates to mark-up. $2400 and $3000 is showing 120% means 100% cost and 20% profit. so make an equation here 120%=$2400, now you want to know the 20% of it i.e (20/120)*2400 which will give you the correct value of mark-up. Your method will be applied on margin, Margin is on $ales and Mark-Up is at Cost....

If you still didn't get the concept tau tell me!!

 

[youzair]

27 A customer places an order for 20 000 bricks.
Which costing method will the supplier use to price the order?
A batch
B job
C marginal
D unit
correct answe is a
why it it, why not marginal

bro...Marginal means Extra... and here we are currently havent told about the production except that order..further we would choose batch costing....why not unit?
it is because brick order is in large quantity i.e 20 000 that shows to speed up a task we will need to specialise so that's why we would go with batch costing

 

[student92]

thanks for your help,
but if the total value( factory profit + cost ) is 2400, so why is it not that 20% of this value is profit, while 80% is cost,
i believe, if you do 20/120 , it the same as doing 80/100
but why is this not true

 

[youzair]

thanks for your help,
but if the total value( factory profit + cost ) is 2400, so why is it not that 20% of this value is profit, while 80% is cost,
i believe, if you do 20/120 , it the same as doing 80/100
but why is this not true

bro see markup is FACTORY COST + PROFT=100 + 20, while margin is on Sales e.g=80 +20.
markup is g.p over a %of COGS and Margin is profit over sales.
there is difference b/w cost price and selling price so how can 120% b equals to 100%

 

[student92]

ookk, i get it, but still mathematically, isnt 80/100 the same as 20/120?

 

[student92]

sorry,80/100 is 0.8
while20/120 is 0.16
thankyou

 

[youzair]

ookk, i get it, but still mathematically, isnt 80/100 the same as 20/120?

dude just remember one thing Margin is on SALES/Turover
markup is on COGS...
this is the major diff u have to kept in mind. when u see written profit at margin then the $amount$=100%
when u find markup always remember its cost + profit always >100 means $amount$=100% + markup%

 

[student92]

thankyou very much for the tip, i appreciate your help.

 

[youzair]

thankyou very much for the tip, i appreciate your help.

any time brother need assistance in eco bs acc em here for u =)
btw which papers are u giving in this session and from where u belong?

 

[youzair]

sorry just noticed on profile view of you..
so u r from saudia...
from which city u r?

 

[student92]

jed, you

 

[student92]

i think it would be better if we taked via pm, cuase this fourm is for doubts
anyway, it nice to have another helpful bro in here, welcome!

 

[ayeshaddy]

If owner takes out 200 from the business as stock drawings and then later reinvests it then how do we show the double entry and what would be the narative for it on the general journal.?

 

[youzair]

If owner takes out 200 from the business as stock drawings and then later reinvests it then how do we show the double entry and what would be the narative for it on the general journal.?

Trading A/c Debit
Drawings Credit
if reinvesting in cash then
Cash/Bank Debit
Capital Credit

 

[ayeshaddy]

Trading A/c Debit
Drawings Credit
if reinvesting in cash then
Cash/Bank Debit
Capital Credit

wb the narrative..?