IGCSE Accounting 0452

[Jotham]

Hopefully they will repeat it this year too!!

 

[MnMz]

Hopefully they will repeat it this year too!!

Starting 2002 or 2005 max. till 2012.
Learn all the theoretical questions as they are mentioned in the marking schemes. You will notice a repetition many times.
If you have any doubt you can ask me

 

[Jotham]

Yes i did notice them right now. Thank you

 

[Ato E.]

I am doing accounting igcse this year, but i have not really started revising yet.

 

[MnMz]

I am doing accounting igcse this year, but i have not really started revising yet.

Just keep on practicing all the past papers atleast from 2005 up to date.

 

[Rahma Abdelrahman]

Hey.. everyone
Just a random question: What's the difference between Accounting Paper 1 and Paper 2?

 

[Rahma Abdelrahman]

Is there a way to remember mark up and margin? I always confuse them?

 

[Rahma Abdelrahman]

And then how can selling goods at higher prices and buying goods at cheaper prices increase Gross Profit %?Yes these factors increase GP but the formula is : (GP/Sales ) *100 so sales are affected ..... I got confused .. I think i got it but its not that clear. Can someone clarify please?
And at the same time, it is written that the following are reasons for decrease in GP %: Selling goods at HIGHER prices, Offering trade discount, Not passing on increase prices.
I dont get how Selling goods at higher prices can both Increase and decrease GP %??!!
And what does this last point mean??!
And if offering trade discount decreases selling price, how can it decrease GP %?

 

[Rahma Abdelrahman]

What is the exact meaning of rate of stock turnover?

 

[Jotham]

And then how can selling goods at higher prices and buying goods at cheaper prices increase Gross Profit %?Yes these factors increase GP but the formula is : (GP/Sales ) *100 so sales are affected ..... I got confused .. I think i got it but its not that clear. Can someone clarify please?
And at the same time, it is written that the following are reasons for decrease in GP %: Selling goods at HIGHER prices, Offering trade discount, Not passing on increase prices.
I dont get how Selling goods at higher prices can both Increase and decrease GP %??!!
And what does this last point mean??!
And if offering trade discount decreases selling price, how can it decrease GP %?

Increasing prices for good would mean that sales revenue will increase whereas when buying goods (they mean raw materials) it would decrease the cost of goods sold. Therefore, there is a larger difference between these two figure, so higher gross profit is made. Put that in the equation and the percentage should increase too.

When it comes to trade discounts, again they are talking about lower cost of buying raw materials. This is because if you buy raw materials in bulk from a supplier, they will give you a trade discount (which is not mentioned anywhere else except on the invoice). So once the discount has been deducted, the overall cost has decreased.

What is the exact meaning of rate of stock turnover?

This is the number of times a batch of finished goods are completely sold in a year.

Hey.. everyone
Just a random question: What's the difference between Accounting Paper 1 and Paper 2?

There is not much of a difference nowadays but in the past yes.

Is there a way to remember mark up and margin? I always confuse them?

I think you will just have to memorise them.

Hopefully this should help you!!

 

[Rahma Abdelrahman]

Jotham Thanks for the explanation..
It was really helpful!
One more question if u don't mind:
Can you please explain Disposal account? What is "Trade in" in disposal account?
And why is an entry in disposal acc. also go in the provision for depr. acc ? And how??
If I have more doubts will post in shaa Allah

 

[Rahma Abdelrahman]

When calculating corrected net surplus for club, why do we subtract subscription prepaid? why not subtract?

 

[Jotham]

Jotham Thanks for the explanation..
It was really helpful!
One more question if u don't mind:
Can you please explain Disposal account? What is "Trade in" in disposal account?
And why is an entry in disposal acc. also go in the provision for depr. acc ? And how??
If I have more doubts will post in shaa Allah

Disposal account is used to record a sale of a fixed asset. Trade in is when the asset is exchanged with a new one. eg: exchange an old car for a new car. So the value of the asset is credited in the asset account, to cancel it out, and then debited in the disposal account. Then the depreciation of the asset is credited in the disposal account and then debited in the provision for depreciation account, to maintain dual aspects of every entry. The cash received is of course debited in the cash book then credited in disposal account. Then balance of the account.

 

[Rahma Abdelrahman]

Are you sure about the trade in part?? I mean are u sure it is debited in disposal account and credited in asset account?

 

[Jotham]

Are you sure about the trade in part?? I mean are u sure it is debited in disposal account and credited in asset account?

Yes I am sure with both. You can ask your teacher if you want a better understanding. You have got plenty of time to study as the exams are only in June. So there is like three weeks.

 

[Rahma Abdelrahman]

I asked whether u r sure because in the notes it is written the opposite...
Anyways, Thank you very much, Ur help was really appreciated

 

[Jotham]

Your welcome!

 

[Rahma Abdelrahman]

When calculating corrected net surplus for club, why do we subtract subscription prepaid? why not subtract?

This was in June 2012 P23 Q4b..

 

[MnMz]

This was in June 2012 P23 Q4b..

Because the members have paid the money for the next year or whatsoever, so it's like a liability to the club owners since it's like you owe the members a service, which they have not yet realized. They come under Current Liabilities in the Balance Sheet.
When you draw up a subscriptions account, any subscriptions paid in advance are carried down as a credit balance to the following period.

Hope you get it

 

[humdono]

even i am giving accounts in this session
does anyone have notes for all theory and all the formats fr practicals