[gabriell]

HI 🙂

A company has balance on share premium account of 50000$ and on retained earnings of 75000$. Issued share capital is 400000 25c shares.The company decides to make a bonus issue of one for one. What are the closing balances on share premium and retained earnings?

Share premium 0 Retained earning 25000

[gabriell]

Which two of the following are valid reasons why the inventory turnover period of a company increses from year to next?

answer is a slow down in trading
obsolete goods

My qws is why these increase inventory turnover?
and high inventory turnover is good or bad?

[gabriell]

John, in above ziezzie asked qws

But it must be concerned with equity not debt borrowing. because it is irredimable

[gabriell]

valid reasons increase turnover ratio one year to next??answer is a and b

a)Obsolete goods – please explain why
b)a slow down trading please explain why
c) Seasonla fluctuans in orders/ why not?

[gabriell]

Dear John,

I have a such qws

I cant remember

liqudity ratios

Accounts reseivable turnover

I confuse them if it is Sales/reseivale or receiable/sales?
Thanks

[gabriell]

A company is preparing its bank reconcilation at 31 december 2007. The following receipts and payments hae been entered the in the cash account.

Date of cash book entry Data entered on bank statement
receipts
31 december 2007 2 January 2008 17432
30 december 2007 31 december 2007 18243

Payments
28 december 2007 30 december 2007 10947
31 december 2007 2 January 2008 8976

1.What amount will appear on the bank reconcilation as uncleared deposits?

2/ what amount will appear on the bank reconcilation as unpresented cheques?

[gabriell]

What does adjustement to profit means?. We must correct the mistaken records and then see the efect yeS?

[gabriell]

A cheque for 980 from customer paid in on 26 March was dishonoured after 31 March 2008 and Goerge decided that debt would have to be written off as the customer was now untraceble.

For adjustment to cash book will we credit it or not? and how will it be in bank reconcilation add or less/

Thanks

[gabriell]

A bank error has resulted in a cheque for 97 being debited to dalla’s account istead of Dynasty’ s account.
How will be correct it bank statement
+194? Or +97

[gabriell]

Stydy text

[gabriell]

This is very diffucult for me to understand. Cost plus 25%. It is mark up then.

[gabriell]

How did u come to4000????

[gabriell]

Oh, understand. Ok please answer remain qws.s

[gabriell]

Patience co has a subsidiry. Ben co.during 2001ben sold goods to patience for 40000 which was cost plus 25 %. At 31 december 2001 20000 of these goods remained unsold..
What will profit be reduced by in the consolidated income sta.
Answer 4000

[gabriell]

Pleasee, answer this one also

In qws asks for Consolidated cogs
2 companies cogs added – intragroup cogs-unrealised profit
Why unrealised profit is deducted?
Reason?

[gabriell]

Sir, hi 🙂

There is mock exam here.
It was written in qws.
The balance on current account beetween Ann and ben was 53000. Asks for reseivables. In answer reseivables of ann and ben added and deducted 53000. My qws is y 53000 deducted?

[gabriell]

Thanks but one more qws please

Ann com acquired 80 % of all share capital of beta co on 1 january. 1 january 2001.on 1 january the fair value of beta co net teangible assets are 450000 .at 31 dec 2001 the fair value of net tang assets of beta co are 600000.

My qws is why we use 450000 not 600000 while calculating goodwill.

[gabriell]

Dear sir

My exam is approching 4 days
Please help
Ann sells good on credit to ben. Ben reseives a 10 % trade disciund from ann. A further 5% settleme t discount if goods are paid for within 14 days. Ben bought goods with price of 200000 from ann
What amount should be included in ann reseivable ledger ?

I thought 171000
Answer is 180000

[gabriell]

Dear John

Partners have limited liability and are not personally liable for the debts of the partnership

Is it correct ?

[gabriell]

John

Ann aquired 450000 of 500000 $ share of john..
When we calculate goodvill
In answer
500000 was deducted , but only 450000 share was acquired

[gabriell]

John.
Sales journal undercast 150
Sales day book undercast 150
In 1 we. Need suspense
But 2 not need
Why??

[gabriell]

At 1 april 2009, the payables ledger contol account showed a balance of 142320 $
At the end of april the following is extracted from subsidiary books for April.

Purchase day book 183800
It also discovered that the purchase day book figure is net of sales tax at 17.5%; the other figures all include sales tax.
What is corrected balance of payable ledger control account?

[gabriell]

Thanks

[gabriell]

Thank u, John

4. How did u know no sale occured?. But it says that customer accepted the goods.
Why inventory need including?

5. The suspense account shows a debit balance of 100. What could this balance be due to?
A) entering 50 reseived from A on the debit side of A account
B) undercasting the purchases account by 100
Why answe a is not correct
Thank u again 🙂

[gabriell]

In october 2006 ann sold some goods on sale or return terms for 2500. Their cost to ann was 1500. The transaction has been trated as a credit sale in ann’s finansial statements for the year ended 31 oct 2006. In november 2006 the customer accepted half of the goods and returned the others half in good condition. What adjustements if any shoukd be made to the financial statements.
Answer
Sales and reseivables should be reduced by 2500 $ and closing inventory increased by 1500

[Author]

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