[carl123]

Administration expenses ($000): 1000

So what I would do is:

Savings
1140 x 8% (Saved overdraft) = 91.2

Cost
2600 x 9% (Extra cost) = 234

Is this correct?
If you could do the entire solution here, that would be much appreciated as well, sir.

[carl123]

That’s splendid!

Thank you very much, Sir Mike. Have a nice day, God bless 🙂

[carl123]

There are some past papers on the website, can I use those?

Although, I will take your advice and try to grab an exam kit myself.

Thank you for the response, Sir Mike.

[carl123]

Oh now I get it! Thank you very much for the clarification, Sir.
God bless 😀

[carl123]

Oh okay, so instead of counting from 1, we start with 3 because that’s when we get our first receipt, am I correct?

In the second part of the solution why did we start with year 2 in getting the annuity discount factor?

[carl123]

Thank you, Sir Moffat!
God bless 🙂

[carl123]

Thank you, Sir Moffat! God bless 😀

[carl123]

I will keep that in mind from now on Sir Moffat 🙂
Thank you for your kind reply! God bless 😀

[carl123]

Thank you, Sir Moffat!

Can you please answer my second question as well? 🙂

[carl123]

Sir, sorry to bother you but I have another question, but this time it’s about standard costing. What is the difference between Fixed O/H capacity variance and Fixed O/H efficiency variance? The formula is quite confusing 🙁

[carl123]

Thank you for the quick response, Sir Moffat!
God bless 🙂

[carl123]

I will rewatch it sir. Thank you for the quick reply 🙂
God bless! 😀

[carl123]

Oh now I get it 😀
Thank you Sir Moffat! God bless.

[carl123]

Thank you Sir Moffat! God bless 😀

[carl123]

Thank you for the examples Sir Moffat 😀
Have a nice day and God bless!

[carl123]

Sir what do you mean by “money received directly into the bank.” Can you cite an example?

[carl123]

Thank you Sir Moffat. Have a nice day and God bless 😀

[carl123]

Thank you sir Moffat 🙂 This will help me a lot.
God Bless! 😀

[carl123]

Thank you so much for your response Sir Moffat 🙂
God Bless! 😀

[carl123]

Thank you sir! God Bless 🙂

[carl123]

Thanks for clearing things up for me sir! Have a nice day 🙂
God Bless 😀

[carl123]

This question actually came from an Exam kit which I have, It includes answers as well. In the T account made in the book, It debited the proceeds of the car when they sold it, why is that sir? In the question, It is stated that “during the year $50000 was banked, including the $5000 from the sale of a business car”.

Should the proceeds be credited instead along with the banking?

[carl123]

Oh I get it now sir. Thank you very much for your response 🙂 God Bless!

[carl123]

Sorry sir but I didn’t quite get that. You said a credit entry increases profit? But it says there in C. A “Debit” entry increase profit.

[carl123]

Sorry if I was a bit rude there sir.

Here is the actually question:

Which of the following is incorrect?
A. A Debit entry increases assets
A Debit entry increases drawings
A Credit entry increases profit
B. A Debit entry decreases liabilities
A Credit entry increases capital
A Credit entry increases profit
C. A Credit entry decreases assets
A Debit entry increases drawings
A Debit entry increases profit
D. A Credit entry increases liabilities
A Credit entry increases capital
A Debit entry decreases profit

I think the answer would be either A or C but the last part of each statement (A Debit or Credit entry increases profit) confuses me a bit.

Thank you in Advance Mr. Moffat! God Bless 🙂

[Author]

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