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sir in the second question there’s a step up in fixed COST so sir, why do we subtract it from output? very confused sir in the high low method.
The following shows the total overhead costs for given levels of a company’s total output.
Cost Output
$ Units
4,000 1,000
7,000 2,000
10,000 3,000
9,500 4,000
A step up in fixed costs of $500 occurs at an output level of 3,500 units.
What would be the variable overhead cost per unit (to the nearest $0.01) using the high-low technique?Also i am quite confused with this sum too.
please help sir!!. June 09($) June 08($)
Current assets
Cash 6,000 8,000
Short- term investment 6,000 3,000
Current liabilities
Bank overdraft 9,000 6,000
Short-term investments are highly liquid assets with maturity period of 3 months. The cashflow statement for the year ended 30 June 2009 would show the change in cash and cash
equivalents as: $________________
sir will the asnwer be 2000?An increase in allowances for receivables of $8,000 has been treated as a reduction in the allowance in the financial statement. Which of the following explains the resulting effects?
answer is C is Net profit is overstated by $16,000, receivables overstated by $16,000
why is the double effect? why not just $8,000?Johnson, a limited liability company, has provided the following information:
Building cost $780,000
Accumulated depreciation $540,000
The company decided to revalue the building to $500,000.
What is the double entry to record the above transaction?
A Dr Accumulated depreciation $540,000
Cr Building cost $280,000
Cr Revaluation reserve $260,000
B Dr Revaluation deficit $280,000
Cr Building cost $280,000
C Dr Building cost $260,000
Cr Revaluation reserve $260,000
D Dr Building cost $280,000
Dr Revaluation reserve $260,000
Cr Accumulated depreciation $540,000
Sir the answer here is A
Shouldn’t the entry be like
Dr. Non current
Dr. Accumulated depriciation
Cr. Revaluation surplus
Sir I am not able to understand the answer entry? Nor the answerSir in example no.7
P acquired 75% of the share capital of S on its incorporation. The Statements of Financial Position
of the two entities as at 31 December 2010 are as follows:
P S
Non-current assets 50,000 25,000
Investment in S, at cost 15,000
Inventory 13,000 7,000
Other current assets 10,000 6,000
88,000 38,000
Share capital – $1 shares 45,000 20,000
Retained earnings 30,000 15,000
Current liabilities 13,000 3,000
88,000 38,000
During December 2010 S had sold goods to P for $6,000. S sells to P at cost plus 25%.
P had not sold any of these goods and all were therefore included in inventory.
Additionally, P had not paid S for these goods and therefore the sum of $6,000 is included in P’s
payables and in S’s receivables.
Prepare a Consolidated Statement of Financial Position at 31 December 2010.Sir how to do goodwill on acquisitions of subsidiary in this sum??
