- November 25, 2019 at 8:03 pm
1) Sir, in section C of paper suppose we have to make income statement, and in this sales, cos, GP admin expense, selling expense, PBIT, finance cost, PBT, tax expense, NP all these figures are coming in decimals. So do we have to round off each and every figure OR do we just need to round off the final answer (i.e NP)
2) In section C if we have to calculate ratios, for example GP margin so in its working do we also have to write the general formula i.e (GP/sales x 100%) OR we just need to pick the GP fig e.g 10000, and sales fig e.g 50000 and divide these both and then multiply by 100?November 27, 2019 at 11:03 am
1) I’d round off to the nearest thousand for each line item.
2) No, do not write the formula as you do not get credit for writing it out. Just show the numbers used in calculating the ratio.
thanksNovember 27, 2019 at 6:16 pm
If we do not round off to the nearest thousand for each line item, and just round off the final answer (i.e NP), then do they deduct marks for it?December 2, 2019 at 10:41 am
No, you shouldn’t be deducted marks for rounding. That would be a bit harsh……
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