blastexams.blogspot.com
blastexams.blogspot.com
blastexams.blogspot.com
blastexams.blogspot.com
1a) Trading Account is an account which is prepared to determine the gross profit or gross loss of a business concern.
1b
i) Closing stock
ii) sales and sales return
iii) purchase related expenses
iv) factory or manufacturing expenses
v) Purchase returns
vi) opening stock
vii) Carriage inward
viii) Wages
2a) What is Discount ? Meaning
In simple terms, Discount is an allowance or
concession in price. Discount is given so that the buyer is induced (lured) to place an order and later to make payment in time.
Discount can be also referred to as a deduction in price. The seller deducts the discount from the gross or total price, and the buyer is supposed to pay the net amount.
2bi (1)Trade Discount is a reduction in the catalogue price of the goods allowed only if the quantity ordered by the buyer is quite large.
(2) Its purpose is to encourage the buyer to make bulk purchases. It is allowed on cash as well as credit sales.
(3) The trade discount is not shown in the books of account. The trade discount is calculated as some percentage of the catalogue price.
(4) It varies according to the quantity of order.
2bii (1)Cash discount is an allowance or concession given by the seller to the buyer.
(2) This discount is offered to encourage the buyer for quick payment or settlement.
(3) It is allowed for immediate payment of cash or payment within a short period.
(4) The cash discount is normally shown in the quotation and invoice . It is deductible from the total price and the buyer is requested to pay only to the net amount.
(4a)
Depreciation refers to two aspects of the same concept: The decrease in value of assets The allocation of the cost of assets to periods in which the assets are used. Depreciation is a method of reallocating the cost of a tangible asset over its useful life span of it being in motion.
(4b)
PIck any two
(i) To Calculate the True Profits
(ii) To show true Financial Position
(iii) To make Provision for replacement of assets
(iv) To have some Incidental advantage
(v) To have Tax advantage
(4ci)
*Fixed Instalment*
fixed installment method of depreciation the amount of depreciation each year is fixed and equal. At the end of each year, a fixed amount is removed from the book value of the asset concerned and charged to profit and loss account (or income statement ).
This is the oldest and most commonly used method of depreciation. Here a fixed amount of depreciation is charged every year during the lifetime of the machine. There at the end of its useful life, the value of the asset will be zero. This is also known as straight-line method or original cost method.
(4cii)
*Dimishing Balance*
Diminishing balance depreciation method is one of the three
depreciation methods that mention in IAS 16. This kind of
depreciation method is said to be high charged at the first period, and then subsequently reduce.
This is because the charging rate is applying to the Net Book Value of Assets and the Net Book Value of Assets is reduce from time to time after charging depreciation.
(Number 14)
(14a)
(Pick four)
Tourism marketing involves all the activities that is needed or required to move tourism products to the final consumer tourist
(I)Face-to-Face Contact is Limited:-Limited face to face contact is one of the major drawbacks of internet marketing.
(II) Marketing Complexity
The virtual nature of internet marketing increases marketing complexity.
(iii)Dependability on technology
(iv) Security, privacy issues
(V) Maintenance costs due to a constantly evolving environment
(Vi) Higher transparency of pricing and increased price competition
(Vii) Worldwide competition through globalisation
Typing in progress.........
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