# A-AS Level (CIE) Accounting Paper-1: Specimen Questions with Answers 86 - 87 of 93

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## Question 86

### Question

MCQ▾

Total Depreciation under the diminishing balance method on a machinery of \$ 8,000 at the rate of 10 % p. a. after three years will be:

Choice (4)

a.

\$ 5,600

b.

\$ 2,400

c.

\$ 2,168

d.

\$ 5,832

d.

### Explanation

The remaining balance is \$ 5832.

## Question 87

### Question

MCQ▾

A, B and C wee in partnership sharing profits and losses in the ratio of 7: 3: 2. On 1st April, 2015, they admit D into partnership on the following terms:

D to bring in \$ 1,00, 000 as capital.

New profit-sharing ratio will be 4: 3: 3: 2

New partner is entitled to a salary of \$ 500 p. m. B personally guaranteed that the aggregate of salary and share of profits of the new partner shall not be less than \$ 40000 per annum.

How much is the share of profit of each partner?

### Choices

Choice (4)

a.

A-47250, B-47250, C-31500, D-63000

b.

A-63000, B-44750, C-47250, D- 34000

c.

A-31500, B-63000, C-47250, D-47250

d.

None of the above

b.

### Explanation

Profits before charging D՚s salary \$ 195000

Less: D՚s Salary 6000

189000

Share of profit in the ratio of

B has guaranteed that D՚s share of profit including his salary will not be less than . But his share amount to . Hence the deficiency will be borne by B.

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