# A-AS Level (CIE) Accounting Paper-3: Specimen Questions with Answers 4 - 6 of 50

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## Question 4

### Question

MCQ▾

Find out operating profit from the following data:

 Sales \$ 50,000 Variable Cost 60 % Fixed costs \$ 12,000

Choice (4)

a.

5000

b.

8000

c.

4000

d.

2000

b.

### Explanation

 Sales \$ 50,000 Less: Variable Cost@60 % 30,000 Contribution 20,000 Less: Fixed costs \$ 12,000 Operating Profit \$ 8,000

## Question 5

### Question

MCQ▾

A and B are partners sharing Profits in the ratio of 3: 2. From 1st January 1988, they admit C into Partnership giving him share of Profits with a guarantee ₹ 6.000 minimum. A and B continue to share Profits as before. Profits of the firm for 1988 were \$ 24,000. How much amount finally due to each partner?

Choice (4)

a.

11520,4800, 7680

b.

7680,11520, 4800

c.

11520,7680, 400

d.

4800,7680, 11520

c.

### Explanation

New profit-sharing ratio has been calculated as under:

Thus, r

Because of admission of new partner, the old partners are entitled to only four-fifth of the firms profits which shall be divided in their old profit-sharing ratio.

Hence,

Therefore, new ratio will be

Share of profit will be

## Question 6

### Question

MCQ▾

The following is the position of current assets and current liabilities of Z ltd:

 1995 1996 Provision for doubtful debts \$ 1,000 - Short-term loans 10,000 19,000 Creditors 15,000 10,000 Bills payable 20,000 40,000

The company incurred a loss of \$ 45,000 during the year. What will be the cash flow from operating activities?

Choice (4)

a.

-32000

b.

-22000

c.

+ 22000

d.

-24000