# A-AS Level (CIE) Accounting Paper-3: Specimen Questions with Answers 4 - 5 of 50

## Question 4

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### 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

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### 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 1/5th share of Profits with a guarantee Rs. 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?

### Choices

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 4/5th 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