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:

Find out operating profit from the following dataFind out operating profit from the following data
Sales$50,000
Variable Cost60%
Fixed costs$12,000

Choices

Choice (4)
a.5000
b.8000
c.4000
d.2000

Answer

b.

Explanation

Find out operating profit from the following dataFind out operating profit from the following data
Sales$50,000
Less: Variable Cost@60%30,000
Contribution20,000
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

Answer

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

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