2014 Expo Answers Here Financial Accounting GCE 2014 Expo Answers Here

ESSAY ANSWERS :-
1a. A type of business organization in which
two or more individuals pool
money , skills , and other resources , and
share profit and loss in accordance with
terms of the partnership agreement . In
absence of such agreement, a partnership is
assumed to exit where the participants in an
enterprise agree to
share the associated risks and rewards
proportionately .
1b. A dormant partner Is a Contributor or
investor who is not active in managing a
firm and may not be known to the outsiders.
A dormant partner shares profits and losses
with other partners but (if he or
she is not a signatory to the loan agreements)
generally may withdraw from the firm
without notice to the lenders.
1c.
i. The capital to be contributed by
each partner
ii. the rate of interest on capital
iii. the rate of interest on drawings
iv. the division of profits and losses
v. the basis of valuing goodwill on the death
or retirement of a partner
4a. computer is any device that is
capable of accepting data automatically,
applying a sequence of process to the
data and supplying the results of these
processes.
4bi. input data is a data or raw
information accepted by a computer to
be processed into a useful information
eg
ii).output data is the result information from
a computer when it has been processed
iii.) input components are devices used to
insert commands into computer for
processing eg keyboard
4biv.) output components are devices which
displays the useful information that has been
processed from raw data eg monitor
4bii. output data
> pictures
> tables
4biii) Input component Keyboard Mouse
Touch ScreenScanner Camera
Microphone Light penoptical mark reader
Bar code reader
iv) Output component Printer Monitor
Speakers Projector
(4biv.) output components are devices whch
displays the useful information that has been
processed from raw data eg monitor.
(9a)
Gross profit percentage
for 2010
G.p/sales * 100
= 50000/200000* 100
= 25%
for 2011
=70000/280000*100
=25%
(9B-)
Stock turnover ratio for 2010
Average stock/2
= 50000+20000/2
=70000/2
=35000
cost of sale/average stock
= 150000/35000
=4.2=4 times
Stock turnover ratio for 2011
20000+30000/2
=50000/2
=25000
cost of sales/average stock
=210000/25000
=8.4 = 8times
(9c)
Net profit percentage for 2010
Net profit/sales*100
= 12000/200000*100
=6%
Net profit percentage for 2011
Net profit/sales*100
=20000/280000*100
=7.14%
(9d)
Acid test ratio for 2010
= current asset - stock/current liability
=25000/1500
=1.66 : 1
Acid test ratio for 2011
= current asset - stock/current liability
=33000/12000
=2.75 : 1
(9e)
Current Ratio 2010
= current asset / current liability
= 45000/15000
= 3 : 1
Current Ratio 2011
= current asset / current liability
= 63000/12000
=5.25 : 1
(9a)
Gross profit percentage for 2010
G.p/sales * 100
= 50000/200000* 100
= 25%
for 2011
=70000/280000*100
=25%
(9b)
Stock turnover ratio for 2010
Average stock/2
= 50000 20000/2
= 70000/2
= 35000
cost of sale/average stock
= 150000/35000
=4.2=4 times
Stock turnover ratio for 2011
20000 30000/2
=50000/2
=25000
cost of sales/average stock
=210000/25000
=8.4 = 8times
(9c)
Net profit percentage for 2010
Net profit/sales*100
= 12000/200000*100
=6%
Net profit percentage for 2011
Net profit/sales*100
=20000/280000*100
=7.14%
(9d)
Acid test ratio for 2010
= current asset - stock/current liability
=25000/1500
=1.66 : 1
Acid test ratio for 2011
= current asset - stock/current liability
=33000/12000
=2.75 : 1
(9e)
Current Ratio 2010
= current asset / current liability
= 45000/15000
= 3 : 1
Current Ratio 2011
= current asset / current liability
= 63000/12000
=5.25 : 1
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