Answer Posted / suresh raichur

In Accounting three golden rules are followed to identify
the business activities:
1. Personal Account
Debit the received
Credit the giver
2. Real Account
Debit what comes in
Credit what goes out
3. Nominal Account
Debit all expenses & losses
Credit all incomes & gains

2. A budgeted profit statement of a company working at 75% capacity is provided to you 2 below, Sales 9,000 units at Rs. 32 Rs. 2,88,000 Less: Direct materials Rs. 54,000 Direct wages 72,000 Production overhead: fixed 42,000 variable 18,000 1,86,000 Gross profit 1,02,000 Less: Administration, selling and distribution costs: fixed 36,000 varying with sales volume 27,000 63,000 Net profit 39,000 You are required to: (a) Calculate the breakeven point in units and in value. (b) It has been estimated that: (i) if the selling price per unit were reduced to Rs. 28, the increased demand would utilise 90% of the company's capacity without any additional advertising expenditure, and (ii) to attract sufficient demand to utilise full capacity would require a 15% reduction in the current selling price and a Rs. 5,000 special advertising campaign. You are required to present a statement showing the effect of the two alternatives compared with the original budget and to advise management which of the three possible plans ought to be adopted, i.e., the original budget plan or (i) above or (ii) above. (c) An independent market research study shows that by spending Rs. 15,000 on a special advertising campaign, the company could operate at full capacity and maintain the selling price at Rs. 32 per unit. You are required to: (i) Advise management whether this proposal should be adopted.

2281

---

What is account in accounting?

1111

---

Sold goods to Gasha 600 by cash

1404

---

How to make a vat entry in books including setoff?

1016

---

Tell us do you possess any knowledge about accounting standards?

1245

---

I purchased a machine and finance it by bank with the amount 1900000 and bank apply the finance charge 440000 for 3 years finance how to pass this entry still machine value is 2200000 is finance charge is interest (indirect exp.) pls help me.

1780

---

Which accounting application you prefer most and why?

1145

---

Tell me an example of a tough decision that you had to make?

1085

---

credit card all entry pass in tally

1477

---

how to treat investment fluctuation fund in case of death of a partner

2325

---

How will I post entries to Tally If I purchased a Car in Loan. The principal Amount = 62930 Interest = 6846 Total = 69776 We have to pay Rs 1191 every month for 4 years which include Principle amount and interest. how can I post the monthly entries to tally

27435

---

What are the different types of gst?

1120

---

Tell me the types of accounts involved in double entry book-keeping?

1106

---

How to post advance paid to a supplier in oracle jd edwards

1717

---

Give Any three special cases of computation of capital Gain U/s 45(1A) to 45(6)?

2282

---