Answers of Question 1 to 5

Question 1:
a)
Answer:
(i) Number of students who opted business to the number of students who opted IT.
Ratio 129%
(ii) Number of students who opted IT to the number of students who opted engineering.
Ratio 233%
(iii) Number of students who opted business to the number of students who opted engineering
Ratio 300%
(iv) Number of students who opted business to the number of students who opted
photography
Ratio 900%
(v) Number of students who opted business the total number of students. (5 marks)
Ratio 45%

b)
Answer:

b)
Sameers Jameela
Income 120,000 Income 240,000
Annual Expenditure 60,000 Annual Expenditure 70,000
Saving 60,000 Saving 170,000

Saving Ratio% 50% 71%

Question 2
Answer:
a)

Particulars Basic (1st Six Basic (2nd Overtime (1st Overtime (2nd Annual
Month) Six Month) Six Month) Six Month) Gross
Salary

Earn per hour 10 15 15 22.5

Regular hours per week 35 35 35 35
Week in a Year 26 26 26 26
Total Basic Salary 9,100 13,650 13,650 20,475 56,875

b)
Answer:
Payment made are not within the term decided, so the full invoice have to be paid and no term discount will be applied.
Hence the total amount paid is 25000.
c)
Answer:
Term discount of 5/25, n/30 mean that if the invoice is paid within the 25 days, 5% discount will be applied on the
invoice while the actual payment is made on 26 th day, so the discount will not be applied and total due amount RO
30,000 will have to paid.
Question 3
a)
Answer:
Markup on Cost vs selling price:
Markup is the amount that add up to the cost of the product. i.e Company sell product at RO 12 with RO 2
margin to customer and product having cost RO 10, the markup on cost will be 20%

Calculation
Markup = SP – Cost / Cost
Markup on Cost = 12 – 10 / 10 = 20%
Markup on Sale Price = 12-10/12 = 16.67%

Hence, the markup on cost is 20% while the markup on sale is 16.67%

b)
Answer:
List price 30,000
VAT 6,000
Price Inclusive 36,000

VAT Paid 250

Price 1,250
Price Inclusive 1,500

VAT 200
Price 1,000
Price Inclusive 1,200

Government Received VAT 8,700

Question 4
a)
Answer:
Yes, the revision of the useful life of asset will affect the depreciation amount and accumulated depreciation amount as
well as the carrying value of asset. Since the useful life of asset is revised, actual life was 10 year and revised is only 7
year, this will affect the depreciation amount and will bear it higher than before that charged to the asset account due to
the shortage of the useful life. Revised life is the accounting estimate and will affect prospectively.
b)
Answer:
Life 4
Scrap Value 5,000
Original Investment 400,000
Reducing Balance Formula Cost of Asset X Rate Depreciation / 100
Rate of Dep (1/4) 25%
Year Dep Amount Book Value/
Carrying Value
0 0 400,000
1 100,000.00 300,000
2 75,000.00 225,000
3 56,250.00 168,750
4 42,187.50 126,563

Question 5
a)
Answer:
Basim Said
Table Qty 50.00 60.00
Total Price Paid 300.00 350.00
Avg Price 6.00 5.83

b)
Answer:

Truck Travel
Km Travel 400
Diesel Consumed (Liters) 20
Diesel/Km 0.05

If 2.5 liters diesel consume Distance

Travel
How much distance covered 2.5/0.05 50 Km

c)
Answer:
Syed & Salim
Pen Qty 60
Price Paid 90
Ratio of Pen/RO 0.67

Amount Paid Pen Purchase

Syed 54 36
Salim 36 24
 Total 90 60

Salim is wrong, as the price paid by him is only RO 36 and pen he can buy only 24. While the syed paid the higher
amount than the Salim and he can get 36 pens against which he paid the price. So nobody can get 45 pens.

Salim can get only 24 pens because he paid the less amount.