2014 GCE CHOCKS:- Accounting Answers Now Available For Free

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(1a)
Partnership business can be defined as the relationship which subsists between persons. carrying on a business in common with a view of profit. It can be formed by
one to twenty persons in business.

(1b)

Dormant partner is define a person who does not partake in the day to day running of the business but only contribute capital. it can also be called a sleeping partner

(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 t the data and supplying the results of these processes.

(4bi.) input data is a data or raw information accepted by a computer to b processed into a useful information eg

(4bii.) output data is the result information from a computer when it has been processed

(4biii.) input components are devices used to insert commands into computer for processing eg keyboard

(4biv.) output components are devices whch displays the useful information that has been processed from raw data eg monitor.

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  1. ACCOUNT THEORY

    (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 liab

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