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A trial balance had a suspense account with a credit balance of $1,720. Errors found: (1) Purchases returns balance of $440 omitted from trial balance; (2) Bank overdraft balance understated by $90. What is the updated credit balance of the suspense account?
Option C ($2,070) is correct.
Error 1: Purchases returns (credit balance) omitted → credit total understated → Credit suspense $440.
Error 2: Bank overdraft (credit balance) understated → Credit suspense $90.
Updated balance = $1,720 + $440 − $90 = $2,070
Financial data: Profit from operations $59,800; Finance costs $12,000; Profit for year $47,800; Ordinary share capital $700,000; Retained earnings $72,500; 10% Debentures $120,000. What was the ROCE?
Option C (6.70%) is correct.
Capital Employed = ($700,000 + $72,500) + $120,000 = $892,500
ROCE = $59,800 ÷ $892,500 × 100 = 6.70%
$-2 \times 96000 \times 2 = -8 \times 300 \times \ln K$
$-384000 = -2400 \ln K$
$\ln K = \frac{384000}{2400} = 160$. Therefore, $K = e^{160}$.
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