The document is a resource booklet for an accounting exam containing information to help answer questions on the exam. It includes extended trial balance information, partnership account details, company acquisition details, and budgeted financial information for a business.
The document is a resource booklet for an accounting exam containing information to help answer questions on the exam. It includes extended trial balance information, partnership account details, company acquisition details, and budgeted financial information for a business.
The document is a resource booklet for an accounting exam containing information to help answer questions on the exam. It includes extended trial balance information, partnership account details, company acquisition details, and budgeted financial information for a business.
The document is a resource booklet for an accounting exam containing information to help answer questions on the exam. It includes extended trial balance information, partnership account details, company acquisition details, and budgeted financial information for a business.
Resource Booklet Do not return this Booklet with the question paper.
Instructions • AllPlease workings and answers must be given in the question paper. • not benote that any workings and answers written in the Resource Booklet will marked.
1/1/1 Resource for Question 1 – Parts (a) and (b). Clinton provided the following information in addition to the extended trial balance extract at 31 May 2021 on page 3 of the question paper. • Closing inventory was valued at cost, $32 600. This included damaged inventory valued at cost, $1 910, which can only be sold for $2 200 after repairs costing $395 • Cheques received from credit customers, $11 600, had not been recorded in the books of account. • An irrecoverable debt, $2 260, was to be written off. • The allowance for doubtful debts was to be maintained at 5% of trade receivables. • Bank loan interest for the three months to 31 May 2021 was owing. • Goods costing, $670, taken by Clinton for his own use, had been credited to both the drawings account and the purchases account.
2 P67923A Resource for Question 2 – Parts (c), (d) and (e). Ah, Bon and Chi were in partnership sharing profits and losses in the ratio 2:2:1.
At 30 June 2021
Capital Account Current Account
Partner $ $
Ah 80 000 11 000
Bon 80 000 6 500
Chi 80 000 2 100 Dr
On 1 July 2021 Chi retired from the partnership. Goodwill was valued at $80 000 Ah and Bon decided to continue in partnership sharing profits and losses equally. Assets were revalued as indicated.
Increase Decrease $ $
Inventory 3 200
Land and buildings 110 000
Motor vehicle 29 500
Plant and equipment 21 900
The amount due to Chi was to be settled on 1 December 2021 either by admitting a new partner or obtaining a bank loan.
3 P67923A Turn over Resource for Question 3. On 1 April 2020 E plc purchased 75% of the share capital of F Ltd for $165 000 The directors provided the following information at 31 March 2021.
E plc F Ltd $ $
9% debenture (2030) 45 000 –
Bank 15 310 2 400
Cash 2 000 1 500
Inventory 41 900 13 530
Property, plant and equipment – carrying value 435 000 195 100
Retained earnings 199 400 105 500
Share capital (ordinary shares of $1 each) 430 000 80 000
Tax payable 21 200 15 700
Trade and other payables 28 250 46 130
Trade and other receivables 64 640 34 800
• At 1 April 2020 the fair value of the property of F Ltd was $25 000 more than the carrying value. This revaluation had not been recorded in the books of F Ltd. • Profit for the year ending 31 March 2021 for F Ltd was $29 500
4 P67923A There is no resource for Question 4.
5 P67923A Turn over Resource for Question 5 – Part (b). Yeo provided the following budgeted information.
2021
September October November December
Sales (units) 2 750 2 900 2 420 2 300
• All sales and purchases will be on a credit basis.
• The selling price will be $45 per unit. • The purchase price will be $20 per unit. • Purchases will be made one month before sale. • Suppliers will be paid in the month following purchase after a 5% cash discount. • General expenses will be $18 200 per month. • Wages will be $81 000 per year. • Depreciation charge will be $31 680 per year.
