LCCI Level 4 Certificate in Financial Accounting VQR Resource Booklet ASE20101 April 2019
LCCI Level 4 Certificate in Financial Accounting VQR Resource Booklet ASE20101 April 2019
LCCI Level 4 Certificate in Financial Accounting VQR Resource Booklet ASE20101 April 2019
Resource Booklet
Do not return this Resource Booklet with the question paper.
Instructions
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workings and answers must be given in the question paper.
• will notnote that any workings and answers written in the Resource Booklet
be marked.
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©2019 Pearson Education Ltd.
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Resource for Question 1 – Parts (a), (b) and (c).
The directors of Farmell plc provided the following information in addition to the
statement of changes in equity on page 2 of the question paper.
1 April 2018 Share capital consisted of 4 000 000 ordinary shares at $0.50 each.
Rights issue of one ordinary share for every 10 shares held at $0.80
30 April 2018
per share. The issue was fully subscribed.
31 May 2018 Paid a final dividend of $0.05 on all shares held at that date.
Bonus issue of one ordinary share for every four shares held at
31 October 2018 that date. The directors decided to leave the reserves in the most
flexible form.
31 December 2018 Paid an interim dividend of 2% on all shares held at that date.
The draft profit for the year ended 31 March 2019 was $485 000 before adjusting for land
revalued downwards by $20 000. In addition, on 2 April 2019 a credit customer returned
goods, $35 000, invoiced on 15 March 2019. Farmell plc sells all goods with a profit
margin of 20%.
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Turn over
Resource for Question 2 – Parts (a) and (b).
The following information has been extracted from the financial statements of Raplay Ltd
for the year ended 31 December 2018.
At 1 January 2018 $
2018 Transaction
At 31 December 2018 $
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Depreciation policy
• Plant and machinery is depreciated at 10% per annum using the straight line method.
Depreciation is charged on a monthly basis.
• Development expenditure is amortised at 10% per annum based on the
year-end carrying value.
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Turn over
Resource for Question 3.
On 1 January 2018 Mallax plc acquired 60% of the ordinary share capital of Haplet Ltd.
The balance of retained earnings of Haplet Ltd was $70 000
The fair value of property, plant and equipment of Haplet Ltd was $400 000. No entry for
the revaluation of property, plant and equipment had been made in the books of
Haplet Ltd.
Summarised statements of profit or loss for the year ended 31 December 2018
Finance costs 25 20
Tax 45 10
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On 31 October 2018 Haplet Ltd sold goods costing $60 000 to Mallax plc for $90 000. All
these goods had been sold by Mallax plc at the year end.
On 30 November 2018 Mallax plc invoiced Haplet Ltd with $3 000 interest charges.
At 31 December 2018 the directors of Mallax plc are of the opinion that goodwill had
been impaired by 20%.
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Turn over
Resource for Question 4 – Part (a).
Parlot Ltd provided the following information for the year ended 31 December 2018 in
addition to the schedule of non-current assets on page 12 of the question paper.
Non-current
Adjustments Depreciation method
asset
On 1 January 2018 buildings
Buildings: straight line to take
purchased on 1 January 2008
Land and account of an estimated useful life
were revalued to $800 000
buildings of 50 years.
Land and buildings includes land
Land is not depreciated.
at a cost of $450 000
On 1 March 2018 machinery was
purchased for $62 000. This was
Plant and
funded by a trade-in allowance Straight line 10% per annum.
machinery
of machinery, cost $50 000 with
a carrying value of $32 000
On 1 August 2018 a motor
vehicle was sold for $26 000.
Reducing (diminishing) balance
Motor vehicles The motor vehicle had been
25% per annum.
purchased on 31 March 2017 for
$40 000
A full year’s depreciation is charged in the year of purchase but none in the year of sale.
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Resource for Question 5 – Parts (a) and (d).
Data for part (a).
The directors of Trapple Ltd provided the following information.
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