P64571RA Lcci Level 4 Certificate in Financial Accounting ASE20101 RB Sep 2020
P64571RA Lcci Level 4 Certificate in Financial Accounting ASE20101 RB Sep 2020
P64571RA Lcci Level 4 Certificate in Financial Accounting ASE20101 RB Sep 2020
Resource Booklet
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*P64571RA*
P64571RA
©2020 Pearson Education Ltd.
1/1/1/1/1/1
Resource for Question 1 – Parts (a) and (b).
A trainee accountant of Petrog plc has prepared a draft statement of profit or loss for the
year ended 31 March 2020.
Petrog plc
Statement of profit or loss for the year ended 31 March 2020
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Note 1
979 800
Note 2
651 200
527 200
Revenue included goods sent to a credit customer on a sale or return basis. The goods
cost $4 200 and had been invoiced for $6 500. The customer had not yet decided
whether to keep the goods.
Inventory had been counted and valued at $124 000
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Note 3
276 800
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Resource for Question 2 – Parts (a) and (b).
On 1 May 2019 AB plc acquired 960 000 ordinary shares in CD Ltd, when the balance of
retained earnings of CD Ltd was $180 000
The fair value of the property, plant and equipment of CD Ltd was $670 000. No entry for
the revaluation of property, plant and equipment has been made in the books of CD Ltd.
The following balances were provided at 30 April 2020.
AB plc CD Ltd
$000 $000
Taxation 275 25
• CD Ltd had sold goods costing $32 000 to AB plc for $48 000. One half of these goods
were unsold by AB plc at the year end.
• Trade and other receivables of AB plc included $19 000 owed by CD Ltd. Trade and
other payables of CD Ltd included $14 000 owed to AB plc.
• CD Ltd had sent a payment to AB plc that had not been received by them at the year
end. This payment accounted for the difference in the inter-company accounts.
• The directors of AB plc are of the opinion that goodwill has been impaired by 20%.
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Resource for Question 3 – Parts (a) and (b).
Hatlon plc provided the following information.
At 1 April 2019 $
The following transactions took place during the year ended 31 March 2020.
Date Transactions
31 May 2019 A bonus issue of one ordinary share for every six shares held at that date.
A rights issue of one ordinary share for every seven shares held at a
30 June 2019
premium of $0.20 per share. The issue was fully subscribed.
An interim dividend of $0.05 per share was paid on all shares in issue at
31 August 2019
that date.
31 December 2019 Plant and equipment was purchased for $68 000
Plant and equipment, costing $25 625 on 1 January 2018, was sold
31 January 2020
for $18 700
The company’s depreciation policy is to depreciate all non-current assets at 20% per
annum using the reducing balance method. A full year’s depreciation is charged in the
year of purchase, but none in the year of disposal.
Taxation on the profit for the year ended 31 March 2020 was estimated to be $14 200
The total tax liability at 31 March 2020 was $12 400
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The directors have provided the following additional information.
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Resource for Question 4 – Part (a).
EB plc provided the following information in addition to the incomplete statement of
changes in equity for the year ended 31 March 2020 on page 14 of the question paper.
Date
30 April 2019 Made a bonus issue of one ordinary share for every four shares held.
31 May 2019 Paid final dividend of $0.05 per share on all shares in issue at 31 March 2019.
Made a rights issue of three ordinary shares for every 10 shares held at a
30 September 2019
premium of $0.15 per share. The issue was fully subscribed.
31 December 2019 Paid an interim dividend of $0.025 on all shares in issue at that date.
Additional information
The share capital of EB plc is made up of ordinary shares with a nominal value of
$0.50 each.
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