F3_mock1_ans

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Paper F3

ACCA

Financial Accounting

Mock Exam 1

Answers

(2)

D

Dividends received and repayment of loan are cash flows. The rest of the items are non-cash items.

ANSWER 2

C

$

Overdraft per bank statement (12,700)

Less: Unpresented cheques (13,300)

Add: Lodgements/deposits credited _{______}25,600

Bank balance per cash book (positive) _{______}(400)

ANSWER 3

A

$

Total rent received during the year 810,000

Add: 1/8/20X7 rent received in advance 40,800

Less: 31/7/20X8 rent received in advance 33,500

Less: 1/8/20X7 rent in arrears 39,200

Add: 31/7/20X 35,000

_______ 8 rent in arrears

Total rent receiv 813,100

_______ able for the year ended 31/7/20X8

ANSWER 4

B

($137,850 – $2,757)

ANSWER 5

B – False

A trade discount is not recorded in the financial statements. The reduced cost of purchase after trade discount is recorded.

ANSWER 6

C

Receivables

Bal b/d 55,000 Discounts allowed 3,500

Dishonoured cheques 6,500 Irrecoverable Debts 800

Credit sales 612,700 Bank (balance) 607,350

_______ Bal c/d _______ 62,550

674,200

_______ _______ 674,200

(3)

D $ Depreciation (80,000 u 15% u 3 years) = 36,000 NBV at time of sale (80,000 – 36,000) = 44,000 Proceeds = 39,000 ______ Proceeds – NBV = (5,000) ______

ANSWER 8

C

ANSWER 9

C

Closing inventory is 160 units. Using FIFO, 150 of these are deemed to be part of the final delivery, and therefore they are valued at $22.30 per unit = $3,345. The remaining 10 units are deemed to be part of the previous delivery and are therefore valued at $22.20 per unit = $222.

Thus total value is $3,567.

ANSWER 10

B

Sales Tax

Bank (part payment on account

to the tax authority) 10,400

Bal b/d

22,900

Purchases (sales tax element) 369,000 Sales (sales tax element) 387,500

Purchases returns (sales tax element) 9,975 Bal c/d 40,975 _______ _______ 420,375 _______ _______420,375 Bal b/d 40,975

ANSWER 11

A $92,000

Less: Overprovision of previous year’s $3,000

ANSWER 12

A

(4)

B

Current Account – Pete

Drawings 7,300 Bal b/d 15,750 Profit Share 63,900 Bal c/d _{_______ _______}72,350 79,650 79,650 Bal b/d 72,350

ANSWER 14

A

Plant & machinery Cost 160,000

Acc Depn (57,600) _______ NBV 102,400 u 20% = $20,480

ANSWER 15

D

ANSWER 16

A

ANSWER 17

D Payables $ $ Bank 127,569 Bal b/d 11,564

Bal c/d _{_______}12,826 Purchases (Balancing figure) _{_______}128,831

140,395

_______ _______ 140,395

Bal b/d 12,826

Opening inventory + Purchases – Closing inventory = Cost of sales $5,288 + $128,831 – $4,184 = $129,935

(5)

C

IAS 10 dividends proposed after year end not included in financial statements.

ANSWER 19

A

Suspense a/c

$ $

Bal b/d 420 Incorrect Jnl entry 800

Cash Sale omitted Bal c/d 80 300 ___ ___ 800 ___ 800___ Bal b/d 300

ANSWER 20

D

ANSWER 21

D

ANSWER 22

A

ANSWER 23

C

Closing Capital = Opening Capital + Profit – Drawings 104,864 = 96,578 + 34,050 (Bal fig) – 25,764

ANSWER 24

D

ANSWER 25

C $

Profit for the year 300,000

+ Depreciation charges 38,000

í Increase in inventory (8,000)

í Payments for non current assets (80,000)

+ Issue of shares 100,000

_______

Increase in cash and bank 275,000

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C

ANSWER 27

B

ANSWER 28

D A B C Total $ $ $ $

Profit for the year

Salary 12,000 18,000 24,000 54,000 Interest on capital 5,000 7,000 12,000 _{_______}24,000 Share of profit 150,000 _______ _______ 120,000 ______ 30,000 300,000 Bal figure_{_______} 167,000 145,000 66,000 378,000

Guaranteed minimum profit share

3,000 _______ _______ (2,400) ______ (600) 170,000 _______ _______ 142,600 ______ 65,400

ANSWER 29

C

ANSWER 30

B

ANSWER 31

A

ANSWER 32

A

Max Ruby Billy Max Ruby Billy

Goodwill 18,000 18,000 9,000 Bal b/d 30,000 Revaluation 40,000 60,000 – Bal c/d 70,000 69,000 Goodwill 18,000 27,000 – Bal c/d – – 9,000 88,000 87,000 9,000 88,000 87,000 9,000 Bal b/d 9,000 Bal b/d 70,000 69,000

(7)

C Ordinary shares 75c $150,000 = 200,000 shares SOCIE $

Interim dividend 200,000 shares u 10c 20,000

Final dividend 200,000 shares u 25c 50,000

Preference dividend $75,000 u 5% _{______}3,750

73,750 Statement of Financial Position

Dividend payable 50,000

______ As final dividend is declared prior to year end it is included in Financial Statements.

ANSWER 34

C

Bank

$ $

Interest Rec’d 153 Bal b/d 422

Bal c/d 269 ___ ___ 422 ___ 422___ Bal b/d 269 $

Balance per Bank Statement 553 Bal Fig

Less: Unpresented cheques (822)

___ Balance (269) _{___}

ANSWER 35

A SOCIE $ Ordinary Shares 200,000 @ 10c 20,000

Irredeemable Preference Shares $20,000 u 20% _{______}4,000

24,000 ______

Statement of Financial Position

Dividends payable Ordinary Shares 200,000 @ 10c $20,000

(8)

D

Bonus issue does not appear in cash flow. Cash from financing activities

$

Rights issue 60,000

Receipt 8% loan note 65,000

Payment 10% loan note (40,000) _{______} 85,000

ANSWER 37

D $ Sales 150,000 100% Cost of sales Opening inventory 12,500 Purchases 126,500

Less: Closing inventory (19,000) Bal Fig

(120,000) 80% Gross profit 30,000 20%

ANSWER 38

B

ANSWER 39

A

ANSWER 40

A

ANSWER 41

D $68,566 + $99 = $68,665

ANSWER 42

C

Statement of cash flows should show dividends paid. $50,000 proposed dividend 2007

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B $ $ Cost of inventory 41,875 Damaged items: Cost 1,960 _____

Expected sale value 1,200

Less cost of repairs 360

_____

Net realisable value _{_____}840

Write down ($1,960 – $840) 1,120

______

Inventory valuation _{______}40,755

ANSWER 44

C

No current liability since repayment after 12 months and interest is paid monthly within each month.

ANSWER 45

D

ANSWER 46

B $ Inventory 22,300 Receivables 42,650

Allowance for receivables (1,570)

______ ______ 41,080 63,380 ______

ANSWER 47

B

ANSWER 48

A

ANSWER 49

A

ANSWER 50

D