Professional Documents
Culture Documents
Bilal Acca
Bilal Acca
Section A
1 C (280,000 x 20%) + (48,000 x 20% x 9/12 ) + (36,000 x 20% x 4/12 ) – (14,000 x 20% x 6/12 )
2 D
3 D 5/ x 24,000 + 7/12 x 30,000 = 27,500; 2/3 x 7,500 = 5,000
12
17 C
18 A
19 C
20 B 38,640 + 14,260 – 19,270 = 33,630
21 D
22 C 48,000 + 400 + 2,200
23 B
24 C 1,100,000 – 4/5 (400,000 + 500,000)
25 A 20% x (400,000 + 800,000)
17
Section B
Current accounts
18
Alternative format
Leon and Mark
Statement of division of profit for the year ended 31 December 2006
Leon Mark Total
$ $ $
Six months ended 30 June 2005
Leon: (90,000 – 20,000)(see working) 70,000 70,000
––––––– –––––––
Six months ended 31 December 2005
Interest on capital
Leon 5% x 400,000 x 6/12 10,000
Mark 5% x 200,000 x 6/12 5,000 15,000
Salary
Mark 20,000 x 6/12 10,000 10,000
Balance of profit 60:40 93,000 62,000 155,000
––––––– ––––––– –––––––
103,000 77,000 180,000
––––––– ––––––– –––––––
Current accounts
19
3 Ganda
Cash flow statement for the year ended 31 December 2005
$000 $000
Cash flows from operating activities
Profit before taxation 970
Adjustment for:
Depreciation (W2) 310
Profit on sale of non-current asset (W3) (20)
Interest expense 120
–––––
1,380
$000 $000
Opening balance 2,100 Transfer disposal 200
Purchases (balancing figure) 1,500
Closing balance 3,400
–––––– ––––––
3,600 3,600
–––––– ––––––
$000 $000
Transfer disposal 140 Opening balance 550
Income statement – depreciation
(balancing figure) 310
Closing balance 720
–––––– ––––––
860 860
–––––– ––––––
$000 $000
Transfer – cost 200 Transfer – depreciation 140
Income statement 20 Cash 80
–––––– ––––––
220 220
–––––– ––––––
20
4 (a) The working capital cycle illustrates the changing make-up of working capital in the course of the trading operations of a
business:
1 Purchases are made on credit and the goods go into inventory.
2 Inventory is sold and converted into receivables
3 Credit customers pay their accounts
4 Cash is used to pay suppliers.
(c) The advantage to a company of keeping its working capital cycle short is that fewer resources are tied up in working capital,
thus freeing them for other purposes.
(Other answers considered on their merits)
(c) IFRS 3 Business combinations does not allow goodwill to be revalued upwards.
(d) It is not possible to combine the reserves as suggested. IAS1 Presentation of financial statements requires retained earnings
to be shown seperately from other reserves.
21
Part 1 Examination – Paper 1.1(INT)
Preparing Financial Statements (International Stream) June 2006 Marking Scheme
Section B Marks
23
Marks
3 Cash flows from operating activities 31/2
1/ mark per item other than interest
2
Interest added and deducted 1/
2
Cash flows from investing activities
1/ mark per item 2 x 1/2 1
2
Cash flows from financing activities
1/ mark per item 3 x 1/2 11/2
2
Cash movement 2 x 1/2 1
Workings: non-current assets – cost 11/2
– depreciation 11/2
– disposal 11/2
Heading 1/
2
Layout 1
––––
131/2 max12
––––
(c) Up to 2
––––
10
5 (a) (i) 2
(ii) 1
(iii) 1
(b) 1
(c) 1
(d) 2 x 1 2 8
–––– ––––
50
––––
24
Workings for MCQ answers
Paper T3GBR
5D–GBRAA
C 756 x 10/
3
D 756 x 10/
7
25
20 A as in question
Paper T3GBR
5D–GBRAA
26