1

CONTENTS

S.No. List of Topics Page No.

1 3.1.2 Partnership Accounts – Changes & Dissolution 3- 36

2 3.1.4 Manufacturing businesses 37 - 56

3 3.1.3 Clubs and Societies 57 - 82

4 3.1.5 Limited Companies 83 - 96

5 3.2.1 International Accounting Standards (IAS) 97 - 115

3.2.3 Auditing and stewardship of limited companies

6 3.1.5 Statement of Cashflows 116 - 135

7 3.3.1 Business acquisition and merger 136 - 163

8 3.5.1 Analysis and communication of accounting information 164 - 180

9 3.4.1 Computerised accounting systems 181

10 3.2 Regulatory and Ethical considerations -

Topic Wise Past Paper Check List 182 - 189

List of Formulae 190 - 192

Layouts 193 - 208

2
 TOPIC #1 PARTNERSHIP CHANGES

Extract from the syllabus -

3.1.2 Partnerships:

Candidates should have an understanding of:

• Goodwill and the difference between purchased goodwill and inherent goodwill.
• How to prepare partners’ capital and current accounts to record changes required in respect of
goodwill and revaluation of assets on:

✓ A change in the partners’ profit-sharing ratio

✓ The introduction of a new partner
✓ The retirement of an existing partner
✓ The dissolution of a partnership

• How to prepare the partnership appropriation account, statement of profit or loss and statement of
financial position including changes in a partnership occurring part-way through an accounting
year.

• How to prepare a realisation account and a revaluation account.

3
1. The following statement of financial position of Mhairi, a sole trader, was drawn up at 30 April
2022:
Statement of financial position as at 30 April 2022
Non Current Assets at net book value: $ $
Equipment 232 000
Fixtures & fittings 160 000
392 000
Current Assets:
Inventory 86 000
Trade receivables 16 000 102 000
Total Assets 494 000

Capital and Liabilities:

Capital as at 1 May 2021 400 000
(+) Profit for the year 86 000
(-) Drawings (44 000)
Capital as at 30 April 2022 442 000

Current Liabilities:
Trade payables 38 000
Bank overdraft 14 000
52 000
Total Capital and Liabilities 494 000

Additional information:

• On 1 May 2022 Mhairi admitted Aiden as a partner.

• The profit-sharing ratio between Mhairi and Aiden was agreed at 3:2.

• Aiden agreed to pay a cheque to the partnership for $200 000 and bring in vehicles valued at
$94 000 and inventory valued at $26 000.

• It was agreed that goodwill be valued at 2 times the average net profit earned over the past
4 years. Goodwill is not to be retained in the books. The following figures were available:

Year ended 30 April Net sales income Net profit percentage

$ %
2019 200 000 6
2020 400 000 8
2021 500 000 8
2022 860 000 10

4
 Required:

(a) Calculate the value of the goodwill.

(b) Prepare the capital accounts of Mhairi and Aiden after the admission of Aiden as a partner.

(c) Prepare the statement of financial position of the new partnership at 1 May 2022.

(d) Outline four advantages to Mhairi of forming a partnership with Aiden.

[June 2012 P22]

2. James and Gemma are in partnership. They have provided the following information. A statement
of financial position extract at 31 December 2021 showed the following balances:

Capital account balances: $

James 90 000
Gemma 60 000

Current account balances:

James 12 000 Cr
Gemma 9 000 Cr

Inventory 6 300
Non-current assets at cost 204 000
Loan 45 000

The partnership agreement provides for:

• Interest on capital at 8% per annum.

• No interest on drawings
• A salary to Gemma of $6 000 a year
• Profits and losses to be shared equally.

On 1 July 2022 James introduced a further $25 000 to increase his fixed capital. This money was
used to purchase additional non-current assets on that date. On 31 December 2022 the following
information was available for the partnership:

1 January 2022 – 30 June 2022 1 July 2022– 31 December 2022

$ $
Sales 90 000 150 000
Purchases 70 000 104 000

5
 Additional information:

• Markup was 50% on cost.

• Total expenses for the year were $25 525. These included depreciation on non-current assets
at 5% per annum (charged on cost for each proportion of the year) and the interest on the
loan at 6% per annum. The remaining expenses were split equally for each half of the year.
• There are no accruals or prepayments at the end of the year.

• Drawings for the year were:

$
James 15 200
Gemma 18 300

Required:

(a) Assuming each month is of equal length prepares the split off income statement and
appropriation account for the year ended 31 December 2022.

(b) Prepare the current accounts in columnar form for both partners for the year ended 31
December 2022.

(c) State three advantages for James and Gemma of trading as a partnership rather than as
sole traders.
[Nov 10 P23]

3. Boris and Cheong are in partnership. Their partnership agreement allows:

• Interest on fixed capital accounts at 6%.

• Interest on total annual drawings to be charged at 8%.
• Residual profits to be shared in the ratio 3:2 respectively

A draft income statement for the year ended 31 December 2022 showed a net profit of $72 000.
The draft statement of financial position at 31 December 2022 revealed the following information:

$
Capital account balances - Boris 100 000
Cheong 90 000
Current account balances - Boris 9 908 Cr
Cheong 22 092 Cr
Drawings for the year - Boris 22 000
Cheong 20 000

After the draft income statement and statement of financial position had been prepared it was
discovered that:

• Interest on fixed capital account balances had been calculated at 8%.

6
• Interest on drawings had been calculated at 6%.

• Residual profits had been calculated at 2:3 respectively.

Required:

(a) Calculate the opening balances on the partners’ current accounts on 1 January 2022. The
following errors were also discovered after the preparation of the draft financial statements:

(i) Depreciation for the year of $16 000 had been correctly entered in the depreciation of
non-current assets account in the general ledger but had been entered in the income
statement as $1600.

(i) A cash sale of a non-current asset for $1000 had been omitted from the books of
account. The asset had originally cost $6 000 and had been depreciated by $4 500.

(ii) Goods sold for $3 500 on credit had been correctly entered in the customer’s account
but had been debited to the sales returns account twice.

(iv) The total of the discount received account, $300, had been treated as revenue
expenditure.

(v) A family holiday for Boris costing $3400 had been included as marketing expenses.

(vi) The books of account contained a provision for doubtful debts of 3% on 1 January 2022,
based on trade receivables of $41 000. At the end of the financial year trade receivables
had increased by $3 000. However, none of the following items had been entered in the
books of account during the year ended 31 December 2022:

o A bad debt of $500

o A bad debt of $350 written off in the year ended 31 December 2021 was partially
recovered. The customer paid 60% of the debt. The provision for doubtful debts
was to be adjusted to 5% of closing trade receivables.

Required:

(b) Calculate the corrected net profit for the year ended 31 December 2022.

(c) Prepare an appropriation account for the year ended 31 December 2022.

(d) Prepare the partners’ current accounts for the year ended 31 December 2022.

(e) Explain two reasons why a partner might wish to keep separate capital and current accounts.

[Nov 2010 P43]

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4. Poppy and Rose have been in partnership for some years and have a financial year end of 31
December. On 31 December 2021 their balance sheet showed the following:

$
Capital account balances - Poppy 150 000
Rose 90 000
Current account balances – Poppy 8 500
Rose (2 100)

Poppy and Rose shared profits equally and received annual salaries of $10 000 and $4 000
respectively until 30 June 2022. Interest on capital was calculated at 10%. On 1 July 2022 a new
partnership agreement came into force which stated that:

• Poppy and Rose would share profits in the ratio 3:2 and receive annual salaries of
$24 000 and $18 000 respectively.

• The rate of interest on capital to remain unchanged.

• Goodwill had a value of $25 000 but it was not to be retained in the books.

• The premises should be revalued upwards by $70 000.

At the end of the year a trainee accountant produced their year-end accounts. He forgot to
consider that the partnership agreement had been changed. He produced a draft set of accounts
which showed that on 31 December 2022 the current account balances for Poppy and Rose were
$26 350 and $6 550 (both credit).

Drawings during the year had been: Poppy Rose

$ $
6 months ended 30 June 9 000 7 500
6 months ended 31 December 12 000 11 000

Interest on drawings for the year was calculated as:

6 months ended 30 June 820 720
6 months ended 31 December 1 700 1 500

Profits are assumed to accrue evenly across the year.

Required:

(a) Prepare partners’ capital accounts for the year ended 31 December 2022.

(b) Calculate the profit for the year ended 31 December 2022.

(c) Prepare appropriation accounts for the 6-month periods ended 30 June 2022 and 31
December 2022.

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 (d) Calculate the correct balances on each of the partners’ current accounts at 31 December
2022.

(e) Suggest one reason why Poppy and Rose might have decided to change the partnership
agreement.

[June 11 P43]

5. Tom and Jerry are in partnership. They do not have a formal partnership agreement. The
following information is available for the partnership for the year ended 30 November 2015:

$
Capital account balances at 30 November 2015: Tom 90 000
Jerry 54 000

Current account balances at 1 December 2014: Tom 18 000 Cr

Jerry 10 800 Dr

Drawings for the year: Tom 8 000

Jerry 2 800
Profit from operations 12 600
Loan from partner account: Tom 24 000

Tom made the loan to the partnership on 1 December 2014. Profits had accrued evenly, and
drawings had been taken evenly throughout the year.

Additional information:

Tom and Jerry prepared a formal partnership agreement to take effect from 1 September
2015. The terms of the agreement were:

(i) Interest on capital was to be at a rate of 8% per annum.

(ii) Interest on drawings was to be at a rate of 3% per annum based on the annual drawings.
(iii) Tom was to be paid a salary of $16 216 per annum.
(iv) Profits and losses were to be shared in the ratio 3:2 respectively.
(v) Loan interest was to be paid at a rate of 4% per annum.

Required:

(a) Calculate the profit before appropriation for the nine months ended 31 August 2015 and the
three months ended 30 November 2015.

(b) Prepare the appropriation account for the nine months ended 31 August 2015 and the
three months ended 30 November 2015.

(c) Prepare the current accounts for Tom and Jerry for the year ended 30 November 2015.

9
 Additional information:

The partnership is considering expansion and will need to purchase additional non-current
assets at a cost of $60 000.

Required:

(d) State the difference between capital and revenue expenditure.

(e) Identify and explain one accounting concept relating to depreciation.

(f) (i) Discuss two possible sources of finance which could be used to fund the purchase of
the additional non-current assets.

(ii) Recommend the most appropriate source of finance for the partnership. Justify your
answer.
[Nov 16 P22]
6.

10
 [Nov 16 P23]

7.

11
[Nov 11 P41]

12
8.

13
[June 12 P42]

14
9. Ramadhin, Statham and Trueman formed a partnership on 1 January 2016. The draft profit for the
year ended 31 December 2016 before appropriation was $232 000, but did not account for the
following:

1. A non-current asset costing $20 000 was purchased on 1 July 2016. No depreciation has been
charged on this asset. The partnership’s policy is to charge depreciation at 20% using the
reducing balance method on all assets. A full year’s depreciation is charged in the year of
purchase and none in the year of disposal.

2. Some inventory which had been valued at a cost of $15 000 had been damaged. The mark-
up on inventory is 100%. The damaged inventory could only be sold for 20% of the normal
selling price.

Required:

(a) Calculate the adjusted profit for the year ended 31 December 2016 before appropriation.

Additional information

On 1 January 2016 Ramadhin, Statham and Trueman had introduced capital of $600 000 in their
agreed profit and loss sharing ratio of 3:2:1 respectively. The other terms of the partnership
agreement were as follows:

(i) Interest of 6% per annum is to be paid on the opening capital account balances.
(ii) Each partner is to take drawings of $10 000 per annum. Interest is to be charged on total
annual drawings at 4% per annum.
(iii) Trueman is to receive a salary of $1000 per month.

Required:

(b) Prepare the partnership appropriation account for the year ended 31 December 2016.

(c) Explain why partners may value goodwill and revalue the assets when one partner retires.

Additional information:

Trueman received an offer of employment which would provide him with a gross annual income
of $50 000. He decided to accept the offer and leave the partnership on 31 December 2016. At
that date goodwill was valued at $12 000. It was also agreed that the partnership assets should
be revalued at $7500 less than their net book values. Trueman agreed to leave 40% of the
balance due to him as a loan to the partnership at an interest rate of 10% per annum. The
remainder was paid to him from the business bank account.

Required:

(d) Prepare a statement showing the amount that Trueman received on leaving the partnership.

(e) Assess whether or not Trueman was correct in his decision to leave the partnership. Justify
your answer by discussing the financial and non-financial factors involved.
15
 Additional information:

Trueman asks Ramadhin and Statham for an early repayment of his loan to the partnership.

Required:

(f) Advise the partners whether or not they should make an early repayment. Justify your answer.

[June 17 P23]

10. Carlos and Erika have been in partnership for several years and prepare their financial statements
to 31 July. At 1 August 2016 the following information related to non-current assets was available.

$
Plant & Machinery at cost 65 000
Accumulated depreciation on Plant & Machinery 5 000
Motor vehicles at cost 18 000
Accumulated depreciation on Plant & Machinery 3 600

During the year ended 31 July 2017 the following took place.

(i) On 1 November 2016, the partnership purchased a new machine for $7500. On 1 December
2016 a machine was sold for $6800. The machine had been purchased for $10 000 on 1 May
2015.

(ii) On 1 February 2017 a new motor vehicle was purchased for $14 000.

(iii) The accounting policies in respect of depreciation are:

Plant and machinery are depreciated using the straight-line method at 10% per annum. Motor
vehicles are depreciated using the reducing balance method at 20% per annum. A full year’s
depreciation is charged in the year of purchase and none in the year of disposal. No
adjustments have yet been made for depreciation or disposal of the machine.

(iv) The profit for the year ended 31 July 2017 before any adjustments was $37 490.

Required:

(a) Calculate the revised profit before appropriation for the year ended 31 July 2017.

Additional information:

The terms of the partnership agreement are as follows:

1. Annual partnership salaries: Carlos $10 000 and Erika $15 000.
2. Interest on capital: 3% per annum.
3. No interest is to be paid on drawings up to $20 000. Interest at a rate of 6% is to be charged
on any drawings in excess of $20 000.
4. Profits and losses are to be shared in the ratio of the capital invested.
16
The following information is also available at 31 July 2017.
$
Capital account:
Carlos 84 000
Erika 28 000
Drawings:
Carlos 15 000
Erika 25 000

Required:

(b) Prepare the partnership appropriation account for the year ended 31 July 2017. [4]

Additional information

On 31 July 2016 the balances on the partners’ current accounts were:

$
Carlos 1 300 credit
Erika 250 debit

Required:

(c) Prepare the current accounts for the year ended 31 July 2017. [5]

Additional information

The following information is also available:

31 July 2017 31 July 2016

$ $
Credit sales 385 000 327 500
Credit purchases 172 000 153 000
Inventory 6 535 10 800
Bank overdraft 16 100 1 200
Other receivables 34 126
Other payables 586 248
Trade receivables collection period 46 days 31 days
Trade payables payment period 36 days 39 days

Required:

(d) Calculate the following at 31 July 2017:

(i) Trade receivables

(ii) Trade payables [4]

(e) Assess the working capital position of the partnership at 31 July 2017. [4]

17
 (f) Advise the partners of three ways in which they could improve the cash position of the
business. [3]

Additional information

Carlos and Erika are considering converting the partnership into a limited company.

Required:

(g) Advise the partners whether or not they should take this course of action. Justify your answer.
[5]

[June 18 P23]
11.

Required:

(a) State how profits and losses are shared in a partnership where there is no agreement. [1]

18
(b) Explain two reasons why you would recommend partners to have a written agreement, other
than stating a ratio for sharing profits and losses. [4]

(c) Prepare the income statement for the year ended 31 December 2019. [11]

Required:

(d) Prepare the appropriation account for the year ended 31 December 2019. [4]

(e) Calculate the balance of Hamza’s current account at 31 December 2019. [5]

Additional information:

Hamza and Noor have been considering expanding their business which will require additional
finance of $90 000. In order to finance the expansion, they are considering two options.

Option 1: admit a new partner

Option 2: apply for a bank loan

Required:

(f) Advise which option the partners should choose. Justify your advice. [5]

[June 20 P21]

19
12. Karis and Lara are in partnership.

(a) State two reasons why partners may each have a separate capital account and current
account. [2]

20
Required:

(b) Prepare the capital accounts of the partners to record the admission of Megan as a partner.
[8]
Additional information

In the new partnership agreement Lara is to receive a salary of $12 000 per annum. Megan is
hoping to achieve a 25% return on her capital employed (ROCE).

Required:

(c) Calculate the minimum profit the partnership must make in order for Megan to achieve this
ROCE.
[3]

(d) State two possible disadvantages to existing partners of admitting a new partner. [2]

[June 21 P21]

21
13.

22
Required:

(a) State one reason why a partnership may revalue assets on the retirement of a partner. [1]

(b) Prepare the revaluation account at 30 June 2021. [3]

(c) Prepare the partners’ capital accounts at 30 June 2021. [6]

Additional information

Ben has indicated that he may be willing to leave $10 000 as an interest-free loan, but he requires
any other amount due to be paid within one month. In order to maintain sufficient working capital,
Abbie and Cain are considering two options to finance the settlement due to Ben.

Option 1: Request an overdraft facility from the bank.

Option 2: Ask Ben to consider leaving the whole amount due as a 5% loan repayable over ten
years in equal annual instalments.

Required:

(d) Advise Abbie and Cain which option they should choose to finance the amount due to Ben.
[5]

[Nov 21 P23]

23
14.

24
25
15.

26
27
TOPIC # 1 – PARTNERSHIP DISSOLUTION

28
29
30
31
32
33
6.

34
 Required:

(a) Prepare the realisation account on dissolution of the partnership. [6]

(b) Calculate the amount to be paid to Beena on dissolution of the partnership. [3]

(c) State two items which may be included in a partnership agreement. [2]

(d) Explain why partners may each have a separate capital account and current account. [4]

[Nov 18 P23]

7.

35
Required:

(a) Prepare the realisation account on the dissolution of the partnership. [6]

(b) Prepare a statement to show how much Binu will receive when the partnership bank account
is closed.
[4]

(c) State two reasons why a partnership may be dissolved. [2]

(d) Explain what would happen if the dissolution of the partnership resulted in a debit balance on
a partner’s capital account.
[3]

[June 17 P21]

36
 TOPIC # 2 – MANUFACTURING ACCOUNTS

Extract from the syllabus -

3.1.4 Manufacturing businesses –

Candidates should have an understanding of:

• How to prepare a manufacturing account, to differentiate between direct and indirect

expenses and to include factory profit.

• How to prepare, for a manufacturing business, a statement of profit or loss and a statement
of financial position.

• How to account for manufacturing profit and the elimination of unrealised profit from unsold
inventory.

• The reasons why a business may account for manufacturing profit.

37
1.

38
39
2.

40
3.

41
4.

42
43
5.

44
45
6.

46
7.

47
[Nov 17 P31]

48
8. It is considered useful for a business to record all its manufacturing costs separately in a
manufacturing account.

Required:

(a) State three reasons why it is useful to a business to record its manufacturing costs in this
way. [3]

49
 [Nov 18 P32]
9.

50
Required:

[Nov 18 P33]

51
10.

Required:

52
 [Nov 19 P33]
11.

53
Required:

[Nov 20 P32]

54
12.

Required:

55
 [June 21 P31]
13.

[Nov 32 P32]

56
 TOPIC # 3 – CLUBS & SOCIETIES

Extract from syllabus –

3.1.3 Clubs and societies -

Candidates should have an understanding of:

• The distinction between a receipts and payments account and an income and expenditure
account.

• How to define and calculate the accumulated fund.

• How to prepare, from full or incomplete accounting records:

➢ A receipts and payments account

➢ Accounts for trading and revenue-generating activities
➢ A Subscriptions account
➢ An income and expenditure account
➢ A statement of financial position

• How to account for other receipts, including life memberships and donations.

• How to make adjustments to financial statements.

• How to evaluate possible sources of finance and methods of fundraising.

57
58
2.

59
3.

60
4.

61
62
5.

63
6.

64
7.

65
[June 11 P42]

66
8.

67
9.

68
69
10.

70
11.

71
72
12.

73
13.

74
[June 18 P31]

75
14.

76
[March 21 P32]

77
15.

78
[June 22 P32]

79
16.

[Nov 22 P31]
80
17. The Blue Squash Club was established many years ago and prepares accounts to 31 July each
year. The club owns a freehold building which houses four squash courts, changing facilities and
a small members' bar. The Treasurer of the club has prepared the following receipts and
payments account for the year to 31 July 2017:

Blue Squash Club

Receipts and Payments Account for the year to 31 July 2017
$ $
Receipts Payments
Balances at 1 August 2016: Bar purchases 32,199
Cash 183 Bar wages 10,920
Bank 2,425 2,608 Cleaners' wages 3,640
Subscriptions received: Gas and electricity 1,737
year to 31 July 2016 330 Insurance 840
year to 31 July 2017 11,120 Repairs and maintenance 622
year to 31 July 2018 410 Sundry expenses 1,050
Life membership fee 400 Donations to charity 2,000
Bar takings 41,594 Raffle prizes 250
Sale of raffle tickets 415 Bank charges 163
Bank interest received 74 Purchase of equipment on 1 May 2017 1,600
Balances at 31 July 2017:
Cash 192
Bank 1,738 1,930
56,951 56,951

The following information is also available:

1. The bank statement for the month of July 2017 was delayed and therefore the bank
reconciliation below was prepared after the receipts and payments account for the year had
been prepared:

$
Bank balance per cashbook 1,738
Dishonoured cheque (100)
Bank charges for July (19)
Unpresented cheques 403
Bank balance per bank statement 2,022

The dishonoured cheque was a cheque received from a member in settlement of his
subscription for the year to 31 July 2017.

2. Subscriptions received in advance at 31 July 2016 were $450.

3. Life membership of the club costs $400. This fee is transferred to the income and
expenditure account in equal installments over five years, beginning with the year in which
the fee is received. At 31 July 2016, the club had two life members, both of whom had paid
their fee in the year to 31 July 2015.

4. The club building cost $60 000 and is not depreciated. Equipment, fixtures and fittings are
depreciated on the straight-line basis over four years, assuming a residual value of zero.
81
 Partial depreciation charges (calculated on each month of ownership) are made in the years
of acquisition and disposal. The written down value of equipment, fixtures and fittings at 31
July 2016 was nil.

5. Apart from the items referred to above, the club's only other assets and liabilities are as
follows:

31 July 2016 31 July 2017

$ $

Bar inventory 3 410 3 180

Amount owing for bar supplies 1 153 1 317

Accrued gas and electricity 194 217

Prepaid insurance 180 200

Required:

(a) Calculate the balance of the members' accumulated fund as at 31 July 2016. [4]

(b) Prepare a subscriptions account and life membership fees account for the year to 31 July
2017. [6]

(c) Prepare a Bar income statement for the year to 31 July 2017. [5]

(d) Prepare an Income and expenditure account for the year to 31 July 2017. [7]

(e) State three other sources of income besides subscriptions or raffle tickets club could use to
increase surplus. [3]

[Total marks 25]

82
 TOPIC # 4 LIMITED COMPANIES

Extract from the syllabus -

Limited companies -

Candidates should have an understanding of:

• The features and accounting treatment of ordinary shares, bonus issues, rights issues,
debentures, dividends and reserves.

• The advantages and disadvantages to the company and to the shareholders of a company
making a bonus issue of shares and a rights issue of shares.

• The advantages and disadvantages to the company and to the shareholders of a company issuing
shares and issuing debentures.

• The distinction between capital reserves (share premium and revaluation reserve) and revenue
reserves (retained earnings and general reserve).

• How to prepare ledger accounts to record:

– an issue of ordinary shares at par or at a premium

– a rights issue of shares at par or at a premium

– a bonus issue of shares

• How to prepare for a limited company in line with the relevant international accounting standards
and legal requirements:

– Statement of profit or loss

– Statement of financial position
– Statement of cash flows
– Statement of changes in equity
– Schedule of non-current assets

Note: Questions will not be set on preference shares.

Note: For the purpose of a bonus issue of shares, the revaluation reserve is not to be used.

83
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85
86
87
88
89
90
91
7.

92
93
8.

94
 [Nov 19 P31]

9.

95
96
 TOPIC # 5 – INTERNATIONAL ACCOUNTING STANDARDS (IAS) & AUDITING AND
STEWARDSHIP OF LIMITED COMPANIES

Extracts from the syllabus -

3.2.1 International Accounting Standards (IAS)

Candidates should have an understanding of:

The main provisions of each of the following International Accounting Standards (IAS):

• IAS 1 Presentation of financial statements.

• IAS 2 Inventories
• IAS 7 Statement of cash flows
• IAS 8 Accounting policies, changes in accounting estimates and errors
• IAS 10 Events after the reporting period
• IAS 16 Property, plant and equipment
• IAS 36 Impairment of assets
• IAS 37 Provisions, contingent liabilities and contingent assets
• IAS 38 Intangible assets

3.2.3 Auditing and Stewardship of Limited Companies -

Candidates should have an understanding of:

• The role and responsibilities of the auditor.

• The differences between an external audit and an internal audit.
• The difference between a qualified and unqualified audit report.
• Stewardship and the role of directors and their responsibilities to shareholders.
• The importance of a true and fair view in respect of financial statements.

97
98
2.

99
3.

100
101
4.

102
5.

103
104
6.

105
106
7.

107
8.

108
109
9.

110
10.

Required:

111
 [June 22 P32]
11.

112
Required:

[Nov 18 P31]

113
12.

114
[Nov 22 P32]

115
 TOPIC # 6 STATEMENT OF CASH FLOWS (IAS 7)

1.

116
117
118
3.

119
120
4.

121
122
5.

123
124
6.

125
126
127
128
9.

129
10.

130
[Nov 22 P33]

131
11.

132
133
12.

134
135
 TOPIC # 7 BUSINESS ACQUISITION & MERGER

Extract from the syllabus -

Candidates should have an understanding of:

• The nature and purpose of the merger of different types of businesses to form a new business
entity.
• How to prepare journal entries and make entries in the relevant ledger accounts to record the:

– Merger of two or more sole trader businesses to form a partnership or a limited company.
– Merger of a sole trader’s business with an existing partnership to form a new partnership.
– Acquisition of a sole trader’s business or partnership by a limited company.

• How to calculate the value of goodwill on the acquisition of a business by another entity.

• How to prepare statements of profit or loss and statements of financial position for the newly
formed business entity following the acquisition or merger, for example the limited company
acquiring the partnership.

• The advantages and disadvantages of the acquisition or merger.

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14.

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[Nov 21 P31]

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15.

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16.

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[Nov 22 P33]

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 TOPIC # 8 ANALYSIS & COMMUNICATION OF ACCOUNTING INFORMATION

Extract from the syllabus -

Candidates should have an understanding of:

• How to calculate the following ratios:

✓ Working capital cycle (in days)

✓ Net working assets to revenue (sales)
✓ Interest cover or Income gearing
✓ Gearing ratio
✓ Earnings per share
✓ Price/earnings ratio
✓ Dividend per share
✓ Dividend yield
✓ Dividend cover

• How to analyse and evaluate the results of the ratios and draw conclusions

• How to make appropriate recommendations to stakeholders on the basis of the analysis

undertaken the interrelationships between ratios

Note:

• Candidates must use the formula given in the syllabus. These are the only formulae
accepted in candidate responses.

• Candidates are expected to use their understanding of the calculation and evaluation of ratios to
make informed business decisions using relevant information.

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[Nov 10 P43]

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5.

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[Nov 20 P32]

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[June 21 P31/33]

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[Nov 21 P32]

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[June 22 P31]

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[Nov 22 P31]

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 TOPIC # 9 COMPUTERISED ACCOUNTING SYSTEMS

Extract from the syllabus:

Candidates should have an understanding of:

• The process of transferring the business accounts to a computerised accounting system.

• Ways in which the integrity of the accounting data can be ensured during the transfer to a
computerised accounting system.

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 TOPIC #1 PARTNERSHIP – PAST PAPERS CHECK LIST

S No. Year Paper No. Question No.

1 March – 2016 22 2
2 June – 2016 (Partnership dissolution) 21 3
3 June – 2016 22 2
4 Nov – 2016 21 1
5 Nov – 2016 22 1
6 Nov – 2016 23 2
7 June – 2017 (Partnership dissolution) 21 2
8 June – 2017 22 3
9 June – 2017 23 1
10 Nov – 2017 23 3
11 March - 2018 22 3
12 June - 2018 21 1
13 June - 2018 22 1
14 June - 2018 23 1
15 Nov – 2018 21 3
16 Nov – 2018 22 2
17 Nov – 2018 (Partnership dissolution) 23 2
18 March – 2019 (Partnership dissolution) 22 2
19 June - 2019 21 1
20 June – 2019 (Partnership dissolution) 23 2
21 Nov – 2019 21 3
22 Nov – 2019 22 3
23 June - 2020 21 1
24 June – 2020 (Partnership dissolution) 22 3
25 Nov – 2020 (Partnership dissolution) 22 3
26 March - 2021 22 1
27 June - 2021 21 2
28 June – 2021 (Partnership dissolution) 23 3
29 Nov - 2021 23 2
30 March - 2022 22 3

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 TOPIC # 2 CLUBS & SOCIETIES – PAST PAPERS CHECK LIST

S No. Year Paper No. Question No.

1 June 2016 31/33 1
2 June 2016 32 1
3 Nov 2016 31 1
4 Nov 2016 32 1
5 Nov 2016 33 2
6 March 2017 32 3
7 Nov 2017 31 2
8 Nov 2017 32 1
9 Nov 2017 33 1
10 June 2018 31/33 4
11 Nov 2018 31 1
12 March 2019 32 1
13 Nov 2019 31 1
14 March 2020 32 2
15 June 2020 32 3
16 Nov 2020 33 2
17 March 2021 32 2
18 Nov 2021 31 4
19 Nov 2021 32 2
20 June 2022 31 1
21 June 2022 32 1
22 June 2022 33 1
23 Nov 2022 31 1
24 Nov 2022 33 1

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 TOPIC # 3 MANUFACTURING ACCOUNTS – PAST PAPER CHECK LIST

S No. Year Paper No. Question No.

1 Nov 2015 42 1
2 March 2016 32 1
3 June 2016 32 2
4 Nov 2016 32 2
5 Nov 2016 33 1
6 June 2017 32 1
7 Nov 2017 31 1
8 March 2018 32 1
9 June 2018 31/33 1
10 Nov 2018 32 1
11 Nov 2018 33 1
12 June 2019 32 1
13 Nov 2019 33 1
14 March 2020 32 1
15 June 2020 31/33 2
16 Nov 2020 31 1
17 Nov 2020 32 1
18 June 2021 31/33 1
19 Nov 2021 33 1
20 March 2022 32 1
21 Nov 2022 31 1
22 Nov 2022 32 4
23 March 2023 32 1

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 TOPIC # 4 LIMITED COMPANIES – PAST PAPER CHECK LIST

S. NO Year Paper No. Question No.

1 June - 2016 21/23 1
2 March - 2016 22 1
3 Nov - 2016 21 3
4 Nov - 2016 22 2
5 Nov - 2016 23 3
6 Nov - 2016 31 4 (a,b,c)
7 June - 2017 21 1
8 June - 2017 22 1
9 June - 2017 23 2
10 Nov - 2017 21 3
11 Nov - 2017 23 1
12 Nov - 2017 32 2
13 Nov - 2017 33 4
14 March - 2018 22 2
15 June – 2018 31/33 2
16 June – 2018 32 2
17 Nov - 2018 31 3
18 Nov - 2018 33 2
19 Nov - 2018 33 4
20 June - 2019 31/33 1
21 Nov - 2019 32 1
22 Nov - 2020 31 2
23 Nov - 2021 32 1
24 Nov - 2021 21 2
25 June - 2022 31 2
26 June - 2022 32 2
27 Nov - 2022 31 2

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 TOPIC # 5 IAS & AUDITING – PAST PAPER CHECK LIST

S No. Year Paper No. Question No.

1 Nov - 2016 31 4

2 Nov - 2016 32 4

3 Nov - 2016 33 3

4 March - 2017 32 2

5 June - 2017 31 / 33 2

6 June - 2017 32 3

7 Nov - 2017 32 2

8 Nov - 2017 32 3

9 March - 2018 32 4

10 June - 2018 31 / 33 3

11 June - 2018 32 2

12 Nov - 2018 31 3

13 June - 2019 32 3

14 Nov – 2019 31 2 (e, f)

15 Nov – 2019 33 4(a, b, c)

16 June - 2020 31 / 33 4 (c, d, e)

17 June – 2021 32 4

18 Nov – 2021 31 2

19 Nov - 2021 33 4

20 June - 2022 31 2

21 June - 2022 32 2

22 June 2022 33 1

23 Nov – 2022 31 2

24 Nov – 2022 32 3

25 March - 2023 32 3

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 TOPIC # 6 STATEMENT OF CASH FLOWS – PAST PAPER CHECK LIST

S No. Year Paper No. Question No.

1 Nov - 2014 43 1
2 June – 2015 43 1
3 Nov - 2016 31 2
4 March - 2019 32 4
5 Nov - 2019 32 4
6 June - 2020 31 / 33 1
7 June - 2020 32 1
8 Nov - 2020 33 4
9 March – 2021 32 / 33 3
10 Nov - 2021 31 1
11 Nov - 2022 33 4

TOPIC #7 BUSINESS ACQUISITION & MERGER – PAST PAPER CHECK LIST

S No. Year Paper No. Question No.

1 March - 2016 32 4

2 Nov - 2016 32 3

3 June - 2017 32 4

4 Nov - 2017 31 4

5 Nov - 2017 33 2

6 March - 2018 32 3

7 June - 2018 32 4

8 Nov - 2018 31 2

9 Nov - 2019 31 4

10 Nov - 2019 32 3

11 Nov - 2019 33 3

12 June - 2019 31 / 33 2

13 March - 2020 32 3

14 June - 2020 31 / 33 3

15 June - 2020 32 2

16 March - 2021 32 1

17 June - 2021 31 / 33 3

18 June - 2021 32 1

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19 Nov - 2021 31 3

20 June - 2022 32 4

21 Nov - 2022 32 2

22 Nov - 2022 33 3

TOPIC # 8 ANALYSIS & COMMUNICATION OF ACCOUNTING INFORMATION

S No. Year Paper Question No.

1 June - 2001 2 3
2 June - 2002 4 1
3 June - 2003 4 1 (b)
4 Nov - 2003 4 1 (b, c, d)
5 Nov - 2006 4 3 (b, c)
6 June - 2007 4 2 (c, d, e)
7 June - 2009 4 1(c, d)
8 June - 2010 43 2
9 Nov - 2010 43 2
10 Nov - 2011 41 2
11 Nov - 2012 41 1 (a, b)
12 Nov - 2012 42 1
13 June - 2013 43 2 (d, e)
14 Nov - 2014 41 2
15 June - 2015 43 2 (d, e)
16 March - 2016 32 3
17 June - 2016 31 / 33 4
18 June - 2016 32 4
19 Nov - 2016 31 3
20 June – 2017 31 4
21 June – 2017 32 2
22 Nov - 2017 31 3
23 Nov - 2017 32 4
24 June - 2018 32 1
25 Nov - 2018 32 4
26 March - 2019 32 2
27 June - 2019 31 4
28 June - 2019 32 2
29 June - 2019 33 4
30 Nov - 2019 31 3
31 March - 2020 32 4

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 32 June - 2020 31 4
33 June - 2020 32 4
34 June - 2020 33 4
35 Nov - 2020 31 4
36 Nov - 2020 32 4
37 March - 2021 32 4
38 June - 2021 31/33 2
39 Nov - 2021 32 3
40 June - 2022 31/33 3
41 June - 2022 32 3
42 Nov - 2022 31 2
43 Nov - 2022 33 2
44 March - 2023 32 1

TOPIC # 9 COMPUTERISED ACCOUNTING SYSTEMS

S No. Year Paper Question No.

1 Nov - 2018 31 4 (a,b,c)
2 June - 2021 31 3 (a)
3 Nov - 2021 31 1 (a,c)

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LIST OF FORMULAE

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IAS 2 Inventories

Inventories should be valued at lower of cost and NRV. Inventories cost should include:

✓ Costs of purchase includes import duty / taxes, transport, and handling less trade discounts.
✓ Costs of conversion includes costs directly related to the units of production, such as direct
labour and systematically allocated fixed and variable production overheads incurred in producing
finished goods.
✓ Other costs incurred in bringing the inventories to their present location and condition.

Cost of inventories = cost of purchase + Conversion costs + other costs

Net Realisable value = Estimated selling price - Estimated costs of completion — Estimated
selling costs

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