Escolar Documentos
Profissional Documentos
Cultura Documentos
Section A
1 A
2 A
3 B
4 D
5 C
6 D
7 B
8 A
9 D
10 D
11 D
12 C
13 C
14 D
15 A
16 D
17 A
18 C
19 B
20 D
21 B
22 C
23 C
24 A
25 B
17
SECTION B
1 Airn
Income statement for the year ended 30 June 2005
$ $
Sales revenue (Working 1) 517,200
Opening inventories 58,900
Purchases (Working 2) 334,600
––––––––
393,500
less: Closing inventories 63,200
330,300
–––––––– ––––––––
Gross profit 186,900
Wages 74,000
Rent and general expenses (49,200 + 7,400 – 12,500 + 13,000) 57,100
Depreciation: shop fittings (45,000 x 10%) 4,500
motor van (22,000 x 20%) 4,400
Profit on sale of van (4,500 – 4,000) (500) 139,500
–––––––– ––––––––
Net profit $47,400
––––––––
Workings
(1) Calculation of sales
Receivables ledger total account
$ $
Opening balance 44,700 Cash banked 418,200
Payments out of takings 95,100
Sales 517,200
Closing balance 48,600
–––––––– ––––––––
561,900 561,900
–––––––– ––––––––
(2) Calculation of purchases
Payables ledger total account
$ $
Opening balance 19,600
Cash paid for purchases 316,300 Purchases 320,900
Closing balance 24,200
–––––––– ––––––––
340,500 340,500
–––––––– ––––––––
Credit purchases 320,900
Cash purchases 13,700
––––––––
Total purchases 334,600
––––––––
18
2 Land – cost/valuation
3 Goodwill
$ $
Investment in Rye 260,000 Share capital 80% 80,000
Retained earnings 80% 144,000
Goodwill-retained earnings 36,000
–––––––– ––––––––
260,000 260,000
–––––––– ––––––––
Minority interest
$ $
Balance to CBS 72,000 Share capital 20% 20,000
Retained earnings 20% 52,000
–––––––– ––––––––
72,000 72,000
–––––––– ––––––––
Retained earnings
$ $
Cost of control Balances Kye 480,000
80% x $180,000 144,000 Rye 260,000
Goodwill 36,000
Minority interest 20% 52,000
Balance to CBS 508,000
–––––––– ––––––––
740,000 740,000
–––––––– ––––––––
19
Kye group
Balance sheet as at 30 September 2005
$
Sundry net assets (420, 000 + 360,000) 780,000
––––––––
Share capital 200,000
Retained earnings 508,000
––––––––
708,000
Minority interest 72,000
––––––––
780,000
––––––––
4 (1) The factory was in good condition at 30 June 2005, and thus the fire is a non-adjusting event according to IAS 10 Events
after the balance sheet date. Details of the fire and an estimate of the loss suffered should be disclosed by note.
(2) According to IAS 37 Provisions, contingent liabilities and contingent assets, contingencies such as this are to be provided for
as soon as it becomes probable that a liability will arise. A provision should therefore be made for the best estimate of the
loss that will arise.
(3) This constitutes a ‘probable’ contingent asset under IAS 37, and thus should be disclosed by note, explaining the nature of
the contingent asset and, if possible, an estimate of the financial effect.
(4) It is incorrect to include the revaluation gain in the income statement, because the gain is unrealised. It should be credited
to revaluation reserve and shown in the balance sheet. The gain should also be shown in the statement of changes in equity
(IAS 16 Property, Plant and Equipment and IAS 1 Presentation of Financial Statements).
20
Part 1 Examination – Paper 1.1(INT)
Preparing Financial Statements (International Stream) December 2005 Marking Scheme
Section B
1 Heading 1
Sales revenue 2
Opening inventories 1/
2
Purchases 2
Closing inventories 1/
2
Wages 1/
2
Rent and general expenses 2
Depreciation: shop fittings 1
motor van 1
Profit on sale of van 1
–––––
1
11 /2 max 11
3 Goodwill 11/2
Minority interest 1
Retained earnings 21/2
Heading 1
Sundry net assets 1
Share capital 1/
2
Minority interest in B/S 1/
–––––2
8
4 (1) IAS 10 1
Non-adjusting 1
Details in note 2 x 1/2 1
–––––
3
(2) IAS 37 1
Provide for 1
–––––
2
(3) IAS 37 1
Disclose by note 2 x 1/2 1
–––––
2
(4) IASs 16/1 1
Must not be in income statement 1
Include as revaluation reserve in balance sheet 1
Include in statement of changes in equity 1
–––––
4
–––––
11 max 10
21