F3 FFA

Dec 2016
Q1.

Q2.

Q3.

June 2016
Q1.
The following figures relate to inventory held at 31 March 2016:
Product A Product B
Units held 2,000 5,000
Cost per unit $14 $16
Selling price $17 $20
Modifications costing $5 per unit would need to be made to product A to achieve the selling price of
$17. What is the value of inventory held at 31 March 2016 in accordance with IAS 2 Inventories?
A $108,000 B $124,000 C $134,000 D $104,000
Q2

On 1 April 2015, F Co revalued a property. As a result, the annual depreciation charge increased by
$20,000 as compared to depreciation based on historical cost. The company wishes to make the
allowed transfer of excess depreciation between the revaluation surplus and retained earnings in
accordance with IAS 16 Property, Plant and Equipment. Immediately before the transfer was made,
retained earnings and the revaluation surplus were as follows:
Retained earnings $875,000
Revaluation surplus $200,000
What should be the balance on the retained earnings and revaluation surplus accounts
after the transfer?
Retained earnings Revaluation surplus
$ $
A 855,000 20,000
B 855,000 180,000
C 895,000 220,000
D 895,000 180,000

Q3

Jay sells fruit and all sales are for cash. The takings are banked at the end of each week and a cash
float of $50 is maintained. During the week commencing 25 March, the following payments were
made from cash: $
Payments to suppliers 340
Wages 150
Rent 70
Jay banked $600 at the end of the week. What were the cash takings for the week commencing 25
March?
A $1,110 B $1,160 C $600 D $560

Dis 2015
Q1. D Cos transactions for the month of September 2015 were as follows:
$
Sales (including sales tax) 600,000
Purchases (excluding sales tax) 450,000
D Co is registered for sales tax at 20%. On 1 September 2015 the sales tax account showed sales tax recoverable by D
Co of 2,000.
What was the balance on the sales tax account on 30 September 2015.
A $8,000 Dr B $8,000 Cr C $12,000 Dr D $12,000 Cr
Q2. P Co makes a 1 for 5 bonus issue using the share premium account to the extent that it is possible. Immediately
before the bonus issue, P Co had the following equity balances:
$
Share capital ($1 shares) 100,000
Share premium account 15,000
Retained earnings 460,000
What is the balance on the retained earnings account after the bonus issue has been recorded?
A $460,000 B $465,000 C $440,000 D $455,000
Q3. V Cos balance on the payables control account at 30 September 2015 of $147,000 does not agree to the total
of the list of payables ledger balances. The following errors have been found:
(1) A credit note from a supplier for $250 has been omitted from the purchase day book
(2) An invoice for $75 has been posted twice to the suppliers account on the payables ledger
(3) Cash paid to suppliers of $32,000 has been posted to the payables control account as $23,000
What is the total on the payables control account after all errors have been corrected?
A $146,925 B $137,750 C $137,675 D $137,825
Jun 2015

Q1. S Co has the following share capital in issue at 31 March 2015:

30,000 2% $1 irredeemable preference shares
20,000 4% $1 redeemable preference shares
100,000 50c ordinary shares
What amount will be included as equity capital in the statement of financial position at 31 March 2015?
A $130,000 B $70,000 C $80,000 D $100,000

Q2. F Cos statement of profit or loss for the year ended 31 March 2015 shows a profit for the year of $575,000.
During the year, an ordinary dividend of $130,000 was paid and land costing $600,000 was revalued to $640,000.
What was the total comprehensive income for the year?
A $40,000 B $485,000 C $575,000 D $615,000

Q3. The following information relates to L Co and M Co.

L Co M Co
Equity $1,500,000 $1,500,000
Profit before interest and tax $ 100,000 $ 100,000
Gearing ratio 25% 35%
Both companies borrow money at an interest rate of 5% and no new loans have been taken out during the year.
Based on this information, which of the following statements is TRUE?
A M Cos interest cover is higher than L Cos B L Cos interest cover is higher than M Cos
C L Co and M Co have the same interest cover D It is not possible to draw any conclusions regarding interest
cover from the information provided
Dec 2014
Q1. During the year ended 30 September 2014 recorded the following cash transactions:
(i) Payment of an annual insurance premium of $12,000. This covered the period to 31 December 2014.
(ii) Receipt of $6,000 in respect of rent from a tenant covering the three month period to 30 November 2014.
What is the impact on the profit and net assets of making the year end adjustments for prepaid income and
expenditure at 30 September 2014?
Profit Net Assets
A Decrease $1,000 Increase $1,000
B Decrease $7,000 Increase $7,000
C Decrease $1,000 Decrease $1,000
D Increase $7,000 Increase $7,000

Q2. During the year to 30 September 2014 K Co made the following payments:
(i) $40,000 interest on $800,000 10% loan stock issued on 1 January 2014. Interest is payable on 30 June and 31 Dec
(ii) $12,000 dividend on 200,000 $1 6% irredeemable preference shares.
(iii) $5,000 dividend on 100,000 $1 5% redeemable preference shares.
What should be the finance cost in the statement of profit or loss for the year ended 30 September 2014?
A $45,000 B $60,000 C $65,000 D $77,000

Q3. The total of a list of balances in R Cos receivables ledger was $633,700 on 30 September 2014. This did not
agree with the balance on R Cos receivables ledger control account. The following errors were discovered.
(i) A credit balance on an individual customers account of $200 was incorrectly extracted as a debit balance
(ii) An invoice for $3,223 was posted to the customer account as 3,232
(iii) The total of the sales returns day book was overcast by $500
What amount should be shown in R Cos statement of financial position for accounts receivable at 30 September
2014?
A $633,291 B $633,409 C $633,491 D $633,791