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8/19/2019 ADVANCED FINANCIAL REPORTING PAPER

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UNIVERSITY OF DAR ES SALAAM

Registration No…………………….

UNIVERSITY OF DAR ES SALAAM BUSINESS SCHOOL

DEPARTMENT OF ACCOUNTIN

COURSE CODE ! TITLE" AC #$% & ADVANCED ACCOUNTIN

FIRST SEMESTER FINAL E'AMINATIONS FOR THE ACADEMIC YEAR ($)%*)%

YEAR OF STUDY" III

DATE" Fe+r,ar- (n/ ($)0

TIME" # HOURS

INSTRUCTIONS

). T1is e2a3ination 4a4er 5onsists o6 si2 4rinte 4ages 7it1 8,estions i9ie into t7o

se5tions & Se5tion A :#$ 3ar;s


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SECTION A

T1is se5tion 5ontains t7o 8,estions/ 71i51 5arr- a total of 30 marks & ANS>ER ALL t7o

8,estions.

QUESTION 1

Be=o7 are )$ M,=ti4=e C1oi5e ?,estions :MC?s1en a 4artners1i4 is isso=9e/ 4ie5e3ea=/ an t1e 6o==o7ing 5=ai3s nee to +e

3et o,t o6 t1e 5as1 rea=i@e/ 71i51 is t1e 5orre5t se8,en5e in 71i51 t1ese 5=ai3s

1a9e to +e 3et

). In 4a-ing to ea51 4artner ratea+=- 71at is ,e to 1i3 6ro3 t1e 6ir3

6or a9an5es as isting,is1e 6ro3 5a4ita= :An- 4artners =oan


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:9< In Mar51/ ($)#/ a 5o34an- 3ae a ) 6or )$ rig1ts iss,e at $ o6 4ri5e 4er s1are

3ar;et 9a=,e/ 71i51 J,st +e6ore t1e rig1ts iss,e 7as TS )/(0$*K. T1e t1eoreti5a=

3ar;et 9a=,e 4er s1are a6ter t1e rig1ts iss,e 1as +een 3ae s1o,= +e":a< TS 0/

:+< TS (/)(0/

:5< TS )/()G/:< TS )/($$.

:9i< T1e Bran51 C,rrent a55o,nt in t1e a55o,nting re5ors o6 t1e T Bran51 1a a

e+it +a=an5e o6 TS )(/$$$ at t1e en o6 A4ri=/ an t1e Hea o66i5e C,rrent

a55o,nt in t1e a55o,nting re5ors o6 t1e 1ea o66i5e 1a a 5reit +a=an5e o6 TS

)0/$$$*K. T1e 3ost =i;e=- reason 6or t1e is5re4an5- in t1e t7o =eger a55o,nt

+a=an5es is"

:a< Mer51anise s1i44e +- t1e 1ea o66i5e to t1e +ran51 1a not +een

re5ore +- t1e +ran51.

:+< T1e 1o3e o66i5e 1a not re5ore t1e +ran51 net in5o3e 6or A4ri=.:5< T1e +ran51 1a J,st 5o==e5te 1o3e o66i5e trae a55o,nts re5ei9a+=e

in t1e a3o,nt o6 TS #/$$$.

:< T1e +ran51 1a not -et re5ore t1e 1o3e o66i5e net in5o3e 6or A4ri=.

:9ii< >1i51 o6 t1e 6o==o7ing ite3s are 5reite in 5a4ita= re,5tion a55o,nt:a< Mone- re5ei9e 6ro3 5a==ing ,n5a==e 4art o6 iss,e s1are 5a4ita=/ gain

on re9a=,ation an 4re6eren5e i9ien 6orgone:+< T1e 9a=,e o6 5an5e==e s1ares/ goo7i== 7riteo66 an is5o,nt

re5ei9e

:5< Ba e+ts 7ritten o66/ =oss on rea=i@ation/ sto5; 7riteo66s:< De+ent,re interest 6oregone/ Dis5o,nt re5ei9e/ gain on re9a=,ation

:e< None o6 t1e a+o9e:9iii< Pa3 Lt a58,ire G$ o6 orinar- s1ares in Se3a Lt on ) an,ar- ($)$.On t1at

ate 4ro4ert- o6 Se3a Lt 7as esti3ate +- ire5tors o6 Pa3 Lt to +e

,ner9a=,e +- TS 0$$$.$$$.>1at is t1e e66e5t o6 t1is on goo7i==

:a< oo7i== in5reases +- 0/$$$/$$$:+< oo7i== e5reases +- 0/$$$/$$$

:5< oo7i== in5reases +- #/$$$/$$$

:< oo7i== e5reases +- #/$$$/$$$

:e< M- ans7er is…………:i2< >1i51 o6 t1e 6o==o7ing state3ent is tr,e a+o,t ree34tion o6 s1ares

i. I6 it is 6inan5e +- ne7 iss,e/ 4ro5ees 6ro3 ne7 iss,e 3,st e8,a= t1e no3ina=

9a=,e o6 4re6eren5e s1ares to +e reee3e.

ii. I6 t1e +a=an5e in retaine earnings is not eno,g1 to 7rite o66 t1e 4re3i,3 on

ree34tion/ t1en on=- a 4ro4ortionate n,3+er o6 4re6eren5e s1ares s1o,= +e

reee3e J,st eno,g1 to 5o9er t1e 4re3i,3 on ree34tion.iii. Nor3a==- 4re3i,3 on ree34tion is 6inan5e o,t o6 ne7 iss,e o6 s1ares

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i9. T1ere 3,st +e a,t1orit- in arti5=es o6 asso5iation

:a< A== o6 t1e a+o9e

:+< None o6 t1e a+o9e:5< i an ii on=-

:< i/ ii an i9 on=-

:2< Neit1er t1e Pa=3er Bran51 nor t1e 1o3e o66i5e o6 R,4ert Co34an- 1a

5o34=ete an- intra5o34an- transa5tions ,ring t1e =ast 1a=6 o6 Ma-/ -et t1e

5reit +a=an5e o6 t1e +ran51s Ho3e O66i5e =eger a55o,nt on Ma- #) 7as =arger

t1an t1e e+it +a=an5e o6 t1e 1o3e o66i5es In9est3ent in Pa=3er Bran51 a55o,nt.

T1e 3ost =i;e=- reason 6or t1is is5re4an5- is"

:a< T1e 1o3e o66i5e re4orte a net =oss 6or t1e 3ont1 o6 Ma-.:+< T1e +ran51 re4orte a net =oss 6or t1e 3ont1 o6 Ma-

:5< T1e +ran51 ret,rne 3er51anise to t1e 1o3e o66i5e.

:< T1e +ran51 re4orte a net in5o3e 6or t1e 3ont1 o6 Ma-.

(10 Marks)

QUESTION 2

:a


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QUESTION 1

Po3oni Lt a58,ire $ orinar- s1are 5a4ita=/ %$ o6 4re6eren5e s1are 5a4ita= an #$ o6

0 e+ent,res in Si3+e-a Lt at )st an,ar- ($$ 6or TS (%/$$$/$$$/ TS 0/$$$/$$$ an TS

0/G$$/$$$ res4e5ti9e=-. Si3+e-a Lts +a=an5e s1eet at #)st De5e3+er ($$ s1o7e retaine

earnings o6 TS )(/$$$/$$$. T1e Ba=an5e s1eets o6 t1e t7o 5o34anies at #)st De5e3+er ($$

are gi9en +e=o7.

T"# $%&&%'* ma++#rs ar# +% ,# +ak# +% -%s#ra+%/

:i< D,ring ($$/ Si3+e-a e5=are an 4ai )$ orinar- i9iens o,t o6 t1e 4ro6its 3ae

in ($$.

:ii< In5=,e in t1e re5ei9a+=es o6 Po3oni Lt is an a3o,nt o6 TS #/$$$/$$$ ,e6ro3 Si3+e-a Lt. TS )/$$$/$$$ o6 t1is a3o,nt is in transit 6ro3 Si3+e-a Lt.

:iii< Si3+e-a Bo,g1t goos 6ro3 Po3oni at TS #/$$$/$$$ to7ars t1e en o6 ($$.

T1ese goos 1a origina==- 5ost Po3oni TS (/0$$/$$$. Ha=6 o6 t1ese goos are sti== in t1e

sto5;s o6 Si3+e-a Lt.:i9< A=t1o,g1 Si3+e-e Lt e5=are ann,a= 4re6eren5e i9iens/ Po3oni Lt is -et to

re5ei9e its s1are Po3oni Lt 1as not 3ae a44ro4riate entries in its +oo;s.

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7/8

)%G/(0$ )%G/(0$

U4on so3e isagree3ent on 5ertain iss,e/ t1e- e5ie to isso=9e t1eir +,siness. T1e

assets 7ere rea=i@e gra,a==- an t1e net a3o,nts istri+,te i33eiate=- as 6o==o7s"

201 T3S 40005 T3S 40005

Ma- #$ )G/0$$ E24enses 4ai )/0$$,=- #$ )(/G$$ E24enses 4ai )/)$$

Se4t. #$ (/0$$ E24enses 4ai (/(0$

No9. #$ #%/$$$ E24enses 4ai %/$$$

De5e3+er/ #) 0%/$$$ E24enses 4ai 0/$$$

R#r#

S1o7 t1e istri+,tion o6 5as1 a3ong 4artners ,sing t1e 3a2i3,3 4ossi+=e =oss 3et1o.

(7 Marks)

(1 Marks)

QUESTION

Rea=it- Lt Co34an- 1as +een e24erien5ing =osses 6or a n,3+er o6 -ears. Its s,33ari@e

+a=an5e s1eet at #).)( ($)% 7as as 6o==o7s"

T3S 50005 T3S 50005

F8# ass#+s/

Lan an B,i=ings (($/$$$

P=ant an Ma51iner- ()0/$$$

I+a*,s

oo7i== G(/0$$

Patents an trae 3ar;s (0/$$$

De6erre a9ertising e24enit,re G(/0$$ )0$/$$$

In9est3ents in >a@o Lt 0/$$$

Crr#+ ass#+s

Sto5;s )(/0$$

De+tors (%G/(0$ %(/0$

TOTAL ASSETS 190::9;0

Or. s1are 5a4ita= :Q )/$$$*K< 0$$/$$$

G Pre6 s1are 5a4ita= :Q )/$$$*K< (0$/$$$

Pro6it an Loss a55o,nt :()(/0$$<0 e+ent,re sto5; )(0/0$$

Dire5tors Loan 0/$$$

C,rrent =ia+i=ities

Creitors ()(/0$$

Ban; O9erra6t )0$/$$$

De+ent,re Interest G/(0$ #G/0$

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TOTAL EQUITY< LIA!ILITIES 190::9;0

A -a=+a& r#-+% s-"#m# 'as a*r## #r +"# $%&&%'* +#rms/

)< T1e 4re6eren5e s1ares to +e re,5e to $$*K an t1e orinar- s1ares to (0$*K ea51.

(< T1e 4re6eren5e s1are i9iens are t1ree -ears in arrears. T1e 4re6eren5e s1are1o=ers

are to 7ai9e t7ot1irs o6 t1e i9ien arrears an re5ei9e orinar- s1ares 6or t1e +a=an5e.

#< A== intangi+=e assets are to +e e=i3inate an +a e+ts o6 TS )/0$/$$$ an o+so=ete

sto5; o6 TS (0/$$$/$$$ to +e 7ritten o66.

%< T1e In9est3ents in >a@o Lt are to +e so= 6or TS )0$/$$$/$$$.

0< T1e e+ent,re 1o=ers agree to ta;e one o6 t1e 5o34an-s Ma51iner- :+oo; 9a=,e TS

%0/$$$/$$$< at a 4ri5e o6 TS G(/0$$/$$$ in 4art satis6a5tion o6 t1e e+ent,re. T1e- a=so

agree to 4ro9ie 6,rt1er 5as1 o6 TS %$/$$$/$$$ in e251ange o6 orinar- s1are 5a4ita=.

G< T1e arrears in e+ent,re interest are 4ai.

< A 5ontingent =ia+i=it- o6 TS )(0/$$$/$$$ t1at 7as not +oo;e 3ateria=i@e an it 7as

4ai.< T1e ire5tors agree to ta;e orinar- s1ares in satis6a5tion o6 t1eir =oans.

< E=i3inate t1e negati9e +a=an5e in t1e P!L a55o,nt.

R#r#/

(a) o,rna= entries to re5or t1e a+o9e/ in5=,ing t1e 5as1 transa5tions. (;. marks)

(,) Ca4ita= Re,5tion A55o,nt. (. marks)

(-) T1e re9ise state3ent o6 6inan5ia= 4osition a6ter t1e reorgani@ation. ( marks)

(1 Marks)

E %$ Q#s+% >a=#r

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