ACCA

Paper F3 (INT)

Financial Accounting

December 2011

Final Assessment – Answers

To gain maximum benefit, do not refer to these answers until you have completed the final assessment questions and submitted them for marking.

ACCA F3 (INT) FINANCIAL ACCOUNTING

2 KAPLAN PUBLISHING

© Kaplan Financial Limited, 2011

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FINAL ASSESSMENT ANSWERS

KAPLAN PUBLISHING 3

1 C

2 B

3 A

4 C

5 D

Suspense a/c

$ $

Bal b/d 180 Opening inventory 1,200

Cash sale 50

Bal c/d 970

1,200 1,200

Bal b/d 970

6 D

7 B

8 B

9 A

10 B

$ Total rent received during the year 617,000 Add: 1/7/08 rent received in advance 37,900 Less: 30/6/09 rent received in advance 25,250 Less: 1/7/08 rent in arrears 31,000

Add: 30/6/09 rent in arrears 12,250 _______

Total rent receivable for the year ended 30/6/09 610,900 _______

11 D

12 B

ACCA F3 (INT) FINANCIAL ACCOUNTING

4 KAPLAN PUBLISHING

13 A

SOCIE $

Ordinary Shares 200,000 @ 10c 20,000

Irredeemable Preference Shares $20,000 × 20% 4,000 ______

24,000 ______

Statement of Financial Position

Dividends payable Ordinary Shares 200,000 @ 10c $20,000

Dividend declared after year end are excluded from financial statement.

14 A

15 B $

Inventory 41,875

Damaged goods (1,960)

Sale proceeds 1,200

Repair costs before sale (360)

$40,755

16 B

$

Inventory 22,300

Receivables 42,650

Allowance for receivables (1,570) ______ 41,080 ______

63,380 ______

17 B

18 D

Closing inventory will be included in the income statement, loans will be included in the statement of financial position and proposed dividends should not be included – only declared.

19 C

Bank payment – opening accrual – closing prepayment

$16,750 – $2,565 – $956 = $13,229

FINAL ASSESSMENT ANSWERS

KAPLAN PUBLISHING 5

20 A

Non-current assets

$ $

Bal b/d 345,876 Disposal CV 1,370

Additions 130,231 Depreciation 16,750

_______ Bal c/d 457,987_______

476,107 _______ 476,107_______

Bal b/d 457,987

21 B

($132,425 – $1,100)

22 A

23 B

1,500,000/1.25 = 1,200,000 Shares

1,200,000/6 = 200,000 × $1.25 = $250,000

Premium $320,000 – $250,000 = $70,000

24 D

Preference share capital $120,000 × 8% = $9,600 (total dividend payable)

Paid during year = $5,000

Therefore provide for $4,600

25 A

26 A

Control account 102,849 – 800 = 102,049 List 102,382 –––––– Difference 333

ACCA F3 (INT) FINANCIAL ACCOUNTING

6 KAPLAN PUBLISHING

27 C Receivables

Bal b/d 61,784 Discounts allowed 11,945

Dishonoured cheques 250 Irrecoverable Debts 6,150

Interest 2,628

Credit sales 660,846 Bank 655,135

Bal c/d 52,278

––––––– –––––––

725,508 725,508

Bal b/d 52,278

28 D

29 A

30 B

Bank

$ $

Bal b/d 3,750

Dishonoured cheque 1,701

Bank charges 735

Bal c/d 6,186

––––– ––––– 6,186 6,186 ––––– –––––

Bal b/d 6,186

Balance per Bank Statement (3,720) Bal Fig

Less: Unpresented cheques (2,466) _____

Balance per updated cash book (6,186)

31 A

32 D

33 B

34 B

$27,000 × 20% = $5,400 × 2 (June 2007 & June 2008) = $10,800

$27,000 – $10,800 = $16,200 carrying value – $12,000 proceeds = $4,200 loss

FINAL ASSESSMENT ANSWERS

KAPLAN PUBLISHING 7

35 B

False – this is a non-adjusting event

36 D

37 A

38 C

39 A

40 B

$502

In stock 1 May

Received 12 May

Received 23 May

24 25 40

Sales 14 May 20

Sales 26 May 4 21

Remaining Nil 4 40

Price 11.50 11.40

$46 $456

41 B

42 D

43 B

Payables

$ $

Bank 191,353 Bal b/d 20,340

Bal c/d 19,240 Purchases (Balancing figure) 190,253

210,593 210,593

Bal b/d 19,240

Opening inventory + Purchases – Closing inventory = Cost of sales

$4,932 + $190,253 – $6,430 = $188,755

44 C

ACCA F3 (INT) FINANCIAL ACCOUNTING

8 KAPLAN PUBLISHING

45 D

Original profit $346,464

Credit sale not recorded $15,000

Rental income in advance $(4,000)

Revised profit $357,464

46 A

47 A

48 A

49 D

Profit $104,358

Depreciation $7,500

Loss $1,500

Increase trade receivables $(10,962)

Decease trade payables $(11,961)

––––––––

$90,435

50 C

$56,000 plus under provision previous year $3,150 = $59,150