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Thanks for your info. Why B is incorrect? (the answer given is D).
Does “B” mean Barbara cannot accept more than 100 bouquets?Hi,
I have faced techincal issue ( i.e. question disappeared and i cannot answer it) for my session centre based CBE PM paper on 8th March 2023. I have submitted Mitigating Circumstances but i have also requested for refunding. ACCA team feedbacked confirming i have submitted MC successfully but in order to get refund, i have to submit for withdrawal. I had checked and found out that only students who were sitting for remote session CBE exam are eligible for withdrawal.
I my case, how can i apply for refund?
thanks in advance for helping to reply?
Thanks for your time in replying.
However, the standard time for the actual output of 200 units is 10 hours while the question also said “If an employee produces 200 units in 8 hours “, why Gross pay is not 8 hours x $18 hours = 144 usd ?
Hi Sir,
I also have the same question as above and the options are given as below. The solution given is “A”. But i do not think the answer is A.
Since the standard profit per unit is “selling price per unit – the absorption cost (including the fixed cost)”
and the marginal costing uses standard contribution per unit (selling price less marginal cost (does not include fixed cost) less variable selling cost). I think the answer should be DA Higher or the same
B Lower or the same
C The same
D Different but not able to say higher or lowerHi Sir,
The answer given is as below. So the answer is correct?
Cr Wages and salaries
Dr WIPHi Mike,
thanks for your humorous and clear explanation! I can fully understand now. Once again thankx!
Hi Sir,
Please correct me if I am wrong. In the FA lecture notes, Example 2 at page 106, you did deduct the share capital of S (20k usd) for calculating the Goodwill arising on consolidation.
Hi Sir,
24. Venus Co acquired 75% of Mercury Co’s 100,000 $1 ordinary share capital on 1 November 2011. The consideration consisted of $2 cash per share and 1 share in Venus Co for every 1 share acquired in Mercury Co.
Venus Co shares have a nominal value of $1 and a fair value of $1.75. The fair value of the non-controlling interest was $82,000 and the fair value of net assets acquired was $215,500.
What should be recorded as goodwill on acquisition of Venus Co in the consolidated financial statements?$63,375
$147,750
$91,500
$16,500The answer given is $147,750.
In your lecture, you mentioned need to deduct the share capital of subsidiary. May i know why in this case we do not need to deduct the share capital of Mercury, which in this case is (100k shares X 1usd = 100k usd)? therefore the answer i get is 47750 usd.
Hi Sir,
In your lecture, you mentioned need to deduct the share capital of subsidiary. May i know why in this case we do not need to deduct the share capital of Mercury, which in this case is (100k shares X 1usd = 100k usd)? therefore the answer i get is 47750 usd.
390) Hi Sir,
Plank acquired 60% of the issued equity share capital of Splinter on 1 January
20X2. On that date, Plank paid $3 cash per share acquired and also issued two shares
(nominal value $1 per share) in exchange for each Splinter share acquired. At the date of
acquisition, Splinter had ten million equity shares of $1 nominal value in issue, plus a share
premium account balance of $10 million and had retained earnings of $50 million. The fair
value of the non-controlling interest in Splinter at the date of acquisition was $14 million.
The fair value of an equity share in Plank and Splinter were $4.50 and $1.50 respectively at
1 January 20X2.What was goodwill on acquisition of Splinter for inclusion in the consolidated financial
statements of Plank for the year ended 31 December 20X2?this is a question from Kaplan exam kit. and it has been asked in “Sylabbus-Is this there?” tread in open tuition before.
“It is a bit unclear as to whether or not consideration in the form of cash plus shares is in the syllabus for F3 or not (it certainly is for later exams).
However it is easily deal with anyway. Plant bought 60% x 10M = 6M shares.
They paid cash of 6M x $3 = $18M, and in addition gave 2 x 6M = 12M shares which were worth 12M x $4.50 = $54M.
So total consideration = 18 + 54 = $72M.”Is 72M usd is the final answer? Because the answer given is 16M usd,
Hi Sir, your explanation is very clear. Thankx!
I have another question on Kaplan Exam Kit.
Argonaut Co issued $400,000 12% loan notes for $380,000 on 1 August 20X6.
What accounting entries are required in the year ended 30 September 20X6?Dr Cash $380,000 And Dr Interest $8,000
Cr Non?current liabilities $380,000 Cr Current liabilities $8,000The given explanation is as below:
“Loan notes can be issued at a discount to their nominal value (unlike shares). Interest is
always paid based on the nominal value. Interest accrued $8,000 (12% × $400,000 × 2/12).”My question is:
1) Is Argonaut Co the borrower?
2) “Loan notes can be issued at a discount to their nominal value ” Does this mean even Argonaut borrows 400k usd, they only need to pay back 380k usd in future? If this is correct, then why Dr Cash is 380k usd and not 400k usd?Sir,
3) the answer given posted the 12k usd loan under current asset.
May I know why the 12k usd loan is posted under the current asset and not under liability? Sorry if you have covered in your lectures but i could not recall.Hi Sir,
Why if the total of the receipts from receivables column had been totalled wrongly, it would NOT lead to a difference between the total of the balances on the receivables’ ledger and the balance on the receivables’ ledger control account?.
Is it because by referring to the cash receipts book, we can know which customer we sold on credit had paid us back, so we can make the correct entries in the Nominal ledger (Cr. Receivables) ?
Hi Sir,
Of course I did study your video lecture as well.
the cash paid during the 1st July 20X2 till 30th June 20X3 is (600 + 720 + 900 + 840 )= 3060 usd.
Less : Accrued at end last year (from 1st May 20X2 till 30th June 20X2) = 400 usd
Or the accrued that brought forward from last accounting period actually we just need to take the 300 usd from “Opening balance for electricity accrued at 1 July 20X2”, and therefore minus the 300 usd like what you mentioned and not workout the accrued at end of last year by myself “400 usd”.Add: Accrued at end this year: 2/3 x 840 = 560.
If this is the case, then i can fully understand.
Hi Sir,
After I have studied twice of the lecture notes, I still think that the total expense is not 3320 usd.
Please correct me if i am wrong.first, the accounting period is from 1st July 20X2 till 30th June 20X3. From this statement “1 August 20X2 for three months to 31 July 20X2 600 usd”. it means we paid 600 usd on 1st August 20×2 for expense incurred from 1st May 20X2 till 31st July 20X2. Since the accounting period starts from 1st July 20X2, the expense has to be incurred from 1st July 20X2 (600 usd /3= 200 usd). The expense incurred from 1st May 20X2 till 30th June 20X2 is 400 usd which is accrual.
Sir, regarding this question,
The electricity account for the year ended 30 June 20X3 was as follows:
$
Opening balance for electricity accrued at 1 July 20X2 300
Payments made during the year:
1 August 20X2 for three months to 31 July 20X2 600
1 November 20X2 for three months to 31 October 20X2 720
1 February 20X3 for three months to 31 January 20X3 900
30 June 20X3 for three months to 30 April 20X3 840What was the expense charged to the statement of profit or loss for the year ended
30 June 20X3 and the accrual at 30 June 20X3?1) “1 August 20X2 for three months to 31 July 20X2 600 usd ”
First of all, the accounting period is from 1st July 20X2 till 30 June 20X3, therefore can only calculate the expense incurred from 1st July 20×2 till 31st July 20X2 (600 usd / 3= 200 usd), right?
2) “Opening balance for electricity accrued at 1 July 20X2 300 usd”
What i understand from the lecture notes is if the 300 usd has been paid within this accounting period “1st July 20×2 till 31st July 20X2”, I have to deduct the 300 usd from this year accounting period incurred expense. But it did not tell we pay the 300 usd withihn this accounting period, so why need to deduct the 300 usd?
