[arthur]

I got 63% self study.

[arthur]

Hi Mr Little

I’ve seen something on the ACCA site saying F7 specimen applicable to December 2014 exams, is it a new exam format?

[arthur]

Thank you so much sir.

[arthur]

Hi mr Little i got a question

Parent acquired sub on 1 April 2011 and the balance on subs retained earnings at this date was $1,800. On 1 october 2012 Parent acquired an Associate.

Parent retained earnings b/f $13,500
profit year to 31.03.2013 $ 3,375

Sub retained earnings b/f $3,150
profit year to 31.03.2013 $2,025

Associate retained earnings b/f $1,800
profit year to 31.03.2013 $1,350

What figures are suppose to appear in the net assets lists at fair value at acquisition and at consolidation date under reserves for year ended 31 march 2013.
Your quick response will be highly appreciated.

[arthur]

I’ve understood mr little thanks.

[arthur]

Yes am clear sir, is it the same if we say
Dr Trade payables of Tom $3
Cr Receivables of dick $3 ?

[arthur]

thank you very much sir.

I got another one below, sorry for bothering you too much.

During the year Dick sold goods to Tom to the value of $8m at a mark-up of 25%
on cost. All of the goods sold to Tom were still in inventory at the year end. There
was an outstanding balance between the two companies at the end of the year of
$3m as a result of this transaction.

just need the double entry and not the PUP.

Thaking you in anticipation.

[arthur]

A bit clear show me the entries

[arthur]

Am clear now mr Little, than you very much.

[arthur]

Sir thanks but am still confused how does the 8/12 come in instead of 4/12 since acquisition is 01.06.10 and year end is 30.09.10? your quick response will be highy appreciated.

[arthur]

Yes it is.

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