[marios87]

Hi maxkhoon…I only used opentuition notes and kaplan exam kit. I also bought the study text but i never used it during my studying. I believe the notes are more than enough.

[marios87]

Kaplan study text has around 800 and the revision kit around 550

[marios87]

Ok John thank you!

[marios87]

I think after that you also need to discount the 65.000 to the present as the first receipt will be in one year’s time?

[marios87]

My thinking was that 2500 is an opening balance for Deferred tax which after the RR tax and the temp differences tax addition it would become a closing balance of 6900.

[marios87]

My workings on Question 2 (Possibly wrong as i did not add back 1800 on the redraft statement)

Loan notes: 29000
Less:Interest paid (1800)
Add: P&L 29000*9% 2610
Total: 29810 (BS)

Depreciation & Revaluation
Asset Land Building P&E
Cost 5000 50000 58500
Accum. —- 20000 34500
Carr. 5000 30000 24000
Reval. 8000 39000 —-
Deprec. —- 2600 3000
Carr. 8000 36400 21000

Revaluation Reserve 12000
Less: Def Tax 12000*20% (2400)
Balance 9600

Deferred Tax
Balance 2500
Add: RR Tax 2400
Add: 10000*20% 2000
Total 6900 (BS)

Tax Charge
Provision 2400 (BS)
(Over) Provision (1100)
From Def.Tax 2000
To P&L 3300

Redraft statement
Retained Earnings 17500
Add back: Issue costs 1000
Deduct: Interest (2610)
Deduct: Depreciation (2600)
Deduct: Depreciation (3000)
Deduct: Tax Charge (3300)
TOTAL 6990

Balance Sheet
PPE 65400
Current Assets 68700

134100

Equity & Liabilities
Share Capital 40000
RR 9600
RE 6990

Non-Current Liabilities
Loan Notes 29810
Deferred Tax 6900

Current Liabilities 38400
Tax provision 2400

134100

Balance sheet agrees but still i think the 1800 should be first added back to Retained earnings and then deduct the 2610. Or just deduct further 810.

[Author]

Posts