[michealjames]

Even I wanted to know…Please confirm as there has been quite some additions in the syllabus.

[michealjames]

Profit on disposal is a non cash item. We have to deduct it when adjusting net cash from operating activities.

[michealjames]

THE CORRECT ANSWER IS D.

Financial year end- 30 April 2009

Amount to be debited in IS=(201600/12*2)+(230400/12*10) gives you $225,600.

Last payment for the financial year will be on 1 April 2009.Includes 3 months, i.e, April, May and June.

May and June will include the amount prepaid.

Prepayment for 2 months=230400/12*2=$38,400

[michealjames]

Basically, you should NOT put a minus sign for losses and definitely not, for credit balances,UNLESS it is stated in the question which in this case will only apply for losses.

Guidelines will appear on the screen before starting the exam.Make sure you read them properly.

Goodluck for your exam.

[michealjames]

The residual value of the NCA is ignored- not taken into account.

[michealjames]

1.B
2.A

[michealjames]

Unfortunately, all chapters of the syllabus are examinable in section B.

[michealjames]

Your answer is correct.

[michealjames]

Computation of goodwill:

Consideration transferred(Obtained from BS of Holding company) 144000
Less value of identifiable assets:
Share capital 28800
Pre-acquisition Retained Earnings 34560
Fair value adjustment of NCAs at acquisition 36000
Goodwill=144000-(28800+34560+36000)

[michealjames]

Example can be the tax authority of a country

[michealjames]

Yes, It is examinable.

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