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2012 notes mini exercise

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › 2012 notes mini exercise

  • This topic has 9 replies, 4 voices, and was last updated 12 years ago by jemma242.
Viewing 10 posts - 1 through 10 (of 10 total)
  • Author
    Posts
  • March 20, 2013 at 8:39 am #120120
    pavanpavanmehta
    Member
    • Topics: 20
    • Replies: 32
    • ☆☆

    Page no.189 1.Cost of sales
    question 2. I can not find opening inventory. Can you please help me?

    Page no.198. Taxation
    question 2. I can not find current and differed tax liability. Can you please help me?

    Page no.199 Sundry
    question 2. I can not find EPS. Can you please help me?

    All answers are in course notes. But I could not understood. So can you please give me explanation?

    March 21, 2013 at 8:10 am #120167
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23321
    • ☆☆☆☆☆

    “His closing inventory was 30% higher than the opening inventory” So you should be able to arrive at the answer – the question asks you to find the value of the opening inventory!

    Hint – let opening inventory be “x” and therefore closing inventory is “1.3x”

    Current tax liability is given in the question as 18.7 million

    Deferred tax liability is calculated by multiplying the timing differences by the tax rate ( 40m x 25% )

    To calculate the earnings per share figure you will need to prepare the working to calculate the “rights fraction” in order that you can then take the next step and calculate the weighted average number of equity shares in issue during the year. For this, you’ll need to watch the video / listen to the audio lecture and work through the course notes

    Hope all that helps!

    🙂

    April 12, 2013 at 7:31 pm #122304
    jemma242
    Member
    • Topics: 81
    • Replies: 96
    • ☆☆

    hi
    i am really struggling with qu 2 on Cost of sale i cant work it out even with the added information here i get the 1.3 as this is the 30& increase but cant use it to work out the opening inventory!!

    can u please explain?
    manys thanks

    April 12, 2013 at 7:39 pm #122305
    jemma242
    Member
    • Topics: 81
    • Replies: 96
    • ☆☆

    please help it is so frustrating!

    April 13, 2013 at 2:51 pm #122381
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23321
    • ☆☆☆☆☆

    Jemma – you need to go back to basic algebra!

    Set up an equation such that, when you move the elements around, you finish with something like ” .3x = $**,***” and from there you can find what “x” is

    Still struggling? Post again

    April 16, 2013 at 6:24 pm #122657
    jemma242
    Member
    • Topics: 81
    • Replies: 96
    • ☆☆

    yes i am still unclear, am i missing two numbers because both closing and opening inventory are missing, could you perhaps help me with the equation please?

    i have also got stuck on question 5 excess depn & pup, in q2 how is the depreciation worked out at 40,000 because its useful life is 9 years so 100000/9 x 4 years already does not make 40,000??

    April 16, 2013 at 6:41 pm #122659
    jemma242
    Member
    • Topics: 81
    • Replies: 96
    • ☆☆

    its ok iv got the 2nd question but still stuck on COS!!

    April 17, 2013 at 3:47 pm #122724
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23321
    • ☆☆☆☆☆

    OK, here goes. If sales are 450,000 and gross margin is 15%, then profit is 67,500 and cost of sales must therefore be 382,500.

    Cost of sales is a combination of opening inventory + purchases – closing inventory.

    If we let opening inventory be “x”, then we can say:

    “x” + 400,000 – 1.3″x” = 382,500

    Rearranging 400,000 – 382,500 = 1.3″x” – “x”

    So 17,500 = .3″x”

    Therefore “x” = opening inventory = 58,333 ie 17,500 / .3

    OK?

    April 18, 2013 at 9:19 am #122786
    Mdots
    Member
    • Topics: 1
    • Replies: 4
    • ☆

    First of all Sir Mike, thanks a ton for your sincere and dedicated efforts. Your lectures are really helpful.

    Sir I am struggling at Deferred Tax. I saw your illustration on Revison Kit Q Fresco (June 2012) and tried to attempt mini exercises. I could only do Q2. (I was surprised I got the answer!)
    Q1: Def Tax a/c: I put Cr b/d 12500 and then Cr c/d 14100
    C tax: I put Dr c/d 28300

    Q3: D tax : I put Cr b/d 19200 and Dr c/d 800. I did $10m-$6m (the revaluation)= $ 4m then $4m x 20%=800
    I have no idea what to do with provison…how to deal with it.

    I have tried to follow you on the Revision kit Q and also the Deferred Tax lecture but I seem of have lost a lot of grey matter on this. Seems like I can’t get a hang of the concept. I think I am also making a mistake on what to put where (e.g. Fresco. Tax refund is an asset of $2400. I was putting it Dr $2400 above the line in T/accounts. I need help. Its frustrating

    Many thanks in advance.

    April 18, 2013 at 12:34 pm #122797
    jemma242
    Member
    • Topics: 81
    • Replies: 96
    • ☆☆

    Thank you 🙂 really appreciate the explainations and wokrings!

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