- October 30, 2015 at 2:04 pm #279681AmirahMember
- Topics: 6
- Replies: 6
Hi sir I have quite a lot of doubt answering the questions, please help me!
2. Intra-group pup
Why do we need to adjust pup when the sales is made between associate and subsidiary, since an associate is not a group entity?
6. Non current assets
Plant and equipment at cost 76,600
Accumulated depreciation at 30 September, 2008 – Plant 24,600
All plant is depreciated at 20% per annum using the reducing balance method.
My answer for depreciation: 20%(76,600-24,600)=10,400
The answer given: 9,600
Missing entry in the answer (Not sure if I’m correct?) :
Capitalised development expenditure at 30 September, 2008 6,000
Capitalised development expenditure is amortised at 20% per annum using the straight-line method.
Dr Amortisation 1,200 Cr Accumulated Amortisation 1,200
And another 4,800 development expenditure capitalised.
Dr Amortisation 960 Cr Accumulated Amortisation 960
In the answer, there’s this entry [ Dr Depreciation expense (cos) 5,000 Cr Accum depreciation (PPE) 5,000 ]. I can’t seem to figure out where does it come from.
Question 12, Question 13, Question 14
I think part of the question is missing?
There is no revaluation reserve in the question but there is RR (Dr 3,750) in the answer…
The opposite of Q9: There is RR in the question, but no RR in the answer.
My answer for the RR part: Dr RR 2,400 Cr Deferred Tax 2,400
There is a tax refund of $2·4 million. The entry for current tax is Dr Current Tax 1,800 Cr P&L 1,800. I can’t work out the 1,800. Perhaps tell me the double entry for tax refund?
The answer given for EPS: 20c per share.
My answer: $26,250 / [(96,000 x 9/12 x 1/0.96) + (120,000 x 3/12)] = 25c per share
Why is the profit recognised (30% x 8m = 2.4m) calculated that way instead of deducting costs recognised?
In the answer, under FV of SNA@DOA: RE 6 mths (21,000+ 2,000) / 2 = 11,500. Where did the 2,000 came from?
I think this question is the same one as Question 6, except this question didn’t provide the number of shares and retained earnings.
Retained earnings/(losses) –
at 1 April 2012 (4,000)
for the year ended 31 March, 2013 8,000
At the date of acquisition, S produced a draft statement of profit or loss which showed it had made a net loss after tax of $2 million at that date.
The answer given : RE 6 mths per question = (2,000)
I’m quite confused about this, can you explain this for me?
Question does not provide number of shares and retained earnings.
The answer states that pre is 6 mths, but I got 3 mths (1 October 2013 – 31 December 2013)
Answer: 2 years at $800,000 per year
I don’t know how to get the 800,000.
12. Financial Instruments
Question 3 & Question 4
I can’t get the answers for both questions and the answer provided is too brief for me to try and figure out.
Last but not least I would like to thank all the Open Tuition lecturers and staffs for the free resources provided, really helps me a lot throughout my entire ACCA journey!October 30, 2015 at 4:08 pm #279693
2. Intra-group pup
Why do we need to adjust pup when the sales is made between associate and subsidiary, since an associate is not a group entity? – because we have to eliminate the group’s share of any pup arising from trading with a subsidiary
I’ll get to the others after I’ve had my dinner but 18 questions in one post is way too many 🙁
At the rate of 3 minutes per question I’m looking at a complete hour just on this one post and at the rate of $600 per hour you’d better start saving up!October 30, 2015 at 6:05 pm #279703
6. Non current assets – you’ve missed the disposal on 1 October, 2008
“And another 4,800 development expenditure capitalised.
Dr Amortisation 960 Cr Accumulated Amortisation 960”
Why would you amortise the new development expenditure when the project is still in development?
Question 11 – I’ve included the depreciation on the leased plant twice – my mistake
Q 12, 13 and 14 – I was aware of 12 and 13, thanks for pointing out 14October 30, 2015 at 6:22 pm #279705
Question 9 – the answer should be Cr Deferred tax 4,150, Dr Current tax 4,150, Dr PorL 22,750, Cr Current tax 22,750
Question 10 – correct, Dr Revaluation Reserve 2,400, Cr Deferred tax 2,400
Question 11 – You can do this for yourself! Open up two T accounts, put in the brought forward figures, put in the carried forward figures (3,000 for deferred tax and 2,400 for current tax), balance off the deferred tax account. transfer the “missing” figure to current tax and there’s your 1,800October 30, 2015 at 6:40 pm #279707
Question 2 – you haven’t understood the effect of the entry into the suspense account. Look at the answer to see how we get rid of the suspense account balance
[(96,000 x 9/12 x 1/0.96) + (120,000 x 3/12)] is incorrect. It should read:
(120,000*9/12*1/.96) + (150,000*3/12)
Question 8 – that’s the way the examiner dealt with it. I think that you wouldn’t lose marks if you had revenue 12m, costs 9.9m, profit 2.1m, plant 12mOctober 30, 2015 at 6:59 pm #279708
Question 8 – I don’t know where the 2,000 has come from – I’ll need to go back to the relevant exam if I can find it and see if I’ve missed some important information
Q9 – it looks suspiciously like it – I’d better scrap question 9
Q13 – it had accumulated $4,000 losses brought forward and “made a net loss after tax of $2 million at that date” a further loss of $2,000 for the pre-acquisition 6 months
Q14 – agreed – I’ll correct it – if you want to try it with full information I believe that it’s in the December 2013 exam
Q16 – agreed – I’ll correct it – if you want to try it with full information I believe that it’s in the December 2014 examOctober 30, 2015 at 7:06 pm #279709
“I don’t know how to get the 800,000.”
The estimated cost to the company of the servicing is $600,000 per annum and the normal gross profit margin on this type of servicing is 25%. What’s 25% of $800,000?
Take that off the $800,000 and that leaves us with the cost to the company of $600,000 (75% of invoice value)
12 Financial instruments
Qs 3 and 4
I believe that you’ll find a fuller explanation for the answers in the exam answers for June 2011 and June 2014
Thank you for pointing out my omissions!October 31, 2015 at 12:31 pm #279790AmirahMember
- Topics: 6
- Replies: 6
Phew took me quite some time to figure all this out! And seriously a big thank you to you sir for answering all my questions in such a short time, words can’t express my gratitude for what you did.October 31, 2015 at 3:17 pm #279819
You’re welcome but, please, next time no more than three questions per post
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