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Revision Mock MCQ

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Revision Mock MCQ

  • This topic has 13 replies, 4 voices, and was last updated 9 years ago by MikeLittle.
Viewing 14 posts - 1 through 14 (of 14 total)
  • Author
    Posts
  • August 18, 2015 at 4:08 am #267593
    ifeoma
    Member
    • Topics: 5
    • Replies: 14
    • ☆

    Couldn’t get the suggested answer for the question below. Kindly assist Prof.:

    Can anyone help with this MCQ:

    During the year ended 28 Feb 2015, Ahmed entered into two lease contracts as follows:
    1) On March 2014 a payt of $120,000 was made as the first of four equal annual installments on a finance lease for an item of plant. The lease has an implicit interest rate of 10% and the fair value of the plant on 1March 2014 was $390,000
    2) On 1 February 2015 a payt of $30,000 was made for a one year lease of an item of excavation equipment
    What Amount in total should be charged too Ahmed statement of p/l for the year ended 28 February 3015 in respect of the above transaction

    August 18, 2015 at 9:36 am #267610
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23315
    • ☆☆☆☆☆

    Is it 154.5?

    August 18, 2015 at 9:28 pm #267681
    ifeoma
    Member
    • Topics: 5
    • Replies: 14
    • ☆

    Yes sir. The question now is how did you arrive at it?

    August 18, 2015 at 10:00 pm #267686
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23315
    • ☆☆☆☆☆

    Cost 390
    First installment (120)
    Therefore borrowed 270
    10% of 270 = interest of 27 interest for the year

    Cost 390
    Depreciation over 4 years 97.5 per annum

    Operating lease payment of 30

    Total 27 + 97.5 + 30 = 154.5

    OK?

    August 19, 2015 at 7:02 pm #267798
    ifeoma
    Member
    • Topics: 5
    • Replies: 14
    • ☆

    Thank you.

    August 19, 2015 at 11:00 pm #267811
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23315
    • ☆☆☆☆☆

    You’re welcome

    August 21, 2015 at 2:23 am #267915
    ifeoma
    Member
    • Topics: 5
    • Replies: 14
    • ☆

    Sir, pls also assist with the MCQ below. I got $1,437,600 but the answer says is wrong and I don’t get why. Below is the question:

    On 30 April 2014, Algis’s closing inventory was counted and valued at cost of $1.46m. Some items of inventory that had cost $140,000 had been damaged in a fire during March and are not expected to achieve their normal selling price which is calculated by adding a standard mark up of 40%. The sale of these goods will be handled by an agent specializing in fire-damaged goods who is expecting to sell them for 75% of the normal selling price and will charge Algis’s a sales commission of 20%.
    At what value will the closing inventory of Algis’s be reported in its statement of financial position as at 30 April, 2014.

    August 21, 2015 at 7:19 am #267921
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23315
    • ☆☆☆☆☆

    WHat figure does the answer give us?

    August 21, 2015 at 10:05 am #267946
    josy87
    Member
    • Topics: 173
    • Replies: 215
    • ☆☆☆

    Sir I know its not my post but I got 1 436 600. is it the right answer?
    thx

    August 21, 2015 at 12:01 pm #267960
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23315
    • ☆☆☆☆☆

    I don’t know – let’s see what ifeoma says!

    November 30, 2015 at 4:11 pm #286458
    haibe
    Member
    • Topics: 2
    • Replies: 32
    • ☆

    Can anyone solve the question on inventory pls.. Why isnt the answer 1436600?

    November 30, 2015 at 7:31 pm #286527
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23315
    • ☆☆☆☆☆

    I make it $1,437,600!

    Ifeoma, is that an option in the answers? I know that you say that the printed answer says different but it’s what I get too

    November 30, 2015 at 7:44 pm #286531
    haibe
    Member
    • Topics: 2
    • Replies: 32
    • ☆

    Its an option but its wrong but thats what i got.

    November 30, 2015 at 7:48 pm #286536
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23315
    • ☆☆☆☆☆

    Could be a misprint in the answer book. If it isn’t $1,437,600 then I can’t see where I’ve gone wrong

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