Kunci Jawaban Soal 6 IAI - ICAEW:

1 A (1) only

2 D (1) and (4) only

3 D 51,800

4 C Discount received of 500 has been correctly entered in the payables control account and debited to
the discount allowed account

5 C The current years profit will be understated and next years profit will be overstated

6 B Statement of profit or loss: Credit; Statement of financial position: Debit

7 B 83

8 B 18,900

9 C (2), (1), (3), (4)

10 C Receipt of an invoice for the purchase of a non-current asset

11 B Statement 1 is False and Statement 2 is True

12 A Dr Discounts allowed, Cr Receivables control account

13 B Separate entity

14 B Assets and capital only

15 B 1,000 spent on purchasing a new computer for his secretary in order to deal with business
administration

16 C No effect

17 D 8,400

18 A 114,500

19 A 1,388.10

20 B Understated by 2,100

21 C 21,000

22 B 18,400

23 C 5,600

24 A 33,980

ICAEW 2016
1. Pineapple Ltd / roxy ltd

Marking guide

Marks

Revenue 1
Cost of sales 2
Depreciation/amortisation 3
Administrative expenses
Impairment 1
Finance costs 1
Income tax expense
PPE 2
Intangibles
Inventories 1
Receivables 1
Share premium 1
Retained earnings 1
Redeemable preference shares
Dividend 1
Total available 18
Maximum 16

Statement of profit or loss for the year ended 31 December 20X5

Revenue (3,500 50) 3,450,000
Cost of sales (W1) (2,459,500)
Gross profit 990,500
Administrative expenses (W1) (532,000)
Profit from operations 458,500
Finance cost (4,800)
Profit before tax 453,700
Income tax expense (250,000)
Profit for the year 203,700

ICAEW 2016
Statement of financial position as at 31 December 20X5

ASSETS
Non-current assets
Property, plant and equipment 3,012,300
Intangible assets 14,000
3,026,300
Current assets
Inventories 65,200
Trade receivables (37,500 30,000) 7,500
Cash and cash equivalents 263,500
336,200
Total assets 3,362,500

EQUITY AND LIABILITIES

Equity
Ordinary share capital 600,000
Share premium account 100,000
Retained earnings 2,112,300
2,812,300

Non-current liabilities
Borrowings (preference shares) 120,000
Current liabilities
Dividends payable 60,000
Trade payables 25,400
Interest charges (preference dividend) 4,800
Warranty provision 100,000
Deferred income 50,000
Tax payable 250,000
610,200
Total equity and liabilities 3,422,500

WORKINGS
1 Allocation of costs
Cost of Admin
sales expenses

Opening inventories (45,600 + 13,400) 59,000
Raw materials and consumables 1,580,000
Salaries (per TB) 805,500 445,000
Depreciation
Land and buildings 51,200 12,800
Plant and machinery 29,000
Office furniture 3,200
Amortisation of intangible asset (15,000 20yrs) 750
Impairment loss (15,000 750 14,000) 250
Closing inventories (50,200 + 15,000) (65,200)
Prepayment (Insurance) (60,000)
Irrecoverable debt 30,000

ICAEW 2016
Provision 100,000
2,459,500 532,000

2 Property, plant and equipment

3 SHARE CAPITAL

Bal b/d 500,000
Bonus issue 100,000
Bal c/d 600,000
600,000 600,000

4 SHARE PREMIUM

Bonus issue 100,000 Bal b/d 200,000
Bal c/d 100,000
200,000 200,000

5 RETAINED EARNINGS

Dividends 60,000 Bal b/d 1,968,600
Bal c/d 2,232,300 Profit for year 323,700
2,292,300 2,292,300

ICAEW 2016