The draft statement of financial position shown below has been prepared for Shuswap, a limited liability company, as at 31 December 20X4：

Accumulated Carrying

Cost depreciation value

$'000 $'000 $'000

Assets

Non-current assets

Land and buildings 9,000 1,000 8,000

Plant and equipment 21,000 9,000 12,000

30,000 10,000 20,000

Current assets

Inventories 3,000

Receivables 2,600

Cash at bank 1,900

Total assets 27,500

Equity and liabilities

Equity

Issued share capital (ordinary shares of 50c each) 6,000

Retained earnings 12,400

Non-current liabilities

Loan notes (redeemable 20Y0) 2,000

Current liabilities

Trade payables 2,100

22,500

Suspense account 5,000

27,500

The following further information is available:

1 It has been decided to revalue the land and buildings to $12,000,000 at 31 December 20X4.

2 Trade receivables totalling $200,000 are to be written off.

3 During the year there was a contra settlement of $106,000 in which an amount due to a supplier was set off against the amount due from the same company for goods sold to it. No entry has yet been made to record the set-off.

4 Some inventory items included in the draft statement of financial position at cost $500,000 were sold after the reporting date for $400,000, with selling expenses of $40,000.

5 The suspense account is made up of two items：

(a) The proceeds of issue of 4,000,000 50c shares at $1.10 per share, credited to the suspense account from the cash book.

(b) The balance of the account is the proceeds of sale of some plant on 1 January 20X4 with a carrying amount at the date of sale of $700,000 and which had originally cost $1,400,000. No other accounting entries have yet been made for the disposal apart from the cash book entry for the receipt of the proceeds. Depreciation on plant has been charged at 25% (straight line basis) in preparing the draft statement of financial position without allowing for the sale. The depreciation for the year relating to the plant sold should be adjusted for in full.

【論述題】

Prepare the journal entries to clear the suspense account.

P owns 80% of the equity share capital of S The profit after tax of S for the year ended 31 December 20X6 was $60 million.

During 20X6, P sold goods to S for $4 million at cost plus 20%. At the year end 50% of these goods were left in the inventory

of S.

What is non-controlling interest share of the after-tax profit of S for the year ended 31 December 20X6

$11.36 million

$11.6 million

$11.68 million

$12 million

WX acquired 75% of the equity share capital of YZ several years ago. At 31 March 20X6 WX had goods in inventory valued at cost of $60,000, that had been purchased from YZ at a mark-up of 20%.

What is the effect on the profit attributable to the non-controlling interest, and the profit attributable to the parent company for

the year ended 31 March 20X6

Profit attributable to non-controlling interestProfit attributable to WX

no effectdecrease by $5,000

no effectdecrease by $12,000

decrease by $3,000decrease by $9,000

decrease by $2,500decrease by $7,500

X Co acquired 80% of the equity share capital in Y Co on 31 July 20X6. Extracts from the two companies' statements of profit or loss for the year ended 30 September 20X6 were as follows：

X Co Y Co

$'000 $'000

Revenue 3 400 2 400

Cost of sales 1 500 1 800

During the year ended 30 September 20X6, Y Co sold goods for $5 000 each month to X Co, at a mark up of 25%. At the end of the year X Co had 50% of these goods left in inventory.

What is the group gross profit for the year ended 30 September 20X6

$1,901,000

$2,001,000

$2,004,000

$1,904,000

On 1 August 20X7 Patronic purchased 18 million of the 24 million $1 equity shares of Sardonic. The acquisition was through a share exchange of two shares in Patronic for every three shares in Sardonic. The market price of a share in Patronic at 1

August 20X7 was $5.75.

What is the fair value of the consideration transferred for the acquisition of Sardonic

$103.5 million

$69 million

$155.25 million

$92 million

You are presented with the following trial balance of Malright, a limited liability company, at 31 October 20X7.

Dr Cr

$'000 $'000

Buildings at cost 740

Buildings, accumulated depreciation, 1 November 20X6 60

Plant at cost 220

Plant, accumulated depreciation, 1 November 20X6 110

Land at cost 235

Bank balance 50

Revenue 1,800

Purchases 1,105

Discounts received 90

Returns inwards 35

Wages 180

Energy expenses 105

Inventory at 1 November 20X6 160

Trade payables 250

Trade receivables 320

Administrative expenses 80

Allowance for receivables, at 1 November 20X6 10

Directors' remuneration 70

Retained earnings at 1 November 20X6 130

10% loan notes 50

Dividend paid 30

$1 ordinary shares 650

Share premium account 80

3,280 3,280

Additional information as at 31 October 20X7:

(a) Closing inventory has been counted and is valued at $75,000.

(b) The items listed below should be apportioned as indicated.

Cost of Distribution Administrative

sales costs expenses

% % %

Discounts received -- -- 100

Energy expenses 40 20 40

Wages 40 25 35

Directors' remuneration -- -- 100

(c) An invoice of $15,000 for energy expenses for October 20X7 has not been received.

(d) Loan note interest has not been paid for the year.

(e) The allowance for receivables is to be increased to the equivalent of 5% of trade receivables. Anyexpenses connected with receivables should be charged to administrative expenses.

(f) Plant is depreciated at 20% per annum using the reducing balance method. The entire charge is to be allocated to cost of sales.

(g) Buildings are depreciated at 5% per annum on their original cost, allocated 30% to cost of sales, 30% to distribution costs and 40% to administrative expenses.

(h) Income tax has been calculated as $45,000 for the year.

【論述題】

The statement of profit or loss for the year ended 31 October 20X7

The statement of changes in equity for the year ended 31 October 20X7

The statement of financial position as at 31 October 20X7

The following information has been extracted from the books of Tonson, a limited liability company, as at 31 October 20X6.

Dr Cr

$'000 $'000

Cash 15

Insurance 75

Inventory at 1 November 20X5 350

General expenses 60

Energy expenses 66

Marketing expenses 50

Wages and salaries 675

Discounts received 50

Share premium account 200

Retained earnings at 1 November 20X5 315

Allowance for receivables at 1 November 20X5 40

Sales revenue 5,780

Telephone expenses 80

Property expenses 100

Bank 94

Returns inward 95

Trade payables 290

Loan note interest 33

Trade receivables 900

Purchases 3,570

7% loan notes 470

Irrecoverable debts 150

$1 ordinary shares 1,800

Accumulated depreciation at 1 November 20X5

Buildings 360

Motor Vehicles 80

Furniture and equipment 420

Land at cost 740

Buildings at cost 1,500

Motor vehicles at cost 240

Furniture and equipment at cost 1,200

9,899 9,899

You have also been provided with the following information:

(a) Inventory at 31 October 20X6 was valued at $275,000 based on its original cost. However, $45,000 of this inventory has been in the warehouse for over two years and the directors have agreed to sell it in November 20X6 for a cash price of $20,000.

(b) The marketing expenses include $5,000 which relates to November 20X6.

(c) The allowance for receivables is to be increased to the equivalent of 5% of trade receivables.

(d) There are wages and salaries outstanding of $40,000 for the year ended 31 October 20X6.

(e) Buildings are depreciated at 5% of cost. At 31 October 20X6 the buildings were professionally valued at $1,800,000 and the directors wish this valuation to be incorporated into the financial statements.

(f) Depreciation is to be charged as follows:

(i) Motor vehicles at 20% of carrying amount

(ii) Furniture and equipment at 20% of cost

(g) No dividends have been paid or declared.

(h) Tax of $150,000 is to be provided for the year.

(i) During October 20X6 a bonus issue of one for ten shares was made to ordinary shareholders. This has not been entered into the books. The share premium account was used for this purpose.

【論述題】

The statement of profit or loss for the year ended 31 October 20X6

Set out below are the financial statements of Emma, a limited liability company. You have been asked to prepare the company's statement of cash flows, implementing IAS 7 Statement of cash flows.

EMMA

STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 31 DECEMBER 20X2

$＇000

Sales revenue 2,553

Cost of sales 1,814

Gross profit 739

Distribution costs 125

Administrative expenses 264

Operating profit 350

Interest received 25

Interest paid 75

Profit before tax 300

Income tax expense 240

Profit for the year 60

EMMA

STATEMENTS OF FINANCIAL POSITION AS AT 31 DECEMBER

20X2 20X1

$'000 $'000

Non-current assets

Tangible assets 380 305

Intangible assets 250 200

Investments -- 25

630 530

Current assets

Inventories 150 102

Receivables 390 315

Short-term investments 50 --

Cash in hand 2 1

592 418

1,222 948

Equity and liabilities

Share capital ($1 ordinary shares) 200 150

Share premium account 160 150

Revaluation surplus 100 91

Retained earnings 160 100

620 491

Non-current liabilities

Long-term loan 100 --

Current liabilities

Trade payables 127 119

Bank overdraft 85 98

Taxation 290 240

502 457

1,222 948

The following information is available.

(a) The proceeds of the sale of non-current asset investments amounted to $30,000.

(b) Fixtures and fittings, with an original cost of $85,000 and a carrying amount of $45,00 ,were sold for $32,000 during the year.

(c) The current asset investments fall within the definition of cash equivalents under IAS 7.

(d) The following information relates to property, plant and equipment.

31.12.20X2 31.12.20X1

$'000 $'000

Cost 720 595

Accumulated depreciation 340 290

Carrying amount 380 305

(e) 50,000 $1 ordinary shares were issued during the year at a premium of 20c per share.

【論述題】

Prepare a statement of cash flows for the year to 31 December 20X2 using the format laid out in IAS 7,together with the relevant notes to the statement.