Past Paper Essay

familiarity module Financial Accounting (International) Time allowed 2 hours ALL FIFTY questions ar compulsory and mustiness be attempted. Do NOT open this writing until instructed by the supervisor. This question paper must not be removed from the examination hall. The Association of rent Certified Accountants Paper F3 (INT) ALL 50 questions atomic number 18 compulsory and MUST be attempted amuse use the Candidate Registration Sheet provided to usher your chosen answer to each multiple survival question. Should details of material adjusting or material non-adjusting events aft(prenominal) the counter isotropy sheet date be reveal in the notes to financial line of reasonings according to IAS 10 Events subsequently the Balance Sheet Date? A B Adjusting events Non-Adjusting events (1 mark) 2 At 30 June 2005 a caller-ups margin for receivables was $39,000. At 30 June 2006 apportion receivables totalled $517,000. It was decided to write off debts totalling $37,000 and to adjust the allowance for receivables to the equivalent of 5 per cent of the trade receivables nominate on past events.What figure should appear in the income statement for the division ended 30 June 2006 for these items? A B C D $61,000 $22,000 $24,000 $23,850 (2 marks) 3 In times of rising prices, what effect does the use of the historic cost concept aim on a companys asset values and gain ground? A B C D asset values and profit both understated asset values and profit both overstated asset values understated and profit overstated addition values overstated and profit understated. (2 marks) 4 The IASBs Framework for the preparation and presentation of financial statements gives qualitative characteristics that make financial information reliable.Which of the following are examples of those qualitative characteristics? A B C D Faithful Representation, neutrality and prudence Neutrality, comparability and received and fair view Prudence, comparability and accruals Neutralit y, accruals and going bear on (2 marks)5 The following bank reconciliation statement has been vigilant by a trainee scoreant Overdraft per bank statement less Outstanding cheques add Deposits realisation after date Cash at bank as calculated above $ 3,860 9,160 5,300 16,690 21,990What should be the correct ratio per the cash book? A B C D $21,990 ratio at bank as stated $3,670 balance at bank $11,390 balance at bank $3,670 overdrawn. (2 marks) 6 Which of the following calculates a traders elucidate profit for a period? A B C D Closing pelf assets + drawings capital introduced opening crystalise assets Closing realise assets drawings + capital introduced opening net assets Closing net assets drawings capital introduced opening net assetsClosing net assets + drawings + capital introduced opening net assets. (2 marks) 7 A sole trader took several(prenominal) goods costing $800 from inventory for his own use. The normal marketing price of the goods is $1,600. Which of the following journal entries would correctly prove this? Dr Cr $ $ A Drawings depict 800 Inventory account 800 B C Drawings account Purchases account sales account Drawings account 800 800 1,600 1,600 (1 mark) 8 The debit military position of a companys test balance totals $800 more than the credit side.Which one of the following fractures would to the dear account for the difference? A B C D $four hundred paid for plant maintenance has been correctly entered in the cash book and credited to the plant asset account. Discount received $400 has been debited to discount allowed account A receipt of $800 for heraldic bearing receivable has been omitted from the records The petty cash balance of $800 has been omitted from the trial balance. (2 marks) 3 9 A companys income statement for the category ended 31 celestial latitude 2005 showed a net profit of $83,600.It was later found that $18,000 paid for the purchase of a motor forefront had been debited to the motor expenses a ccount. It is the companys policy to devaluate motor vans at 25 per cent per year on the straight line basis, with a full years charge in the year of acquisition. What would the net profit be after adjusting for this error? A B C D $106,100 $70,100 $97,100 $101,600 (2 marks) 10 Should dividends paid appear on the face of a companys income statement? A B Yes No (1 mark) 1 The following control account has been prepared by a trainee accountant Receivables journal control account $ Opening balance 308,600 extension sales 154,200 Cash sales 88,100 Contras against credit balances in payables ledger 4,600 Cash received from credit customers Discounts allowed to credit customers Interest charged on overdue accounts evil debts written off Allowance for receivables Closing balance $ 147,200 1,400 2,400 4,900 2,800 396,800 555,500 555,500 What should the closing balance be when all the errors make in preparing the receivables ledger control account have been corrected?