Paper F3
ACCA
Financial Accounting
Mock Exam 1
Answers
(Duration: 3 hours)
LSAM
Mock Exam - 1 (Answers)
ANSWER 1
D
Dividends received and repayment of loan are cash flows. The rest of the items are non-cash
items.
ANSWER 2
C
Overdraft per bank statement
Less: Unpresented cheques
Add:
Lodgements/deposits credited
$
(12,700)
(13,300)
25,600
______
Bank balance per cash book (positive)
(400)
______
ANSWER 3
A
Total rent received during the year
Add:
1/8/20X7 rent received in advance
Less: 31/7/20X8 rent received in advance
Less: 1/8/20X7 rent in arrears
Add:
31/7/20X8 rent in arrears
$
810,000
40,800
33,500
39,200
35,000
_______
Total rent receivable for the year ended 31/7/20X8
813,100
_______
ANSWER 4
B
($137,850 $2,757)
ANSWER 5
B False
A trade discount is not recorded in the financial statements. The reduced cost of purchase
after trade discount is recorded.
ANSWER 6
C
Receivables
Bal b/d
Dishonoured cheques
Credit sales
55,000
6,500
612,700
Discounts allowed
Irrecoverable Debts
Bank (balance)
Bal c/d
_______
674,200
_______
Bal b/d
LondonSAM
3,500
800
607,350
62,550
_______
674,200
_______
62,550
F3 - Financial Accounting
Mock Exam - 1 (Answers)
ANSWER 7
D
$
Depreciation (80,000 u 15% u 3 years)
NBV at time of sale (80,000 36,000)
Proceeds
=
=
=
Proceeds NBV
36,000
44,000
39,000
______
(5,000)
______
ANSWER 8
C
ANSWER 9
C
Closing inventory is 160 units. Using FIFO, 150 of these are deemed to be part of the final
delivery, and therefore they are valued at $22.30 per unit = $3,345. The remaining 10 units
are deemed to be part of the previous delivery and are therefore valued at $22.20 per unit =
$222.
Thus total value is $3,567.
ANSWER 10
B
Sales Tax
Bank (part payment on account
to the tax authority)
Purchases (sales tax element)
10,400
369,000
Bal b/d
Bal c/d
40,975
_______
_______
420,375
_______
420,375
_______
Sales (sales tax element)
Purchases returns (sales tax
element)
Bal b/d
22,900
387,500
9,975
40,975
ANSWER 11
A
$92,000
Less: Overprovision of previous years $3,000
ANSWER 12
A
LondonSAM
F3 - Financial Accounting
Mock Exam - 1 (Answers)
ANSWER 13
B
Current Account Pete
Drawings
7,300
Bal c/d
Bal b/d
15,750
Profit Share
63,900
72,350
_______
_______
79,650
79,650
Bal b/d
72,350
ANSWER 14
A
Plant & machinery
Cost
Acc Depn
160,000
(57,600)
_______
102,400 u 20% = $20,480
NBV
ANSWER 15
D
ANSWER 16
A
ANSWER 17
D
Payables
$
Bank
Bal c/d
127,569
12,826
_______
$
Bal b/d
Purchases (Balancing figure)
140,395
_______
11,564
128,831
_______
140,395
_______
Bal b/d
12,826
Opening inventory + Purchases Closing inventory = Cost of sales
$5,288 + $128,831 $4,184 = $129,935
LondonSAM
F3 - Financial Accounting
Mock Exam - 1 (Answers)
ANSWER 18
C
IAS 10 dividends proposed after year end not included in financial statements.
ANSWER 19
A
Suspense a/c
$
Bal b/d
Cash Sale omitted
Bal c/d
420
80
300
___
Incorrect Jnl entry
800
___
800
___
800
___
Bal b/d
300
ANSWER 20
D
ANSWER 21
D
ANSWER 22
A
ANSWER 23
C
Closing Capital = Opening Capital + Profit Drawings
104,864 = 96,578 + 34,050 (Bal fig) 25,764
ANSWER 24
D
ANSWER 25
C
Profit for the year
+ Depreciation charges
Increase in inventory
Payments for non current assets
+ Issue of shares
$
300,000
38,000
(8,000)
(80,000)
100,000
_______
Increase in cash and bank
275,000
_______
LondonSAM
F3 - Financial Accounting
Mock Exam - 1 (Answers)
ANSWER 26
C
ANSWER 27
B
ANSWER 28
D
A
$
Profit for the year
Salary
Interest on capital
Share of profit
B
$
C
$
Total
$
12,000
5,000
18,000
7,000
24,000
12,000
54,000
24,000
_______
150,000
_______
120,000
_______
30,000
______
300,000
Bal
figure
_______
167,000
145,000
66,000
378,000
3,000
_______
(2,400)
_______
(600)
______
170,000
_______
142,600
_______
65,400
______
Guaranteed minimum profit share
ANSWER 29
C
ANSWER 30
B
ANSWER 31
A
ANSWER 32
A
Goodwill
Bal c/d
Max
Ruby
Billy
18,000
18,000
9,000
70,000
69,000
Max
Bal b/d
LondonSAM
87,000
30,000
Revaluation
40,000
60,000
Goodwill
18,000
27,000
9,000
88,000
87,000
9,000
70,000
69,000
9,000
9,000
Billy
Bal b/d
Bal c/d
88,000
Ruby
Bal b/d
F3 - Financial Accounting
Mock Exam - 1 (Answers)
ANSWER 33
C
Ordinary shares
$150,000
= 200,000 shares
75c
SOCIE
Interim dividend
200,000 shares u 10c
20,000
Final dividend
200,000 shares u 25c
50,000
Preference dividend
$75,000 u 5%
3,750
______
73,750
Statement of Financial Position
Dividend payable
50,000
______
As final dividend is declared prior to year end it is included in Financial Statements.
ANSWER 34
C
Bank
$
Interest Recd
153
Bal b/d
422
Bal c/d
269
___
___
422
___
422
___
Bal b/d
269
$
553 Bal Fig
(822)
___
(269)
___
Balance per Bank Statement
Less: Unpresented cheques
Balance
ANSWER 35
A
SOCIE
$
20,000
Ordinary Shares
200,000 @ 10c
Irredeemable Preference Shares
$20,000 u 20%
4,000
______
24,000
______
Statement of Financial Position
Dividends payable Ordinary Shares
200,000 @ 10c
$20,000
Dividend declared after year end are excluded from financial statement.
LondonSAM
F3 - Financial Accounting
Mock Exam - 1 (Answers)
ANSWER 36
D
Bonus issue does not appear in cash flow.
Cash from financing activities
$
60,000
65,000
(40,000)
______
85,000
Rights issue
Receipt 8% loan note
Payment 10% loan note
ANSWER 37
D
Sales
Cost of sales
Opening inventory
Purchases
Less: Closing inventory
$
150,000
100%
(120,000)
80%
30,000
20%
12,500
126,500
(19,000) Bal Fig
Gross profit
ANSWER 38
B
ANSWER 39
A
ANSWER 40
A
ANSWER 41
D
$68,566 + $99 = $68,665
ANSWER 42
C
Statement of cash flows should show dividends paid.
$50,000 proposed dividend 2007
$45,000 Interim dividend SOCIE (100,000 55,000)
LondonSAM
F3 - Financial Accounting
Mock Exam - 1 (Answers)
ANSWER 43
B
$
Cost of inventory
Damaged items:
Cost
$
41,875
1,960
_____
Expected sale value
Less cost of repairs
1,200
360
_____
Net realisable value
840
_____
Write down ($1,960 $840)
1,120
______
Inventory valuation
40,755
______
ANSWER 44
C
No current liability since repayment after 12 months and interest is paid monthly within each
month.
ANSWER 45
D
ANSWER 46
B
$
Inventory
Receivables
Allowance for receivables
22,300
42,650
(1,570)
______
41,080
______
63,380
______
ANSWER 47
B
ANSWER 48
A
ANSWER 49
A
ANSWER 50
D
LondonSAM
F3 - Financial Accounting
