Preparing Financial Statements phần 6 docx

Study Period 21 Partnership accounts Date due: Exam Guidance A note to the latest syllabus states that questions on partnership income statements may include the effects of the admiss

Trang 1

Study Period 20 continued

10 The following information is available for the year ended 31 December 19X9 for M Ski Co,

a well-run company:

$

Opening balance on the payables' control account 8,000

Closing balance on the payables' control account 10,000

Opening balance on the receivables' control account 12,000

Closing balance on the receivables' control account 14,000

Cash paid to payables in the period 9,000

Mark up on Cost – 10%

Assuming the information above is complete, what was the cash introduced or drawings during the period?

A $2,000

B $1,000

C $5,000

D $6,000

You will find the solutions to this test at the end of this Study Programme If you answer more than 5 questions correctly, your performance is satisfactory; if you answer more than 7 correctly, you are doing very well

You are now ready to attempt the first course exam These exams are designed to give you some question practice at an early stage in your studies to enable you to obtain feedback

on exam technique Don’t worry too much if you have to revert to the material when answering questions Obviously it will be beneficial to attempt them without reference to your Study Text and notes, but it is the technique in producing answers that is the valuable element at this stage

Once you have completed your attempt send your solutions, together with the front sheet, to:

Marking Department

BPP Professional Education

Aldine House

Aldine Place

142 – 144 Uxbridge Road

Shepherds Bush Green

London W12 8AW

Trang 2

Study Period 21 Partnership accounts

Date due:

Exam Guidance

A note to the latest syllabus states that questions on partnership income statements may

include the effects of the admission and the retirement of partners on the profit-sharing

arrangements

This is a fairly straightforward procedure Assuming that profits accrue evenly throughout the

year, the profits for the year are dealt with in two sections The profits up to the date of

admission/retirement are apportioned according to the old profit-sharing ratio and the profits

after that date are apportioned in the new profit-sharing ratio

Try questions 3 and 4 in progress test 3

Guidance through the Study Text

These topics are covered in Chapter 18 Partnership accounts

1 The characteristics

of partnerships

Read through this carefully Differences between partnerships and

sole traders and limited liability companies

2 Preparing

partnership accounts

Pay particular attention to this section

Use of the appropriation account;

current and capital accounts

Try Question 25 and 26 in the Exam Question Bank of your Study Text

Exam focus point

There were 2 MCQs on partnership accounts in the June 2005 exam

Trang 3

Were you awake?

If you've been concentrating, you should be able to answer some key questions

How does the proprietors' section of the balance sheet differ for partnerships?

What goes into the capital and current accounts for each partner?

What goes into the appropriation account?

How do you account for a guaranteed minimum profit share?

Any problems?

Email (accaqueries @bpp.com) fax (020 8740 2293) or phone us (020 8740 2242/2245)

Learning Resource Centre

Test your knowledge BPP i-Pass * Session 6: Limited liability companies and partnerships

Learn interactively BPP i-Learn/BPP Virtual Campus Module 7

Improve your study skills BPP's Learning to Learn

Accountancy book *

* Included within your Home Study course

Common Pitfalls

• Confusion between partners' current and capital accounts and what goes into

each

• Not practising partnership questions

Trang 4

Study Period 22 Cash flow statements

Date due:

Exam Guidance

Cash flow statements can form an entire question or part of a discursive question It is

important that you are able to discuss the need for cash flow statements and the advantages and

disadvantages, in addition to being able to perform calculations

These topics are covered in Chapter 20 Cash flow statements

1 IAS 7 Cash flow

statements

Read through this section carefully Layout of the cash flow

statement and notes

2 Preparing a cash

flow statement

Work through this very thoroughly Learn the step by step

method of preparation

Try Question 27, 28 and 29 in the Exam Question Bank of your Study Text

The June 2005 exam had an 11 mark question on preparing a company cash flow

Trang 5

Were you awake?

Why are cash flow statements needed?

List the different categories of cash flow and what goes into each

What are the advantages of cash flow accounting?

What are the disadvantages of cash flow accounting?

Any problems?

statements

Improve your study skills BPP's Learning to Learn Accountancy book *

Common Pitfalls

• Failure to learn the layout

• Not using workings to calculate figures – it is important to use workings if your

answer is to be clear and properly laid out

• Incorrect workings for non-current assets If you are given figures for opening

and closing assets at cost and opening and closing accumulated depreciation you

must use two T accounts (cost a/c and provision for depreciation a/c) If you are only given the opening and closing net book value then just use one T account (NBV a/c) to record all non-current asset movements

Trang 6

Study Periods 23 & 24 Interpretation of financial statements

Date due:

Exam Guidance

The examiner will be looking to see whether you understand and can interpret the figures as

well as being able to calculate them

Two study periods have been scheduled for this section

These topics are covered in Chapter 22 Interpretation of financial statements

1 The broad

categories of ratios

Read through quickly

2 – 5 Pay particular attention to these, as

ratios are always examined

Learn the different ratios and the format of a ratio analysis report

The June 2005 exam had a 9 mark question on interpretation of accounts

Trang 7

Study Periods 23 & 24 continued

Were you awake?

Give two ratios that measure profitability and return

How do you calculate earnings per share?

What does gearing measure?

Give two ratios that interpret movements in working capital

Any problems?

company accounts

Improve your study skills BPP's Learning to Learn

Accountancy book *

Common Pitfalls

• Failing to learn the formulae

• Making no comments on the ratios, or totally inappropriate ones Sensible comments should get you marks – please do not use words like 'bad', 'good' etc

Trang 8

Study Period 25 The IASB and financial reporting

Priority = Medium

Date due:

Exam Guidance

This area could be examined in a discursive question The examiner’s initial guidance indicates that you should be able to discuss the different methods of accounting for changes in price levels and that questions will not be set requiring detailed calculations

Because of the transition to IFRSs on 1 January 2005, the IASB and convergence issues are very topical Note the new IFRS 1

These topics are covered in Chapter 24 The IASB and financial reporting

All Read through quickly to obtain an

overview of this chapter

Understand the differences between historical cost and current value

The December 2003 exam had a 9-mark discussion question on historical cost accounting

Trang 9

Were you awake?

What are the differences between historic cost and current value accounting?

What are the limitations of financial accounting?

What are the criticisms of the accruals concept?

What is the meaning of GAAP?

Any problems?

Test your knowledge BPP i-Pass * Session 11: Reporting financial performance

If you want any of these products, visit: www.bpp.com/acca

Common Pitfall

• Ignoring this chapter – the examiner likes discursive type questions

Trang 10

Study Period 26 Group accounts

Date due:

Exam Guidance

This could be a key discursive exam area on the question of consolidations However you are

more likely to be asked to calculate an item on the consolidated balance sheet eg consolidated

reserves or minority interest

Note that goodwill is no longer amortised It is now kept in the balance sheet subject to annual

impairment reviews You are sure to need to know this!

These topics are covered in Chapter 21 Group accounts

All Pay particular attention to all sections

This is a very important chapter

Learn the definitions and when there is exclusion or exemption from group accounts

Know how to calculate minority interests and all items in the consolidated balance sheet

Try Questions 30 and 31 in the Exam Question Bank of your Study

Text

The June 2005 exam had 3 MCQs on group accounts

Trang 11

Were you awake?

When can a subsidiary be excluded from group accounts?

How do you calculate minority interests in the consolidated balance sheet?

What are the entries for goodwill arising on consolidation?

Why should entities prepare group accounts?

Any problems?

Test your knowledge BPP i-Pass * Session 12: Group accounting

Common Pitfalls

• Not learning the definitions in Section 1

• Not practising enough questions

• Underestimating the importance of group accounts

Trang 12

Study Period 27 Progress Test 3

Priority = High

Date due:

In order to reinforce what you have learnt in the study periods, answer the following multiple

choice questions without referring to your study text or notes You should then revise any areas

with which you had difficulty

1 The draft accounts of Turner Co for the year ended 31 December 19X9 include the

following:

Sales revenue $80,000

Gross profit $20,000

It was subsequently discovered that sales revenue had been understated by $10,000 and

closing inventory overstated by $5,000 After correction of these errors the gross profit

percentage will be:

A 33.3%

B 16.7%

C 31.3%

D 27.8%

2 You are given the following information regarding Elva Co as at 31 December 19X9:

$ Receivables 22,000 Inventories 9,000

What is the acid test ratio?

A 1.4:1

B 1.85:1

C 1.12:1

D 1.23:1

Định dạng
Số trang	12
Dung lượng	421,7 KB