advanced financial accounting · brian and jean are in partnership and their capital account...
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Advanced Financial Accounting
Sample Paper 2 2017 / 2018 Questions & Suggested Solutions
Page 2 of 26 AFA Sample Paper 2
NOTES TO USERS ABOUT SAMPLE PAPERS
Sample papers are published by Accounting Technicians Ireland. They are intended to provide guidance
to students and their teachers regarding the style and type of question, and their suggested solutions, in
our examinations. They are not intended to provide an exhaustive list of all possible questions that may
be asked and both students and teachers alike are reminded to consult our published syllabus (see
www.AccountingTechniciansIreland.ie) for a comprehensive list of examinable topics.
There are often many possible approaches to the solution of questions in professional examinations. It
should not be assumed that the approach adopted in these solutions is the only correct approach,
particularly with discursive answers. Alternative answers will be marked on their own merits.
This publication is copyright 2017 and may not be reproduced without permission of Accounting
Technicians Ireland.
© Accounting Technicians Ireland, 2017.
Page 3 of 26 AFA Sample Paper 2
INSTRUCTIONS TO CANDIDATES
PLEASE READ CAREFULLY
Candidates must indicate clearly whether they are answering the paper in accordance with the law
and practice of Northern Ireland or the Republic of Ireland.
In this examination paper the €/£ symbol may be understood and used by candidates in Northern
Ireland to indicate the UK pound sterling by candidates in the Republic of Ireland to indicate the
Euro.
Answer ALL THREE questions in Section A and TWO of the THREE questions in Section B. If
more than TWO questions is answered in Section B, then only the first TWO questions, in the
order filed, will be corrected.
Candidates should allocate their time carefully. All
workings should be shown.
All figures should be labelled, as appropriate, e.g. €’s, £’s, units etc. Answers
should be illustrated with examples, where appropriate. Question 1 begins on
Page 2 overleaf.
NOTE: This sample paper and solution have been prepared to reflect the provisions of FRS102.
Page 4 of 26 AFA Sample Paper 2
SECTION A
Answer ALL THREE Questions in this Section
(The total marks for section A will be 60, made up of a theory question of 20 marks, a
multiple choice question of 15 marks and a further question of 25 marks)
QUESTION 1
(i) The FRC is responsible for the framework of codes and standards for the accounting profession.
What are ‘accounting standards’ and describe the objective of such standards.
8 marks
(ii) Describe the steps involved in the standard setting process and the measures taken to improve
transparency within the process.
12 marks
Total 20 marks
QUESTION 2
The following multiple choice question consists of TEN parts, each of which is followed by FOUR
possible answers. There is ONLY ONE right answer in each part.
Each part carries 1½ marks.
Requirement
Indicate the right answer to each of the following TEN parts.
Total 15 Marks
N.B Candidates should answer this question by ticking the appropriate boxes on the special answer sheet
which is contained within the answer booklet.
[1] In accordance with FRS 102 net realisable value is defined as:
(a) the actual or estimated selling price
(b) the actual or estimated selling price less all further costs to completion and all costs to be
incurred in marketing, selling and distribution
(c) the actual or estimated selling price less all costs to be incurred in marketing selling and distribution
(d) the actual or estimated selling price less all further costs to be completion
Page 5 of 26 AFA Sample Paper 2
QUESTION 2 (cont’d)
BACKGROUND INFORMATION TO PARTS [2] & [3]
Brian and Jean are in partnership and their capital account balances are £/€ 56,000 and £/€ 84,000
respectively. The partnership agreement details appropriation of partnership profits as follows:
Brian Jean
Annual salary £/€19,500 £/€28,000 Interest on capital 10 % 10 % Share of residual profit 40 % 60 %
[2] If the profit for the year, before appropriation, was £/€112,000 what would Brian’s entitlement be
in total:
(a) £/€ 25,100 (b) £/€ 30,300 (c) £/€ 45,300 (d) £/€ 20,200
[3] If the profit for the year, before appropriation, was £/€112,000 what would Jean’s entitlement be
in total:
(a) £/€ 45,300 (b) £/€ 30,300 (c) £/€ 25,100 (d) £/€ 66,700
[4] In accordance with FRS 102 the clarification after the end of the accounting period of proceeds
from assets sold before the end of the accounting period, is an example of:
(a) an adjusting event
(b) a non-adjusting event
(c) a material event
(d) an immaterial event
[5] The formula for price earnings ratio is:
(a) dividend per share / market value per share
(b) earnings per share / market value per share
(c) market value per share / earnings per share (d) market value per share / dividend per share
Page 6 of 26 AFA Sample Paper 2
QUESTION 2 (cont’d)
[6] Company A has inventory days of 23 and receivable days of 38. Ideally payable days should be:
(a) greater than 38 but less than 61
(b) greater than 61
(c) less than 61
(d) greater than 23 but less than 61
[7] If a capital grant is recognised as deferred income in the Statement of Financial Position what are
the entries to be made each year over the useful life of the associated asset:
(a) debit deferred income, credit other operating income
(b) credit deferred income, debit other operating income
(c) debit deferred income, credit bank
(d) credit deferred income, debit bank
BACKGROUND INFORMATION TO PARTS [8] & [9]
The business premises of ABC Limited went on fire on 30 November 2016 and financial records
were destroyed. However the following information is available:
£/€ Receivables : opening 45,000
Closing 56,000 Inventory : opening 60,000
Closing 44,000 Sales (credit) 270,000 Irrecoverable Receivables 14,000
Gross margin
20%
[8] Using the information available what is the value of purchases:
(a) £/€ 112,000 (b) £/€ 209,000 (c) £/€ 121,000 (d) £/€ 200,000
[9] Using the information available what is the value of sales receipts:
(a) £/€ 295,000 (b) £/€ 245,000 (c) £/€ 273,000 (d) £/€ 259,000
Page 7 of 26 AFA Sample Paper 2
QUESTION 2 (cont’d)
[10] In preparing a cash flow statement in accordance with FRS 102 a profit on disposal of a non -
current asset should be:
(a) deducted from operating profit in computing the net cash flow from operating activities
(b) added back to operating profit in computing the net cash flow from operating activities
(c) deducted from payments to acquire tangible fixed assets to compute capital expenditure
(d) added to payments to acquire tangible fixed assets to compute capital expenditure
Page 8 of 26 AFA Sample Paper 2
QUESTION 3
WIRE Ltd., a retailing company, has an authorised share capital of €/£2,500,000, comprised of 4,000,000
ordinary shares of 50 cent/pence each and €/£500,000 of 5% preference shares of €/£1 each.
The following trial balance was extracted as at 31st
December 2016
€/£’000 €/£’000
Ordinary share capital.................................................................... 1,500 5% preference share capital ........................................................... 300 Share premium account ................................................................. 150 General reserve .............................................................................. 230 Retained profits at 1 January 2016 ................................................ 41 6% debenture stock (redeemable in 2020).....................................
Freehold premises at cost at 1st
January 2016................................
Freehold premises accumulated depreciation at 1st
January 2016 .
Plant & machinery at cost at 1st
January 2016 ...............................
Plant & machinery accumulated depreciation at 1st
January 2016.
Motor vehicles at cost at 1st
January 2016 .....................................
Motor vehicles accumulated depreciation at 1st
January 2016.......
2,500
420
120
200
400
240
70
Computer equip at cost .................................................................
Computer equip accumulated depreciation at 1st
January 2016 ..... 120
45 Additions to non-current assets at cost:
Plant & machinery .................................................................... 70 Motor vehicles .......................................................................... 25 Computer equipment ................................................................ 30
Disposal of motor vehicles (sale proceeds).................................... 24 Inventory at 31 December 2016..................................................... 50 Receivables & payables ................................................................. 156 85 Bank............................................................................................... 66 VAT ............................................................................................... 32 Corporation tax .............................................................................. 98 Prepayments & accruals ................................................................ 12 18 Long term investments .................................................................. 60 Short term investments .................................................................. 40 Retained profit for the year (after providing for dividends and .... debenture interest but before adjusting for items 1 to 3 below)..... 146 Deferred government grants at 1
st January 2016............................ 90
.................................................................................................
3,669 3,669
ADDITIONAL INFORMATION
(1) Depreciation is to be provided on non-current assets as follows:
Freehold premises ............................. 2% on cost
Plant & machinery............................. 10% on cost Motor vehicles .................................. 20% on cost
Computer equipment ......................... 33 1/3 % on cost
A full year’s depreciation is provided in the year of purchase and none in the year of disposal.
Page 9 of 26 AFA Sample Paper 2
QUESTION 3 (Cont’d)
(2) During the year motor vehicles which cost £/€ 45,000 in 2013 were disposed of for £/€ 24,000.
The only entries made (before extracting the above trial balance) were to debit the bank account
and credit the disposal of motor vehicles account.
(3) The deferred government grants balance included in the above trial balance arises in respect of a
grant of £/€ 100,000 received in 2015 to help finance the cost of plant and machinery purchased
during that year.
In addition a grant of £/€ 18,000 was received on 29th
December 2016 towards the cost of new
computers purchased during the year. This grant has not yet been recorded in the company’s
books.
(4) Prepaid expenses valued at €/£24,000 were incorrectly included in operating costs.
Requirement
(a) Prepare, in the form required by FRS 102, the Statement of Financial Position for WIRE Ltd., for
the year ended 31st
December 2016 in as far as the information provided permits.
N. B. You are NOT required to prepare a Statement of Comprehensive Income or notes to the accounts.
You are required to submit workings to show the make-up of the figures in the statement of financial position.
17 Marks
(b) Prepare the following notes to the accounts for the year ended 31 December 2016:
(i) Non-current assets
(ii) Deferred government grants
6 Marks
Presentation 2 marks
Total 25 Marks
SECTION B
Answer TWO of the THREE questions in this Section
QUESTION 4
CARTER Limited is installing a new production plant at a cost of £/€ 1 million, in respect of which
government grants have been approved as follows:
Capital cost - 40%
Training costs - 100%
The company depreciates its plant and equipment on the basis of 20% on original cost. The directors are
aware that the accounting treatment for grants is dealt with in FRS 102, and they have asked you to
advise them on the accounting options available to them and the effect which they would have on the
company’s financial statements.
Requirement
You are required to draft a report to the directors which:
(a) outlines the accounting treatment of the foregoing grants under FRS 102;
(b) recommends (with reasons) the treatment which you believe would be most suitable in the case
of CARTER Limited; and
(c) indicate the form of accounting policy or other notes which should be included in the annual
financial statements of the company.
18 Marks
Presentation 2 marks
Total 20 Marks
QUESTION 5
The following errors were identified by the financial accountant of CUSACK Limited (a VAT registered
company) when reviewing the year end draft financial statements:
[i] A cheque was written for £/€20,000 to MAC GARAGE Limited and was entered into the motor
expense account. No other entries were made in the financial records. The cheque was in respect of the balancing payment for the purchase of a new car. A car which has originally cost £/€13,000 and
which had a net book value of £/€6,500 at 1st
January 2016 was traded in as part exchange. Assume no loss or gain was made on the trade-in.
[ii] Depreciation on motor vehicles is charged at 25% per annum with a full year’s depreciation charged
in the year of acquisition and none in the year of disposal. No account was taken of the transactions
in note (i) above when calculating the depreciation for the year to December 2016.
[iii] During the year a new machine was purchased for £/€484,000 (which is inclusive of VAT of 21%).
CUSACK Limited received a government grant of £/€60,000 towards the cost of the new machine.
Plant and machinery is depreciated at a rate of 10% per annum including a full year’s depreciation in
the year of acquisition. No entries were made to record this transaction.
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QUESTION 5 (cont’d)
Requirement
(a) Prepare the journal entries to show how each of the above items should be dealt with in the
final accounts for the year ended 31st
December 2016. Narratives for the journals are required.
15 marks
(b) Compute the adjusted net profit before taxation for the year ended 31st
December 2016 taking
into account the adjustments made at (a) above. The net profit before taxation as per the draft
accounts was £/€ 350,000.
3 marks
Presentation 2 marks
Total 20 Marks
QUESTION 6
The Statement of Financial Position, Statement of Changes in Equity and other relevant information of
CLINIC Limited, for the year ended 31 December 2016, are as follows:
Statement of Changes in Equity as at 31
December 2016
Ord
share
capital
Share
premium
Retained
profits
Total
equity
£/€'000 £/€'000 £/€'000 £/€'000
As at 1 January 2016 270 - 180 450
Net profit for year end 31 December 2016 90 90
Share issue 30 30 60
Ordinary dividends ( 60) (60)
300 30 210 540
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Inventory 1,890 Receivables 2,850 Cash & cash equivalents 30
QUESTION 6 (cont’d)
Statement of Financial Position as at 31 December 2016
£/€'000 £/€'000 £/€'000 £/€'000
ASSETS
Non-current assets 1,440 1,320
Current assets
1,530
2,130
30
4,770 3,690
Total assets
EQUITY and LIABILITIES
Capital and reserves
6,210 5,010
£/€1 ordinary shares 300 270 Preference shares 300 300 Share premium account 30 - Retained earnings 210 180
Non-current liabilities
840 750
Bank loans 2,190 1,800 10% debentures 1,140 900
3,330 2,700 Current liabilities
Bank overdraft
30
- Current installments due on loans 540 540 10% debentures 300 - Trade payables 1,140 930 Taxation 30 90
2,040 1,560
Total equity and liabilities
6,210
5,010
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QUESTION 6(Cont’d)
Additional information:
(1) On 1 July 2016 CLINIC issued £/€ 1 ordinary shares at £/€ 2 per share.
(2) During the year CLINIC sold non-current assets with a net book value of £/€90,000 for cash.
Included in the Statement of Comprehensive Income is a profit on disposal of £/€ 60,000.
(3) Included in trade payables at 31 December 2016 is an amount of £/€ 450,000 in respect of non-
current assets purchased during the year.
(4) The Statement of Comprehensive Income includes the following charges:
........................................................... 31 Dec 2016 31 Dec 2015
(i) Depreciation ...................... £/€ 600,000 £/€ 550,000 (ii) Interest ..................................... £/€ 540,000 £/€ 270,000 (iii) Tax .......................................... £/€ 30,000 £/€ 60,000
Requirement
(a) Prepare a statement of cash flows for CLINIC Limited for the year ended 31 December 2016 in
accordance with FRS 102.
.
N. B. You are NOT required to prepare notes to the statement of cash flows.
18 Marks Presentation 2 marks
Total 20 Marks
Page 14 of 26
Advanced Financial Accounting
Sample Paper 2 – Suggested Solutions
NOTE: This sample paper and solution have been prepared to reflect the provisions of FRS 102.
Examinees would be at liberty to use the language of either (i) I.A.S.’s, or (ii) FRS 102 in
answering questions relating to non‐public companies.
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26 AFA Sample Paper 2
Solution to question 1
(a) What are Accounting Standards and describe the objectives of these standards.
Accounting standards are a set of rules that describe how an item in financial accounting is
treated and calculated and how accounts should be prepared and presented. The objective of
accounting standards is to regulate the accounting profession and to provide guidance to both
accounting practitioners and users of financial information about how contentious and
difficult areas should be treated.
Accounting standards are issued by a national or international body of the accounting
profession and are intended to apply to all financial accounts which are intended to give a true
and fair view of the financial position and profit/loss of an entity. Standards are detailed
working regulations within the framework of government legislation and they cover areas in
which the law is silent. A sub‐committee of the FRC‐ the Codes and Standards Committee are
responsible for Irish and UK GAAP.
(b) Standard setting process
The standard setting process involves eight steps and incorporates an extensive
consultation process from stakeholders. The eight steps are as follows;
1. Initial scoping of the issue being considered.
2. A discussion paper providing a detailed overview of the issue, why a standard is necessary,
different potential approaches to dealing with the issue, preliminary views of the FRC and
an invitation to comment on the issue.
3. Public consultation.
4. Outreach events to encourage input to the standard setting process including lab activities, case
studies and investigations.
5. Exposure Draft
6. The final code or standard
7. Post implementation review
8. Regular reviews.
Transparency within the process
As can be seen from the above discussion the process through which the standard is developed
involves a significant amount of public consultation. This improves transparency in the standard
setting process. It is not possible for an accounting standard to be issued without taking on
board comments from interested parties. This avoids the situation whereby the process becomes
a pure academic exercise and ensures that the practical application is considered, understood
and provided for.
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Solution to question 2
(1) B
(2)
C
(see working)
(3)
D
(see working)
(4)
A
(5)
C
(6)
B
(7)
A
(8)
D
(see working)
(9)
B
(see working)
(10)
A
Workings:
(2) 112,000 – (19,500+ 28,000) ‐10%(56,000 + 84,000) = 50,500 x 40% = 20,200
20,200 + 19,500 + 5,600 = 45,300
(3) 50,500 x 60% = 30,300 + 28,000 + 8,400 = 66,700
(8) Sales 270,000
Gross margin 20% = 54,000
Cost of sales = 270, 000 – 54,000 = 216,000
216,000 + closing inventory 44,000 – opening inventory 60,000 = purchases 200,000
(9) Opening receivables 45,000 + sales 270,000 = 315,000
315,000 – irrecoverable receivables 14,000 – closing receivables 56,000 = sales receipts
245,000
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26 AFA Sample Paper 2
Solution to question 3
(a)
WIRE Ltd.
Statement of Financial Position as at 31 December 2016
£/€’000 £/€’000
Non‐current assets
Property, plant & equipment (Note 1) 2,343
Other financial assets 60
2,403
Current assets
Inventories 50
Trade receivables 156
Prepayments (W1) 36
Cash and cash equivalents (W2) 124
366
Total assets 2,769
Equity and liabilities
Capital (W4) 1,800
Reserves 380
Accumulated profits (W3) 64
2,244
Non‐current liabilities
Interest‐bearing borrowings 200 200
Current liabilities
Trade and other payables (W7) 233
233
Deferred government grants (Note 2) 92
2,769
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26 AFA Sample Paper 2
Solution to question 3(cont’d)
(b)
WIRE LIMITED
Notes to the Accounts for the year ended 31 December 2016
(1) Property, plant and equipment
Freehold
premises Plant &
machinery Motor
vehicles Computer
equip
Total £/€’000 £/€’000 £/€’000 £/€’000 £/€’000
Cost at 1st January 2016 2,500 420 120 120 3,160 additions 70 25 30 125 disposals (45) (45) at 31st December
2016 2,500
490
100
150
3,240
Accumulated depreciation
at 1st January 2016 400
240
70
45
755 charge for year 50 49 20 50 169
450 289 90 95 924 disposals 0 0 (27) 0 (27) at 31st December 2016 450
289
63
95
897
Net book value at 1st January 2016 2,100 180 50 75 2,405 at 31st December
2016 2,050
201
37
55
2,343
(2) Deferred Government Grants
At 1st January 2016
90
Received during the year 18 108
Released to Income during the year
(16)
At 31st December 2016
92
Solution to question 3(cont’d)
Workings
(1) Prepayments
Prepayments per trial balance
£/€’000
12
Add prepayments omitted in error 24
36
(2) Cash and cash equivalents
£/€’000
Bank balance
66 Short term investment 40
106
Government grant received
18
124
(3) Accumulated profits
£/€’000
Retained profit for year per trial balance
146 Profit on disposal of motor vehicle 6 Depreciation (Note 1) (169) Prepayments 24 Government grants released 16
23
Retained Profit brought forward 1 Jan 2016
41
Accumulated profits
64
(4) Issued capital
£/€’000
Ordinary share capital 1,500
8% preference capital 300
1,800
Page 19 of 26 AFA Sample Paper 2
NBV 18 Proceeds 24
Profit on disposal
6
Solution to question 3(cont’d)
(5) Reserves
£/€’000
Share premium 150
General reserves 230
380
(7) Trade and other payables
£/€’000
Trade payables per Trial Balance 85
Corporation tax 98
VAT 32
Accrued expenses 18
233
(8) Disposal of motor vehicle
£/€’000
Cost in 2013 45
Depreciation charge:
2013
2014
2015
Page 21 of 26 AFA Sample Paper 2
Solution to question 4
To : The Directors
From : A. Accountant
Date : XX/MM/YY
Subject : Accounting treatment of government grants
A. Accounting treatment
The grants which have been approved for the new production facility fall into two distinct
categories:
1. Revenue based grant – the grant for training costs
2. Capital based grant – the grant for plant
The above two grants are treated differently for accounting purposes. FRS 102 provides that: Revenue
based grants are to be credited to revenue as “other income” in the period in which the
related revenue expenditure has been incurred. Capital based grants should be credited to revenue over the life of the related non‐current asset. The amount of the grant should be credited to a deferred grant account, a portion of which is transferred to
revenue annually on the same basis as the related asset is depreciated
B. Recommendations
I recommend that Carter Limited adopt the following accounting treatment; Training
grants – these grants be credited to revenue as “other income” .
Capital Grants – these grants should be credited to a deferred grant account and disclosed separately in the Statement of Financial Position under the heading ‘Government Grants’. The
grants should be released to the Statement of Comprehensive Income over the life of the related
assets using the same rates of depreciation as applied to those assets..
C. Accounting policies
The notes to the accounts of CARTER Limited should include the following:
(i)
Accounting Policy – Government Grants
Grants receivable on additions to non‐current assets are credited to the Deferred Government Grant
Account and are allocated to the Statement of Comprehensive Income over the estimated useful lives of
the assets concerned. Revenue based grants are credited directly to the Statement of Comprehensive
Income in the year in which they become due.
Page 22 of 26 AFA Sample Paper 2
(i) DR Motor vehicles (SOFP) 20000 CR Motor Expenses (SOCI) 20,000 DR Motor Vehicles 6,500 CR Disposal a/c 6,500 DR Disposal a/c 13,000 CR Motor Vehicles 13,000 DR Disposal a/c 6,500 CR Accumulated Depreciation 6,500
(ii) Note to the Financial Statements
£/€
Balance at start of year XXXX
Received during the year XXXX
Released to the profit and loss account during the year XXXX
Balance at end of year XXXXX
Solution to question 5
(a) DR CR
[Being cheque to purchase motor vehicle debited to motor expense in error
Trade in of old motor vehicle not recorded.]
(ii)
DR Depreciation (SOCI) 3,375
CR Accumulated depreciation (SOFP) 3,375
[Being calculation of depreciation charge on additions (6,625 – 3,250)]
(iii)
DR Plant & machinery 400,000
DR VAT recoverable 84,000
CR Bank 484,000
[Being purchase of new machine]
DR Depreciation (SOCI) 40,000
CR Accumulated depreciation (SOFP) 40,000
[Being calculation of depreciation on new machine]
DR Bank 60,000
Cr Deferred income (SOFP) 60,000
Page 23 of 26 AFA Sample Paper 2
[Being receipt of government grant]
DR Deferred income (SOFP) 6,000
CR Grant released (SOCI) 6,000
[Being release of proportion of grant to Statement of Comprehensive Income]
Solution to question 5 (cont’d)
(b)
£/€
Net profit before tax
350,000
(i) Motor vehicle expense
20,000
(ii) Motor vehicle depreciation
(3,375)
(iii) Plant and machinery
(40,000)
(iii) Grant released
6,000
Revised net profit
332,625
Page 24 of 26 AFA Sample Paper 2
Increase in inventory (W2) (360) Increase in receivables (W2) (720) Decrease in payables (W2) (240)
Solution to question 6
[a]
CLINIC Limited
Statement of Cash Flows for the year ended 31 December 2016
£/€ '000 £/€ '000
Cash flows from operating activities
Net profit before interest (W1) 660
Adjustments for:
Depreciation 600
Profit on disposal (W3) (60)
Changes in working capital
(780)
Cash generated from operations (120)
Interest paid (540)
Tax paid (W4) (90)
(630)
Net cash from operating activities
Cash flows from investing activities
(750)
Payment to acquire non-current assets (W5) (360) Receipt from sale of non-current assets (W3) 150
(210)
Cash flows from financing
Proceeds from share issue (incl share prem)
60 New bank loans (W6) 390 Issue of new debentures (W7) 540 Dividends paid (60)
930
Decrease in cash and cash equivalents (30)
Cash and cash equivalents at start of year
30 Cash and cash equivalents at end of year 0
Page 25 of 26 AFA Sample Paper 2
Workings
(1) Net profit before interest
£/€’000
Net profit for year 90 Add: tax 30 Add : interest 540
660
(2) Changes in working capital
£/€’000
Inventory (1,890 – 1,530) 360 increase
Receivables (2,850 – 2,130) 720 increase
Trade payables (1,140 – 450 – 930) 240 decrease
(3) Non‐current asset disposal
£/€’000
NBV 90 Profit on sale 60 Sale proceeds 150
(4) Taxation
£/€’000
Opening balance 90
Charge for year 30
Closing balance (30)
Amount paid 90
(5) Non‐current asset acquisition
£/€’000
Opening balance 1,320
Less: disposal (90)
Depreciation charge (600)
630
Closing balance (1,440)
Purchases 810
Amount owing included in trade payables 450
Amount paid 360