This section contains ONE (1) compulsory question and MUST be attempted by all the The following in Batance was extracted from the books of Chernbe Picasa 30 April 2015 Accumulated depreciation at 1 May 2018 Provision for doubtful debts at 1 May 2018 SECTION A Candidates QUESTION ONE Trial balance as at 30 April 2019 Cr K Land at cost Buldings at cost Plant & Machinery at cost Motor vehicles at col DI K 180,000 500,000 600,000 240,000 55,000 110.000 60,000 2.446,000 970,000 25,000 12,000 Buildings Plant & Machinery Motor vehicles Sales Purchases Carriage in words Sales returns Purchases returns Inrecoverable debts written off Receivables and Payables Cash in hand Ordinary shares of K1 each Share premium Revaluation reserve 8% Loan notes 14,000 32,000 13,200 140.000 132,300 22,000 150,000 31,000 11,000 100.000 102,000 70,000 223,500 90.000 260.000 3.294,500 3.294,500 The following additional information is relevant: 1 The inventory was valued at K75.000 as at 30 April 2019. 2. The loan note was issued on 1 May 2018. The loan note interest has not been paid as at 3 April 2019 Retained earnings at 1 May 2018 Cash at Bank Distribution costs Inventory at 1 May 2018 Administration expenses * Banking The provision for the 30 An 2013 Din Copper 3 Anton Therese chembe care 28 2018. The idea The income taxe pour 20. Depreciation is charged as follows Bugat per annum onco Plant & Machinery 20% per annus on the circa for vehicles at 15% per among KO Required a) Prepare the Same of profit or stor Chembe Pretoria 2013 (b) Prepare the statement on movement in retained caring for the year (c) Prepare the Statement of Phancial Postios 30 April 2010 2010 2 This FOUR Camus nenplay Theologo SECTIONS QUESTION TWO Tople 210 000 500 000 100.00 500.000 210 000 perty hand and open Assets 12.000 70 000 54 000 16.000 350.000 Euty and be E 120.000 30 000 Ordinary shares of teach 30.000 10,000 95.000 200.000 Retained earnings 430 000 135,000 Noncurrenties 170.000 115.000 105 Debentures Current des Payable 8.000 60.000 Tawation 50.000 25.000 Accruals 22.000 15.000 Total Equity and Liabilities 770.000 350.000 The following additional information is also available: 1 Lion Plc acquired 22.500 K1 Ordinary shares of Tiger Plc on 1 January 2019 for a cash consideration of K100,000. The consideration is recorded in the statement of financial position at cost. As al 1 January 2019, the retained earnings of Tiger Picamounted to K36.000 2. During the year ended 31 December 2019, Tiger Pic sold goods to Lion Plc for 25.000 Tiger Ple charged a mark-up of 25% on the goods 2019. Lion Pohad of these goods in inventory to Lion Plc. As at 31 December 3. It is group policy to value Non controlling interest at fair value at acquisition date. As 1 January 2019 the fair value of the Non-controlling interest was K24,000 QUESTION SEVEN ended 31 March 2019 Revenue Cost of sales Gross profit Operating expenses Net profit for the year 16) Calculate the Break-even point in unds. The following are the Statement of profit or loss extracts of P Limited and S Limited for the year P Limited S Limited K K 300,000 190,000 (200.000 (110.000) 100,000 80,000 (70,000) (55,000) 30.000 25.000 P Limited acquired 75% of the issued share capital of S Limited on 1 April 2018 when the retained earnings of S Limited stood at K40,000. During the year ended 31 March 2019, S Limited sold goods to P Limited for K12,000. S Limited charged a mark-up of 20% on the cost of goods. As at 31 March 2019. P Limited had 50% of these goods in its inventory Required: Calculate the amount of profit for the year attributable to Non-controlling Interest for the year ended 31 March 2019 (5 marks) QUESTION EIGHT Katue Limited is a company engaged in manufacturing. For the year ended 31 December 2020, the company made the following budget: Selling Price per unit K60 Material Cost per unit K15 Direct Labour cost per unit K10 Variable overheads per unit KS Fued cost for the year K450,000 a) Calculate the contribution per unit Required: (5 marks) Id perty plant and Equipe 15.00 254.100 Odrary are capital of teach 72.000 35.000 71000 179 100 125.000 200 30.200 The following is the statement of proft or loss tract for Kamandando Prietor the year ended 30 QUESTION ELEVEN une 2019 K 540.000 Revue Cost of sales Opering inventory Purchases 50 000 320,000 350.000 70.000) Less Closing inventory Cost of sales Gods proti (310.0001 230.000 Required: Calculate the following ratios: Inventory turnover times h) Inventory turnover period (5 marks) QUESTION TWELVE Beam Plc acquired 80% of the ordinary share capital of Tilapia Ltd on 1 April 2019. The blowing is the statement of profit or loss extracts for the two companies for the year ended 31 December 2019 Bream PIC Tilapia Ltd K K Revenue 270,000 140,000 Cost of sales (100.000 160,000) Gross profit 170.000 80.000 During the post-acquisition period, Bream Plc sold goods to Tilapia L.Id for 20,000. Bream Pic charged a mark-up of 25% on the cost of goods. As at 31 December 2019, Tilapia Ltd had a quarter (%) of these goods in its inventories Required: Calculate the consolidated cost of sales to be included in the consolidated statement of profit or loss for the year ended 31 December 2019. (5 marks) 11 This section contains ONE (1) compulsory question and MUST be attempted by all the The following in Batance was extracted from the books of Chernbe Picasa 30 April 2015 Accumulated depreciation at 1 May 2018 Provision for doubtful debts at 1 May 2018 SECTION A Candidates QUESTION ONE Trial balance as at 30 April 2019 Cr K Land at cost Buldings at cost Plant & Machinery at cost Motor vehicles at col DI K 180,000 500,000 600,000 240,000 55,000 110.000 60,000 2.446,000 970,000 25,000 12,000 Buildings Plant & Machinery Motor vehicles Sales Purchases Carriage in words Sales returns Purchases returns Inrecoverable debts written off Receivables and Payables Cash in hand Ordinary shares of K1 each Share premium Revaluation reserve 8% Loan notes 14,000 32,000 13,200 140.000 132,300 22,000 150,000 31,000 11,000 100.000 102,000 70,000 223,500 90.000 260.000 3.294,500 3.294,500 The following additional information is relevant: 1 The inventory was valued at K75.000 as at 30 April 2019. 2. The loan note was issued on 1 May 2018. The loan note interest has not been paid as at 3 April 2019 Retained earnings at 1 May 2018 Cash at Bank Distribution costs Inventory at 1 May 2018 Administration expenses * Banking The provision for the 30 An 2013 Din Copper 3 Anton Therese chembe care 28 2018. The idea The income taxe pour 20. Depreciation is charged as follows Bugat per annum onco Plant & Machinery 20% per annus on the circa for vehicles at 15% per among KO Required a) Prepare the Same of profit or stor Chembe Pretoria 2013 (b) Prepare the statement on movement in retained caring for the year (c) Prepare the Statement of Phancial Postios 30 April 2010 2010 2 This FOUR Camus nenplay Theologo SECTIONS QUESTION TWO Tople 210 000 500 000 100.00 500.000 210 000 perty hand and open Assets 12.000 70 000 54 000 16.000 350.000 Euty and be E 120.000 30 000 Ordinary shares of teach 30.000 10,000 95.000 200.000 Retained earnings 430 000 135,000 Noncurrenties 170.000 115.000 105 Debentures Current des Payable 8.000 60.000 Tawation 50.000 25.000 Accruals 22.000 15.000 Total Equity and Liabilities 770.000 350.000 The following additional information is also available: 1 Lion Plc acquired 22.500 K1 Ordinary shares of Tiger Plc on 1 January 2019 for a cash consideration of K100,000. The consideration is recorded in the statement of financial position at cost. As al 1 January 2019, the retained earnings of Tiger Picamounted to K36.000 2. During the year ended 31 December 2019, Tiger Pic sold goods to Lion Plc for 25.000 Tiger Ple charged a mark-up of 25% on the goods 2019. Lion Pohad of these goods in inventory to Lion Plc. As at 31 December 3. It is group policy to value Non controlling interest at fair value at acquisition date. As 1 January 2019 the fair value of the Non-controlling interest was K24,000 QUESTION SEVEN ended 31 March 2019 Revenue Cost of sales Gross profit Operating expenses Net profit for the year 16) Calculate the Break-even point in unds. The following are the Statement of profit or loss extracts of P Limited and S Limited for the year P Limited S Limited K K 300,000 190,000 (200.000 (110.000) 100,000 80,000 (70,000) (55,000) 30.000 25.000 P Limited acquired 75% of the issued share capital of S Limited on 1 April 2018 when the retained earnings of S Limited stood at K40,000. During the year ended 31 March 2019, S Limited sold goods to P Limited for K12,000. S Limited charged a mark-up of 20% on the cost of goods. As at 31 March 2019. P Limited had 50% of these goods in its inventory Required: Calculate the amount of profit for the year attributable to Non-controlling Interest for the year ended 31 March 2019 (5 marks) QUESTION EIGHT Katue Limited is a company engaged in manufacturing. For the year ended 31 December 2020, the company made the following budget: Selling Price per unit K60 Material Cost per unit K15 Direct Labour cost per unit K10 Variable overheads per unit KS Fued cost for the year K450,000 a) Calculate the contribution per unit Required: (5 marks) Id perty plant and Equipe 15.00 254.100 Odrary are capital of teach 72.000 35.000 71000 179 100 125.000 200 30.200 The following is the statement of proft or loss tract for Kamandando Prietor the year ended 30 QUESTION ELEVEN une 2019 K 540.000 Revue Cost of sales Opering inventory Purchases 50 000 320,000 350.000 70.000) Less Closing inventory Cost of sales Gods proti (310.0001 230.000 Required: Calculate the following ratios: Inventory turnover times h) Inventory turnover period (5 marks) QUESTION TWELVE Beam Plc acquired 80% of the ordinary share capital of Tilapia Ltd on 1 April 2019. The blowing is the statement of profit or loss extracts for the two companies for the year ended 31 December 2019 Bream PIC Tilapia Ltd K K Revenue 270,000 140,000 Cost of sales (100.000 160,000) Gross profit 170.000 80.000 During the post-acquisition period, Bream Plc sold goods to Tilapia L.Id for 20,000. Bream Pic charged a mark-up of 25% on the cost of goods. As at 31 December 2019, Tilapia Ltd had a quarter (%) of these goods in its inventories Required: Calculate the consolidated cost of sales to be included in the consolidated statement of profit or loss for the year ended 31 December 2019. (5 marks) 11