ABE EXAM

This paper consists of THREE SECTIONS. Follow the instructions at the top of EACH section. SECTION A  You  You must answer ALL FOR FOR !uestions in this section. section. "uestions #o not carr$ e!ual mar%s& the mar% allocation is shown after each !uestion. Section A is worth '() of the total mar%s a*aila+le for the paper.

",

The trial balance for XYZ enterprise as at 31 December 2012 is as follows: -r  /// e!en"e #"rchases 'n!entor( as at 1 )an"ar( 2012 Distrib"tion e+penses ,alaries an- wa.es  A-ministration  A-ministration e+penses e+penses 'nterest pai- on loan #ropert( at !al"ation #ropert( acc"m"late- -epreciation as at 1 )an"ar( 2012 #lant an- e/"ipment at cost #lant an- e/"ipment acc"m"late- -epreciation as at 1 )an"ar( 2012 otor !ehicles at cost otor !ehicles acc"m"late- -epreciation as at 1 )an"ar( 2012 Tra-e recei!ables Tra-e pa(ables ash r-inar( iss"e- 1 shares Di!i-en-s pai- for the (ear  an e!al"ation reser!e as at 1 )an"ar( 2012 etaine- earnin.s as at 1 )an"ar( 2012 ,hare premi"m 37 loan re-eemable 2020

Cr  /// &2%3$2

5$%125 3%&*3 5%210 6%5*3 2%110 2%110 225 *2%000 *%110 10%1*0 2%&*5 1%110 230 4%*$0 3%620 3&1 30%000 3%000 10%000

1**%66*

15%000 2%350 &%000   15%000 1**%66*

89ote that fi."res in the abo!e table are in 000s  tho"san-s; The followin. notes are applicable: 1< 2< 3<

4<

Ta+ Ta+ char.e for the (ear en-e- 31 December 2012 is estimate- at $%500%000< =oan interest has onl( been pai- for the first 6 months of the (ear en-e- 31 December  2012< An item item of of plant plant haha- bee been n solsol- -"rin -"rin. . the (ear (ear for for *5%0 *5%000< 00< >ntr >ntries ies ma-e ma-e for the the sal sale e were to -ebit ban an- cre-it re!en"e< The item of plant sol- ha- ori.inall( been bo".ht for 150%000 an- acc"m"late- -epreciation as at 1 )an"ar( 2012 was 60%000< Depreciation for the (ear 31 December 2012 is to be calc"late- as follows: #ropert( 27 on !al"ation #lant an- e/"ipment 207 per ann"m strai.ht line ass"min. no resi-"al !al"e otor !ehicles 257 per ann"m re-"cin. balance< 'n!entor( as at 31 December 2012 was !al"e- at 4%112%000< ●

●

●

5<

5FA0613

2

Re!uire#1

"5

2a3

#repare the ,tatement of omprehensi!e 'ncome 8#rofit an- =oss Acco"nt; for the (ear  en-e- 31 December 2012 for XYZ enterprise in accor-ance with 'nternational  Acco"ntin. ,tan-ar-s< ,tan-ar-s< 2,4 mar%s3

2+3

#repare the ,tatement of Financial #osition 8alance ,heet; as at 31 December 2012 for XYZ enterprise in accor-ance with 'nternational Acco"ntin. ,tan-ar-s< 2,, mar%s3 2Total 56 mar%s3

The followin. information is a!ailable in respect of two enterprises A an-  in the same b"siness sector for the (ear en-e- 31 December 2012:

,ales ost of sales peratin. profit before interest ,hare capital etaine- profits incl"-in. for the c"rrent (ear 'n!entor( =on. term liabilities "rrent assets incl"-in. in!entor( "rrent liabilities

A /// 3*%200 20%460 5%440 4%000 &%440 3%600 2%000 $%0$0 4%2$0

7 /// 44%000 2$%600 3%2$0 $%000 6%6$0 5%2$0 6%000 10%216 *%056

89ote that fi."res in the abo!e table are in 000s  tho"san-s; Re!uire#1 2a3

alc"late the followin. ratios for A an-  as at 31 December 2012: 8i; 8i;

?ro ?ross profi rofitt perce ercen nta. ta.e

8ii;

"rrent ratio

8iii;

Aci- test ratio 8@"ic ratio;

8i!;

et"rn on apital >mplo(e-

8!;

peratin. profit percenta.e

8!i;

,ales to apital >mplo(e2,5 mar%s3

2+3

5FA0613

omment on the performance of both A an-  for the (ear en-e- 31 December 2012< 2( mar%s3 2Total ,8 mar%s3

3

0Turn o*er