ACCAF4法律的三种分类五种特征！

(d) Additionally Router purchased 60% of the ordinary shares of a radio station, Playtime, a public limited company,

on 31 May 2007. The remaining 40% of the ordinary shares are owned by a competitor company who owns a

substantial number of warrants issued by Playtime which are currently exercisable. If these warrants are

exercised, they will result in Router only owning 35% of the voting shares of Playtime. (4 marks)

Required:

Discuss how the above items should be dealt with in the group financial statements of Router for the year ended

31 May 2007.

21 Which of the following statements about contingent assets and contingent liabilities are correct?

1 A contingent asset should be disclosed by note if an inflow of economic benefits is probable.

2 A contingent liability should be disclosed by note if it is probable that a transfer of economic benefits to settle it

will be required, with no provision being made.

3 No disclosure is required for a contingent liability if it is not probable that a transfer of economic benefits to settle

it will be required.

4 No disclosure is required for either a contingent liability or a contingent asset if the likelihood of a payment or

receipt is remote.

A 1 and 4 only

B 2 and 3 only

C 2, 3 and 4

D 1, 2 and 4

2 The draft financial statements of Choctaw, a limited liability company, for the year ended 31 December 2004 showed

a profit of $86,400. The trial balance did not balance, and a suspense account with a credit balance of $3,310 was

included in the balance sheet.

In subsequent checking the following errors were found:

(a) Depreciation of motor vehicles at 25 per cent was calculated for the year ended 31 December 2004 on the

reducing balance basis, and should have been calculated on the straight-line basis at 25 per cent.

Relevant figures:

Cost of motor vehicles $120,000, net book value at 1 January 2004, $88,000

(b) Rent received from subletting part of the office accommodation $1,200 had been put into the petty cash box.

No receivable balance had been recognised when the rent fell due and no entries had been made in the petty

cash book or elsewhere for it. The petty cash float in the trial balance is the amount according to the records,

which is $1,200 less than the actual balance in the box.

(c) Bad debts totalling $8,400 are to be written off.

(d) The opening accrual on the motor repairs account of $3,400, representing repair bills due but not paid at

31 December 2003, had not been brought down at 1 January 2004.

(e) The cash discount totals for December 2004 had not been posted to the discount accounts in the nominal ledger.

The figures were:

$

Discount allowed 380

Discount received 290

After the necessary entries, the suspense account balanced.

Required:

Prepare journal entries, with narratives, to correct the errors found, and prepare a statement showing the

necessary adjustments to the profit.

(10 marks)

17 A company sublets part of its office accommodation. In the year ended 30 June 2005 cash received from tenants

was $83,700.

Details of rent in arrears and in advance at the beginning and end of the year were:

In arrears In advance

$ $

30 June 2004 3,800 2,400

30 June 2005 4,700 3,000

All arrears of rent were subsequently received.

What figure for rental income should be included in the company’s income statement for the year ended 30 June

2005?

A $84,000

B $83,400

C $80,600

D $85,800