Limited companies

Worked examples (10)

• 1Which statement? (4 marks)
• 2Profit for the year (5 marks)
• 3Operating profit by function (5 marks)
• 4Retained earnings in the SOCE (5 marks)
• 5Share issue at a premium (5 marks)
• 6Total equity (5 marks)
• 7Capital or revenue reserve? (4 marks)
• 8Why dividends aren't an expense (4 marks)
• 9Tax in two places (4 marks)
• 10Closing equity via the SOCE (6 marks)

Model answers (10)

• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style

Worked examples (10)

• 1Classify the cash flow (4 marks)
• 2Add back depreciation (3 marks)
• 3Working-capital adjustment (5 marks)
• 4Net cash from operations (6 marks)
• 5Disposal of an asset (5 marks)
• 6Investing activities total (4 marks)
• 7Financing activities total (5 marks)
• 8Reconcile to closing cash (4 marks)
• 9Tax paid vs tax charged (5 marks)
• 10Comment on cash position (5 marks)

Model answers (10)

• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style

Worked examples (10)

• 1The two halves (3 marks)
• 2Closing cost (4 marks)
• 3Closing accumulated depreciation (4 marks)
• 4Carrying amount (3 marks)
• 5Disposal touches both halves (5 marks)
• 6Depreciation charge for the year (4 marks)
• 7Revaluation of land (5 marks)
• 8Depreciation after revaluation (5 marks)
• 9Full schedule for one class (6 marks)
• 10Why the schedule is useful (4 marks)

Model answers (10)

• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style
• ✓Model answer — 9706 Paper 3 style