FNST answers

Jade95

Hi all

This is to anyone who has the kaplan fnst revision kit.

Can anyone please tell me the final comprehensive income gigure, the assets figure and the equity and liabilities figure.

I have been given this for homework and cant get it to balance.

Any help is appreciated.

Jade

Nps

Can you scan it / screen shot it?

I'm spending the day practicing statements for my F7 ACCA exam next week so ideally placed to do it but don't have the Kaplan texts.

Jade95

I dont have the text either, that is why I am asking for the answers

Nps

But you must have the question???

Jade95

I am away so on phone tried yo take photo and upload it but it won't accept the file.

Sorry I don't know what to do lol

Morpheus1980

Hi Jade, you wouldn't happen to know what the question number is, would you? If so, I will be able to help you when I get home as I have the revision kit.

Jade95

Hi Morpheus

Its section 1 question 4 RCH LTD on pages 7 and 8.

Thanks

Jade

Morpheus1980

Okie doke - if you can wait a few hours I shall let you know what the answer is (if no-one gets in first!)

Morpheus1980

Apologies for the delay, Jade. Here's what I got from the Kaplan revision kit for RCH Ltd:

Final comprehensive income - if you mean total comprehensive income for the year, it is 242,484

Total assets - 408,125

Equity and liabilities - 408,125

I will take my Kaplan revision kit to work with me tomorrow, so if you have any questions, let me know and I will try and help.

Jade95

Hi

Thankx for that but I am still not sure where I have gone wrong.

For my income I got £249, 208, my assets I got 357973 and equity + liabilities I got 467411.

Can you see where I went wrong I really dont know.

If you need any more of my figures just let me know.

Jade

Morpheus1980

Hi Jade,

In your workings for the statement of comprehensive income for the year, have you included all of the following?:

Cost of Sales
Opening inventories
Purchases
Less closing inventories
Depreciation buildings
Depreciation plant and equipment

Distribution costs
Distribution costs
Depreciation Buildings
Depreciation Plant
Accrual

Administrative expenses
Administrative expenses
Irrecoverable debt w/off
Depreciation Buildings
Depreciation Plant

Finance costs
Interest paid
Accrual

Revaluation
Revalued amount
NBV

Also, in your workings for the figures in your Statement of Financial Position, ensure that you have included all of the following:

PPE
Land and buildings at cost
Revaluation
Accumulated depreciation
Depreciation charge
Plant and equipment cost
Accumulated depreciation
Depreciation charge

Trade and other receivables
Trade and other receivables
Irrecoverable debts w/off

Retained earnings
Retained earnings
Profit
Dividend

Trade and other payables
Trade and other payables
Distribution accrual
Interest accrual
Accruals

Give it another whirl and let me know how you get on :001_smile:

Jade95

Hi Morpheus

Thanks for that it really helped.

I now have the correct income figure. okay maybe not im stuck with the finance costs what should they be?

For my total assets I got 408973, which is a difference of 848. This is the cash and cash equivalents amount but you need to have that added on

For my total equity I got 366501 and total liabilities I got 91706. Together that makes a total equity and liabilities figure of 458207.

Any clues to where I went wrong?

Jade

Morpheus1980

Finance costs comprise an interest paid figure of £910, and an accrual of £910, so a total of £1,820.

Have you included the overdraft figure in the current liabilities of the SoFP of £848?

Have you included the revaluation amount of £51,000 under Equity and Liabilities in the SoFP? I only say this as your total equity figure is £51,000 more than it should be.

Not sure why your total liabilities are out. They should be £92,624, which means you are out by £918. £848 of this could be explained if you have not included the overdraft figure, but that means you are still out by £70. Maybe it is because your finance costs are incorrect?

I hope I'm helping you out here, and not confusing you even more! Let me know if you're getting closer to the correct answer!

Jade95

Hi Morpheus

Ok I have got there with the income statement.

Im there with the assets figure.

Im out by 70 on my liabilities and total equity and liabilities.

I have;
Share capital 50000
Revaluation reserve 12500
Retained earnings 253001

Total equity 315501

Non current liabilities
Bank loan 26000

Current liabilities
Trade and other payables 25342
Accruals 6624
Tax liability 33740
Cash and cash equivalents 848

Total liabilities 92554

Total equity and liabilities 408055

Can you see where I went wrong from these figures?

Thank you for all your help I appreciate it.

Jade

Morpheus1980

The cash and cash equivalents figure goes in the SoFP as a current liability at £848. The cash and cash equivalents figure in current assets will be zero because the figure you are given in the question is a credit figure, therefore it is an overdraft.

We are told in the question that RCH have yet to accrue for unpaid loan interest. We can see from the trial balance that they have already paid £910 (interest paid). So, we just need to accrue what has not been paid. You are right to take 7% of £26,000 to come to this figure. But seeing as £910 of the £1,820 has already been paid, you just need to accrue the remaining £910 to come to the total finance cost figure.

Ta-da! Lemme know if you need any more help.

Jade95

Yes look at above post

Thank you so much for all of this it is so much clearer now

Just that annoying £70.

Jade

Morpheus1980

Oops, apologies Jade, I completely missed one of your posts, hence me not answering you!

You know what though, I think I've found the missing £70!

Let me just talk you through a couple of things:

I have;
Share capital 50000 - Correct!
Revaluation reserve 12500 in the question, we are told that the land has been revalued at £151,000 but it is included in the trial balance at £100,000. Therefore, we need to add the difference of £51,00 to make the revaluation reserve figure £63,500
Retained earnings 253001 It looks like you have included the revaluation of £51,000 here but it actually goes in your Property, Plant and Equipment workings. Retained earnings should be £202,001 (your PPE figure should be £319,785)

Total equity 315501 Correct!

Non current liabilities
Bank loan 26000 Correct!

Current liabilities
Trade and other payables 25342 Correct!
Accruals 6624 This figure should actually be £1,217 but I can see that you have added the distribution accrual and the interest accrual. This is where you are £70 out. Accruals from the trial balance is £1,217. The distribution accrual given in the question is £4,567 and the interest accrual (from what we talked about earlier) is £910. Add this altogether and you get £6,694, not £6,624. Hurrah!
Tax liability 33740 Correct!
Cash and cash equivalents 848 Correct, but for the purposes of clarity, pop this figure under current liabilities as 'Overdraft', not 'Cash and Cash Equivalents'. You can add 'Cash and Cash Equivalents' under Current Assets, but make sure it is zero.

Total liabilities 92554 Should be £92,624 - which includes the £70 that was out

Total equity and liabilities 408055 Should be £408,125 - which includes the £70 that was out

Yaaaaaaaaaaaaaaaay!

Jade95

Thank you so much for all your help I have now got balanced figures.

It took a few days and attempts but im there.

I appreciate all your help.

Jade

Morpheus1980

You are more than welcome, Jade. I'm just glad I could help. It's been a long while since I did FNST so it was a nice refresher course for me. Good luck in the exam, and let me know if there's anything else you get stuck on.