FNST answers

Jade95
Jade95 Registered Posts: 50 Epic contributor 🐘
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

Comments

  • Nps
    Nps Registered Posts: 782
    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
    Jade95 Registered Posts: 50 Epic contributor 🐘
    I dont have the text either, that is why I am asking for the answers :)
  • Nps
    Nps Registered Posts: 782
    But you must have the question???
  • Jade95
    Jade95 Registered Posts: 50 Epic contributor 🐘
    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
    Morpheus1980 Registered Posts: 120 Beyond epic contributor 🧙‍♂️
    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
    Jade95 Registered Posts: 50 Epic contributor 🐘
    Hi Morpheus

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

    Thanks

    Jade
  • Morpheus1980
    Morpheus1980 Registered Posts: 120 Beyond epic contributor 🧙‍♂️
    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
    Morpheus1980 Registered Posts: 120 Beyond epic contributor 🧙‍♂️
    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
    Jade95 Registered Posts: 50 Epic contributor 🐘
    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
    Morpheus1980 Registered Posts: 120 Beyond epic contributor 🧙‍♂️
    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
    Jade95 Registered Posts: 50 Epic contributor 🐘
    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
    Morpheus1980 Registered Posts: 120 Beyond epic contributor 🧙‍♂️
    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
    Jade95 Registered Posts: 50 Epic contributor 🐘
    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
    Morpheus1980 Registered Posts: 120 Beyond epic contributor 🧙‍♂️
    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
    Jade95 Registered Posts: 50 Epic contributor 🐘
    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
    Morpheus1980 Registered Posts: 120 Beyond epic contributor 🧙‍♂️
    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
    Jade95 Registered Posts: 50 Epic contributor 🐘
    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
    Morpheus1980 Registered Posts: 120 Beyond epic contributor 🧙‍♂️
    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.
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