Free CIMA BA3 Practice Exam with Questions & Answers | Set: 11

At 1 January 20X8 JKL has share capital of $500,000 and share premium $270,000. The nominal value of each equity share is 50 cents On 31 July 20X8 JKL made a 1 for 4 bonus issue.

What is the balance on share premium following the bonus issue of shares? Give your answer to the nearest $'000

A non-current asset was purchased for £240000 at the beginning of Year 1, with an expected life of 7 years and a residual value of £50000. It was depreciated by 20% per annum using the reducing balance method.

At the beginning of Year 4 it was sold for £100000. The result of this was:

Accounting records should be kept by all businesses for many reasons.

Which THREE of the following are reasons for keeping accounting records?

An organization restores its petty cash balance to £350 at the end of each month.

During October, the total expenditure column in the petty cash book was calculated as being £310, and hence the impress was restored by this amount. The analysis columns, which had been posted to the nominal ledger, totaled only £300.

This error would result in:

Refer to the Exhibit.

The following information is available for the period for AC Limited, a manufacturing company:

The factory cost of goods completed for the period was

Where a transaction is entered into the correct ledger accounts, but the wrong amount is used, the error is known as an error of

The balance on LMN's cash account at 31 December 20X6 is $108,000 (debit) On performing the monthly bank reconciliation the following is discovered.

• a payment of $2,000 made to a supplier has not yet appeared on the bank statement,

• an automated receipt from a customer for $5,000 has not yet been recorded in the cash book, and

• a pigment to a supplier of $1,500 was incorrectly recorded in the cash book as $1,050

The balance showing on the bank statement at 31 December 20X6 is

An entity decides to revalue its freehold property during the current period creating a revaluation surplus.

Where in the current period financial statements would the revaluation surplus appear?

Your organization paid $120250 in net wages to its employees during the year.

Employees' tax and national insurance amounted to $32000 and employers national insurance was $11000. Employees had contributed $6250 to a superannuation scheme.

The amount to be charged against profits for the year, in respect of wages is

Refer to the exhibit.

A company has the following current assets and liabilities at its most recent year end:

When measured against standard acceptable levels for liquidity, the company can be said to have: