Q1

The directors of Pathblazers Ltd extracted the following information at 31 March 2018
and 31 March 2017.
2018 ($) 2019 ($)
Cash at bank 2 905 Cr 16 640
Cash in hand 350 200
Debentures (2018) 15 000 30 000
Debentures (2027) 36 000 -
Intangible non-current assets 120 000 100 000
Plant and equipment:
Cost 91 360 86 245
Accumulated depreciation 21 990 17 960
Share capital (ordinary shares of
245 000 180 000
$1 each)
Share premium - 30 000

During the year ended 31 March 2018,

1 December 2017 A bonus issue of 65 000 ordinary shares was made.
Equipment costing $14 310, with accumulated depreciation of $3
1 January 2018 640, was sold for $8 990 cash. There were no other disposals
during the year.
1 March 2018 An ordinary share dividend of $0.06 per share was paid.
31 March 2018 The net cash from operating activities was $4 740.

(a) State where in a statement of cash flows the following would be shown:
(i) Dividends received

(ii) Depreciation

(b) Prepare the plant and equipment cost account for the year ended 31 March 2018.
Balance the account on that date and bring the balance down on 1 April 2018.
Plant and equipment – Cost Account
(c) Prepare the statement of cash flows for the year ended 31 March 2018.

Pathblazers Ltd
Statement of cash flows for the year ended 31 March 2018

(d) Explain how the debentures are shown in the statement of financial position of
Pathblazers Ltd at 31 March 2018.

Debentures (2018) :

Debentures (2027) :
Q2
Yoeel Ltd provided the following information at 31 March 2018.
2018 ($) 2017 ($)
Bank 8 750 Cr 2 500 Cr
Bank loan 150 000 250 000
Cash 120 230
Inventory 150 000 135 000
Machinery:
Cost 350 000 250 000
Accumulated depreciation 168 320 122 000
Share capital
300 000 150 000
(ordinary shares at $1 each)
Share premium 10 000 50 000
Trade payables 151 700 146 750
Trade receivables 103 750 89 400

During the year ended 31 March 2018, the following transactions took place.
Date Transaction
31 December 2017 A bonus issue of 50 000 ordinary shares was made.
A machine costing $10 000 with a carrying value of $6 400 was
15 January 2018 sold at a profit of $600. There were no other disposals of non-
current assets.
31 January 2018 A dividend of $0.10 per share was paid on all shares.
1 March 2018 A rights issue of 100 000 ordinary shares was made at a premium
of 10%. This was fully subscribed.
31 March 2018 Profit for the year from operating activities was $66 720.
31 March 2018 A dividend of $15 000 was received.

(a) Prepare the statement to reconcile the profit for the year to net cash from
operating activities for the year ended 31 March 2018.
Yoeel Ltd
Reconciliation of profit for the year to net cash from operating activities for the year
ended 31 March 2018
(b) Prepare the statement of cash flows for the year ended 31 March 2018.

Yoeel Ltd
Statement of cash flows for the year ended 31 March 2018
Q3

Peenk Ltd provided the following information.

30 June 2018 ($) 30 June ($)

Bank 14 840 52 500
Bank loan 150 000 300 000
Cash 210 1 950
Non-current assets (carrying value) 565 000 550 000
Inventory 20 000 15 000
Share capital (ordinary shares of
To be calculated 100 000
$1 each)
Share premium To be calculated 20 000
Trade payables 110 000 95 000
Trade receivables 85 000 75 000

On 1 January 2018 a dividend of $0.25 per share was paid on all shares in issue on that
date.

On 1 February 2018 a bonus issue of one ordinary share for every two ordinary shares
held was made. The directors decided to leave the reserves in the most flexible form.

On 1 April 2018 a rights issue of one ordinary share for every three ordinary shares held
on that date was made at $1.20 per share. The rights issue was fully subscribed.

On 15 June 2018 machinery originally costing $75 000, with carrying value of $48 000,
was sold at a profit of $2 000. There were no other disposals of non-current assets.

Land, which is not depreciated, was acquired during the year ended 30 June 2018, all
other non-current assets are depreciated at 20% per annum using the reducing balance
method. A full year’s depreciation is charged in the year of acquisition and none in the
year of disposal.

The profit for the year ended 30 June 2018 was $60 920.

(a) Calculate the cost of the land purchased during the year ended 30 June 2018.

(b) Prepare the statement of cash flows for the year ended 30 June 2018
Peenk Ltd
Statement of cash flows for the year ended 30 June 2018