2019 EXAMINATIONS
PART I
ACCOUNTING AND FINANCE
AcF 100 INTRODUCTION TO ACCOUNTING AND FINANCE
3 hours + 15 minutes reading time
Answer ONE question each from both Sections A and B. Answer TWO
questions from Section C and then ONE question from Section D. All questions
in Sections A and B are worth 33 marks each. Sections C and D are worth 17
marks each.
ANSWER EACH SECTION IN A SEPARATE ANSWER BOOKLET
1
, SECTION A – FINANCIAL ACCOUNTING
ANSWER ONE QUESTION FROM THIS SECTION (EITHER QUESTION 1 OR
QUESTION 2) AND SHOW ALL YOUR WORKINGS
Q.1
As the accountant for Drox plc, you have produced the following statement of profit or
loss for the year ended 31 March 2019 and the statements of financial position as at
31 March 2019 and 31 March 2018.
Drox plc
Statement of profit or loss for the year ended 31 March 2019
£m
Sales revenues 311
Cost of sales (152)
Gross profit 159
Administrative expenses (30)
Distribution expenses (39)
Other operating income 6
Operating profit 96
Interest payable (6)
Profit before tax 90
Statement of financial position as at 31 March
2019 2018
£m £m
Non-current assets
Buildings (at net book value) 165 141
Plant and machinery (at net book value) 93 80
258 221
Current assets
Inventories 36 38
Trade receivables 43 24
Cash 29 15
108 77
Current liabilities
Interest accrual (3) 0
Trade payables (38) (41)
(41) (41)
Non-current liabilities
Bank loan (repayable 2025) (76) (70)
Net assets 249 187
2
PART I
ACCOUNTING AND FINANCE
AcF 100 INTRODUCTION TO ACCOUNTING AND FINANCE
3 hours + 15 minutes reading time
Answer ONE question each from both Sections A and B. Answer TWO
questions from Section C and then ONE question from Section D. All questions
in Sections A and B are worth 33 marks each. Sections C and D are worth 17
marks each.
ANSWER EACH SECTION IN A SEPARATE ANSWER BOOKLET
1
, SECTION A – FINANCIAL ACCOUNTING
ANSWER ONE QUESTION FROM THIS SECTION (EITHER QUESTION 1 OR
QUESTION 2) AND SHOW ALL YOUR WORKINGS
Q.1
As the accountant for Drox plc, you have produced the following statement of profit or
loss for the year ended 31 March 2019 and the statements of financial position as at
31 March 2019 and 31 March 2018.
Drox plc
Statement of profit or loss for the year ended 31 March 2019
£m
Sales revenues 311
Cost of sales (152)
Gross profit 159
Administrative expenses (30)
Distribution expenses (39)
Other operating income 6
Operating profit 96
Interest payable (6)
Profit before tax 90
Statement of financial position as at 31 March
2019 2018
£m £m
Non-current assets
Buildings (at net book value) 165 141
Plant and machinery (at net book value) 93 80
258 221
Current assets
Inventories 36 38
Trade receivables 43 24
Cash 29 15
108 77
Current liabilities
Interest accrual (3) 0
Trade payables (38) (41)
(41) (41)
Non-current liabilities
Bank loan (repayable 2025) (76) (70)
Net assets 249 187
2
