Seminar 3

Question 1

Set out the journal entries, with supporting calculations, that will be required in respect of the above transactions as at 31 December 20X7. Ignore taxation.

Answer 1

Question 2

a) Calculate the amounts which should be shown under non-current assets and non‑current liabilities at 30 September 20X6 in respect of the delivery truck.

b) Calculate the carrying amount of the right-of-use asset in respect of the crane at 30 September 20X6.

c) What is the gain that will be recognised in profit or loss in respect of the sale and leaseback of the building?

d) Write a brief note explaining the recognition exemption that Frazzled plc may elect to use regarding the laptop leases.

Answer 2

Question 3

What amounts should be shown in the statement of financial position for the debt at the date of issue?

Answer 3

Question 4

Calculate the closing statement of financial position figure at the end of year 2.

Answer 4

Question 5

Prepare extracts from the statement of profit or loss and the statement of financial position for 31 December 20X7.

Answer 5