Hi – This is the revised version as of 13 Jun 2007.
Just finished my P1.1 exam in Jun 2007. Being not confident, I signed up for CBE in Aug 2007. Which results will ACCA take?
Ed asked : What if i failed my paper-based exam after the release of the exam results but passed my Aug CBE?
SAA said : Aug’s CBE result. Accounted as a pass for Dec 07 exam and student can only take 3 more Papers, including CBE, for Dec 07 Exam.
Ed asked : What if I passed both paper-based exam and CBE?
SAA : Paper-based exam’s result.
Is that you? Hope not.
How was the paper? The following are comments I got from some of you.
Section B consists of questions on the following topics:-
- incomplete records with sole proprietorship
- control account and reconciliation with listing total
- ratio theory on liquidity ratios
- FRS 38 on research and development and amortisation
“I finished my MCQs in half an hour.”
“I didn’t hear anybody complaining about the paper on the way out (of exam hall).”
“I did not have time to do 2 questions. Total 19 marks.”
“.. is this paper a bit difficult from the rest? As some never learn before…”
“… inventory overstated. I minus off from the retained earnings n asset. Is it correct?”
So for the rest of you, what do you think of the paper?
Can help me to understand the following? I disagree with official ACCA’s answer to ACCA Paper 1.1 Dec 2006 exam Section B Q2. Can review my approach?
“During the year, $8,000 interest received on a holding of loan notes had been correctly entered in the cash book but debited to interest payable account.”
a) Prepare journal entries to correct error.
b) What is the impact on profit given the correction?
– DR Suspense a/c $8,000
– CR Interest payable a/c $8,000
[To cancel out the wrong entry into Interest Payable a/c.]
– DR Suspense a/c $8,000
– CR Interest Income $8,000
[To correctly place the entry into Interest Income a/c.]
This would increase profit by $8,000.
ACCA’s official answer
-DR Suspense a/c $16,000
– CR Interest payable $8,000
– CR Interest receivable $8,000
Profit to increase by $16,000.
* Why credit “Interest Receivable”?
Hi friends – Share with you the sentiment of this reader who wrote to me.
Share my thoughts with you. A practical accountant in a harsh business climate is very different from a academic accountant. I am very shocked to learn what is meant by a real life accountant from my own exposure. This is also confirmed by your article on the Auston’s case.
Their life is definitely not easy. I am beginning to re-define an accountant’s job. Now, I know that running a business and being an accountant is no difference. Think about this point and you will know that their stress level is no joke.
Dear students, past and present,
Need your help to contribute some advice to the new students coming in in next academic term.
Advice on the following:-
How to manage time between work, studies, family and bfs/gfs?
How many subjects should I take?
How should I study? Read textbook or not?
How to deal with lecturers to get them to help?
Given that you guys and gals have now got the experience of going through at least one exam, let me have your views.
No right or wrong view. It is your view. – So just type 🙂
For my students.
Many are unable to tell the difference between bonus issue and rights issue of shares. I wish to present my interpretation on bonus issue to shed some light on this front.
Is this a possible exam questions? Of course, my friends.
Essentially we are issuing new shares by capitalising the reserves ie.
DR Reserve account
CR Share capital account
Any cash flow from the issue?
No money exchanged.
The company will send notices to shareholders to inform on the number of shares allocated based on the approved ratio.
Example – You were holding 1,000 shares prior to bonus issue. The company has been approved to issue bonus shares on the basis of 1:4. You would be issued 250 bonus shares for a total holding of 1,250 shares.
Are you any richer given the higher number of shares you now have?
Theoretically no. Has the company make any monies from the exercise? The answer is no. It is merely a paper exercise. Every existing shareholder maintains status quo in terms of their percentage ownership of the company.
Then why would a company do a bonus issue?
The company has essentially issued more shares to increase liquidity of the counter by reducing the absolute dollar value of each share. For example, DBS Bank may issue enough bonus shares to reduce its current share price from an “expensive and prohibitive level” of $20 to a more affordable level of $8. Then more people can “afford” to buy the shares and participate in success of DBS Bank.
Trust this helps. 🙂