1. Ca

2. Planning
6th Year
After Final Accounts
After Suspense
Before Ratios

3. Pre-teaching Anticipation Sheet Review Double entry Profit v Cash Debt
Items not involving movement of cash
Sources of cash inflows and outflows

4. Questions 100 marks 60 marks Difference
Abridged Profit and Loss required

5. 100 Mark Timing 25% marks = 25% time 100 marks = 45 minutes
Abridged P&L marks
Reconciliation of operating profit 20 marks
Cash flow statement marks
Reconciliation of net debt marks
(40 mins)
Theory (5 mins) marks

6. OVERVIEW OF 2015
Read figures from right to left Asset cash 34,000 60,000 Decrease (26,000) Liability Bank 18,000 31,000 Increase 13,000 Overall decrease (13,000) Last figure in Cash flow statement must be (13,000)

7. Net Debt
1/1/ , , ,000=101,000 31/12/ , , , ,000 (Government Securities) = 108,000

8. Adjustments 60,000 shares @ 1.25 each = share capital + 60,000
250, ,000 = 310,000
(Cash flow statement)
share premium + 15,000
0 + 15,000 = 15,000

9. CASH/BANK A/C DR/Rec CR/Paid
Disposal of Asset ,000
Purchase of Asset
 Taxation Paid
 Dividend Paid

10. 2. Fixed Asset Fixed Asset Cost 50,000 Depreciation 25,000 Sold for 30,000
Disposed (25,000)
+ P & L charged 145,000
(Reconciliation of operating profit figure)
Dep 31/12/ ,000

11. Fixed Asset Cost 1/1/ ,000 - Disposal 50,000 Purchase 220,000 (Cash flow statement) Cost 31/12/ ,000

12. Disposal a/c Cost 50,000 Dep (25,000) NBV 25,000 Cash 30,000
(Cash flow statement)
Profit ,000
(Reconciliation of operating profit )

13. Fixed Assets Balance 1/1/14 470,000 Balance 31/12/14 640,000 690,000
Disposal ,000
Purchase of Asset 220,000
Depreciation a/c
Disposal ,000
Balance1/1/ ,000
Balance 31/12/ ,000
225,000
P & L ,000
Disposal A/C
Fixed Asset ,000
Depreciation ,000
Profit ,000
Bank ,000
55,000
55,000

14. 3. Debentures 50,000 Debentures issued on 1/1/14 1/1/14 Bal 130,000
(Cash flow statement/ movement in net debt)
31/12/14 Bal ,000
10% Debenture Interest 18,000

15. 4. Dividends Dividends paid during year amounting to 55,000.
Dividends (B/S)
Dividends Paid 55,000
(abridged P & L/Cash flow statement)

16. 5. Taxation Taxation charge on profits for 2014 amounted to 65,000.
Taxation (B/S) , ,000
1/1/14 Due ,000
+ P & L 65,000 (abridged P & L)
112,000
31/12/14 Due 55,000
Paid 57,000
(Cash flow statement)

17. Taxation A/C Balance due 1/1/14 47,000 Balance due 31/12/14 55,000
112,000
Bank ,000
P & L ,000

18. 6. Investment
1/1/14 Bal 200,000 Sold (100,000) (Cash flow statement) 31/12/14 Bal 100,000

19. FORMAT!!

20. Abridged Profit and Loss account for year ending 31/12/2014
Operating Profit Less Interest Profit before Tax Taxation Profit after Tax Dividends Retained Profit Profit and Loss 1/1/2014 Profit and Loss 31/12/2014

21. Abridged Profit and Loss account for year ending 31/12/2014 Operating profit ? Less interest Profit before tax Taxation Profit after tax Dividends Retained profit Profit and loss balance 1/1/ ,500 Profit and loss balance 31/12/ ,500

22. Abridged Profit and Loss account for year ending 31/12/2014 Operating profit ,000 Less interest (18,000) Profit before tax ,000 Taxation (65,000) Profit after tax ,000 Dividends (55,000) Retained profit ,000 Profit and loss balance 1/1/ ,500 Profit and loss balance 31/12/ ,500

23. Reconciliation of operating profit to net cash flow from operating activities Operating profit Depreciation charge for year Profit on sale of fixed assets Increase in provision (bad debts) Increase/decrease Stock Debtors Creditors =Net cash inflow/outflow from operating activities

24. O Old R Roy’s T Trafford C Can E Earn M Much F Funds

25. Cash flow statement of ABD for year ended 31/12/14 O Operating Activities R Return on Investment and Servicing of Finance T Taxation C Capital Expenditure and Financial Investment E Equity Dividends paid (net cash outflow before liquid resources and financing) M Management of Liquid Resources F Financing (Decrease/Increase in Cash)

26. Reconciliation of net cash to movement in net debt
Decrease/Increase in cash Cash used to purchase liquid resources Cash received from issue of debentures Change in net debt Net debt at 1/1/14 (given) Net debt at 31/12/14 (given)

27. TIPS
Students need to have a clear plan for exam Must do at least 4 questions if doing question 1, otherwise must do 5 questions Not all questions carry equal marks Up to 20% of any question can be theory Practice, Practice, Practice Prepare exam style questions using stop watch in class.

28. P Be Prepared E Be Enthusiastic C Be Confident