I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider

of Bluebottle for the year ended 31 December 20X1? 

 

Statement of financial position 

Statement of profit or loss 

A $900,000 

$nil 

B $500,000 

$400,000 

C $864,000 

$36,000 

D $480,000 

$420,000 

 

(2 marks) 

42 

Dodger Co's financial statements show a carrying value of $950,000 for capitalised development 

expenditure. Its policy is to amortise development expenditure on a straight line basis at 5% per 

annum. Accumulated amortisation brought forward is $50,000.  

What is the charge in the statement of profit or loss for the year's amortisation? 

A $43,500 

B $47,500 

C $45,000 

D $50,000 

 

(2 marks) 

43 

Ajeet prepared his draft end of year accounts. However, he has now realised that he did not 

adjust these for a prepayment of $2,100 and an accrual of $800. 

How will Ajeet's profit and net assets be affected by including the prepayment and accrual? 

 

Profit for the year will: 

Net assets will: 

A 

Increase by $2,900 

Reduce by $2,900 

B 

Increase by $1,300 

Increase by $1,300 

C 

Reduce by $1,300 

Increase by $1,300 

D 

Reduce by $2,900 

Reduce by $2,900 

 

(2 marks) 

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