Page 367 - Microsoft Word - 00 IWB ACCA F7.docx

Answers

Example 2 cont.

Solution

$
Cash flows from investing activities

Purchase of property, plant and equipment (W1) (6,150)
Sale proceeds from sale of plant ($900 + $400) 1,300

Cash flows from financing activities

Proceeds of share issue (W2) 2,100
Lease liability repaid (W3) (1,800)

(W1) Property, plant and equipment

Property, plant & equipment
Balance b/f 33,800 Depreciation 7,200

Revaluation (1,850 – 500) 1,350 Disposal 900
Right-of-use asset 10,000
Purchase of assets 6,150 Balance c/f 43,200

——— ———

51,300 51,300
——— ———

(W2) Share capital and premium

Share capital and premium
Share capital b/f 9,000

Share capital c/f 10,500 Share premium b/f 1,700
Share premium c/f 2,300 Share proceeds (bal) 2,100

——— ———
12,800 12,800

——— ———

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