Financial Accounting III
Exam 2021
Required
QUESTION 1 (47 marks; 70.5 minutes)
Marks
REQUIRED:
Sub-
Total
total
(a) With respect to the sale and leaseback transaction in FS:
Prepare all journal entries to account for the Sale and leaseback
transaction in FS for the year ended 31 December 2021.
20 20
No journal entries relating to current tax are required.
Narrations are not required.
(b) With respect to FS’ investment in Arona:
Prepare only the pro-forma deconsolidation journal entry/ies in the
FS group financial statements to account for the sale of Arona shares 17 17
on 30 September 2021. Show all calculations clearly.
(c) Critically analyse the ‘Investment in Associates note’ of the FS Group
for the year ended 31 December 2021. Also comment on and correct
any amounts that might be incorrectly included in the note prepared by 10 10
the financial accountant.
Total marks 47
Page 1 of 2
Exam 2021
Required
QUESTION 1 (47 marks; 70.5 minutes)
Marks
REQUIRED:
Sub-
Total
total
(a) With respect to the sale and leaseback transaction in FS:
Prepare all journal entries to account for the Sale and leaseback
transaction in FS for the year ended 31 December 2021.
20 20
No journal entries relating to current tax are required.
Narrations are not required.
(b) With respect to FS’ investment in Arona:
Prepare only the pro-forma deconsolidation journal entry/ies in the
FS group financial statements to account for the sale of Arona shares 17 17
on 30 September 2021. Show all calculations clearly.
(c) Critically analyse the ‘Investment in Associates note’ of the FS Group
for the year ended 31 December 2021. Also comment on and correct
any amounts that might be incorrectly included in the note prepared by 10 10
the financial accountant.
Total marks 47
Page 1 of 2
