This question paper consists of 6 printed pages and 2 blank pages.
SP (SLC) S21155/2
© CIE 2002
CAMBRIDGE INTERNATIONAL EXAMINATIONS
General Certificate of Education Advanced Level
PAPER 4 Problem Solving (Extension Topics)
OCTOBER/NOVEMBER SESSION 2002
INSTRUCTIONS TO CANDIDATES
Write your name, Centre number and candidate number in the spaces provided on the answer paper/
Answer all questions.
Write your answers on the separate answer paper provided.
If you use more than one sheet of paper, fasten the sheets together.
INFORMATION FOR CANDIDATES
The questions in this paper carry equal marks. The number of marks is given in brackets [ ] at the end
of each question or part question.
All accounting statements are to be presented in good style. Workings should be shown.
You may use a calculator.
Istaimy plc’s summarised Balance Sheet at 30 April 2001 was as follows:
Net current assets
Ordinary shares of $1
10% Preference shares of $1
Share Premium account
Profit and Loss Account
On 1 May 2001, before any further transactions had taken place, it was decided to redeem all
the preference shares at a premium of $0.30. The shares had originally been issued at $1.20
per share. In order to provide funds for the redemption, the company issued a further 100 000
ordinary shares at a premium of $0.25.
Prepare Istaimy plc’s Balance Sheet as it will appear immediately after the issue of the
additional ordinary shares and the redemption of the preference share capital.
(b) The following is the Balance Sheet of the Erchetai partnership at 30 April 2002.
Tangible fixed assets
1 145 000
Long term liability
Loan (carrying intere