This document consists of 6 printed pages and 2 blank pages.
© CIE 2003
CAMBRIDGE INTERNATIONAL EXAMINATIONS
General Certificate of Education
Advanced Subsidiary Level and Advanced Level
Paper 4 Problem Solving (Supplementary Topics)
READ THESE INSTRUCTIONS FIRST
If you have been given an Answer Booklet, follow the instructions on the front cover of the Booklet.
Write your Centre number, candidate number and name on all the work you hand in.
Write in dark blue or black pen on both sides of the paper.
You may use a soft pencil for any diagrams, graphs or rough working.
Do not use staples, paper clips, highlighters, glue or correction fluid.
Answer all questions.
At the end of the examination, fasten all your work securely together.
The questions in this paper carry equal marks.
All accounting statements are to be presented in good style. Workings should be shown.
You may use a calculator.
The number of marks is given in brackets [ ] at the end of each question or part question.
The summarised Balance Sheet of Omicron Ltd at 31 December 2002 was as follows:
Net current assets
10% debentures 2003/2004
Share capital and reserves
Ordinary shares of $1
8% preference shares of $1
Share Premium account
Profit and Loss Account
On 1 January 2003 before any other transactions had taken place the following occurred.
1. Redemption of all the debentures at a premium of 5%.
2. Redemption of all the preference shares at $1.25 per share. The shares had originally been
issued at $1.10 per share.
(a) A revised Balance Sheet at 1 January 2003 as it appeared after the redemption of the
debentures and the preference shares.
Omicron Ltd’s profit before interest for the year ended 31 December 2002 was $600 000. A
dividend of $0.40 was paid on its ordinary shares for the year. The ordinary shares were quoted at