This document consists of 7 printed pages and 1 blank page.
SP (NH) S78757/2
© UCLES 2005
UNIVERSITY OF 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.
© UCLES 2005
The summarised Balance Sheet at 30 April 2005 of Clutterbuck Ltd was as follows:
Net current assets
6% debentures 2005/2006
Ordinary shares of $1
10% redeemable preference shares of $1
Share Premium account
Profit and Loss Account
The market price of the ordinary shares at 30 April 2005 was $1.60.
The dividend yield on ordinary shares was 21/2 per cent.
The creditor for taxation at 30 April 2004 was $25 000. Taxation paid in the year ended
30 April 2005 amounted to $22 000. The liability for taxation on the profit of the year ended
30 April 2005 is $31 000 and is carried forward on the Taxation account.
The retained profit for the year ended 30 April 2005 was $60 000.
The debentures were issued in 1997. The preference shares were issued at par.
(a) Prepare Clutterbuck Ltd’s Profit a