CMA Foundation Paper 2 (FFCA) case studies
CMA Foundation Paper 2 (FFCA) · Put your knowledge to work in context.
CMA Foundation Paper 2, Fundamentals of Financial and Cost Accounting (FFCA), is the accounting paper in the entry-level CMA Foundation stage. It is aimed at students who have finished school and are beginning a cost and management accounting career, and at early-career staff who need formal grounding in how transactions are recorded, summarised into statements, and then re-cut for costing and decisions. The CMA Foundation Paper 2 (FFCA) case studies are 5 cases and about 3,021 words.
1Suspense Account and Net Profit Corrections at Year End
At the year end of a trading business, the trial balance was extracted and, because the debit and credit columns differed, a suspense account was opened with a credit balance of ₹9,800. The accountant then found the following: (i) ₹7,000 received from a customer was entered correctly in the cash book but posted to the customer's account as ₹700; (ii) office equipment costing ₹45,000, purchased for cash, was debited to the Purchases account; (iii) a sales return of ₹8,000 was debited to the Sales account instead of to Sales Returns; (iv) discount received of ₹3,500 from a supplier was recorded in the supplier's account but not posted to the Discount Received account; (v) a credit sale of ₹12,000 to R.
678 words, about 3 min2Consignment Profit, Del Credere Commission and Unsold Stock
An electronics wholesaler in Pune consigned 600 ceiling fans to a dealer in Kochi. Each fan cost the consignor ₹1,500.
590 words, about 3 min3Year-End Adjustments and Closing Stock Valuation for a Sole Trader
Meera, a sole trader, has prepared a draft statement of profit or loss for the year ended 31 March 2025 showing a net profit of ₹3,00,000. Before finalising the accounts you review the following: (a) closing stock has been taken at cost, ₹2,40,000; this figure includes goods sent to a customer on sale or return at cost ₹24,000, although the related sale of ₹30,000 has already been recorded; (b) of the remaining stock, 10% is slow-moving and its net realisable value is only half of cost; (c) wages include ₹18,000 paid for installing new machinery; (d) insurance of ₹12,000 was paid on 1 July 2024 for twelve months; (e) debtors of ₹1,60,000 include the ₹30,000 from the sale-or-return customer; bad debts of ₹8,000 are to be written off and a provision of 5% is required; the existing provision is ₹4,000.
588 words, about 3 min4Contract Costing: Profit Recognition on a Partly Completed Contract
Sunrise Constructions has a contract with a price of ₹60,00,000, expected to take 18 months; it began on 1 April 2024. At 31 March 2025 the following were recorded: work certified ₹36,00,000; cash received from the client ₹32,40,000, being 90% of work certified, the balance being retention; materials purchased ₹18,00,000, of which materials costing ₹2,00,000 were still at site; wages paid ₹12,00,000, with ₹40,000 earned but unpaid; site overheads ₹3,00,000; plant sent to site costing ₹8,00,000, to be depreciated at 25% per annum.
541 words, about 3 min5Export Order Decision with a Machine-Hour Constraint
Kaveri Ltd produces a single component on machines that provide 1,40,000 machine hours a year. Each unit needs two machine hours.
624 words, about 3 min