N11123-E1 Section B Answer both questions Total marks available 50 21. Coutinho
ID: 2612168 • Letter: N
Question
N11123-E1 Section B Answer both questions Total marks available 50 21. Coutinho Berhad has the following information as at 31 December 2013 DebitCredit Issued share capital 250,000 ordinary shares of $1 each 50,000 6% preference shares of S 1 each 250,000 50,000 Land, at valuation Plant and machinery, at cost Accumulated depreciation - Plant and machinery Equipment, at cost Accumulated depreciation- equipment Inventories at 1 January 2013 Accounts receivable Accounts payable Allowance for doubtful debts Bank Purchases Sales Salaries Business rates Water and electricity expense Bad debts written off Rental of machinery 6% Loan Notes 2020 Interest on Loan Notes Share premium Retained profits General reserve Interim dividend on ordinary shares 490,000 63,180 45,260 74,450 28,550 17,280 36,000 12,340 2,000 25,170 140,400 468,000 117,000 18,000 8,700 2,500 10,000 80,000 3,600 20,000 25,130 15,000 5,000 Asset revaluation reserve -1,01280 011280 In addition, the following information is made available (1) Inventories at 31 December 2013 is valued at $23,400 (II) Business rates include a payment of $9,000 made for the 1-year period from 1 October 2013. (ii) Non-current assets are depreciated as follows: Plant and machinery Equipment Land 5% per annum on cost 20% per annum on net book value Nil Continued on next page Turn Over N11123-E1Explanation / Answer
EXPENDITURE
PURCHASES
140400
23400
interest on loan 3600
add: interest outstanding1200
business rates: 18000
less: advances 9000*9/12=6750
interim dividend:5000
dividend declared on equity:75000-5000
dividends on preference:3000
depreciaton:
plant and maxhinery:3159
equipment:74450-28550=45900*20%=9180
to net profits
12339
50531
EXPENDITURE
AMOUNT INCOME AMOUNT OPENING STOCK 17280 sales 468000PURCHASES
140400
closing stock23400
allowances for doubtful debts created 36000*5% 1800 allowances for doubtful debts 2000 salaries 117000 water and electricity expenses 8700 bad debts written off 2500 rental of machinery 10000interest on loan 3600
add: interest outstanding1200
4800business rates: 18000
less: advances 9000*9/12=6750
11250 corporation tax payable 38800interim dividend:5000
dividend declared on equity:75000-5000
dividends on preference:3000
78000depreciaton:
plant and maxhinery:3159
equipment:74450-28550=45900*20%=9180
to net profits
12339
50531
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