10621A E SECTION A (COMPULSORY) - Answer both questions Question 1 (40 marks) 1. YKK Lid. has the following information as at 31 December 2015: E Premises, at cost 336,000 Plant and machinery, at cost 160,000 Accumulated depreciation (19 January 2015) 26,200 26,000 Accumulated depreciation (19 January 2015) 7,800 Inventory (19 January 2015) 18.800 Bad debts 1,400 Trade payables 16,600 Trade receivables 22,400 Allowance for doubtful debts (16 January 2015) 1.820 15,600 Purchases 99,400 Sales 271,800 Business rates 12.800 Salaries 44,000 Water and electricity 10,200 Rental of machinery 13,200 Interest on debentures 2,400 Capital 270,000 Retained profits 88,780 10% Debentures 2020 48.000 746,600 746.500 In addition, the following information is made available Inventory at 31 December 2015 is valued at $26.960 Business rates include a payment of 4.800 made for the 6-month period from 1 October 2015 Fixed assets are depreciated as follows: Plant and machinery 15% per annum on cost Equipment 20% per annum on netbook value Premises The provision for doubtful debts is to be adjusted to 10% of the debtors balance at the end of the year 3 Page 2 of 7 BMAN10621A ( The interest on debentures in payable on half yearly basis. The amount due for the second half of the year ended 31 December 2015 has not been paid. (w) The tax for the year is 12.800. (b) Prepare a statement of financial positon for YKK Ltd. as at the 31 December (14 marks) 2015