Section c: Problem Solving $($Total: $10$ marks$)$

Exercise $1$:

Balance Sheet Airr Company

Einanced by:

Paid$-$up

Share Capital

Profit for the year

Retained Earnings

Long term liabilities

$\backslash$table$[[$Current$,],[$Accts payable,$100,000],[$Tradities creditors,$245,500],[$Accrued expense,$30,000]]$

Current Liabil Accts payable Trade creditors Accrued expense

$

$s$

$000$

$600,000155,500$

$155,50075,000$

$830,500$

$25,000$

$\frac{\text{F}\text{i}\text{x}\text{e}\text{d}\text{A}\text{s}\text{s}\text{e}\text{t}\text{s}(net\text{a}\text{f}\text{t}\text{o}\text{r}\text{d}\text{e}\text{p}\text{r}\text{e}\text{c}\text{i}\text{a}\text{t}\text{i}\text{o}\text{n})}{\text{\$}}$

Land & Buildings

Equipment

Vehicles

Fixtures & Fittings

$350,500$

$200,500$

$150,00050,000$

Current Assets $,751,000$

Inventory

Debtors

Accounts Receivable $85,000$

Cash

$\frac{375,500}{1231000}$

$2$

$($i$)$ The number of

Wned by Muslim shareholders is $330,000$ units $($at $$1\mathrm{.}50).$

that the company purchased intant of Barakah Company disclosed to the zakat authority trade creditors on credit and the tooling equipment amounting to $$7,000$ from one of their trade creditors.

$($iii$)$ During the year, it was also disclosed that part of the stocks has been acquired from one of the suppliers who agreed for the payment to be deferred for three years amounting to $$5,000$ and this has been accounted for as long$-$term liabilities.

iv$)$ Work$-$in$-$Progress is a fifth of the total Inventory.

$($v$)$ Provision for bad debts for the year ended $2021$ is expected to be $12\%$ of the total amount of debtors and this provision has not been considered by the company.

Required:

$($a$)$ Determine the zakat base and zakat payable based on the Net Current Assets method and Net Invested Fund method.

$(10$ marks$)$