The following is the trial balance of XLC plc as at 30th September 20x6. Dr. Cr....

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The following is the trial balance of XLC plc as at 30th September 20x6. Dr. Cr. 200,000 100,000 80,000 40,000 535,000 Ordinary share capital ($1 each) 6% Preference share capital( $2 each) 8% Debentures (repayable in 20x9) General reserve Sales Purchases Directors' remuneration Office rent Office salaries Returns inwards Returns outwards Stock at 1.10.20x5 Retained profit @ 1.10.20x5 Auditors' fee Office lighting Printing and stationery Salesman's commission Debenture interest Warehouse rent Delivery van expenses Rental income from sub-letting of warehouse Interim dividend paid - Preference Interim dividend paid - Ordinary Discounts Carriage inwards Carriage outwards Advertising expenses 2 Share premium Delivery van- at cost Office furniture and fittings - at cost Freehold property -at cost Provision for depreciation - Delivery van Provision for doubtful debts - 247,000 44,600 50,000 84,000 3,000 14,200 7,850 3,600 9.600 1,800 1,100 6,400 Officeice F & F Freehold property 3,200 3,000 6,000 900 7,200 2,600 4,600 46,000 25,000 370,000 12,400 11,500 2,100 2,400 15,000 6,900 2,500 6,400 450 Bank balance Debtors Creditors 3 ✔ Dr. 31,000 62,000 Additional information :- (1) Stock at 30 September 20x6 was valued at $15,000. (ii) Directors decided to :- - 1,034,650 - Declare a final dividend of 6% for Ordinary shares Transfer $5,000 to General reserve. Cr. (iii) Taxation for the current year's profit is estimated to be $7,500. (iv) Depreciation to be provided as follows:- 20,000 1,034,650 Reduce provision for doubtful debts by $200. Make 1 for 8 bonus issue on 30 September 20x6 using Share premium and Retained profit for the issue, Delivery van -15% per annum on Net Book Value. Office Furniture & Fitting - 10% per annum on cost. Freehold property - 2% per annum on cost. PAT TASKS :- (a) Prepare a Trading, Profit and Loss and Appropriation account for the year ended 30 September 20x6. (20 marks) (b) Prepare a Balance Sheet as at 30 September 20x6. (15 marks) (c) Briefly explain THREE differences between a Bonus issue and a Rights issue. (6 marks) (d) Describe THREE accounting concepts that you have applied while preparing the final accounts in Task (a) and (b) above. Marks will be awarded for citing relevant examples. (9 marks) Total marks for question 1 = 50 marks 4 2 Weststar Sdn Bhd's current operating results are as follows:- Sales (30,000 units) Variable cost of production Fixed cost In planning for the next year, the Company expects that:- (i) the fixed cost will increase by $5,000 (ii) the variable cost will increase by 20% (iii) the selling price will remain unchanged. TASKS :- $ 60,000 30,000 24,000 For task (a ) & (b), calculate:- (a) the number of units the Company must sell in order to break-even in the Current year. (3 marks) (b) the number of units the company must sell in order to break-even Next year. (3 marks). (11 marks) (c) Draw the break-even Chart for task (ii) above. (d) Calculate the number of units the Company must sell to break-even if the selling price was raised by 25% next year. (3 marks) Total marks for question 2 = 20 marks 3. A company is considering purchasing anyone of the two machines each with a useful life of five years. Purchase price Annual cash flow:- Year 1 Year 2 Year 3 Year 4 Year 5 Machine A $ 100,000 20,000 25,000 30,000 5 40,000 55,000 TASKS :- For both machines, calculate :- (a) Payback periods (b) Net Present Value, using a discount rate of 12% (c) The Internal Rate of Returns (IRR) (d) Briefly explain the reasons for your choice of the machine. Machine B $ 100,000 30,000 32,000 38,000 30,000 35,000 END OF EXAMINATION (4 marks) (6 marks) (8 marks) (2 marks) Total marks for question 3 = 20 marks 4. Finance is one of the determinants for the success of a business. Describe FIVE appropriate sources of finance for Small Medium Enterprises (SMEs). (10 marks) Present value of 1, i.e. (1 + r) " Where r discount rate n = number of periods until payment Periods (n) 1 5 6 7 8 9 10 11 12. 13 14 15 8799 1% 0.990 0.980 0.971 0.961 0.951 6 Periods (n) 1 2 3 4 5 0.593 Present value table 4% 0.962 0.925 0.889 0.855 0.863 0.822 0.942 0.888 0.837 0.933 0.871 0.813 0.923 0.853 0.789 0.914 0.837 0.766 0.905 0.820 0.744 2% 3% 0.980 0.971 0.961 0.943 0.942 0.915 0.924 0.888 0.906 0.879 0.896 0.804 0.722 0.650 0.625 0.701 0.887 0.788 0.601 0.681 0.773 0.661 0.577 0.758 0.743 0.870 0.861 0.642 0.555 9 0.391 10 0.352 11% 12% 13% 0.893 0.885 0.901 0.812 0.797 0.783 0.731 0.712 0.659 0.636 0.567 0.535 0.507 0.480 0.482 0.452 0.425 0.434 0.404 0.376 0.361 0.333 0.322 0.295 Discount rate (r) 7% 8% 9% 0.935 0.926 0.917 0.873 0.890 0.857 0.842 0.840 0.816 0.794 0.772 0.792 0.763 0.735 0.708 0.747 0.713 0.681 0.650 0.456 0.400 0.351 0.308 0.270 5% 6% 0.952 0.943 0.907 0.864 0.823 0.784 0.746 0.705 0.790 0.760 0.711 0.731 0.703 0.645 0.665 0.627 0.677 0.592 0.676 0.614 0.558 0.585 0.527 0.557 0.497 0.530 0.469 0.505 0.442 0.481 0.417 Discount rate (r) 0.666 0.630 0.623 0.583 0.582 0.540 0.544 0.500 0.508 0.463 14% 15% 16% 17% 0.877 0.870 0.862 0.855 0.769 0.756 0.743 0.731 0.693 0.675 0.658 0.641 0.613 0.592 0.572 0.552 0.543 0.519 0.497 0.476 0.432 0.410 0.376 0.354 0.327 0.305 0.284 0.263 0.247 0.227 0.475 0.429 0.388 0.444 0.397 0.356 0.415 0.368 0.326 0.340 0.299 0.388 0.362 0.315 0.275 0.596 0.547 0.502 18% 19% 0.847 0.840 0.718 0.706 0.624 0.609 0.593 0.534 0.516 0.499 0.456 0.437 0.419 0.390 0.333 0.285 0.266 0.460 0.422 0.370 0.314 0.352 0.296 0.249 0.243 0.225 0.209 0.208 0.191 0.176 11 0.317 0.287 0.261 0.237 0.215 0.195 0.178 0.162 0 148 12 0.286 0.257 0.231 0.208 0.187 0.168 0.152 0.137 0.124 13 0.258 0.229 0.204 0.182 0.163 0.145 0.130 14 0.232 0.205 0.181 0.160 0.141 0.125 0.111 15 0.209 0.183 0.160 0.140 0.123 0.108 0.095 10% 0.909 0.826 0.751 0.683 0.621 0.564 0.513 0.467 0.424 0.386 0.350 0.319 0.290 0.263 0.239 20% 0.833 0.694 0.579 0.482 0.402 0.335 0.279 0.233 0.194 0.162 0.135 0.112 0.116 0.104 0.093 0.099 0.088 0.078 0.065 0.084 0.074 The following is the trial balance of XLC plc as at 30th September 20x6. Dr. Cr. 200,000 100,000 80,000 40,000 535,000 Ordinary share capital ($1 each) 6% Preference share capital( $2 each) 8% Debentures (repayable in 20x9) General reserve Sales Purchases Directors' remuneration Office rent Office salaries Returns inwards Returns outwards Stock at 1.10.20x5 Retained profit @ 1.10.20x5 Auditors' fee Office lighting Printing and stationery Salesman's commission Debenture interest Warehouse rent Delivery van expenses Rental income from sub-letting of warehouse Interim dividend paid - Preference Interim dividend paid - Ordinary Discounts Carriage inwards Carriage outwards Advertising expenses 2 Share premium Delivery van- at cost Office furniture and fittings - at cost Freehold property -at cost Provision for depreciation - Delivery van Provision for doubtful debts - 247,000 44,600 50,000 84,000 3,000 14,200 7,850 3,600 9.600 1,800 1,100 6,400 Officeice F & F Freehold property 3,200 3,000 6,000 900 7,200 2,600 4,600 46,000 25,000 370,000 12,400 11,500 2,100 2,400 15,000 6,900 2,500 6,400 450 Bank balance Debtors Creditors 3 ✔ Dr. 31,000 62,000 Additional information :- (1) Stock at 30 September 20x6 was valued at $15,000. (ii) Directors decided to :- - 1,034,650 - Declare a final dividend of 6% for Ordinary shares Transfer $5,000 to General reserve. Cr. (iii) Taxation for the current year's profit is estimated to be $7,500. (iv) Depreciation to be provided as follows:- 20,000 1,034,650 Reduce provision for doubtful debts by $200. Make 1 for 8 bonus issue on 30 September 20x6 using Share premium and Retained profit for the issue, Delivery van -15% per annum on Net Book Value. Office Furniture & Fitting - 10% per annum on cost. Freehold property - 2% per annum on cost. PAT TASKS :- (a) Prepare a Trading, Profit and Loss and Appropriation account for the year ended 30 September 20x6. (20 marks) (b) Prepare a Balance Sheet as at 30 September 20x6. (15 marks) (c) Briefly explain THREE differences between a Bonus issue and a Rights issue. (6 marks) (d) Describe THREE accounting concepts that you have applied while preparing the final accounts in Task (a) and (b) above. Marks will be awarded for citing relevant examples. (9 marks) Total marks for question 1 = 50 marks 4 2 Weststar Sdn Bhd's current operating results are as follows:- Sales (30,000 units) Variable cost of production Fixed cost In planning for the next year, the Company expects that:- (i) the fixed cost will increase by $5,000 (ii) the variable cost will increase by 20% (iii) the selling price will remain unchanged. TASKS :- $ 60,000 30,000 24,000 For task (a ) & (b), calculate:- (a) the number of units the Company must sell in order to break-even in the Current year. (3 marks) (b) the number of units the company must sell in order to break-even Next year. (3 marks). (11 marks) (c) Draw the break-even Chart for task (ii) above. (d) Calculate the number of units the Company must sell to break-even if the selling price was raised by 25% next year. (3 marks) Total marks for question 2 = 20 marks 3. A company is considering purchasing anyone of the two machines each with a useful life of five years. Purchase price Annual cash flow:- Year 1 Year 2 Year 3 Year 4 Year 5 Machine A $ 100,000 20,000 25,000 30,000 5 40,000 55,000 TASKS :- For both machines, calculate :- (a) Payback periods (b) Net Present Value, using a discount rate of 12% (c) The Internal Rate of Returns (IRR) (d) Briefly explain the reasons for your choice of the machine. Machine B $ 100,000 30,000 32,000 38,000 30,000 35,000 END OF EXAMINATION (4 marks) (6 marks) (8 marks) (2 marks) Total marks for question 3 = 20 marks 4. Finance is one of the determinants for the success of a business. Describe FIVE appropriate sources of finance for Small Medium Enterprises (SMEs). (10 marks) Present value of 1, i.e. (1 + r) " Where r discount rate n = number of periods until payment Periods (n) 1 5 6 7 8 9 10 11 12. 13 14 15 8799 1% 0.990 0.980 0.971 0.961 0.951 6 Periods (n) 1 2 3 4 5 0.593 Present value table 4% 0.962 0.925 0.889 0.855 0.863 0.822 0.942 0.888 0.837 0.933 0.871 0.813 0.923 0.853 0.789 0.914 0.837 0.766 0.905 0.820 0.744 2% 3% 0.980 0.971 0.961 0.943 0.942 0.915 0.924 0.888 0.906 0.879 0.896 0.804 0.722 0.650 0.625 0.701 0.887 0.788 0.601 0.681 0.773 0.661 0.577 0.758 0.743 0.870 0.861 0.642 0.555 9 0.391 10 0.352 11% 12% 13% 0.893 0.885 0.901 0.812 0.797 0.783 0.731 0.712 0.659 0.636 0.567 0.535 0.507 0.480 0.482 0.452 0.425 0.434 0.404 0.376 0.361 0.333 0.322 0.295 Discount rate (r) 7% 8% 9% 0.935 0.926 0.917 0.873 0.890 0.857 0.842 0.840 0.816 0.794 0.772 0.792 0.763 0.735 0.708 0.747 0.713 0.681 0.650 0.456 0.400 0.351 0.308 0.270 5% 6% 0.952 0.943 0.907 0.864 0.823 0.784 0.746 0.705 0.790 0.760 0.711 0.731 0.703 0.645 0.665 0.627 0.677 0.592 0.676 0.614 0.558 0.585 0.527 0.557 0.497 0.530 0.469 0.505 0.442 0.481 0.417 Discount rate (r) 0.666 0.630 0.623 0.583 0.582 0.540 0.544 0.500 0.508 0.463 14% 15% 16% 17% 0.877 0.870 0.862 0.855 0.769 0.756 0.743 0.731 0.693 0.675 0.658 0.641 0.613 0.592 0.572 0.552 0.543 0.519 0.497 0.476 0.432 0.410 0.376 0.354 0.327 0.305 0.284 0.263 0.247 0.227 0.475 0.429 0.388 0.444 0.397 0.356 0.415 0.368 0.326 0.340 0.299 0.388 0.362 0.315 0.275 0.596 0.547 0.502 18% 19% 0.847 0.840 0.718 0.706 0.624 0.609 0.593 0.534 0.516 0.499 0.456 0.437 0.419 0.390 0.333 0.285 0.266 0.460 0.422 0.370 0.314 0.352 0.296 0.249 0.243 0.225 0.209 0.208 0.191 0.176 11 0.317 0.287 0.261 0.237 0.215 0.195 0.178 0.162 0 148 12 0.286 0.257 0.231 0.208 0.187 0.168 0.152 0.137 0.124 13 0.258 0.229 0.204 0.182 0.163 0.145 0.130 14 0.232 0.205 0.181 0.160 0.141 0.125 0.111 15 0.209 0.183 0.160 0.140 0.123 0.108 0.095 10% 0.909 0.826 0.751 0.683 0.621 0.564 0.513 0.467 0.424 0.386 0.350 0.319 0.290 0.263 0.239 20% 0.833 0.694 0.579 0.482 0.402 0.335 0.279 0.233 0.194 0.162 0.135 0.112 0.116 0.104 0.093 0.099 0.088 0.078 0.065 0.084 0.074 The following is the trial balance of XLC plc as at 30th September 20x6. Dr. Cr. 200,000 100,000 80,000 40,000 535,000 Ordinary share capital ($1 each) 6% Preference share capital( $2 each) 8% Debentures (repayable in 20x9) General reserve Sales Purchases Directors' remuneration Office rent Office salaries Returns inwards Returns outwards Stock at 1.10.20x5 Retained profit @ 1.10.20x5 Auditors' fee Office lighting Printing and stationery Salesman's commission Debenture interest Warehouse rent Delivery van expenses Rental income from sub-letting of warehouse Interim dividend paid - Preference Interim dividend paid - Ordinary Discounts Carriage inwards Carriage outwards Advertising expenses 2 Share premium Delivery van- at cost Office furniture and fittings - at cost Freehold property -at cost Provision for depreciation - Delivery van Provision for doubtful debts - 247,000 44,600 50,000 84,000 3,000 14,200 7,850 3,600 9.600 1,800 1,100 6,400 Officeice F & F Freehold property 3,200 3,000 6,000 900 7,200 2,600 4,600 46,000 25,000 370,000 12,400 11,500 2,100 2,400 15,000 6,900 2,500 6,400 450 Bank balance Debtors Creditors 3 ✔ Dr. 31,000 62,000 Additional information :- (1) Stock at 30 September 20x6 was valued at $15,000. (ii) Directors decided to :- - 1,034,650 - Declare a final dividend of 6% for Ordinary shares Transfer $5,000 to General reserve. Cr. (iii) Taxation for the current year's profit is estimated to be $7,500. (iv) Depreciation to be provided as follows:- 20,000 1,034,650 Reduce provision for doubtful debts by $200. Make 1 for 8 bonus issue on 30 September 20x6 using Share premium and Retained profit for the issue, Delivery van -15% per annum on Net Book Value. Office Furniture & Fitting - 10% per annum on cost. Freehold property - 2% per annum on cost. PAT TASKS :- (a) Prepare a Trading, Profit and Loss and Appropriation account for the year ended 30 September 20x6. (20 marks) (b) Prepare a Balance Sheet as at 30 September 20x6. (15 marks) (c) Briefly explain THREE differences between a Bonus issue and a Rights issue. (6 marks) (d) Describe THREE accounting concepts that you have applied while preparing the final accounts in Task (a) and (b) above. Marks will be awarded for citing relevant examples. (9 marks) Total marks for question 1 = 50 marks 4 2 Weststar Sdn Bhd's current operating results are as follows:- Sales (30,000 units) Variable cost of production Fixed cost In planning for the next year, the Company expects that:- (i) the fixed cost will increase by $5,000 (ii) the variable cost will increase by 20% (iii) the selling price will remain unchanged. TASKS :- $ 60,000 30,000 24,000 For task (a ) & (b), calculate:- (a) the number of units the Company must sell in order to break-even in the Current year. (3 marks) (b) the number of units the company must sell in order to break-even Next year. (3 marks). (11 marks) (c) Draw the break-even Chart for task (ii) above. (d) Calculate the number of units the Company must sell to break-even if the selling price was raised by 25% next year. (3 marks) Total marks for question 2 = 20 marks 3. A company is considering purchasing anyone of the two machines each with a useful life of five years. Purchase price Annual cash flow:- Year 1 Year 2 Year 3 Year 4 Year 5 Machine A $ 100,000 20,000 25,000 30,000 5 40,000 55,000 TASKS :- For both machines, calculate :- (a) Payback periods (b) Net Present Value, using a discount rate of 12% (c) The Internal Rate of Returns (IRR) (d) Briefly explain the reasons for your choice of the machine. Machine B $ 100,000 30,000 32,000 38,000 30,000 35,000 END OF EXAMINATION (4 marks) (6 marks) (8 marks) (2 marks) Total marks for question 3 = 20 marks 4. Finance is one of the determinants for the success of a business. Describe FIVE appropriate sources of finance for Small Medium Enterprises (SMEs). (10 marks) Present value of 1, i.e. (1 + r) " Where r discount rate n = number of periods until payment Periods (n) 1 5 6 7 8 9 10 11 12. 13 14 15 8799 1% 0.990 0.980 0.971 0.961 0.951 6 Periods (n) 1 2 3 4 5 0.593 Present value table 4% 0.962 0.925 0.889 0.855 0.863 0.822 0.942 0.888 0.837 0.933 0.871 0.813 0.923 0.853 0.789 0.914 0.837 0.766 0.905 0.820 0.744 2% 3% 0.980 0.971 0.961 0.943 0.942 0.915 0.924 0.888 0.906 0.879 0.896 0.804 0.722 0.650 0.625 0.701 0.887 0.788 0.601 0.681 0.773 0.661 0.577 0.758 0.743 0.870 0.861 0.642 0.555 9 0.391 10 0.352 11% 12% 13% 0.893 0.885 0.901 0.812 0.797 0.783 0.731 0.712 0.659 0.636 0.567 0.535 0.507 0.480 0.482 0.452 0.425 0.434 0.404 0.376 0.361 0.333 0.322 0.295 Discount rate (r) 7% 8% 9% 0.935 0.926 0.917 0.873 0.890 0.857 0.842 0.840 0.816 0.794 0.772 0.792 0.763 0.735 0.708 0.747 0.713 0.681 0.650 0.456 0.400 0.351 0.308 0.270 5% 6% 0.952 0.943 0.907 0.864 0.823 0.784 0.746 0.705 0.790 0.760 0.711 0.731 0.703 0.645 0.665 0.627 0.677 0.592 0.676 0.614 0.558 0.585 0.527 0.557 0.497 0.530 0.469 0.505 0.442 0.481 0.417 Discount rate (r) 0.666 0.630 0.623 0.583 0.582 0.540 0.544 0.500 0.508 0.463 14% 15% 16% 17% 0.877 0.870 0.862 0.855 0.769 0.756 0.743 0.731 0.693 0.675 0.658 0.641 0.613 0.592 0.572 0.552 0.543 0.519 0.497 0.476 0.432 0.410 0.376 0.354 0.327 0.305 0.284 0.263 0.247 0.227 0.475 0.429 0.388 0.444 0.397 0.356 0.415 0.368 0.326 0.340 0.299 0.388 0.362 0.315 0.275 0.596 0.547 0.502 18% 19% 0.847 0.840 0.718 0.706 0.624 0.609 0.593 0.534 0.516 0.499 0.456 0.437 0.419 0.390 0.333 0.285 0.266 0.460 0.422 0.370 0.314 0.352 0.296 0.249 0.243 0.225 0.209 0.208 0.191 0.176 11 0.317 0.287 0.261 0.237 0.215 0.195 0.178 0.162 0 148 12 0.286 0.257 0.231 0.208 0.187 0.168 0.152 0.137 0.124 13 0.258 0.229 0.204 0.182 0.163 0.145 0.130 14 0.232 0.205 0.181 0.160 0.141 0.125 0.111 15 0.209 0.183 0.160 0.140 0.123 0.108 0.095 10% 0.909 0.826 0.751 0.683 0.621 0.564 0.513 0.467 0.424 0.386 0.350 0.319 0.290 0.263 0.239 20% 0.833 0.694 0.579 0.482 0.402 0.335 0.279 0.233 0.194 0.162 0.135 0.112 0.116 0.104 0.093 0.099 0.088 0.078 0.065 0.084 0.074 The following is the trial balance of XLC plc as at 30th September 20x6. Dr. Cr. 200,000 100,000 80,000 40,000 535,000 Ordinary share capital ($1 each) 6% Preference share capital( $2 each) 8% Debentures (repayable in 20x9) General reserve Sales Purchases Directors' remuneration Office rent Office salaries Returns inwards Returns outwards Stock at 1.10.20x5 Retained profit @ 1.10.20x5 Auditors' fee Office lighting Printing and stationery Salesman's commission Debenture interest Warehouse rent Delivery van expenses Rental income from sub-letting of warehouse Interim dividend paid - Preference Interim dividend paid - Ordinary Discounts Carriage inwards Carriage outwards Advertising expenses 2 Share premium Delivery van- at cost Office furniture and fittings - at cost Freehold property -at cost Provision for depreciation - Delivery van Provision for doubtful debts - 247,000 44,600 50,000 84,000 3,000 14,200 7,850 3,600 9.600 1,800 1,100 6,400 Officeice F & F Freehold property 3,200 3,000 6,000 900 7,200 2,600 4,600 46,000 25,000 370,000 12,400 11,500 2,100 2,400 15,000 6,900 2,500 6,400 450 Bank balance Debtors Creditors 3 ✔ Dr. 31,000 62,000 Additional information :- (1) Stock at 30 September 20x6 was valued at $15,000. (ii) Directors decided to :- - 1,034,650 - Declare a final dividend of 6% for Ordinary shares Transfer $5,000 to General reserve. Cr. (iii) Taxation for the current year's profit is estimated to be $7,500. (iv) Depreciation to be provided as follows:- 20,000 1,034,650 Reduce provision for doubtful debts by $200. Make 1 for 8 bonus issue on 30 September 20x6 using Share premium and Retained profit for the issue, Delivery van -15% per annum on Net Book Value. Office Furniture & Fitting - 10% per annum on cost. Freehold property - 2% per annum on cost. PAT TASKS :- (a) Prepare a Trading, Profit and Loss and Appropriation account for the year ended 30 September 20x6. (20 marks) (b) Prepare a Balance Sheet as at 30 September 20x6. (15 marks) (c) Briefly explain THREE differences between a Bonus issue and a Rights issue. (6 marks) (d) Describe THREE accounting concepts that you have applied while preparing the final accounts in Task (a) and (b) above. Marks will be awarded for citing relevant examples. (9 marks) Total marks for question 1 = 50 marks 4 2 Weststar Sdn Bhd's current operating results are as follows:- Sales (30,000 units) Variable cost of production Fixed cost In planning for the next year, the Company expects that:- (i) the fixed cost will increase by $5,000 (ii) the variable cost will increase by 20% (iii) the selling price will remain unchanged. TASKS :- $ 60,000 30,000 24,000 For task (a ) & (b), calculate:- (a) the number of units the Company must sell in order to break-even in the Current year. (3 marks) (b) the number of units the company must sell in order to break-even Next year. (3 marks). (11 marks) (c) Draw the break-even Chart for task (ii) above. (d) Calculate the number of units the Company must sell to break-even if the selling price was raised by 25% next year. (3 marks) Total marks for question 2 = 20 marks 3. A company is considering purchasing anyone of the two machines each with a useful life of five years. Purchase price Annual cash flow:- Year 1 Year 2 Year 3 Year 4 Year 5 Machine A $ 100,000 20,000 25,000 30,000 5 40,000 55,000 TASKS :- For both machines, calculate :- (a) Payback periods (b) Net Present Value, using a discount rate of 12% (c) The Internal Rate of Returns (IRR) (d) Briefly explain the reasons for your choice of the machine. Machine B $ 100,000 30,000 32,000 38,000 30,000 35,000 END OF EXAMINATION (4 marks) (6 marks) (8 marks) (2 marks) Total marks for question 3 = 20 marks 4. Finance is one of the determinants for the success of a business. Describe FIVE appropriate sources of finance for Small Medium Enterprises (SMEs). (10 marks) Present value of 1, i.e. (1 + r) " Where r discount rate n = number of periods until payment Periods (n) 1 5 6 7 8 9 10 11 12. 13 14 15 8799 1% 0.990 0.980 0.971 0.961 0.951 6 Periods (n) 1 2 3 4 5 0.593 Present value table 4% 0.962 0.925 0.889 0.855 0.863 0.822 0.942 0.888 0.837 0.933 0.871 0.813 0.923 0.853 0.789 0.914 0.837 0.766 0.905 0.820 0.744 2% 3% 0.980 0.971 0.961 0.943 0.942 0.915 0.924 0.888 0.906 0.879 0.896 0.804 0.722 0.650 0.625 0.701 0.887 0.788 0.601 0.681 0.773 0.661 0.577 0.758 0.743 0.870 0.861 0.642 0.555 9 0.391 10 0.352 11% 12% 13% 0.893 0.885 0.901 0.812 0.797 0.783 0.731 0.712 0.659 0.636 0.567 0.535 0.507 0.480 0.482 0.452 0.425 0.434 0.404 0.376 0.361 0.333 0.322 0.295 Discount rate (r) 7% 8% 9% 0.935 0.926 0.917 0.873 0.890 0.857 0.842 0.840 0.816 0.794 0.772 0.792 0.763 0.735 0.708 0.747 0.713 0.681 0.650 0.456 0.400 0.351 0.308 0.270 5% 6% 0.952 0.943 0.907 0.864 0.823 0.784 0.746 0.705 0.790 0.760 0.711 0.731 0.703 0.645 0.665 0.627 0.677 0.592 0.676 0.614 0.558 0.585 0.527 0.557 0.497 0.530 0.469 0.505 0.442 0.481 0.417 Discount rate (r) 0.666 0.630 0.623 0.583 0.582 0.540 0.544 0.500 0.508 0.463 14% 15% 16% 17% 0.877 0.870 0.862 0.855 0.769 0.756 0.743 0.731 0.693 0.675 0.658 0.641 0.613 0.592 0.572 0.552 0.543 0.519 0.497 0.476 0.432 0.410 0.376 0.354 0.327 0.305 0.284 0.263 0.247 0.227 0.475 0.429 0.388 0.444 0.397 0.356 0.415 0.368 0.326 0.340 0.299 0.388 0.362 0.315 0.275 0.596 0.547 0.502 18% 19% 0.847 0.840 0.718 0.706 0.624 0.609 0.593 0.534 0.516 0.499 0.456 0.437 0.419 0.390 0.333 0.285 0.266 0.460 0.422 0.370 0.314 0.352 0.296 0.249 0.243 0.225 0.209 0.208 0.191 0.176 11 0.317 0.287 0.261 0.237 0.215 0.195 0.178 0.162 0 148 12 0.286 0.257 0.231 0.208 0.187 0.168 0.152 0.137 0.124 13 0.258 0.229 0.204 0.182 0.163 0.145 0.130 14 0.232 0.205 0.181 0.160 0.141 0.125 0.111 15 0.209 0.183 0.160 0.140 0.123 0.108 0.095 10% 0.909 0.826 0.751 0.683 0.621 0.564 0.513 0.467 0.424 0.386 0.350 0.319 0.290 0.263 0.239 20% 0.833 0.694 0.579 0.482 0.402 0.335 0.279 0.233 0.194 0.162 0.135 0.112 0.116 0.104 0.093 0.099 0.088 0.078 0.065 0.084 0.074 The following is the trial balance of XLC plc as at 30th September 20x6. Dr. Cr. 200,000 100,000 80,000 40,000 535,000 Ordinary share capital ($1 each) 6% Preference share capital( $2 each) 8% Debentures (repayable in 20x9) General reserve Sales Purchases Directors' remuneration Office rent Office salaries Returns inwards Returns outwards Stock at 1.10.20x5 Retained profit @ 1.10.20x5 Auditors' fee Office lighting Printing and stationery Salesman's commission Debenture interest Warehouse rent Delivery van expenses Rental income from sub-letting of warehouse Interim dividend paid - Preference Interim dividend paid - Ordinary Discounts Carriage inwards Carriage outwards Advertising expenses 2 Share premium Delivery van- at cost Office furniture and fittings - at cost Freehold property -at cost Provision for depreciation - Delivery van Provision for doubtful debts - 247,000 44,600 50,000 84,000 3,000 14,200 7,850 3,600 9.600 1,800 1,100 6,400 Officeice F & F Freehold property 3,200 3,000 6,000 900 7,200 2,600 4,600 46,000 25,000 370,000 12,400 11,500 2,100 2,400 15,000 6,900 2,500 6,400 450 Bank balance Debtors Creditors 3 ✔ Dr. 31,000 62,000 Additional information :- (1) Stock at 30 September 20x6 was valued at $15,000. (ii) Directors decided to :- - 1,034,650 - Declare a final dividend of 6% for Ordinary shares Transfer $5,000 to General reserve. Cr. (iii) Taxation for the current year's profit is estimated to be $7,500. (iv) Depreciation to be provided as follows:- 20,000 1,034,650 Reduce provision for doubtful debts by $200. Make 1 for 8 bonus issue on 30 September 20x6 using Share premium and Retained profit for the issue, Delivery van -15% per annum on Net Book Value. Office Furniture & Fitting - 10% per annum on cost. Freehold property - 2% per annum on cost. PAT TASKS :- (a) Prepare a Trading, Profit and Loss and Appropriation account for the year ended 30 September 20x6. (20 marks) (b) Prepare a Balance Sheet as at 30 September 20x6. (15 marks) (c) Briefly explain THREE differences between a Bonus issue and a Rights issue. (6 marks) (d) Describe THREE accounting concepts that you have applied while preparing the final accounts in Task (a) and (b) above. Marks will be awarded for citing relevant examples. (9 marks) Total marks for question 1 = 50 marks 4 2 Weststar Sdn Bhd's current operating results are as follows:- Sales (30,000 units) Variable cost of production Fixed cost In planning for the next year, the Company expects that:- (i) the fixed cost will increase by $5,000 (ii) the variable cost will increase by 20% (iii) the selling price will remain unchanged. TASKS :- $ 60,000 30,000 24,000 For task (a ) & (b), calculate:- (a) the number of units the Company must sell in order to break-even in the Current year. (3 marks) (b) the number of units the company must sell in order to break-even Next year. (3 marks). (11 marks) (c) Draw the break-even Chart for task (ii) above. (d) Calculate the number of units the Company must sell to break-even if the selling price was raised by 25% next year. (3 marks) Total marks for question 2 = 20 marks 3. A company is considering purchasing anyone of the two machines each with a useful life of five years. Purchase price Annual cash flow:- Year 1 Year 2 Year 3 Year 4 Year 5 Machine A $ 100,000 20,000 25,000 30,000 5 40,000 55,000 TASKS :- For both machines, calculate :- (a) Payback periods (b) Net Present Value, using a discount rate of 12% (c) The Internal Rate of Returns (IRR) (d) Briefly explain the reasons for your choice of the machine. Machine B $ 100,000 30,000 32,000 38,000 30,000 35,000 END OF EXAMINATION (4 marks) (6 marks) (8 marks) (2 marks) Total marks for question 3 = 20 marks 4. Finance is one of the determinants for the success of a business. Describe FIVE appropriate sources of finance for Small Medium Enterprises (SMEs). (10 marks) Present value of 1, i.e. (1 + r) " Where r discount rate n = number of periods until payment Periods (n) 1 5 6 7 8 9 10 11 12. 13 14 15 8799 1% 0.990 0.980 0.971 0.961 0.951 6 Periods (n) 1 2 3 4 5 0.593 Present value table 4% 0.962 0.925 0.889 0.855 0.863 0.822 0.942 0.888 0.837 0.933 0.871 0.813 0.923 0.853 0.789 0.914 0.837 0.766 0.905 0.820 0.744 2% 3% 0.980 0.971 0.961 0.943 0.942 0.915 0.924 0.888 0.906 0.879 0.896 0.804 0.722 0.650 0.625 0.701 0.887 0.788 0.601 0.681 0.773 0.661 0.577 0.758 0.743 0.870 0.861 0.642 0.555 9 0.391 10 0.352 11% 12% 13% 0.893 0.885 0.901 0.812 0.797 0.783 0.731 0.712 0.659 0.636 0.567 0.535 0.507 0.480 0.482 0.452 0.425 0.434 0.404 0.376 0.361 0.333 0.322 0.295 Discount rate (r) 7% 8% 9% 0.935 0.926 0.917 0.873 0.890 0.857 0.842 0.840 0.816 0.794 0.772 0.792 0.763 0.735 0.708 0.747 0.713 0.681 0.650 0.456 0.400 0.351 0.308 0.270 5% 6% 0.952 0.943 0.907 0.864 0.823 0.784 0.746 0.705 0.790 0.760 0.711 0.731 0.703 0.645 0.665 0.627 0.677 0.592 0.676 0.614 0.558 0.585 0.527 0.557 0.497 0.530 0.469 0.505 0.442 0.481 0.417 Discount rate (r) 0.666 0.630 0.623 0.583 0.582 0.540 0.544 0.500 0.508 0.463 14% 15% 16% 17% 0.877 0.870 0.862 0.855 0.769 0.756 0.743 0.731 0.693 0.675 0.658 0.641 0.613 0.592 0.572 0.552 0.543 0.519 0.497 0.476 0.432 0.410 0.376 0.354 0.327 0.305 0.284 0.263 0.247 0.227 0.475 0.429 0.388 0.444 0.397 0.356 0.415 0.368 0.326 0.340 0.299 0.388 0.362 0.315 0.275 0.596 0.547 0.502 18% 19% 0.847 0.840 0.718 0.706 0.624 0.609 0.593 0.534 0.516 0.499 0.456 0.437 0.419 0.390 0.333 0.285 0.266 0.460 0.422 0.370 0.314 0.352 0.296 0.249 0.243 0.225 0.209 0.208 0.191 0.176 11 0.317 0.287 0.261 0.237 0.215 0.195 0.178 0.162 0 148 12 0.286 0.257 0.231 0.208 0.187 0.168 0.152 0.137 0.124 13 0.258 0.229 0.204 0.182 0.163 0.145 0.130 14 0.232 0.205 0.181 0.160 0.141 0.125 0.111 15 0.209 0.183 0.160 0.140 0.123 0.108 0.095 10% 0.909 0.826 0.751 0.683 0.621 0.564 0.513 0.467 0.424 0.386 0.350 0.319 0.290 0.263 0.239 20% 0.833 0.694 0.579 0.482 0.402 0.335 0.279 0.233 0.194 0.162 0.135 0.112 0.116 0.104 0.093 0.099 0.088 0.078 0.065 0.084 0.074 The following is the trial balance of XLC plc as at 30th September 20x6. Dr. Cr. 200,000 100,000 80,000 40,000 535,000 Ordinary share capital ($1 each) 6% Preference share capital( $2 each) 8% Debentures (repayable in 20x9) General reserve Sales Purchases Directors' remuneration Office rent Office salaries Returns inwards Returns outwards Stock at 1.10.20x5 Retained profit @ 1.10.20x5 Auditors' fee Office lighting Printing and stationery Salesman's commission Debenture interest Warehouse rent Delivery van expenses Rental income from sub-letting of warehouse Interim dividend paid - Preference Interim dividend paid - Ordinary Discounts Carriage inwards Carriage outwards Advertising expenses 2 Share premium Delivery van- at cost Office furniture and fittings - at cost Freehold property -at cost Provision for depreciation - Delivery van Provision for doubtful debts - 247,000 44,600 50,000 84,000 3,000 14,200 7,850 3,600 9.600 1,800 1,100 6,400 Officeice F & F Freehold property 3,200 3,000 6,000 900 7,200 2,600 4,600 46,000 25,000 370,000 12,400 11,500 2,100 2,400 15,000 6,900 2,500 6,400 450 Bank balance Debtors Creditors 3 ✔ Dr. 31,000 62,000 Additional information :- (1) Stock at 30 September 20x6 was valued at $15,000. (ii) Directors decided to :- - 1,034,650 - Declare a final dividend of 6% for Ordinary shares Transfer $5,000 to General reserve. Cr. (iii) Taxation for the current year's profit is estimated to be $7,500. (iv) Depreciation to be provided as follows:- 20,000 1,034,650 Reduce provision for doubtful debts by $200. Make 1 for 8 bonus issue on 30 September 20x6 using Share premium and Retained profit for the issue, Delivery van -15% per annum on Net Book Value. Office Furniture & Fitting - 10% per annum on cost. Freehold property - 2% per annum on cost. PAT TASKS :- (a) Prepare a Trading, Profit and Loss and Appropriation account for the year ended 30 September 20x6. (20 marks) (b) Prepare a Balance Sheet as at 30 September 20x6. (15 marks) (c) Briefly explain THREE differences between a Bonus issue and a Rights issue. (6 marks) (d) Describe THREE accounting concepts that you have applied while preparing the final accounts in Task (a) and (b) above. Marks will be awarded for citing relevant examples. (9 marks) Total marks for question 1 = 50 marks 4 2 Weststar Sdn Bhd's current operating results are as follows:- Sales (30,000 units) Variable cost of production Fixed cost In planning for the next year, the Company expects that:- (i) the fixed cost will increase by $5,000 (ii) the variable cost will increase by 20% (iii) the selling price will remain unchanged. TASKS :- $ 60,000 30,000 24,000 For task (a ) & (b), calculate:- (a) the number of units the Company must sell in order to break-even in the Current year. (3 marks) (b) the number of units the company must sell in order to break-even Next year. (3 marks). (11 marks) (c) Draw the break-even Chart for task (ii) above. (d) Calculate the number of units the Company must sell to break-even if the selling price was raised by 25% next year. (3 marks) Total marks for question 2 = 20 marks 3. A company is considering purchasing anyone of the two machines each with a useful life of five years. Purchase price Annual cash flow:- Year 1 Year 2 Year 3 Year 4 Year 5 Machine A $ 100,000 20,000 25,000 30,000 5 40,000 55,000 TASKS :- For both machines, calculate :- (a) Payback periods (b) Net Present Value, using a discount rate of 12% (c) The Internal Rate of Returns (IRR) (d) Briefly explain the reasons for your choice of the machine. Machine B $ 100,000 30,000 32,000 38,000 30,000 35,000 END OF EXAMINATION (4 marks) (6 marks) (8 marks) (2 marks) Total marks for question 3 = 20 marks 4. Finance is one of the determinants for the success of a business. Describe FIVE appropriate sources of finance for Small Medium Enterprises (SMEs). (10 marks) Present value of 1, i.e. (1 + r) " Where r discount rate n = number of periods until payment Periods (n) 1 5 6 7 8 9 10 11 12. 13 14 15 8799 1% 0.990 0.980 0.971 0.961 0.951 6 Periods (n) 1 2 3 4 5 0.593 Present value table 4% 0.962 0.925 0.889 0.855 0.863 0.822 0.942 0.888 0.837 0.933 0.871 0.813 0.923 0.853 0.789 0.914 0.837 0.766 0.905 0.820 0.744 2% 3% 0.980 0.971 0.961 0.943 0.942 0.915 0.924 0.888 0.906 0.879 0.896 0.804 0.722 0.650 0.625 0.701 0.887 0.788 0.601 0.681 0.773 0.661 0.577 0.758 0.743 0.870 0.861 0.642 0.555 9 0.391 10 0.352 11% 12% 13% 0.893 0.885 0.901 0.812 0.797 0.783 0.731 0.712 0.659 0.636 0.567 0.535 0.507 0.480 0.482 0.452 0.425 0.434 0.404 0.376 0.361 0.333 0.322 0.295 Discount rate (r) 7% 8% 9% 0.935 0.926 0.917 0.873 0.890 0.857 0.842 0.840 0.816 0.794 0.772 0.792 0.763 0.735 0.708 0.747 0.713 0.681 0.650 0.456 0.400 0.351 0.308 0.270 5% 6% 0.952 0.943 0.907 0.864 0.823 0.784 0.746 0.705 0.790 0.760 0.711 0.731 0.703 0.645 0.665 0.627 0.677 0.592 0.676 0.614 0.558 0.585 0.527 0.557 0.497 0.530 0.469 0.505 0.442 0.481 0.417 Discount rate (r) 0.666 0.630 0.623 0.583 0.582 0.540 0.544 0.500 0.508 0.463 14% 15% 16% 17% 0.877 0.870 0.862 0.855 0.769 0.756 0.743 0.731 0.693 0.675 0.658 0.641 0.613 0.592 0.572 0.552 0.543 0.519 0.497 0.476 0.432 0.410 0.376 0.354 0.327 0.305 0.284 0.263 0.247 0.227 0.475 0.429 0.388 0.444 0.397 0.356 0.415 0.368 0.326 0.340 0.299 0.388 0.362 0.315 0.275 0.596 0.547 0.502 18% 19% 0.847 0.840 0.718 0.706 0.624 0.609 0.593 0.534 0.516 0.499 0.456 0.437 0.419 0.390 0.333 0.285 0.266 0.460 0.422 0.370 0.314 0.352 0.296 0.249 0.243 0.225 0.209 0.208 0.191 0.176 11 0.317 0.287 0.261 0.237 0.215 0.195 0.178 0.162 0 148 12 0.286 0.257 0.231 0.208 0.187 0.168 0.152 0.137 0.124 13 0.258 0.229 0.204 0.182 0.163 0.145 0.130 14 0.232 0.205 0.181 0.160 0.141 0.125 0.111 15 0.209 0.183 0.160 0.140 0.123 0.108 0.095 10% 0.909 0.826 0.751 0.683 0.621 0.564 0.513 0.467 0.424 0.386 0.350 0.319 0.290 0.263 0.239 20% 0.833 0.694 0.579 0.482 0.402 0.335 0.279 0.233 0.194 0.162 0.135 0.112 0.116 0.104 0.093 0.099 0.088 0.078 0.065 0.084 0.074 The following is the trial balance of XLC plc as at 30th September 20x6. Dr. Cr. 200,000 100,000 80,000 40,000 535,000 Ordinary share capital ($1 each) 6% Preference share capital( $2 each) 8% Debentures (repayable in 20x9) General reserve Sales Purchases Directors' remuneration Office rent Office salaries Returns inwards Returns outwards Stock at 1.10.20x5 Retained profit @ 1.10.20x5 Auditors' fee Office lighting Printing and stationery Salesman's commission Debenture interest Warehouse rent Delivery van expenses Rental income from sub-letting of warehouse Interim dividend paid - Preference Interim dividend paid - Ordinary Discounts Carriage inwards Carriage outwards Advertising expenses 2 Share premium Delivery van- at cost Office furniture and fittings - at cost Freehold property -at cost Provision for depreciation - Delivery van Provision for doubtful debts - 247,000 44,600 50,000 84,000 3,000 14,200 7,850 3,600 9.600 1,800 1,100 6,400 Officeice F & F Freehold property 3,200 3,000 6,000 900 7,200 2,600 4,600 46,000 25,000 370,000 12,400 11,500 2,100 2,400 15,000 6,900 2,500 6,400 450 Bank balance Debtors Creditors 3 ✔ Dr. 31,000 62,000 Additional information :- (1) Stock at 30 September 20x6 was valued at $15,000. (ii) Directors decided to :- - 1,034,650 - Declare a final dividend of 6% for Ordinary shares Transfer $5,000 to General reserve. Cr. (iii) Taxation for the current year's profit is estimated to be $7,500. (iv) Depreciation to be provided as follows:- 20,000 1,034,650 Reduce provision for doubtful debts by $200. Make 1 for 8 bonus issue on 30 September 20x6 using Share premium and Retained profit for the issue, Delivery van -15% per annum on Net Book Value. Office Furniture & Fitting - 10% per annum on cost. Freehold property - 2% per annum on cost. PAT TASKS :- (a) Prepare a Trading, Profit and Loss and Appropriation account for the year ended 30 September 20x6. (20 marks) (b) Prepare a Balance Sheet as at 30 September 20x6. (15 marks) (c) Briefly explain THREE differences between a Bonus issue and a Rights issue. (6 marks) (d) Describe THREE accounting concepts that you have applied while preparing the final accounts in Task (a) and (b) above. Marks will be awarded for citing relevant examples. (9 marks) Total marks for question 1 = 50 marks 4 2 Weststar Sdn Bhd's current operating results are as follows:- Sales (30,000 units) Variable cost of production Fixed cost In planning for the next year, the Company expects that:- (i) the fixed cost will increase by $5,000 (ii) the variable cost will increase by 20% (iii) the selling price will remain unchanged. TASKS :- $ 60,000 30,000 24,000 For task (a ) & (b), calculate:- (a) the number of units the Company must sell in order to break-even in the Current year. (3 marks) (b) the number of units the company must sell in order to break-even Next year. (3 marks). (11 marks) (c) Draw the break-even Chart for task (ii) above. (d) Calculate the number of units the Company must sell to break-even if the selling price was raised by 25% next year. (3 marks) Total marks for question 2 = 20 marks 3. A company is considering purchasing anyone of the two machines each with a useful life of five years. Purchase price Annual cash flow:- Year 1 Year 2 Year 3 Year 4 Year 5 Machine A $ 100,000 20,000 25,000 30,000 5 40,000 55,000 TASKS :- For both machines, calculate :- (a) Payback periods (b) Net Present Value, using a discount rate of 12% (c) The Internal Rate of Returns (IRR) (d) Briefly explain the reasons for your choice of the machine. Machine B $ 100,000 30,000 32,000 38,000 30,000 35,000 END OF EXAMINATION (4 marks) (6 marks) (8 marks) (2 marks) Total marks for question 3 = 20 marks 4. Finance is one of the determinants for the success of a business. Describe FIVE appropriate sources of finance for Small Medium Enterprises (SMEs). (10 marks) Present value of 1, i.e. (1 + r) " Where r discount rate n = number of periods until payment Periods (n) 1 5 6 7 8 9 10 11 12. 13 14 15 8799 1% 0.990 0.980 0.971 0.961 0.951 6 Periods (n) 1 2 3 4 5 0.593 Present value table 4% 0.962 0.925 0.889 0.855 0.863 0.822 0.942 0.888 0.837 0.933 0.871 0.813 0.923 0.853 0.789 0.914 0.837 0.766 0.905 0.820 0.744 2% 3% 0.980 0.971 0.961 0.943 0.942 0.915 0.924 0.888 0.906 0.879 0.896 0.804 0.722 0.650 0.625 0.701 0.887 0.788 0.601 0.681 0.773 0.661 0.577 0.758 0.743 0.870 0.861 0.642 0.555 9 0.391 10 0.352 11% 12% 13% 0.893 0.885 0.901 0.812 0.797 0.783 0.731 0.712 0.659 0.636 0.567 0.535 0.507 0.480 0.482 0.452 0.425 0.434 0.404 0.376 0.361 0.333 0.322 0.295 Discount rate (r) 7% 8% 9% 0.935 0.926 0.917 0.873 0.890 0.857 0.842 0.840 0.816 0.794 0.772 0.792 0.763 0.735 0.708 0.747 0.713 0.681 0.650 0.456 0.400 0.351 0.308 0.270 5% 6% 0.952 0.943 0.907 0.864 0.823 0.784 0.746 0.705 0.790 0.760 0.711 0.731 0.703 0.645 0.665 0.627 0.677 0.592 0.676 0.614 0.558 0.585 0.527 0.557 0.497 0.530 0.469 0.505 0.442 0.481 0.417 Discount rate (r) 0.666 0.630 0.623 0.583 0.582 0.540 0.544 0.500 0.508 0.463 14% 15% 16% 17% 0.877 0.870 0.862 0.855 0.769 0.756 0.743 0.731 0.693 0.675 0.658 0.641 0.613 0.592 0.572 0.552 0.543 0.519 0.497 0.476 0.432 0.410 0.376 0.354 0.327 0.305 0.284 0.263 0.247 0.227 0.475 0.429 0.388 0.444 0.397 0.356 0.415 0.368 0.326 0.340 0.299 0.388 0.362 0.315 0.275 0.596 0.547 0.502 18% 19% 0.847 0.840 0.718 0.706 0.624 0.609 0.593 0.534 0.516 0.499 0.456 0.437 0.419 0.390 0.333 0.285 0.266 0.460 0.422 0.370 0.314 0.352 0.296 0.249 0.243 0.225 0.209 0.208 0.191 0.176 11 0.317 0.287 0.261 0.237 0.215 0.195 0.178 0.162 0 148 12 0.286 0.257 0.231 0.208 0.187 0.168 0.152 0.137 0.124 13 0.258 0.229 0.204 0.182 0.163 0.145 0.130 14 0.232 0.205 0.181 0.160 0.141 0.125 0.111 15 0.209 0.183 0.160 0.140 0.123 0.108 0.095 10% 0.909 0.826 0.751 0.683 0.621 0.564 0.513 0.467 0.424 0.386 0.350 0.319 0.290 0.263 0.239 20% 0.833 0.694 0.579 0.482 0.402 0.335 0.279 0.233 0.194 0.162 0.135 0.112 0.116 0.104 0.093 0.099 0.088 0.078 0.065 0.084 0.074 The following is the trial balance of XLC plc as at 30th September 20x6. Dr. Cr. 200,000 100,000 80,000 40,000 535,000 Ordinary share capital ($1 each) 6% Preference share capital( $2 each) 8% Debentures (repayable in 20x9) General reserve Sales Purchases Directors' remuneration Office rent Office salaries Returns inwards Returns outwards Stock at 1.10.20x5 Retained profit @ 1.10.20x5 Auditors' fee Office lighting Printing and stationery Salesman's commission Debenture interest Warehouse rent Delivery van expenses Rental income from sub-letting of warehouse Interim dividend paid - Preference Interim dividend paid - Ordinary Discounts Carriage inwards Carriage outwards Advertising expenses 2 Share premium Delivery van- at cost Office furniture and fittings - at cost Freehold property -at cost Provision for depreciation - Delivery van Provision for doubtful debts - 247,000 44,600 50,000 84,000 3,000 14,200 7,850 3,600 9.600 1,800 1,100 6,400 Officeice F & F Freehold property 3,200 3,000 6,000 900 7,200 2,600 4,600 46,000 25,000 370,000 12,400 11,500 2,100 2,400 15,000 6,900 2,500 6,400 450 Bank balance Debtors Creditors 3 ✔ Dr. 31,000 62,000 Additional information :- (1) Stock at 30 September 20x6 was valued at $15,000. (ii) Directors decided to :- - 1,034,650 - Declare a final dividend of 6% for Ordinary shares Transfer $5,000 to General reserve. Cr. (iii) Taxation for the current year's profit is estimated to be $7,500. (iv) Depreciation to be provided as follows:- 20,000 1,034,650 Reduce provision for doubtful debts by $200. Make 1 for 8 bonus issue on 30 September 20x6 using Share premium and Retained profit for the issue, Delivery van -15% per annum on Net Book Value. Office Furniture & Fitting - 10% per annum on cost. Freehold property - 2% per annum on cost. PAT TASKS :- (a) Prepare a Trading, Profit and Loss and Appropriation account for the year ended 30 September 20x6. (20 marks) (b) Prepare a Balance Sheet as at 30 September 20x6. (15 marks) (c) Briefly explain THREE differences between a Bonus issue and a Rights issue. (6 marks) (d) Describe THREE accounting concepts that you have applied while preparing the final accounts in Task (a) and (b) above. Marks will be awarded for citing relevant examples. (9 marks) Total marks for question 1 = 50 marks 4 2 Weststar Sdn Bhd's current operating results are as follows:- Sales (30,000 units) Variable cost of production Fixed cost In planning for the next year, the Company expects that:- (i) the fixed cost will increase by $5,000 (ii) the variable cost will increase by 20% (iii) the selling price will remain unchanged. TASKS :- $ 60,000 30,000 24,000 For task (a ) & (b), calculate:- (a) the number of units the Company must sell in order to break-even in the Current year. (3 marks) (b) the number of units the company must sell in order to break-even Next year. (3 marks). (11 marks) (c) Draw the break-even Chart for task (ii) above. (d) Calculate the number of units the Company must sell to break-even if the selling price was raised by 25% next year. (3 marks) Total marks for question 2 = 20 marks 3. A company is considering purchasing anyone of the two machines each with a useful life of five years. Purchase price Annual cash flow:- Year 1 Year 2 Year 3 Year 4 Year 5 Machine A $ 100,000 20,000 25,000 30,000 5 40,000 55,000 TASKS :- For both machines, calculate :- (a) Payback periods (b) Net Present Value, using a discount rate of 12% (c) The Internal Rate of Returns (IRR) (d) Briefly explain the reasons for your choice of the machine. Machine B $ 100,000 30,000 32,000 38,000 30,000 35,000 END OF EXAMINATION (4 marks) (6 marks) (8 marks) (2 marks) Total marks for question 3 = 20 marks 4. Finance is one of the determinants for the success of a business. Describe FIVE appropriate sources of finance for Small Medium Enterprises (SMEs). (10 marks) Present value of 1, i.e. (1 + r) " Where r discount rate n = number of periods until payment Periods (n) 1 5 6 7 8 9 10 11 12. 13 14 15 8799 1% 0.990 0.980 0.971 0.961 0.951 6 Periods (n) 1 2 3 4 5 0.593 Present value table 4% 0.962 0.925 0.889 0.855 0.863 0.822 0.942 0.888 0.837 0.933 0.871 0.813 0.923 0.853 0.789 0.914 0.837 0.766 0.905 0.820 0.744 2% 3% 0.980 0.971 0.961 0.943 0.942 0.915 0.924 0.888 0.906 0.879 0.896 0.804 0.722 0.650 0.625 0.701 0.887 0.788 0.601 0.681 0.773 0.661 0.577 0.758 0.743 0.870 0.861 0.642 0.555 9 0.391 10 0.352 11% 12% 13% 0.893 0.885 0.901 0.812 0.797 0.783 0.731 0.712 0.659 0.636 0.567 0.535 0.507 0.480 0.482 0.452 0.425 0.434 0.404 0.376 0.361 0.333 0.322 0.295 Discount rate (r) 7% 8% 9% 0.935 0.926 0.917 0.873 0.890 0.857 0.842 0.840 0.816 0.794 0.772 0.792 0.763 0.735 0.708 0.747 0.713 0.681 0.650 0.456 0.400 0.351 0.308 0.270 5% 6% 0.952 0.943 0.907 0.864 0.823 0.784 0.746 0.705 0.790 0.760 0.711 0.731 0.703 0.645 0.665 0.627 0.677 0.592 0.676 0.614 0.558 0.585 0.527 0.557 0.497 0.530 0.469 0.505 0.442 0.481 0.417 Discount rate (r) 0.666 0.630 0.623 0.583 0.582 0.540 0.544 0.500 0.508 0.463 14% 15% 16% 17% 0.877 0.870 0.862 0.855 0.769 0.756 0.743 0.731 0.693 0.675 0.658 0.641 0.613 0.592 0.572 0.552 0.543 0.519 0.497 0.476 0.432 0.410 0.376 0.354 0.327 0.305 0.284 0.263 0.247 0.227 0.475 0.429 0.388 0.444 0.397 0.356 0.415 0.368 0.326 0.340 0.299 0.388 0.362 0.315 0.275 0.596 0.547 0.502 18% 19% 0.847 0.840 0.718 0.706 0.624 0.609 0.593 0.534 0.516 0.499 0.456 0.437 0.419 0.390 0.333 0.285 0.266 0.460 0.422 0.370 0.314 0.352 0.296 0.249 0.243 0.225 0.209 0.208 0.191 0.176 11 0.317 0.287 0.261 0.237 0.215 0.195 0.178 0.162 0 148 12 0.286 0.257 0.231 0.208 0.187 0.168 0.152 0.137 0.124 13 0.258 0.229 0.204 0.182 0.163 0.145 0.130 14 0.232 0.205 0.181 0.160 0.141 0.125 0.111 15 0.209 0.183 0.160 0.140 0.123 0.108 0.095 10% 0.909 0.826 0.751 0.683 0.621 0.564 0.513 0.467 0.424 0.386 0.350 0.319 0.290 0.263 0.239 20% 0.833 0.694 0.579 0.482 0.402 0.335 0.279 0.233 0.194 0.162 0.135 0.112 0.116 0.104 0.093 0.099 0.088 0.078 0.065 0.084 0.074 The following is the trial balance of XLC plc as at 30th September 20x6. Dr. Cr. 200,000 100,000 80,000 40,000 535,000 Ordinary share capital ($1 each) 6% Preference share capital( $2 each) 8% Debentures (repayable in 20x9) General reserve Sales Purchases Directors' remuneration Office rent Office salaries Returns inwards Returns outwards Stock at 1.10.20x5 Retained profit @ 1.10.20x5 Auditors' fee Office lighting Printing and stationery Salesman's commission Debenture interest Warehouse rent Delivery van expenses Rental income from sub-letting of warehouse Interim dividend paid - Preference Interim dividend paid - Ordinary Discounts Carriage inwards Carriage outwards Advertising expenses 2 Share premium Delivery van- at cost Office furniture and fittings - at cost Freehold property -at cost Provision for depreciation - Delivery van Provision for doubtful debts - 247,000 44,600 50,000 84,000 3,000 14,200 7,850 3,600 9.600 1,800 1,100 6,400 Officeice F & F Freehold property 3,200 3,000 6,000 900 7,200 2,600 4,600 46,000 25,000 370,000 12,400 11,500 2,100 2,400 15,000 6,900 2,500 6,400 450 Bank balance Debtors Creditors 3 ✔ Dr. 31,000 62,000 Additional information :- (1) Stock at 30 September 20x6 was valued at $15,000. (ii) Directors decided to :- - 1,034,650 - Declare a final dividend of 6% for Ordinary shares Transfer $5,000 to General reserve. Cr. (iii) Taxation for the current year's profit is estimated to be $7,500. (iv) Depreciation to be provided as follows:- 20,000 1,034,650 Reduce provision for doubtful debts by $200. Make 1 for 8 bonus issue on 30 September 20x6 using Share premium and Retained profit for the issue, Delivery van -15% per annum on Net Book Value. Office Furniture & Fitting - 10% per annum on cost. Freehold property - 2% per annum on cost. PAT TASKS :- (a) Prepare a Trading, Profit and Loss and Appropriation account for the year ended 30 September 20x6. (20 marks) (b) Prepare a Balance Sheet as at 30 September 20x6. (15 marks) (c) Briefly explain THREE differences between a Bonus issue and a Rights issue. (6 marks) (d) Describe THREE accounting concepts that you have applied while preparing the final accounts in Task (a) and (b) above. Marks will be awarded for citing relevant examples. (9 marks) Total marks for question 1 = 50 marks 4 2 Weststar Sdn Bhd's current operating results are as follows:- Sales (30,000 units) Variable cost of production Fixed cost In planning for the next year, the Company expects that:- (i) the fixed cost will increase by $5,000 (ii) the variable cost will increase by 20% (iii) the selling price will remain unchanged. TASKS :- $ 60,000 30,000 24,000 For task (a ) & (b), calculate:- (a) the number of units the Company must sell in order to break-even in the Current year. (3 marks) (b) the number of units the company must sell in order to break-even Next year. (3 marks). (11 marks) (c) Draw the break-even Chart for task (ii) above. (d) Calculate the number of units the Company must sell to break-even if the selling price was raised by 25% next year. (3 marks) Total marks for question 2 = 20 marks 3. A company is considering purchasing anyone of the two machines each with a useful life of five years. Purchase price Annual cash flow:- Year 1 Year 2 Year 3 Year 4 Year 5 Machine A $ 100,000 20,000 25,000 30,000 5 40,000 55,000 TASKS :- For both machines, calculate :- (a) Payback periods (b) Net Present Value, using a discount rate of 12% (c) The Internal Rate of Returns (IRR) (d) Briefly explain the reasons for your choice of the machine. Machine B $ 100,000 30,000 32,000 38,000 30,000 35,000 END OF EXAMINATION (4 marks) (6 marks) (8 marks) (2 marks) Total marks for question 3 = 20 marks 4. Finance is one of the determinants for the success of a business. Describe FIVE appropriate sources of finance for Small Medium Enterprises (SMEs). (10 marks) Present value of 1, i.e. (1 + r) " Where r discount rate n = number of periods until payment Periods (n) 1 5 6 7 8 9 10 11 12. 13 14 15 8799 1% 0.990 0.980 0.971 0.961 0.951 6 Periods (n) 1 2 3 4 5 0.593 Present value table 4% 0.962 0.925 0.889 0.855 0.863 0.822 0.942 0.888 0.837 0.933 0.871 0.813 0.923 0.853 0.789 0.914 0.837 0.766 0.905 0.820 0.744 2% 3% 0.980 0.971 0.961 0.943 0.942 0.915 0.924 0.888 0.906 0.879 0.896 0.804 0.722 0.650 0.625 0.701 0.887 0.788 0.601 0.681 0.773 0.661 0.577 0.758 0.743 0.870 0.861 0.642 0.555 9 0.391 10 0.352 11% 12% 13% 0.893 0.885 0.901 0.812 0.797 0.783 0.731 0.712 0.659 0.636 0.567 0.535 0.507 0.480 0.482 0.452 0.425 0.434 0.404 0.376 0.361 0.333 0.322 0.295 Discount rate (r) 7% 8% 9% 0.935 0.926 0.917 0.873 0.890 0.857 0.842 0.840 0.816 0.794 0.772 0.792 0.763 0.735 0.708 0.747 0.713 0.681 0.650 0.456 0.400 0.351 0.308 0.270 5% 6% 0.952 0.943 0.907 0.864 0.823 0.784 0.746 0.705 0.790 0.760 0.711 0.731 0.703 0.645 0.665 0.627 0.677 0.592 0.676 0.614 0.558 0.585 0.527 0.557 0.497 0.530 0.469 0.505 0.442 0.481 0.417 Discount rate (r) 0.666 0.630 0.623 0.583 0.582 0.540 0.544 0.500 0.508 0.463 14% 15% 16% 17% 0.877 0.870 0.862 0.855 0.769 0.756 0.743 0.731 0.693 0.675 0.658 0.641 0.613 0.592 0.572 0.552 0.543 0.519 0.497 0.476 0.432 0.410 0.376 0.354 0.327 0.305 0.284 0.263 0.247 0.227 0.475 0.429 0.388 0.444 0.397 0.356 0.415 0.368 0.326 0.340 0.299 0.388 0.362 0.315 0.275 0.596 0.547 0.502 18% 19% 0.847 0.840 0.718 0.706 0.624 0.609 0.593 0.534 0.516 0.499 0.456 0.437 0.419 0.390 0.333 0.285 0.266 0.460 0.422 0.370 0.314 0.352 0.296 0.249 0.243 0.225 0.209 0.208 0.191 0.176 11 0.317 0.287 0.261 0.237 0.215 0.195 0.178 0.162 0 148 12 0.286 0.257 0.231 0.208 0.187 0.168 0.152 0.137 0.124 13 0.258 0.229 0.204 0.182 0.163 0.145 0.130 14 0.232 0.205 0.181 0.160 0.141 0.125 0.111 15 0.209 0.183 0.160 0.140 0.123 0.108 0.095 10% 0.909 0.826 0.751 0.683 0.621 0.564 0.513 0.467 0.424 0.386 0.350 0.319 0.290 0.263 0.239 20% 0.833 0.694 0.579 0.482 0.402 0.335 0.279 0.233 0.194 0.162 0.135 0.112 0.116 0.104 0.093 0.099 0.088 0.078 0.065 0.084 0.074 The following is the trial balance of XLC plc as at 30th September 20x6. Dr. Cr. 200,000 100,000 80,000 40,000 535,000 Ordinary share capital ($1 each) 6% Preference share capital( $2 each) 8% Debentures (repayable in 20x9) General reserve Sales Purchases Directors' remuneration Office rent Office salaries Returns inwards Returns outwards Stock at 1.10.20x5 Retained profit @ 1.10.20x5 Auditors' fee Office lighting Printing and stationery Salesman's commission Debenture interest Warehouse rent Delivery van expenses Rental income from sub-letting of warehouse Interim dividend paid - Preference Interim dividend paid - Ordinary Discounts Carriage inwards Carriage outwards Advertising expenses 2 Share premium Delivery van- at cost Office furniture and fittings - at cost Freehold property -at cost Provision for depreciation - Delivery van Provision for doubtful debts - 247,000 44,600 50,000 84,000 3,000 14,200 7,850 3,600 9.600 1,800 1,100 6,400 Officeice F & F Freehold property 3,200 3,000 6,000 900 7,200 2,600 4,600 46,000 25,000 370,000 12,400 11,500 2,100 2,400 15,000 6,900 2,500 6,400 450 Bank balance Debtors Creditors 3 ✔ Dr. 31,000 62,000 Additional information :- (1) Stock at 30 September 20x6 was valued at $15,000. (ii) Directors decided to :- - 1,034,650 - Declare a final dividend of 6% for Ordinary shares Transfer $5,000 to General reserve. Cr. (iii) Taxation for the current year's profit is estimated to be $7,500. (iv) Depreciation to be provided as follows:- 20,000 1,034,650 Reduce provision for doubtful debts by $200. Make 1 for 8 bonus issue on 30 September 20x6 using Share premium and Retained profit for the issue, Delivery van -15% per annum on Net Book Value. Office Furniture & Fitting - 10% per annum on cost. Freehold property - 2% per annum on cost. PAT TASKS :- (a) Prepare a Trading, Profit and Loss and Appropriation account for the year ended 30 September 20x6. (20 marks) (b) Prepare a Balance Sheet as at 30 September 20x6. (15 marks) (c) Briefly explain THREE differences between a Bonus issue and a Rights issue. (6 marks) (d) Describe THREE accounting concepts that you have applied while preparing the final accounts in Task (a) and (b) above. Marks will be awarded for citing relevant examples. (9 marks) Total marks for question 1 = 50 marks 4 2 Weststar Sdn Bhd's current operating results are as follows:- Sales (30,000 units) Variable cost of production Fixed cost In planning for the next year, the Company expects that:- (i) the fixed cost will increase by $5,000 (ii) the variable cost will increase by 20% (iii) the selling price will remain unchanged. TASKS :- $ 60,000 30,000 24,000 For task (a ) & (b), calculate:- (a) the number of units the Company must sell in order to break-even in the Current year. (3 marks) (b) the number of units the company must sell in order to break-even Next year. (3 marks). (11 marks) (c) Draw the break-even Chart for task (ii) above. (d) Calculate the number of units the Company must sell to break-even if the selling price was raised by 25% next year. (3 marks) Total marks for question 2 = 20 marks 3. A company is considering purchasing anyone of the two machines each with a useful life of five years. Purchase price Annual cash flow:- Year 1 Year 2 Year 3 Year 4 Year 5 Machine A $ 100,000 20,000 25,000 30,000 5 40,000 55,000 TASKS :- For both machines, calculate :- (a) Payback periods (b) Net Present Value, using a discount rate of 12% (c) The Internal Rate of Returns (IRR) (d) Briefly explain the reasons for your choice of the machine. Machine B $ 100,000 30,000 32,000 38,000 30,000 35,000 END OF EXAMINATION (4 marks) (6 marks) (8 marks) (2 marks) Total marks for question 3 = 20 marks 4. Finance is one of the determinants for the success of a business. Describe FIVE appropriate sources of finance for Small Medium Enterprises (SMEs). (10 marks) Present value of 1, i.e. (1 + r) " Where r discount rate n = number of periods until payment Periods (n) 1 5 6 7 8 9 10 11 12. 13 14 15 8799 1% 0.990 0.980 0.971 0.961 0.951 6 Periods (n) 1 2 3 4 5 0.593 Present value table 4% 0.962 0.925 0.889 0.855 0.863 0.822 0.942 0.888 0.837 0.933 0.871 0.813 0.923 0.853 0.789 0.914 0.837 0.766 0.905 0.820 0.744 2% 3% 0.980 0.971 0.961 0.943 0.942 0.915 0.924 0.888 0.906 0.879 0.896 0.804 0.722 0.650 0.625 0.701 0.887 0.788 0.601 0.681 0.773 0.661 0.577 0.758 0.743 0.870 0.861 0.642 0.555 9 0.391 10 0.352 11% 12% 13% 0.893 0.885 0.901 0.812 0.797 0.783 0.731 0.712 0.659 0.636 0.567 0.535 0.507 0.480 0.482 0.452 0.425 0.434 0.404 0.376 0.361 0.333 0.322 0.295 Discount rate (r) 7% 8% 9% 0.935 0.926 0.917 0.873 0.890 0.857 0.842 0.840 0.816 0.794 0.772 0.792 0.763 0.735 0.708 0.747 0.713 0.681 0.650 0.456 0.400 0.351 0.308 0.270 5% 6% 0.952 0.943 0.907 0.864 0.823 0.784 0.746 0.705 0.790 0.760 0.711 0.731 0.703 0.645 0.665 0.627 0.677 0.592 0.676 0.614 0.558 0.585 0.527 0.557 0.497 0.530 0.469 0.505 0.442 0.481 0.417 Discount rate (r) 0.666 0.630 0.623 0.583 0.582 0.540 0.544 0.500 0.508 0.463 14% 15% 16% 17% 0.877 0.870 0.862 0.855 0.769 0.756 0.743 0.731 0.693 0.675 0.658 0.641 0.613 0.592 0.572 0.552 0.543 0.519 0.497 0.476 0.432 0.410 0.376 0.354 0.327 0.305 0.284 0.263 0.247 0.227 0.475 0.429 0.388 0.444 0.397 0.356 0.415 0.368 0.326 0.340 0.299 0.388 0.362 0.315 0.275 0.596 0.547 0.502 18% 19% 0.847 0.840 0.718 0.706 0.624 0.609 0.593 0.534 0.516 0.499 0.456 0.437 0.419 0.390 0.333 0.285 0.266 0.460 0.422 0.370 0.314 0.352 0.296 0.249 0.243 0.225 0.209 0.208 0.191 0.176 11 0.317 0.287 0.261 0.237 0.215 0.195 0.178 0.162 0 148 12 0.286 0.257 0.231 0.208 0.187 0.168 0.152 0.137 0.124 13 0.258 0.229 0.204 0.182 0.163 0.145 0.130 14 0.232 0.205 0.181 0.160 0.141 0.125 0.111 15 0.209 0.183 0.160 0.140 0.123 0.108 0.095 10% 0.909 0.826 0.751 0.683 0.621 0.564 0.513 0.467 0.424 0.386 0.350 0.319 0.290 0.263 0.239 20% 0.833 0.694 0.579 0.482 0.402 0.335 0.279 0.233 0.194 0.162 0.135 0.112 0.116 0.104 0.093 0.099 0.088 0.078 0.065 0.084 0.074

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XL PIC TRADING ProFit and Loss Account FOR THE YEAR ENDED 300920x6 Sales DR Openi... View the full answer