Answer to Question #317221 in Accounting for tutu

Question

Notes:

1.           The fund owned 12,000 shares in Moyalematt, which were initially purchased for Shs.14, 000. These have been disposed of during the year. The only entries made in the books were in a debtor account and investment account since the shares are yet to be paid for.

 

2.           The trustees felt the need to reflect the following market prices in the financial statements:

        Loan stock in KVM – Market price index – 84.00

         Shares in Flamingo Airways    -Sh.9.75 per share.

 

Required:

i)       Statement of change in net assets for the year to 31 October 2001.          (10 marks)

ii)     Statement of net assets as at 31 October 2001.                                             (10 marks)

    (Total: 20marks)

 

Answer 1

let the borrowed capital be 10,000 and the number of shares  Flamingo Airways 9,000 pieces 

Net assets - this is the real value of the property owned by the company, determined annually minus its debts, that is, the difference between the assets and liabilities of the company.

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