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1. The net profit before taxes as per the profit and loss account, of Gaman Ltd is Rs 269244. With the given set of information, classify the given items as (operating / investing / financing), share the correct classification with logical reasoning
And calculate the cash flow from operating activities
Loss on sale of asset
95780
dividend income
26000
interest income
35000
finance cost paid on debentures
12000
gain on sale of investment
45000
Depreciation on fixed assets
85000
Amortisation Expenses
110000
Melur Sdn. Bhd. is owned by Melur. She is a sole proprietorship that sells groceries to
her local community in Kampung Baru. Melur always closes her accounts on 30
September every year.
At 30 September 2019, the debit balance in the cash book of Melur Sdn. Bhd. was
RM805.15. A bank statement on 30 September 2019 showed Melur Sdn. Bhd. to be in
credit by RM1,112.30. After several investigations were made, the following items were
established:
1. The cash book had been under cast by RM90.00 on the debit side.
2. Cheque paid in not yet credited by the bank amounted to RM208.20.
3. Cheque drawn not yet presented to the bank amounted to RM425.35.
Prepare a Bank Reconciliation Statement as at 30 September 2019.
Hadid owns a shop selling groceries to the local community. Most of the sales and
purchases are made on credit. Below are the credit purchases and credit sales transactions
for the month ended 31 July 2019:
1/7/2019 Purchased stationery items on credit from MM Stationery for
RM1,500.
2/7/2019 Purchased canned drinks from ABC Beverages Sdn Bhd for
RM1,000 on credit.
6/7/2019 Sold goods to Sani on credit for RM100.
7/7/2019 Sold snacks on credit worth RM300 to Zaini who runs a small
business catering to the needs of his neighbours.
8/7/2019 Sold groceries on credit worth RM400 to Fatin.
Post the ledger to the relevant accounts and balance it off.
James Dean trades in clothing for the middle market. James Dean Clothing use the Periodic Inventory Method to keep records of trade goods. The following is an extract of balances from the general ledger for the year ended 28 February 2021
extract of balances as at28 february 2021
R
Revenue from sale of trade goods
735 100
Rent income received from tenant
66 000
Inventory: Trade goods - balance at 1 March 2020
: Consumables on hand at 1 March 2020
150 500
7 600
Purchases
353 000
Settlement discounts received
18 400
Settlement discounts granted
15 800
Railage inwards
36 200
Railage outwards
39 100
Goods returned to suppliers
21 400
Goods returned by customers
34 600
Additional information:
1. Physical stock-take at 28 February 2021 determined the following: - Trade goods R166 800 - Consumables on hand R 7 940
2. Goods to the value R7 600 were donated to the local community organization
3. An invoice for R4 500 was received on 28 February 2021 for goods transported from the supplier to James Dean Clothing. The invoice needs to be recorded.
4. James Dean rents office space to a tenant. Rental income of R18 700 was credited to the sales in error. A correction needs to be recorded.
Required:
3.1 Show journal entries to record adjustments for all the additional information. (6)
3.2 Prepare the trading section of the Statement of Profit or Loss and other comprehensive income for James Dean Clothing for the year ended 28 February 2021. Sales, Cost of sales and gross profit must be shown. Also show the gross profit percentage (%) on cost. (16)
3.3 Briefly describe three important features of the Perpetual Inventory Method. (3)
1. Annie Rasmussen is the owner and operator of Go44, a motivational consulting business. At the end of its accounting period, December 31, 2018, Go44 has assets of $720,000 and liabilities of $180,000. Using the accounting equation and considering each case independently, determine the following amounts:
(c) Annie Rasmussen, capital, as of December 31, 2019, assuming that assets decreased by $168,000 and liabilities increased by $15,000 during 2019.
(d) Annie Rasmussen, capital, as of December 31, 2019, assuming that assets increased by $175,000 and liabilities decreased by $18,000 during 2019.
(e) Net income (or net loss) during 2019, assuming that as of December 31, 2019, assets were $880,000, liabilities were $220,000, and there were no additional investments or withdrawals.
Discuss different practical applications (minimum two) of simplex method being is used in a real-life scenario. Also give appropriate references for your examples.
A pharmaceutical company has 100 kg of A, 180 kg of B and 120 kg of C ingredients available
per month. The company can use these materials to make three basic pharmaceutical products
namely 5-10-5, 5-5-10 and 20-5-10, where the numbers in each case represent the percentage
of weight of A, B and C, respectively in each of the products. Further, in each of the products,
the remaining ingredient (apart from the ingredients A, B and C) is an inert ingredient. The
cost of these raw materials is as follows:
Ingredient Cost per kg (Rs)
A 80
B 20
C 50
Inert ingredient 20
The selling price of these products are Rs 40.5, Rs 43 and 45 per kg, respectively. There is a
capacity restriction of the company for product 5-10-5, because of which the company cannot
produce more than 30 kg per month. Determine how much of each of the products the company
should produce in order to maximize its monthly profits. Solve the problem using Simplex
method.
My friend told me he has a friend who invested in an investment group and gets a certain percentage out of the investment. He claims his friend avoids paying taxes on the money he gets as a return from his investment by placing it on his credit card. According my friend the reasoning is that the money would show up as a negative or money owed to him not as a revenue. Is that true ?
A normal working week consists of 5 days of 8 hours per day. The normal rate of pay is RM2.40
per hour. Overtime rate is calculated at time and a half.
Average output per operative for a 40-hours week = 120 articles.
In order to increase output and eliminate overtime, the company decided to change to a system of
payment by result start from August 2021. The information on the new system is as follows:
Time rate: RM2.40 per hour
Basic time allowed for 15 articles is 5 hours
Piece work rate: 20% higher than the current time rate per unit.
Calculate the earnings of Alexis if he produces 160 articles in the first week of August 2021.
CompanyAandB
StatementofFinancialPosition
AsofDecember31, 2020
-Cash(Company A) - 35,857.50
-Cash(Company B) - 24,387.00
-AccountsRecievable(Comapny A) - 175,000.00
-AccountsRecievable(Company B) - 37,837.50
-Inventory(Company A) - 137,715.00
-Inventory(Comapny B) - 21,945.10
-PrepaidExpenses(Company A) - 10,000.00
-PrepaidExpenses(Company B - 7,500.00
-Equipment,net(Company A) - 573,441.00
-Equipment,net(Comapny B) - 153,700.80
-TotalAssets(Company A) - 932,013.50
-TotalAssets(Comapny B) - 245 370.40
-CurrentLiabilities(Company A) - 71,857.50
-CurrentLiabilities(Company B) - 38,882.80
-LongTermDebts(Company A) - 119,350.00
-LongTermDebts(Company B) - 32,582.00
-Owner'sCapital(Company A) - 740,806.00
-Owner'sCapital(Company B) - 173,905.60
-Totalof(Comapny A) - 932,013.50
-Totalof(Comapny B) - 245,370.40
Answerthefollowing:
1. Compute for theprofitability ratios of CompanyAand B.
2. Computefor operational ratios of companyA and B.
3. Compute for thefinancial health ratios of CompanyA and B.
