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Directly attributable costs include * purchase price ° delivery costs mp duty and import duties (and irrecoverable VAT on cars) * costs of preparing the site for installation and assembly of the asset * professional fees, such as legal and architects' fees * costs of testing whether the asset is functioning At 1 January 20X2 the capital structure of ABC, a limited liability company, was as follows: $ Issued share capital 250,000 ordinary shares of 25c each 62,500 Share premium account 75,000 On 1 April 20X2 the company made an issue of 50,000 25c shares at $1.20 each, and on 1 July the company made a bonus (capitalisation) issue of one share for every five in issue at the time, using the share premium account for the purpose. Calculate the company's share capital and share premium account at 31 DecembeyggOX2. and Agu fea Share capital @ 1.1.20X2 AGW Issue on on 1.4.20X2 (50,000 @ 25c) Bonus issue'¥300,000/5 x 1) @ 25¢, ‘Share capital as at 31.1®20x2 cuit Share premium @ 1.1.20X2 1.4.20X2 50,000 shares @ (120c — Bonus issue (as above) Accounting and Finance Cr. Share capital. : Cr. Share premiu Bonus Issue Or. share premiur Cr. Share Capital..... At 1 July 20X2 the share capital and share premium account of a ‘colon were as follow 7S 2:3 = 60,60F , es \ Share cupitat 75,000 ordinary sho es of 25c each 18.750 Share premium account 50,000 During the year ended 30 June 20X3 the following events took place: 1. On1 January 20X3 the company made a rights issue of two shares for every three held, @$1.20 per share. y¥ HU OOD 2. Qn1April-20X3 the campany made-abonus { teemtaii AD ssue of I thr ares for every five in issue é att 4c time, using the share premium account to : |e x 48,00 490,00) - KW What are the correct balances on the éompany's share capital and share premium accounts at 30 June 20X3? Rights issue ¢ Accounting Number of rights issue = 75,000 x 2/3= 50,000 shares _and Dr. Cash ( 50,000 x 1.2). Finance Cr. Share capital (50,000 x 0.25). Cr. Share premium (50,000 x 0.95 Bonus issue Number of bonus issue = (75,000 + 50,000) x 3/5 = 75,000 Dr. Share premium ( 75,000 x 0.25). Cr. Share capita Share capital = 18,750 +12,500 + 18,750 Share premium= 50,000 + 47, heag 6 tan ba ‘Tong vn cd sd hiu v3 ng phal ted 758,000 ning er wy: * Tat ca tai san hi khao ghi cha vé tai san dai han, nhu da dé cap trong Chucng 10, hinh (bao gém dat dai va nha cia) duc g6p chung duéi muc tai s8n cé dinh. Ngubi ding cd thé dt them chi tiét. * Cc tai san vé hinh khac sé V6 hinh duge phat trién ha thuong maivé cde Khodn piu hdc (bso gr & VAT chirp] 6uet gp chung thin cde whoa hi thu cheng mal vce Khadr pal hu noan td tuée duge bao gm rong mye ti sin ngin hg Khe. Khodn cy phng cho ca khan ol thu duge bd tt va ‘ede kon hth tong mai va cac knoan phai thu khac’ n gid tri ghi 36 cda cae tai san vé hinh duge mua va chi phi vén hda clia cae tai san “én ttl qdy atid eli ngin nrg duce gp chung tinh én mtv cac ena tucng ue 19 thé tra trong vong 12 thang déu duoc gop Moi khoan ng dai han nhy khodn vay ngn hang hoe ! 1 wu dai cd thé chuds lai cling duc bao gém trong chung vao khoan vay dai han trong muc ng ngan han. C6 ph muc nay. ‘cng bé thing tn vé van 08 phan, ic bit a vén c8 phan da phat hanh, da thanh Chun mye kétoan quée IAS" quy nh chi ito ini sha 3 due The rem TOM HAC TC TAT inh ta chinh la Bn c@ whan da gop] bao gdm luge gp chung thant pha’ tr thuong mai vl cc koén pha td khic + Thu nhap chu thu hién lathu nhdip d& nhén due truéc khi due tao ra] Né duce trinh bay nhu mat khoan ig ngan han ) ° +) Anh > viet — Objpctives 0 Be wide, inp abt far dal position pertormane. +(F \¢h WV recuffe TOR bly (pou yd on Oh OF ma I mate - spear ated clecloeunt. 6 O Wit on SFP, Clair on, SPL Using went COS CAVCO undarstedad = TR. Cl ftader'’s BS (1 capital ta ale _ Not onded in. cath Retum > Credit note. ae ot Conk ital Decowts 3 i=l at bank 0 7 Ce Cle inva dys tated = understated Dione tn rl > ii jus uw (FIP) (6 oie pont crore Oren, nel Wo inom cp + ep bonus = - rottt piniste ey ogo opn nay ace ; daceaw, loss Cu oF for Purchases Administrative salaries Distribution costs Inventories at 1 April 20X5 Land and buil lings cost (land £1,750,000) Land and buildings accumulated depreciation at 1 April 20X5 Plant and machinery cost Plant and machinery accumulated depreciation at 1 April 20X5 Borrowings Redeemable 4% preference shares, Irade receivables Trade payables Retained earnings at 1 April 20X5 Equity share capital - 50p nominal value Share premium Preference share capital - 5% irredeemable £1 shares Dividend paid Cash and cash equivalents Revenue Finance costs ‘The following additional information is relevant. £ 4,450,000 410,500 375,000 113,400 2,550,000 620,000 37,500 20,000 43,500 35,000 8,654,900 480,000 337,000 100,000 100,000 25,400 212,500 400,000 100,000 200,000 6,700,000 8,654,900 1. The borrowings are repayable in five equal annual instalments, commencing on 1 April ' e 20X6.11 costs. 2. Revenue is made up of the following. Tuition fees Book sales Advances terest payable has been correctly calculated and included wit 1,500,000 5,100,000 100,000 6,700,000 ‘The tuition fees all relate to courses held during the year excent for fees of £300,000 which relate to a 10-week course. Five weeks of this course had already been held by the year end. The remainder is to be held in June 20X6, The advances relate tothe delivery of anew but whichisnot yetin production. tion which Ford plc has commissioned and advertised heavily EQUITY AND LIABILITIES Capital and reserves: Equity share capital (W6) 300,000 Preference share capital trredeemable) 200,000 Retained earnings (WA) 812.600 7,512,600 Non-current liabilities Redeemable 4%preference shares 100,000 Borrowings (100,000 4/3) 190,000 780,000 Current liabilities Borrowing (100,000 x 1/5) 20,000 Acct vals (W1) 20,000 lurcdcemable 5% preference dividend payable (WA) 10.000 Redeemable 4% preference dividend payable (W1) 4.000 lraée payables 25,400 Deferred income (W3) 250,000 Provision 100.000 Income tax payable 350000 179800 ‘Total equity and iablities 272,000 WORKINGS (1) Allocation of costs Cost ot sles Administrative Distribution _—Financecosts e ‘ € e Per tial balance 4450000 410500 375,000 35,000 Opening inventories 113400 Depreciation (W2) 62,000 20,000 Provision 100,000 irrecoverable debt 10.000 Preayients (rent) (20,000) Accruals (consultancy fees 60,000 2/6) 20.000 Closingirventories (120,000 - 10,000) (110.080) Redeem 1% reference dividend 4000 (200,000 « 4%) acc ued 415.400 ‘a0 500 75.000 seo Revenue (W5) 6, 109,000 - Jeb, 60) ~ ADD 6700000. Cost of sales (W1) (Cour) Crone) as00) Gross profit Distribution costs (W1) 75000), ley Dna Tre clo 4| | Administrative expenses (W1) (470500), 40,500 + 40,580 + 46D, 609 t A060 ~ ADO + AD.O0D V y Finance costs (W1) 25 OM + +o EEE Prepay rant Actnol, Profit/(loss) before tax rel didarel accrued Income tax expense (850000), Profit/(loss) for year 954100 Operating profit/(loss) Statement of financial position at 31 March 20X6 ASSETS Non-current assets Property, plant and equipment Land and buildings (W2) Plant and machinery (W2) Current assets Inventories (W1) Tradereceivables $4.95) - 40,000 Prepayments Cash and cash equivalents Total assets EQUITY AND LIABILITIES. Capital and reserves, Equity share capital (Wé6) Preference share capital (irredeemable) Retained earnings (W4) Non-current liabilities Non-current liabilities Borrowings Redeemable 4% preference shares won ony Current liabilities caren: (i Accruals (W1) 20000, ‘nene “ee Dividend payable (W1 and W4) 8000 40,590 + 4,600 | Trade payables 25400, Deferred income (W3} 160,00 + AN0,0D) = 250, OW Pots nen gH Tution Advanced Income tax payable 380000 to, | Total equity and liabilities | wee 16.301 one long question kaplan 3 docx + ep: sec BI UA Y & = aed Prot fess} before tox i) hreome sox ff 4 25) Ma) oo Prof ssi fer yar rc 8 Batorron: ct nancial postan a'31 Uacarit 2008 Morveartea asses 7 Lard and be iiegs ir ce ue Plantane stipment Uap current a Bw Tate rcaivnien ALOR - 1260 - 49207 200 PT 453,660 ca Prepaymerts i Cath and cash equivaens Co tots aan c_ Feuiy Crdnary share caoital one Preference shara capil mm, ser ri Tama Retained camings Non-curert abies Borraxngs cove CCurrent| at ides Bank overdrat Trade payat es 20,000 Accuals {foo ~ 26h + ATO Plant: amen rom - ony =268, OOD building. A010,850 — AAD, O6D = HH, 260 - 89586 Alpha received a statement from its credit supplier Beta, showing a balance to be paid of £8,950. Alpha's payables ledger for Beta shows a balance due to Beta of £4,140. ‘Investigation reveals the following: (1) A bank transfer made to Beta of £4,080 shortly before year end has not been recorded by Beta. (2) Alpha has not adjusted the payables ledger for a £40 cash discount taken by Alpha but not allowed by Beta as payment was not made on time. (3) Goods costing £380 returned by Alpha have not peen recorded by Beta. Requirement 4AH0 +40 + ACO + 300 = Sheo ~ $460 = (240) lal Ie oi bbb What discrepancy remains between Alpha's and Beta's records after accounting for these items? l Atrader who sets her selling prices by adding 50% to cost, only managed to achieve a mark-up of 45%. 3@ wa Requirement ro Which of the following factors could account for the shortfall? | Feedback: 
