UNIVERITI TUNKU A!"U# RA$MAN FA%U#T& 'F A%%'UNTAN%& AN" MANA(EMENT Bachelor of Accounting (Hons) Written Assignment PURPOSES This group assignment aims to achieve the folloing o!"ectives# $ )i* To test t+e stu,ents- un,erstan,ing on t+e .rinci.les/ conce.ts an, .re.aration o0 rele1ant accounting recor,s relating to a .urc+ase o0 a ne2 3usiness entity an, com.any accounts4 an, t+e a..lications/ inter.retations an, limitations o0 0inancial ratios analysis5 )ii* To encourage stu,ents to e6.lore 3eyon, t+e 3oun,aries o0 lectures an, tutorials 7 as a means to encourage stu,ent centre, learning5 )iii* To .ro1i,e t+e stu,ents an o..ortunity to learn to 2or8 in grou.s in or,er to com.lete t+e assigne, tas85 %ote# (i) "ea,line 0or su3mission9 &ri'a() *+ ,ul( *-.* (Wee/ 0) (!( .* noon)1 T+ere is no merit a2ar, 0or early su3mission 2+ile late su3mission 2ill 3e .enali:e, t+roug+ ,e,uction o0 mar8s5 (ii) T+e lengt+ o0 t+is assignment s+oul, not 3e more t+an 2 pages )e6clu,ing co1er .age an, re0erence .age*/ .rinte, in Times %e Roman st(le) .13 spacing an' font si4e .*1 (iii) Re0erences are to 3e .resente, in accor,ance 2it+ American ;syc+ological Association )APA* re0erencing system5 (iv) 'rgani:ation o0 t+e re.ort9 %o1er .age Mar8 +eet )re0er to A..en,i6 1* Tas8 1 Tas8 2 Re0erence 1 UKAF 1083 Financial Accounting II May 2012 Trimester Tas/ .# 5uestion . T+e ,irectors o0 %+in In,ustries !er+a, +a1e o00ere, to .urc+ase t+e 3usiness o0 Angela ;attini5 T+e tatement o0 Financial ;osition as at 30 A.ril 2012 0or %+in In,ustries !er+a, is as s+o2n 3elo29 RM RM %on$current Assets ;remises 120/000 Fi6tures <3/=00 Motor 1e+icles >2/000 23=/=00 6urrent assets In1entories 13/800 Accounts recei1a3le 1?/000 !an8 28/000 @0/800 2?@/300 Share capital an' reserves 'r,inary s+ares o0 RM1 eac+ 0ully .ai, 1=0/000 Retaine, Earnings 13=/300 28=/300 6urrent 7ia!ilities Accounts .aya3le 11/000 2?@/300 T+e mar8et .rice o0 or,inary s+ares in %+in In,ustries !er+a, is RM25105 T+e ,i1i,en, yiel, on t+e s+ares is <5=A an, t+e ,irectors o0 %+in In,ustries !er+a, are con0i,ent t+at t+e same le1el o0 ,i1i,en, can 3e maintaine, i0 Angela ;attini-s 3usiness 2as .urc+ase,5 T+e tatement o0 Financial ;osition as at 30 A.ril 2012 o0 Angela ;attini-s 3usiness 2as as 0ollo2s9 RM RM %on current Assets ;remises 30/000 Fi6tures 1@/000 <@/000 6urrent assets In1entories @/000 Accounts recei1a3le </000 !an8 @/>=0 1@/>=0 @2/>=0 Share capital an' reserves %a.ital <3/000 Net ;ro0it 38/000 81/000 #ess9 "ra2ings )23/000* =8/000 6urrent 7ia!ilities Accounts .aya3le </>=0 @2/>=0 2 UKAF 1083 Financial Accounting II May 2012 Trimester T+e .ro0it ma,e 3y Angela-s 3usiness in t+e year en,e, 30 A.ril 2012 is similar to t+at earne, 3y t+e 3usiness o1er t+e .ast 0e2 years5 'ne o0 t+e em.loyees in Angela-s 3usiness is +er +an,ica..e, 3rot+er 2+o may 3ecome unem.loye, i0 Angela sells t+e 3usiness5 Angela can currently earn = A .er annum on any cas+ in1estment s+e is a3le to ma8e5 %+in In,ustries !er+a, +a, o00ere, to ta8e o1er t+e assets an, lia3ilities o0 Angela-s 3usiness/ e6ce.t t+e 3an8 account/ at 3oo8 1alue5 T+e .urc+ase consi,eration is RM13=/000 an, 2ill 3e settle, as 0ollo2s9 RM30/000 cas+4 an, =0/000 or,inary s+ares o0 RM1 in %+in In,ustries !er+a, As .art o0 t+e .urc+ase agreement Angela 2ill 3e o00ere, a Bo3 2or8ing 0or %+in In,ustries !er+a, at an annual salary o0 RM20/0005 T+e ,irectors o0 %+in In,ustries !er+a, 2ill use t+e .urc+ase o0 Angela-s 3usiness as an o..ortunity to re1alue t+eir .remises u. 3y RM100/000/ t+us creating an asset re1aluation reser1e in t+eir 3oo8s5 A0ter t+e re1aluation o0 t+e .remises t+e ,irectors 2ill ma8e a 3onus issue o0 t2o or,inary s+ares 0or e1ery t+ree +el, to mem3ers o0 %+in In,ustries !er+a, 2+o 2ere s+are+ol,ers at 30 A.ril 20125 Re8uire'# )i* %alculate Angela-s e6.ecte, annual income i0 s+e acce.ts t+e o00er 0rom %+in In,ustries !er+a,5 5 )@ mar8s* )ii* A,1ise Angela 2+et+er s+e s+oul, acce.t t+e o00er 0rom %+in In,ustries !er+a,5 )Note9 &ou are reCuire, to ,iscuss 0inancial an, nonD0inancial arguments* )12 mar8s* )iii* ;re.are t+e tatement o0 Financial ;osition o0 %+in In,ustries !er+a,/ assuming %+in In,ustries !er+a, goes a+ea, 2it+ t+e .urc+ase o0 Angela-s 3usiness5 )1< mar8s* Tas/ .# 5uestion * ET+e .ro3lems o0 using ratio analysis on a set o0 .u3lis+e, 0inancial statements e6cee, t+e 3ene0its to 3e gaine,5- %ritically comment on t+is statement/ an, conclu,e 2it+ your grou.-s 1ie2 on t+e use0ulness o0 ratio analysis5 )8 mar8s* 9Su!$total# :- mar/s; Tas/ *# Team Wor/ Report Frite a s+ort re.ort )not e6cee,ing 1 .age* on +o2 you an, your 0rien,s 2or8 toget+er 0or t+is .roBect5 &our re.ort s+oul, inclu,e9 G $o2 you ,o your .lanning G $o2 t+e tas8s are 3eing ,elegate, G $o2 long it ta8es you to com.lete t+e .roBect G $o2 you o1ercome t+e .ro3lems you encounter in t+e .roBect G Name o0 stu,ent 2+o ,i, not .artici.ate in t+e .roBect/ or 2+o ,i, not contri3ute muc+ to t+e .roBect )i0 a..lica3le* G Any ot+er rele1ant areas )= mar8s* HNote9 '1erall re.orting .resentation style an, re0erencing9 = mar8s* 3 UKAF 1083 Financial Accounting II May 2012 Trimester 9Su!$total# .- mar/s; 9Total# 3- mar/s; Appen'i< . Assignment =ar/ Sheet Tas/ =ar/s 1 I1 )i* %alculate Angela-s e6.ecte, annual income i0 s+e acce.ts t+e o00er 0rom %+in In,ustries !er+a,5 )ii* A,1ise Angela 2+et+er s+e s+oul, acce.t t+e o00er 0rom %+in In,ustries !er+a,5 Financial consi,erations NonD0inancial consi,erations )iii* ;re.are t+e tatement o0 Financial ;osition o0 %+in In,ustries !er+a,/ assuming %+in In,ustries !er+a, goes a+ea, 2it+ t+e .urc+ase o0 Angela-s 3usiness5
J@ mar8s
J@ mar8s J@ mar8s J1< mar8s 1 I2 ET+e .ro3lems o0 using ratio analysis on a set o0 .u3lis+e, 0inancial statements e6cee, t+e 3ene0its to 3e gaine,5- %ritically comment on t+is statement/ an, conclu,e 2it+ your grou.-s 1ie2 on t+e use0ulness o0 ratio analysis5 J8 mar8s Su!$total# >:- mar/s 2 Team For8 Re.ort