UKAF 1083 Financial Accounting II

May 2012 Trimester

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

'1erall .resentation an, re0erencing

J= mar8s
J= mar8s
TOTA7 >3- mar/s
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