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Answer For Tutorial 4

1) The document provides financial information for a company as of January 1, 2015 including the calculation of goodwill value (RM51,300), revaluation of assets and liabilities, and appropriation of net profits to capital accounts. 2) It shows the capital accounts for three shareholders (Lee, Chin, and Wei) with balances carried down totaling RM114,650, RM114,650, and RM90,260 respectively after allocating profits and accounting for revaluations. 3) Goodwill amounted to RM51,300 based on average net profits of RM140,000 less salaries/remuneration of RM122,900, multiplied by 3.

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Ellie Qarina
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52 views

Answer For Tutorial 4

1) The document provides financial information for a company as of January 1, 2015 including the calculation of goodwill value (RM51,300), revaluation of assets and liabilities, and appropriation of net profits to capital accounts. 2) It shows the capital accounts for three shareholders (Lee, Chin, and Wei) with balances carried down totaling RM114,650, RM114,650, and RM90,260 respectively after allocating profits and accounting for revaluations. 3) Goodwill amounted to RM51,300 based on average net profits of RM140,000 less salaries/remuneration of RM122,900, multiplied by 3.

Uploaded by

Ellie Qarina
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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ANSWER FOR TUTORIAL 4

Goodwill Account as at 1 January 2015


RM RM
Average net profit 140000
Less:
Salaries/Remuneration 98000
Interest on capital (166Kx15%) 24900 122900
17100
Amount of goodwill = RM17,100 x 3 = RM51,300

Revaluation Statement as at 1 January 2015


DR CR BAL
RM RM RM
Office Equipment 20000 20000
Motor Vehicles 4000 16000
Inventories 2000 18000
Capital Statement:
Lee (18,000/2) 9000
Chin (18,000/2) 9000 18000

Appropriation Statement for the year ended 1 Jan 2015


RM RM
Net profit b/d 108784
Add: Interest on drawing
Lee (8000x5%x9/12) 300
Chin (4000x5%x3/12) 50 350
109134
Less: Interest on capital
Lee (80,000x8%) 6400
Chin (80,000x8%) 6400
Wei (80,000x8%) 6400 19200
89934
Share of profit:
Lee (89,934x2/5) 35974
Chin (89,934x2/5) 35974
Wei (89,934x1/5) 17987
89935
Capital Account
Lee Chin Wei Lee Chin Wei
RM RM RM RM RM RM
Goodwill 20520 20520 10260 Bal b/d 80000 80000 -
Bal c/d 94130 94130 80000 Revaluation a/c 9000 9000
Goodwill 25650 25650
Cash:
Capital 80000
Goodwill 10260
114650 114650 90260 114650 114650 90260

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