Department of Accounting

THIRD EXAMINATION IN BUSINESS ADMINISTRATION - 202

!ir"t Seme"ter
A""ignment - III
A## $$$ - A%&ance% !inancia' Accounting
Time(- One )our
1. On 1 May 2012 K bought 100% of S paying LKR 140,000 cash. The summai!e"
statements of financia# position fo the t$o companies as at %0 &o'embe 2012 ae(
* +,*R- S +,*R-
Non-current a""et"
)opety, p#ant an" e*uipment 1%+,000 11,,000
-n'estments 1.2,000 /
%00,000 11,,000
#urrent a""et"
-n'entoy 1,,000 10,000
Recei'ab#es 11,000 20,000
2an3 an" cash 2,000 /
%.,000 %0,000
$$./000 02/000
E1uit2
4a##e"/up shae capita# 114,000 40,000
Retaine" eanings 1+1,000 .1,000
%0%,000 101,000
Non-current 'ia3i'itie"
5ebentues / 20,000
#urrent 'ia3i'itie"
)ayab#es %%,000 2%,000
$$./000 02/000
The fo##o$ing infomation is e#e'ant(
16 The in'entoy of S inc#u"es LKR +,000 of goo"s puchase" fom K at cost p#us 2,%.
26 On 1 May 2012 a piece of p#ant $ith a caying 'a#ue of LKR %0,000 ha" a fai 'a#ue
of LKR 4+,000. -t ha" a emaining #ife of 10 yeas as at this "ate.
%6 -mpaiments to "ate tota# LKR ,,100.
46 S eane" a pofit afte ta7 of LKR 1,000 in the yea en"e" %0 &o'embe 2012 an" "i"
not pay any "i'i"en"s "uing the yea.
,6 The "ebentue in S8s boo3s epesents monies boo$e" fom K on 1 May 2012.
.6 -nc#u"e" in K8s ecei'ab#es is LKR 4,000 e#ating to in'entoy so#" to S since
ac*uisition. S aise" a che*ue fo LKR 2,,00 an" sent it to K on 21 &o'embe 2012.
K "i" not ecei'e this che*ue unti# 4 5ecembe 2012.
4ou are re1uire% to
a6 )epae a epot e7p#aining ho$ S $i## be "ea#t $ith in the conso#i"ate" ba#ance
sheet of K at %0.11.2012 gi'ing easons fo you ans$es.
b6 )epae the conso#i"ate" ba#ance sheet of K as at %0.11.2012.