SINGAPORE INSTITUTE OF MANAGEMENT

UNIVERSITY OF LONDON
PRELIMINARY EXAM 2017

MODULE CODE : AC1025

MODULE TITLE : Principles of Accounting

DATE OF EXAM : 28/02/2017

DURATION : 3 hours 15 minutes (including 15 minutes reading time)

TOTAL NUMBER : 20
OF PAGES
(INCLUDING
THIS PAGE)
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INSTRUCTIONS TO CANDIDATES :-

Section A of the examination which consists of 20 Multiple Choice Questions.

You should attempt to answer ALL the questions. Each question has four possible
answers (a-d). There is only one correct answer to each of the questions. The answers to
the Multiple Choice Questions in Section A should be entered in the inside of the front
page of your answer booklet. The maximum mark for this part is 30.

Sections B and C. Please answer QUESTION 1 (30 marks) of Section B;

ONE question from Section C and ONE further question from either section B or C
(except for Question 1 all questions are worth 20 marks).

Candidates are strongly advised to divide their time accordingly.

Workings should be submitted for all questions requiring calculations in Sections B and
C. Any necessary assumptions introduced in answering a question are to be stated.

Extracts from compound interest tables are given after the final question on this paper.

8-column accounting paper is provided. If used, it must be attached securely

inside the answer book.

A calculator may be used when answering questions on this paper and it must comply
in all respects with the specification given in the University of London External
Degree General Regulation. The make and type of machine used must be stated clearly
on the front cover of your answer book.

DO NOT TURN OVER THIS QUESTION PAPER UNTIL YOU ARE TOLD TO
DO SO.

AC1025 Principles of Accounting Page 1 of 20

SECTION A:

Section A of the examination which consists of 20 Multiple Choice Questions.

You should attempt to answer ALL the questions. Each question has four possible answers
(a-d). There is only one correct answer to each of the questions. The answers to the Multiple
Choice Questions in Section A should be entered in the inside of the front page of your answer
booklet. The maximum mark for this part is 30.

Q1

Which of the following statements most accurately explains ‘capital expenditure?

a spending on the purchase or improvement of non-current assets

b spending on the acquisition of expenditure on expensive assets
c spending on the issue of additional share capital
d spending on the maintenance and repair of non-current assets

E
Q2
PL
Lee opened his new business on 1.January 2016. On that date, the only asset
was a bank balance of $10,000. During the year, Lee’d drawings from the
business totalled $35,000. On 31 December 2016, the assets and liabilities
of the business were as follows:
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Computers and furniture $60,000, inventory of raw materials $16,500,

finished goods, at cost $7,400, bank overdraft $11,600, trade payables, $5,500,
prepayments $1,500, trade receivables $4,500, the provision for bad debts
$2,000, bank loan $39,000, interest payable $500, accrued expenses, $2,600.
SA

What is the profit of the business in the year ended 31 December 2016?

a $63,700
b $123,700
c $62,700
d $53,700

Q3

The selling price of inventory of Company M at 28 February is $72,000. The

company marks up its goods by 44%. One quarter of the inventory has been damaged
in a fire and will be sold for $9,800. Which of the following will be the correct
value for closing inventory at 28 February in the statement of financial position?

a $50,000
b $39,840
c $63,800
d $47,300
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AC1025 Principles of Accounting Page 2 of 20
Q4

On 1 February 2017, Computer Deals Limited had 400 computers in inventory

costing $1,220 each. During the month, the following transactions occurred:

Date Buy/sell Units Price

2.2.X7 Buy 600 $1,300
11.2.X7 Sell 800 $1,420
13.2.X7 Buy 900 $1,360
17.2.X7 Buy 400 $1,350.
25.2.X7 Sell 500 $1,500

What is the (i) value of inventory at 28.2.X7 and (ii) the cost of goods sold (COGS)
for the month of February 2017 using the LIFO basis?

Inventory COGS
$ $
a 1,348,000 1,684,000
b 1,316,000 1,716,000

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c 1,332,000 1,700,000
d 1,328,000 1,704,000
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Q5

In the relation to the payment of an ordinary dividend on the first date of the new
accounting year, paid by a company to its shareholders, which of the following
statements is true?
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i the maximum dividend cannot exceed the retained profit at the end of the previous
accounting year
the dividend cannot exceed the company’s bank balance at the date the dividend is
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ii
paid
iii the dividend must be approved by the shareholders at a general meeting
iv the dividend is affected by past dividend policy

Of these statements, which is true?

a i, ii and iii
b i, iii and iv
c i and iv
d ii and iii

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AC1025 Principles of Accounting Page 3 of 20

Q6

At 1.1.2017, Company D’s statement of financial position showed the following:

$
Bank (overdraft) (25,000)
Share capital: 600,000 shares of 10c each 60,000
Share premium 40,000
Revaluation reserve 58,000
Retained profits 86,000

On that day the company made a 7 for 4 bonus issue. The directors wish to avoid
capitalising profits if they can manage it.

After this transaction,. which of columns a, b, c or d in the table below reflects the
correct balance in these accounts in the statement of financial position?

Answer a b c d
$ $ $ $

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Bank (25,000) (25,000) 80,000 80,000
Share capital: 165,000 105,000 165,000 105,000
Share premium - - 50,000 50,000
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Revaluation reserve - 53,000 44,000 13,000
Retained profits 79,000 86,000 57,000 86,000

Q7
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At 1 February2017, trade receivables of Company X are $123,690. In

February, cash received from customers was $788,110 and discounts allowed
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were $2,990. Bad debts written off in the month were $17,400. A sales
ledger/purchase ledger contra of $5,400 was agreed with James & Co, a
company which is both a customer of and a supplier to Company X At
28.2.17, trade receivables are $138,004.

What were the sales during February?

Sales
a $817,414
b $828,214
c $811,434
d $1,075,594

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AC1025 Principles of Accounting Page 4 of 20

Q8

At 31 January 2017, the cash book of Company B showed a balance of $1,710,

overdrawn.

An examination of the Company’s cash book and bank statements show the
following:

i Bank charges of $100 charged by the bank on 29.1. 2017 have not been
accounted for
ii A $550 cheque received from a customer on 23.1.2017 was dishonoured and
appeared as such on the bank statement on 31.1.2017 but not in the cash book
iii A payment of $456 made directly into the bank account of Company B on
27.1.2017 has not been entered into the Cash Book.
iv Receipts of $905 banked at another branch of the bank on 31.1 2017 were not
cleared until 4.2.2017
v Cheques totalling $8,666 sent to suppliers on 30.1.2017 were not presented to the
bank until February 2017
vi The payments side of the cash book has been undercast by $1,000

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What balance appeared on the bank statement at 31 January 2017?
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a + $10,665
b + $4,857
c - $ 2,904
d + $8,673
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Q9
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In the TB of Company Y at 28 February 2017 included a Suspense account.

Investigation showed the following:

i A receipt of $1,650 from a customer, S Yeo, has been debited to the bank but had
not been posted to the Sales ledger because at the time it was received, the
accounting staff did not know which customer it related to. But a series of phone
calls has identified which customer has paid this sum.
ii A payment of $2,000 for a new computer had been posted to the machinery
repairs t-account, in error
iii A t-account balance of $1,300 arising from the sale proceeds on the disposal of a
van had been omitted from the Trial Balance
iv A t-account balance relating to an increase in the provision for bad debts of $500
had been included in the TB as a credit balance.

What would the balance in the Suspense account have been before making the
required corrections?
a $1,950 Cr
b $1,950 Dr
c $3,950 Dr
d $3,950 Cr
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AC1025 Principles of Accounting Page 5 of 20
Q10

In Company Y in Q9, if the profit before tax on the original TB was $44,560, what
will the profit before tax be AFTER the corrections in Q9 were made?

a $46,860
b $44,560
c $46,360
d $42,560

Q11

A direct cost is which of the following:

a a cost which is directly attributable to a particular job, product or service.

b a cost which varies with output

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c a semi-variable cost
d A cost which is apportioned to the cost of a unit of production
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Q12

In 20X6, Company B produced and sold 200,000 Peppa Goat 20X6 annuals and the
sales revenue arising was $1m. The variable costs of production were $1.75 each.
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They made a loss of $115,000. Assuming there is no change in any costs or

revenues, how many 20X7 annuals must be made and sold to make a profit of
$150,000?
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a 312,308
b 250,000
c 164,616
d 281,539

Q13

Company C makes a liquid chemical cleaner which sells at $10 a bottle. Variable
costs are $6 a bottle. The business is working at full capacity. What is the
minimum price at which this product could be sold without making a loss for an order
of 10,000 bottles. To fulfil this additional order, the company would incur additional
fixed costs of $45,000 and variable costs of $60,000. You may assume a linear
relationship between costs and selling price.

a $145,000
b $40,000
c $85,000
d $100,000

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AC1025 Principles of Accounting Page 6 of 20

Q14

Company L makes three products, D, E and F. Unit costs and revenues relating to
the three products are as follows:

D E F
Selling price 780 600 720
Direct materials 288 240 270
Direct labour 150 120 150
Variable overheads 120 90 90
Fixed overheads 162 108 158
Total costs 720 558 668
Profit per unit 60 42 52

All three products use the same material which costs $20 per kilogram but there is not
enough material to meet the demand for all three products. In what order shoul d
these three products be produced if the company wishes to maximise its profit?

Best 2nd best 3rd best

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a D F E
b F D E
c D E F
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d E F D

Q15
M

The normal credit terms offered by Company F to its customers is payment 60 days
from delivery and the issue of an invoice, both of which always occur on the same
day. At today’s Board meeting, the directors are considering offering customers a
2% cash discount if they pay in 30 days. The company’s bankers, HBSC charge
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Company F overdraft interest at 1.8% per month. Consider a sales invoice of

$1,000. Is the company financially better or worse off by offering this discount, and
by how much?

a worse off $2
b better off $2
c better off $2.36
d worse off $2.36

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AC1025 Principles of Accounting Page 7 of 20

Q16

Company S makes cups and saucers. The standard cost of making a souvenir mug
of Singapore is as follows:

$
Direct material 5.40
Direct labour 0.90
Variable overheads 0.45
Fixed overheads 1.00
Standard cost 7.75
Selling price 20.00
Standard profit 12.25

Budgeted for February 20X7 sales were $360,000. In February, in fact, 21,000 units
were sold for $401,100.

The sales price variance and the sales contribution volume variance for the month
were:

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Sales price variance $ Sales contribution volume variance $
a $18,900 favourable $36,750 favourable
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b $18,900 unfavourable $39,500 unfavourable
c $18,900 favourable $36,750 unfavourable
d $18,900 unfavourable $39,750 favourable

Q17
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Company R makes crockery. The materials budget for February’s output of 1,500
teapots was 1,200 kg of material, $10,560. In fact, 1,600 pots were made and the
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actual material used 1,370kg costing $11,097

The materials price and efficiency variances were as follows::

materials price variance $ Materials efficiency variance $

a $959 unfavourable $792 favourable
b $959 favourable $1,496 favourable
c $959 favourable $1,496 unfavourable
d $959 favourable $792 unfavourable

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AC1025 Principles of Accounting Page 8 of 20

Q18

Company A is considering replacing all its offset printing machinery. The cost on
1.1.X3 will be $2m. The expected economic life of the equipment will be 4 years.
The company depreciates its equipment using the straight-line methods. The
company expects to sell this equipment for $200,000, after the end of its useful
economic life. There are expected cost savings arising from this investments of
$900,000 in each of years 1 and 2 and $600,000 in each of years 3 and 4.

The payback period of this investment is which of the following?

a 2 years
b 3 years
c 2 years and 4 months
d 2 years and 8 months

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Q19

With reference to the information in Question 18, the accounting rate of return using
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the average investment is which of the following?

a 33.3%
b 15%
c 12.5%
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d 27.3%

Q20
SA

Company A is considering replacing all its offset printing machinery. The financial
controller has computed Net Present Value of the project at two different discount
rates. NPV at a discount rate of 8% is + $369,100 and at a discount rate of 20%, it
is - $192,700. You are required to compute the Internal Rate of Return (IRR) using
linear interpolation

The Internal Rate of Return of this project is:

a 15.9%
b 12.1%
c 14.0%
d More information is needed to compute the IRR

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AC1025 Principles of Accounting Page 9 of 20

SECTION B

Answer QUESTION 1 from this section and not more than a further one question. (You are
reminded that from Sections B and C, three questions in total are to be attempted with at least
one from Section C.

Question 1

Answer both parts of the question in this section.

The balances below have been extracted from the accounting records of Sydney Shirts Limited
at 31 December 2016:
Dr Cr
$ $
Revaluation reserve 75,000
Retained profits at 1.1.16 36,200
Share capital: 200,000 ordinary shares of 10c each 20,000
: 10,000 8% cumulative $1 preference shares 10,000
Freehold land, at valuation 150,000

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Buildings, at cost 60,000
Buildings: accumulated depreciation 28,000
Share premium 92,000
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6% Debenture loan: 2020 80,000
Provision for doubtful debts 11,800
Plant & machinery: cost 420,000
Plant & machinery: accumulated depreciation 210,000
Interim dividend paid on ordinary shares 6,000
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Interim dividend paid on preference shares 400

Corporation Tax 5,200
Debenture interest 2,400
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Inventory at 1.1.16 45,000

Trade receivables 75,000
Bank account 4,100
Prepaid insurance at 1.1.16 2,400
Accrued electricity at 1.1.16 16,000
Trade payables 19,000
Non-current asset disposal proceeds 1,000
Sales revenue 967,000
Purchases 376,000
Wages and salaries 337,000
Insurance 15,200
Travel and entertainment 22,000
Professional fees 14,500
Electricity 39,000
1,570,100 1,570,100

You are given the following information:

1. Inventory at 31 December 2016 cost $57,000. Included in this inventory are

items which cost $1,600 which are now obsolete and are expected to be sold
for $300.
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AC1025 Principles of Accounting Page 10 of 20
 2. The freehold land is to be revalued to $200,000.

3. Insurance paid in the year includes a premium of $3,000 paid on 1.8.16 for the
year ended 31.7.17.

4. An electricity invoice of $12,000 for the quarter ended 31.1.17 was paid on
28.2.17.

5. An item of plant and machinery, which had been acquired in 2014 for $15,000
had been sold in the year for $1,000. No accounting entries relating to the
disposal have been made in the company’s books of account other than in
relation to the disposal proceeds. Details of the depreciation policy is to be
found in Note 6, below.

6. Depreciation on non-current assets is to be charged as follows:

freehold land: no depreciation is charged
buildings: 2% per annum on a straight-line basis
plant & machinery: 40% per annum on a reducing balance basis
Depreciation is provided in the year of acquisition but not in the year of
disposal.

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7. A bad debt of $7,000 is to be written off.
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8. The provision for bad debts is to be revised to 3% of trade receivables.

9. A final dividend of 5c per ordinary share has been proposed by the directors.

10. The dividend on the redeemable cumulative preference shares, due to be paid
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on 1 January 2017 is to be provided.

11. Corporation Tax of $30,000 on the current year’s profits is to be provided.

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12. Interest on the debentures due to be paid on 1 January 2017 is to be provided.

Required:

(a) an income statement and a statement of movements in equity for the year
ended 31 December 2016 and statement of financial position at that date, in
good style for the directors.
(26 marks)

(b) A company is required to disclose its accounting policies in its published

accounts. Define ‘Accounting Policy’, give an example in relation to Sydney
Shirts Limited, and explain why you believe such disclosure is required.
(4 marks)

(Total 30 marks)

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AC1025 Principles of Accounting Page 11 of 20

Question 2

The Statements of financial position of Darwin Limited as at 31 December 2015 and

2016 and a summary of the income statement for the year ended 31 December 2016
are given below:

Statement of financial position as at 31 December

2015 2016
$ $
Non-current assets
Land and buildings 87,000 130,000
Plant and equipment 18,500 28,500
Investment at cost 6,000 8,000
111,500 166,500
Current Assets
Inventory 21,412 32,631
Trade receivables 12,784 10,987
Cash at bank 14,713 0
48,909 43,618

Total assets

E 160,409 210,118
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Current Liabilities
Bank overdraft 0 2,490
Trade payables 19,812 10,713
Corporation tax 6,000 7,400
Interest payable 2,000 2,500
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27,812 23,103

Non-current liabilities: 10% Debentures 43,000 31,800

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Total liabilities 70,812 54,903

Equity
$1 ordinary shares 10,000 21,000
Shares premium account 14,000 27,600
Revaluation reserve 35,000 48,000
Retained profits 30,597 58,615
Total equity 89,597 155,215
Total liabilities and equity 160,409 210,118

Summary Income statement for the year ended 31 December 2016

$
Profit before tax
(after depreciation on plant and machinery of $12,300) 45,518
Tax 7,100
Profit after tax 38,418
Dividend paid 8,400
Retained profit for the year 30,018

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AC1025 Principles of Accounting Page 12 of 20

You are given the following information:

(1) Some of the debentures were repaid on 1.1.2016.

(2) During the year certain items of plant and equipment were disposed of for
$4,200. The equipment had originally cost $8,000 and had a net book value at
the disposal date of $5,000.

(3) On 1.1.16, a bonus issue of 1 for 5 was made on the ordinary shares, utilising
available profits.

(4) Included in the profit before tax is investment income of $1,250 and interest
expense of $5,100.

Requirements:

(a) Prepare a cash flow statement for Darwin Limited for the year ended 31
December 2016.
(16 marks)

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(b) Advise the directors on two steps the directors could take to improve the bank
balance in the very short-term and two steps they could take to improve the
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bank balance in the longer term.
(4 marks)

(Total 20 marks)
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SA

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AC1025 Principles of Accounting Page 13 of 20

Question 3

The statements of financial position of Cairns Limited as at 31 December 2016 and

2015 and a summary of the income statement for the year ended 31 December 2016
appear below:

Statement of financial position at 31 December

2016 2015
$000s $000s
Non-Current Assets 3,700 2,860

Current Assets
Inventory 1,280 980
Trade receivables 2,460 2,160
Cash at bank 160 240
3,900 3,380
Total assets 7,600 6,240

Equity & liabilities

Equity

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Ordinary share capital: $1 shares 1,600 1,600
Retained earnings 2,490 1,750
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Total equity 4,090 3,350

Non-current liabilities
Long-term loans 1,600 1,200

Current liabilities
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Trade and other payables 1,500 1,380

Tax 190 150
Bank overdraft 220 160
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1,910 1,690
Total equity and liabilities 7,600 6,240

Summary Income Statement for the year ended 31 December 2016

$000s $000s
2016 2015
Sales 22,400 19,500
Cost of sales 16,920 13,650
Gross profit 5,480 5,850
Expenses 4,390 5,090
Operating profit 1,090 760
Interest payable 160 120
Profit before tax 930 640
Tax 240 160
Profit after tax 690 480

Note 1: Dividends paid in 2016 were $150,000 (2015: $100,000)

Note 2: The share price at 31.12.16 was $4.14 (31.12.15: $3.66)

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AC1025 Principles of Accounting Page 14 of 20

The latest industry average ratios as published by the industry trade association are as
follows:

Ratio Industry average

Return on capital employed 22.3%
Gross profit ratio 19%
Operating profit % 5.5%
Current ratio 1.6
Receivables period 35 days
Inventory period 20 days
Gearing 39%
Dividend cover 2.5
Earnings per share 65c/share
PE ratio 16

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Required:

(a) Compute comparable ratios to those listed above for Cairns Limited for 2016
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and 2015. All calculations must be clearly shown.
(10 marks)

(b) Write a report to the company’s directors, commenting upon the ratios in
2016 compared to the previous year and with the industry average ratios.
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(10 marks)

(Total: 20 marks)
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AC1025 Principles of Accounting Page 15 of 20

Section C

Answer ONE question from this section and not more than a further one question.
(You are reminded that three questions in total are to be attempted with at least one
from Section C.)

Question 4

The directors of Brisbane Limited plan to expand their business in the next few
months and you have been asked to prepare a cash budget for the period July to
October 2017. The information you have been given is as follows:

May June July August September October November December

$000s $000 $000 $000 $000 $000 $000 $000
Sales 57 55 59 61 64 59 55 58
Cost of 34 35 35 36 38 35 33 32
Sales
Salaries 12 12 12 12 12 12 12 12

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Electricity 3 3 3 3 4 5 6 7
Depreciation 4 4 4 4 4 4 4 4
Total costs 53 54 54 55 58 56 55 55
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Net profit 4 1 5 6 6 3 0 3

Please note the following:

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1. All sales are on credit. Half of receivables pay in the month of sales, 40%
pay in the following month and 10% result in bad debts.
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2. The company keeps a constant inventory policy so that at the end of any
month, the closing inventory is the cost of the goods sold in the two months
following. Goods are purchased on one month’s credit.

3. Salaries are paid in the month, while electricity is paid three monthly in arrears
at the end of January, April, July and October.

4. Depreciation is calculated at a rate of 25% on the straight-line basis. Plant

and equipment costing $24,000 is to be purchased and paid for in August.
Depreciation on this new machine has not been taken into consideration in the
figures above.

5. A dividend of $8,000 and Corporation Tax of $13,000 is to be paid in July and

September, respectively.

6. The cash balance at 1 July 2017 is expected to be $4,500.

7. The’ net profit’ in the table of figures above is before taking into consideration
any bad debts or bad debt provisions..

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AC1025 Principles of Accounting Page 16 of 20

Required:

(a) Produce a cash budget for the months of July, August, September and
October 2017.
(15 marks)

(b) Advise the directors how they might improve the company’s cash
management.
(5 marks)

(Total: 20 marks)

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AC1025 Principles of Accounting Page 17 of 20

Question 5

Adelaide Limited is dedicated to the production and sale of highly fashionable

sunglasses.

1. The company’s budgeted monthly production is 6,000 units.

2. Variable manufacturing costs are $32 per unit

3. Variable selling costs are $8 per unit.

4. Fixed selling costs are $48,000 per month

5. Monthly fixed manufacturing costs are $60,000.

6. Each pair of sunglasses sells for $80.

7. The company values inventory on a first-in-first-out basis.

Other data relating to January and February 2017 were as follows:

Number of units

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January February
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Opening inventory 800 200
Production 6,800 6,600
Sales 7,400 5,600
Closing inventory 200 1,200
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Required:

(a) Prepare an income statement for Adelaide Limited for both January and
February using:
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(i) Marginal costing (8 marks)

(ii) Absorption costing ( 8 marks)

(b) Present a calculation reconciling the differences between the profits arising
from the two methods and explain the difference between the two figures for
profit using your calculation.
(4 marks)

(Total: 20 marks)

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AC1025 Principles of Accounting Page 18 of 20

Question 6

Perth plc is considering the introduction of a new product to add to its existing
range. The following data is available:

1. a market survey, which cost $40,000, although this has not yet been paid for,
suggests the demand for this product will last for four years and will be as
follows:

Quantity (units) Probability

11,000 0.25
13,000 0.55
15,000 0.2

Whichever demand actually occurs will remain for the life of the project.
The selling price of each unit is $33

2. The company already owns the machinery to be used in the production of this
product. If the project is rejected, the machine could be sold, immediately,

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for $220,000. If the project proceeds, the machine is expected to have a
residual value of $10,000 at the end of the project.
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3. Each unit of the new product will need two hours of labour at $9 per hour..

4. Each unit will need sundry materials, including wire and a circuit board
costing $4 and a capacitor, the current purchase price of which is $6. The
company has stock of capacitors of 14,000 units which cost $4.50 when
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purchased two years ago. However, there have no alternative use within the
business and have no resale value.

5. The final component required is a highly dangerous chemical mixture which

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was manufactured by the company last year at a cost of $15,000, in the

previous year for another project which is now no longer required. There is
no alternative use for this mixture and it has no resale value. Because of new
regulations introduced by the Government, it will cost the company $20,000
for its immediate safe disposal.

6. Overheads for this project amount to $30,000 per annum including $20,000
which will only occur if this project proceeds.

7. The company’s cost of capital is 14%. You can assume that all receipts
and payment occur on the final day of the year to which they relate, unless
otherwise stated.

Required:
(a) calculate the Net Present Value of the project (12 marks)
(b) comment on whether you would accept this project and why (1 mark)
(c) explain ‘sensitivity analysis’ and how it could be applied by
management in this project (3 marks)
(d) what other factors would you take into consideration in making your
decision? (4 marks)

(Total: 20 marks)
AC1025 Principles of Accounting Page 19 of 20
 Present value of $1
P

%
R 1 2 3 4 5 6 7 8 9 10
Period
1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909
2 0.980 0.961 0.943 0.925 0.907 0.890 0.873 0.857 0.842 0.826
3 0.971 0.942 0.915 0.889 0.864 0.840 0.816 0.794 0.772 0.751
4 0.961 0.924 0.888 0.855 0.823 0.792 0.763 0.735 0.708 0.683
5 0.951 0.906 0.863 0.822 0.784 0.747 0.713 0.681 0.650 0.621

%
" 11 12 13 14 15 16 17 18 19 20
Period
1 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833
2 0.812 0.797 0.783 0.769 0.756 0.743 0.731 0.718 0.706 0.694
3 0.731 0.712 0.693 0.675 0.658 0.641 0.624 0.609 0.593 0.579
4 0.659 0.636 0.613 0.592 0.572 0.552 0.534 0.516 0.499 0.482
5 0.593 0.567 0.543 0.519 0.497 0.476 0.456 0.437 0.419 0.402

E
Annuity of $1
PL
% 1 2 3 4 5 6 7 8 9 10
Period
1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909
2 1.970 1.942 1.913 1.886 1.859 1.833 1.808 1.783 1.759 1.736
3 2.941 2.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487
4 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170
M

5 4.853 4.713 4.580 4.452 4.329 4.212 4.100 3.993 3.890 3.791
SA

% 11 12 13 14 15 16 17 18 19 20
Period
1 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833
2 1.713 1.690 1.668 1.647 1.626 1.605 1.585 1.566 1.547 1.528
3 2.444 2.402 2.361 2.322 2.283 2.246 2.210 2.174 2.140 2.106
4 3.102 3.037 2.974 2.914 2.855 2.798 2.743 2.690 2.639 2.589
5 3.696 3.605 3.517 3.433 3.352 3.274 3.199 3.127 3.058 2.991

END OF PAPER

AC1025 Principles of Accounting Page 20 of 20