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  • Answer For Tutorial 4

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    Ellie Qarina
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    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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    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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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    33 views2 pages

    Answer For Tutorial 4

    Uploaded by

    Ellie Qarina
    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.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from 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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