Task1: Question 1

i. If Angela accepts the offer from Chin Industries Berhad, her annual income:
Salary RM 20,000.00
Dividend received (W1) RM 4,725.00
Profit on Cash Investment (W2) RM 1,837.50
RM 26,562.50

ii.






















iii. Chin Industries Berhad
Statement of Financial Position as at 30 April 2012
Non Current Assets RM RM
Premises at valuation (W3) 250,000
Fixtures (43,500+16,000) 59,500
Motor Vehicles 72,000
Goodwill (W4) 83,750
465,250
Current Assets
Inventory (13,800+6,000) 19,800
Trade Receivables (19.000+4,000) 23,000
42,800
508,050
Share Capital and Reserves
Ordinary Share of RM 1 each fully paid (W5) 300,000
Retained Earnings 135,300
Share Premium (50000* RM 1.10) 55,000
490,300
Current Liabilities
Trade Payable (11,000+4,750) 15,750
Bank Overdraft (W6) 2,000
17,750
508,050








Workings:
W1 Dividend = 50,000* RM 2.10* 4.5%
= RM 4,725

W2 Angela Cash after received the offer = RM 6,750 + RM 30,000
= RM 36,750
Cash investment 5% = RM 36,750* 5%
= RM 1,837.50

W3 Premises = Angelas Premises + Revalue Premises + Chins Premises
= RM 30,000+ RM 100,000+ RM 120,000
= RM 250,000

W4 Business Purchase
RM RM
Premises 30,000 Account Payable 4,750
Fixtures 16,000 Purchase Price
Inventories 6,000 - Cash 30,000
Account Receivables 4,000 - Ordinary Share 105,000
Goodwill 83,750 (50000*RM 2.10) 135,000
139,750 139,750


W5 Issued Share Capital = RM 150,000
Bonus Share (RM 150,000*2/3) = RM 100,000
Angelas Share (50,000*RM 1) = RM 50,000
Total Share Capital RM 300,000

W6 Bank = Bank Balance - Paid to Angela
= RM 28,000 RM 30,000
= RM 2,000 (Overdarft)