Global

Entrepreneurship
Semester Session _____ May 2014
Student Name:

________________________________________________

Exam Date:

________________________________________________

Total Marks:

________________________________________________

Obtained Marks:

________________________________________________

Comments:

________________________________________________
________________________________________________
________________________________________________

Examiner Signature:
Date of Marking:

________________________________________________

________________________________________________

Please After attempting the paper, return it back to the invigilator. The exam
papers are the property of Global Learning Center (GLC) FZC, Ajman, U.A.E. Your
kind support is required during examination. And please do not disturb the
examination hall environment.

Accounting

The following trial balance has been extracted from the books of Kalia Ltd as at 30
June 2012:

Advertising
Bank
Creditors
Debentures (10%)
Debtors (all trade)
Directors Remuneration
Electricity
Insurance
Investments (Quoted)
Investment Income
Machinery:
At cost
Accumulated depreciation (at 1.7.11)
Office expenses
Ordinary share capital (issued and fully paid)
Preference shares
Preference share dividend
Profit and loss account (at 1.7.11)
Provision for bad and doubtful debts
Purchases
Rent and rates
Sales
Stock (at 1.7.11)
Vehicles:
At cost
Accumulated depreciation (at 1.7.11)
Wages and salaries
Total

Global Learning Center (GLC)- FZC, Ajman, U.A.E.

DR.
000
30.00
7.00

CR.
000
69.00
70.00

300.00
55.00
28.00
17.00
28.00
4.00
420.00
152.00
49.00
200.00
50.00
4.00
132.00
8.00
1240.00
75.00
2100.00
134.00
80.00
40.00
358.00
2825

2825

Page 2

Additional information:
1. Stock at 30 June 2012 valued at cost amounted to 155,000.
2. Depreciation is to be provided on machinery and vehicles at a rate of 20 per
cent and 25 per cent respectively on cost.
3. Provision is to be made for auditors remuneration of 12,000.
4. The provision for bad and doubtful debts is to be made equal to 5 per cent of
outstanding trade debtors as at 30 June 2012.
5. Corporation tax owing at 30 June 2012 is estimated to be 60,000.
6. An ordinary dividend of 10p per share is proposed.
7. The investments had a market value of 30,000 at 30 June 2011.
8. The company has an authorized share capital of 600,000 ordinary shares of
0.50 each and of 50,000 8 per cent cumulative preference shares of 1
each.
Required:
Prepare Kalia Ltds Comprehensive Income Statement for the year to 30 June 2012
and a Statement of Financial Position as at that date.

Global Learning Center (GLC)- FZC, Ajman, U.A.E.

Page 3

(20 Marks including 2 marks of

presentation)Crescent Hyper-store
All amounts in
$000
2013
Assets
Non-Current Assets
Intangible-Goodwill
Tangibles
Current Assets
Inventory
Receivables
Cash and Cash Equivalent
Total Assets
Equity and Liabilities
Share Capital
Reserves
Non-Current Liabilities
Long Term Borrowings
Current Liabilities
Trade Payables
Short Term Borrowings
Total Equity and Liabilities

2012

4,027
26,511

2,336
21,554

2,669
1,798
4,742

2,430
1,311
2,148

39,747

29,779

395
12,600

393
11,422

14,170

8,602

8,522
4,060

7,277
2,085

39,747

29,779

Income Statement
2013
Revenues
Cost of Sales
Gross Profit
Commercial and Administrative Cost
Operating profit before financing
Finance Income
Finance Cost
(Loss)/Profit before Tax
Income Tax Expense
(Loss)/Profit after Tax
Total Comprehensive Income for the year

54,327
50,109
4,218
(1,012)
3,206
116
(478)
2,844
(780)
2,064
2,064

2012
47,198
43,968
3,230
(780)
2,450
187
(250)
2,387
(670)
1,717
1,717

You are working as Assistant accountant, this morning you manager asked you to
prepare a report to be read in the Board meeting of Crescent Hyper-store (CH). CH
is situated in a porch area of Dubai, due to its infrastructure it is very famous all
around the world. It shelves all kind of food, grocery; crockery, electronic and other
daily need stuff. You are also known that in the meeting they are going to discuss a
new project to open some shops far from the down-town so people how has trouble
Global Learning Center (GLC)- FZC, Ajman, U.A.E.

Page 4

to come here due to traffic can save their time. The project would cost
approximately $8.3million for 5 new shops.
You are required to calculate ratios and interpret the financial position and make
conclusion based on your findings.
(15 Marks)
Answer the following questions. Attempt any 7 (seven)
12345678-

What is Depreciation and what are the methods of deprecation calculations?

Define is Asset and how we initially recognize?
Describe Equity and its components.
What is the purpose of ledger and define its types?
What is the purpose of IFRS and who control IFRS?
Write and define basic accounting concepts.
What is accounting cycle and write the names of the books of accounts?
What are the characteristics of accounting information?
(5 Marks Each)

Only 30 marks will be awarded for survey work only for those submitted.
Passing marks for this paper is 30 other than survey marks.

Global Learning Center (GLC)- FZC, Ajman, U.A.E.

Page 5