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N11123-E1 SECTIONB Answer both questions Total marks available Total 50 marks 21. The principal business activities of Shanghai PLC is trading and shown below: distribution
N11123-E1 SECTIONB Answer both questions Total marks available Total 50 marks 21. The principal business activities of Shanghai PLC is trading and shown below: distribution of electric ) at 31 December 2015 is $'000 Bank Inventory at 1 January 2015 Motor vehicles, at cost Accumulated depreciation on motor vehicles Selling and distribution expenses Administrative expenses Revenue Purchases Allowance for doubtful debts Debenture interest Share premium account Land and buildings, at cost Trade recelvable Trade payable Cash Retained profits Interim preference dividend Ordinary shares of $1 each 6% Preference shares of $1 each 8% Debenture 2030 1,497 4,488 3,550 1,654 1,234 605 25,650 17,955 250 160 4,000 25,000 4,280 3,740 4,630 150 10,000 5,000 4,000 The following additional information should be taken into consideration () Inventory. The inventory at 31 December 2015 is valued at $4,760,000. (ii) Non-current assets are depreciated as follows:- Land and buildings Motor Vehicles NIL (Freehold) 20% per annum on costs. (il) Asset value. Based on an independent valuation report, one of the buildings has (iv) Accounts Receivable. The allowance for doubtful debts is to be maintained at 590 (v) Expenses. Selling and distribution expenses paid during the year include insurance suffered an impairment loss of $200,000 on 31 December 2015. of the remaining trade receivable at the 31 December 2015 cover for the company's motor vehicle amounting to $30,000. This covers the 6 month period from 1 October 2015. There were no other prepayments. Turn Over N11123-E1
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