1. Tutorial 2-HP-answer (A141 FARIII)
Q1
(a) HP price = RM708x12 + RM4,012 = RM12,508
Interestincome =RM12,508 – RM11,800 = RM708
b) Gross Profit = 11,800 – RM7,680 = RM4, 120
InterestRecognition:
Month Factor Interest
9/12 12/78 108.92
10/12 11/78 99.85
11/12 10/78 90.76
12/12 9/78 81.70
1/13 8/78 72.62
2/13 7/78 63.54
3/13 6/78 54.46
4/13 5/78 45.38
5/13 4/78 36.31
6/13 3/78 27.23
7/13 2/78 18.15
8/13 1/78 9.08
Dr. Cr.
1/9/12 Dr. HP Receivable
Cr. Salesrevenue
DeferredInterestIncome
Dr. COGS
Cr. Inventory
Dr Cash
Cr HP receivable
12,508
7,680
4,012
11,800
708
7,680
4,012
31/12/12 Dr. Salesrevenue
Cr. COGS
Income summary
Dr. DeferredInterestIncome
Cr. InterestIncome
Dr Cash
Cr. HP receivable
Dr InterestRevenue 381.23
Cr Income Summary
11,800
81.70
708
7,680
4,120
81.70
708
381.23
2. c) Perdana Sdn. Bhd
Statement of Comprehensive Income
For the year ended 31 Dec 2012 (partial)
Sales revenue 11,800
Less: COGS (7,680)
Gross profit 4,120
Other income:
Interest revenue 381.23(12+11+10+978*708)
Perdana Sdn.Bhd
Statement of Financial Position
31 December 2012 (partial)
Current Assets:
Account receivable 5,664.00 (12,508 –4,012- (708*4)
Less: Deferred interest revenue 326.77 (708 – 381.23)
5,337.23
d)
(i) (5+4+3+2+1)78 *708 = 136.15
(ii) Repossess good value + total paid = 5,619.85 - 120 + (708 x 4) = 8,331.85 - A
Total net pyable = 708 x 12 – 136.15 = 8,359.85 - B
A lower than B, then the couple need to pay the different
8331.85 – 8359.85 = 28 to be paid to Perdana.
3. Q2
a) Deposit = 15% x 65,200 = 9,780
HP price = deposit + instalments
= 9,780 + (2,517 x 24)
= 70, 188
Interest = HP price – Cash price
= 70,188 – 65,200
= 4,988
b)
1/2/2012 Dr Asset (machinery) 65,200
Deferred interest 4,988
Cr Ac payable 70,188
Dr Ac payable 9,780
Cr Cash 9,780
28/2/2012 Dr Ac payable 2,517
Cr Cash 2,517
Dr Interest expense 399
(24/300 x 4,988)
Cr Deferred interest 399
(c) Kelangit Sdn Bhd
Statement of Financial Position
As at 30 June 2012 (partial)
Assets:
Machinery 65,200
Less: Accumulated depreciation ( 65,200/5 x 5/12 ) 5,433
Net Carrying amount 59,767
Liabilities:
Ac payable (70,188 – 9,780 – (2,517 x 5) 47,823
Less: Deferred interest [4,988 – (( 24+23+22+21+20/300)x 4,988)] 3,159
Net ac payable 44,664
4. d)
Gross profit(GP) = 65,200 – 51,350 = 13,850
GP to be realised on 30 June 2012 = 13,850 x [ 9,780 + (2,517 x 5) – 1,829]
65,200
= 13,850 x 20,536
65,200
= 4,362
e)
Repossess good value + total paid = 19,163 – 230 - 180 + (2,517 x 17) = 61,542 - A
Total net payable = (2,517 x 24) – [(4+3+2+1/300) x 4,988] = 60,242 – B
A higher than B, then Kelangit will receive the different
61,542 – 60,242 = 1,300
f) Two situations that give right to Mentari to repossess the machine:
a) Hirer fails to pay 2 installments consecutively or fail to pay lst instalments
b) Owner fell suspicious that the asset will be transferred to another place other than
place stated in contract.
