Recent Question/Assignment
BUSN3047
Company Accounting Semester 2, 2017
WRITTEN ASSIGNMENT
Due Date: Monday 1th September
2017 at 4pm
Student name: Melissa Smith
This assignment will comprise 15% of the overall assessment for this course.
This assignment consists of 1 Question:
General Requirements
1. Work individually or in a group of up to 4 students. The first page of the assignment must indicate the first name, family name and student ID number of the students in the group. Further details about how to identify group members in FLO and submission details will be provided in due course.
2. Workings – you must show any relevant calculations and workings.
3. Due date – Lodgement of your assignment is expected prior to the due date and time. If exceptional circumstances lead to the requirement for an extension, this must be applied for prior to the due date via the assignment extension tool on FLO, complete with supporting documentation. Otherwise, a late lodgement penalty applies of 5% of the allocated mark per day or part thereof overdue, up until the return date of the assignment. Assignments submitted after the return date will not be marked.
4. Lodgement – Please lodge a single PDF file of your assignment. You may wish to prepare your assignment in Word, and embed any necessary tables that have been prepared in Excel, prior to conversion to PDF format for submission. Only one group member is to submit the assignment.
5. Text-matching – Please submit your assignment through the text-matching tab on FLO.
This is for your feedback before final submission of the assignment.
6. Presentation – Please note that marks may be deducted for poor presentation, formatting, and written expression (including spelling and grammar).
7. Academic integrity – Please be aware that you MUST abide by the University policy on academic integrity.
The trial balance of Remi Ltd’s accounts as at 30 June 2017 is shown below:
REMI LTD
Trial Balance as at 30 June 2017
Debit Credit
Share Capital - 90,000 A ordinary shares - fully paid
Share Capital - 100,000 B ordinary shares issued for
$1, called to 60c
Calls in arrears - B ordinary
Share Capital - 50,000 12% preference shares - fully paid Retained Earnings
General
Reserve Land
Buildings
Accumulated Depreciation - Buildings Plant and equipment
Accumulated Depreciation – Plant and
Equipment Cash at bank
Accounts
Receivable
Inventory
Bills Receivable
Debentures (secured by circulating charge) Accounts Payable
Income Tax Payable
Mortgage on Land and Buildings $ 18
000
37 200
108 000
98 400
1 200
69 600
146 400 57 600
$ 108 000
60 000
60 000
14 640
12 000
36 000
16 800
34 560
108 000
4 800
81 600
$536 400 $536 400
Other information:
1. There is an arrears of preference dividend of $14,400. The constitution gives preference shareholders priority of payment of arrears of preference dividends. However, all shares rank equally regarding return of capital based on the number of shares held.
2. The liquidator discovered that:
a. $3,600 worth of Accounts Payable had not been recorded.
b. In total, the creditors were willing to give a discount of $2,400 upon settlement of the Accounts Payable.
c. Salaries and wages totalling $1,680 had not been recorded.
d. Accrued interest of $2,400 on the mortgage and $1,440 on the debentures had not been recorded.
3. At the commencement of the winding up the assets were expected to realise:
a. Land and Buildings $ 95,000
b. Plant and equipment 56,000
c. Bills Receivable 42 000
d. Accounts Receivable 56 000
e. Inventory 110,000
f. Calls in arrears 16,000
4. The mortgage holder subsequently took possession of the land and buildings and sold them for $90,000. Any excess over the amount owing on the mortgage was given to the liquidator.
5. At the completion of the winding up, the following information was available.
a. The other assets realised:
i. Inventories $ 112,800
ii. Plant and Equipment 52,800
iii. Bills Receivable 33,600
iv. Accounts receivable 42,000
b. Liquidator’s expenses were $960 and remuneration was $4,800.
c. Call in arrears were able to be collected. All uncalled capital proved to be collectable.
Required
1. Prepare a report as to affairs as at 30 June 2017. Base this on the example of Fern Ltd on page 1311-12 of the text book (20 marks).
2. Prepare all the relevant journal entries in Remi Ltd to wind up the company. Narrations are required. Clearly show the order of priority of payment to the creditors (40 marks).
3. Show clearly any workings in relation to the final distribution to shareholders (15 marks).
4. Prepare the Liquidation account, the Shareholder’s distribution account and Liquidator’s cash account. Show all of the relevant detail in the account entries (i.e. do not aggregate transactions into one amount) (15 marks).
5. Presentation of information - formatting, and written expression (including spelling and grammar) (10 marks).