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Question Details:
On Nov 1, 2008 the company borrowed Rs. 4,000,000 at 24% to finance construction of the plant.
Repayment of loan will start a month after completion of project.
During the year ended Oct.31, 2009, expenditure on the building was Rs.3, 000,000. The expenditure was incurred evenly through the year.
What amount of interest should be capitalized in year ended Oct, 31 2009?
Question # 02
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Net profit for year ended December 31,2007
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Rs.
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1,300
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weighted average number of ordinary shares outstanding during 2007
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200 shares
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Average value of one ordinary share during year 2007
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Rs.
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25
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Weighted average number of share under option during 2007
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80 shares
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Exercise price for shares under option during year 2007
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Rs.
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20
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Required:
Compute basic and diluted earning per share.
Question # 03A
Five years ago, Hassan Ltd acquired the following shares in Pervaiz Ltd:
Rupees
75,000 Ordinary shares of Rs. 1 --- cost 93,100
15,000 6% Preferred shares of Rs. 1 --- cost 16,050
109,150
At the date of acquisition, the retained earnings of Pervaiz Ltd amounted to Rs. 11,000. The summarized balance sheets of the two companies at 31 December 2008 were as follows:
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Hassan Ltd
(Rupees)
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Pervaiz Ltd
(Rupees)
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Ordinary Shares of Rs. 1
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350,000
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100,000
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6% Preferred Shares of Rs. 1
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----
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60,000
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Reserves
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348,420
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132,700
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Sundry payables
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93,400
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51,150
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791,820
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343,850
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Tangible Non- Current assets
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431,100
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219,350
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Investments
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109,150
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----
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Inventory
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143,070
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71,120
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Receivables
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89,200
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36,230
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Cash at Bank
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19,300
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17,150
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791,820
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343,850
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During the year Hassan Ltd sold goods whose invoice value was Rs. 24,000 to Pervaiz Ltd. These goods were invoiced at cost plus 25%, and one-quarter were still in Pervaiz’s inventory at the year end.
Required:
Prepare the consolidated balance sheet of Hassan Ltd as at 31 December 2008.
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