PBQ#2Mac and two of his colleagues (Cheez and Pie) set up a private limited company called Best Sdn. Bhd.with Mac as the Chairman holding 40% of the shares of the company, and his two colleagues asdirectors, each holding 30% of the shares. Best Sdn. Bhd. has 100,000 shares at RM1 each. Mac hasonly paid 60% of his shares whilst Pie has yet to pay 50% of his shares. Meanwhile, Cheez has fullypaid up his shares.You are to discuss the liability of each member (if any) in the event of winding up.

Liability refers to the legal responsibility or obligation of an individual or entity to settle…

Answered: PBQ#2 Mac and two of his colleagues…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The owner of SURIA Trading, a proprietorship business, Puan Alia, and her friend Encik Irfan formed a company named PINK Sdn. Bhd. and issued to themselves 5,000 ordinary shares each at par value RM1 for cash. The purpose of forming Pink Sdn. Bhd. is to buy over the business of SURIA Trading on 1 January 2021. PINK Sdn. Bhd. issued to Puan Alia 750,000 ordinary shares at a premium of 10% to satisfy the purchase of SURIA Trading. PINK Sdn. Bhd. paid the liquidation expenses of SURIA Trading which amounted to RM15,000. The formation expenses of PINK Sdn. Bhd. were RM2,500. The financial position of SURIA Trading on 1 January 2021 was as follows: RM RM Capital – Puan Alia 600,000 Current liabilities Trade payables 40,000 640,000 Non-current assets Office equipment (cost) 600,000 Accumulated depreciation (200,000) 400,000 Furniture and fittings (cost) 130,000…
10. How much is the capital balances of Wanda after Banner's withdrawal? * Banner and Strange are partners who have capital balances of P65,000 and P35,000 and share profits 3:2. Wanda is admitted as a partner and is given a 25% interest in the firm upon investing P40,000 cash. Profits are to be shared 5:3:2 by Banner, Strange and Wanda. Subsequently a new partner, Peter, was admitted by investing P25,000 cash for a 20% interest in assets and a 20% share of the firm's profits. Former partners share the balance of profits in their original ratio. Banner has difficulty getting along with Peter and as a result, Banner withdraws from the partnership. The partnership pays P73,000 cash for Banner's interest.
8. A, an individual, owns all 100 shares of X Co. A's basis in these shares is $1 per share ($100 total). 8b) Suppose instead that there are 2 shareholders, A and B. Each owns 50 shares of X Co. A transfers all 50 shares to X in exchange for cash of 50. How will this transaction be treated?
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2) Andrew bought 10,000 shares of stock B at $2 per share. At the end of the year, he sold all the shares at $2.50 per share. The transactions payable for share transactions in Singapore are: Clearing fee Trading access fee Brokerage commission 0.0325% 0.0075% 0.2800% In addition to the above cost, Andrew has to pay GST of 7% on the total transaction cost (i.e. sum of clearing fee, trading access fee and brokerage commission). Calculate Andrew's profits in dollars and return.
Colter Corporation has two shareholders: Arlen with 70 shares and Marcy with 30 shares. Colter has E&P of $100,000 and capital stock and paid-in-capital accounts totaling $200,000. Colter redeems 10 of Arlen's shares for $31,000. Arlen paid $2,000 per share for the shares 5 years ago. As a result of this transaction _____________________. Question options: a. Arlen will have a long-term capital gain of $11,000. b. Arlen will have dividend income of $31,000. c. Colter's E&P will be reduced by 10% of the outstanding E&P on the distribution.
X, owns an idle land worth 1M. X works in MCDO as an accounting manager. He decided to exchange the land to shares of stocks of MCDO, a domestic corp. for 10,000 shares with value of 1.2M. As a result, X obtains control, having 90% interest, in the corporation. What is the CGT? a. 6% of 1.2M b. 6% of 200,000 c. 6% of 1M d. None of the above
b. Kim and Liang incorporated Musang King Sdn Bhd on 1.4.2016 to acquire durian plantations in Gua Musang. Kelantan. The company acquired several pieces of agricultural land at RM2 million and embarks on durian plantation. The land acquisition is financed by share capital as follows: RM'000 Kim (30%) 600 Liang (70%) 1,400 2,000 On 1.1.2020, Kim wishes to dispose the shares to Pink at a consideration of RM1.8 million, based om market value of the durian plantation of RM 6 million. Required: i) Advise the tax implication on the disposal of shares to Pink. (Include computation of disposal of RPC shares that subject to RPGT) ii) Advise Pink on the RPGT responsibility towards the acquisition of shares.
The partners of Dan and Ken are engaged in trading. Dan’s original capital was P40,000 and Ken ‘s was P60,000. They agreed to share profits and losses as follows: Dan Ken Salaries Php28,000 Php40,000 Interest on original capital 10% 10% Balance 30% 70% _______ If the losses for the year were P20,000, what share of the loss would Ken receive? a.P2,600 c. ( P2,600) b.(P22,600) d. P5,200
1. At the Beginning of Year 1 Peter and Paul want to establish a new business in the form of a limited company. They both agree that each of them will buy 5,000 shares for a nominal value of € 10.00 each. Required a) Show the balance sheet of the new business after the transaction. b) What part of the business does Paul own (in %) and what is the value of his stake? c) What part of the business does Peter own (in %) and what is the value of his stake? 2. During Year 1 During the next year the following transactions took place: • Purchased inventories for sales € 50,000.00 (30% on credit, 70% on cash) • Sold inventories for € 90,000.00 (50% on credit) • Cost of sales was € 30,000.00 • Drawings or payment for dividends € 0.00 Required a) Show the income statement and the balance sheet for the business at the end of the year. b) What part of the business does Paul own (in %) and what is the value of his stake? c) What part of the business does Peter own (in %) and what is the value of his…
1. Marilyn owns 1,000 shares of a company at Php.840 per share. She also owns 10,000 shares of another company at Php.240 per share. In which company is the total value of her share greater? Explain.

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