...CREDIT ASSESSMENT PROPOSAL NEEDS OF CLIENTS Lettera Pty Ltd requires a mortgage loan of $320 000 to purchase the existing premises (worth $3800 00) that the company is operating on. Mortgage loan interest rate is $8 per annum compounded monthly and repayment period over 25 years. The purpose of this mortgage loan is to save over $9 000 per month on the rental of premises. The source of repayment comes from the company’s operating incomes. In addition to the $320000 loan, Lettera wishes to increase the existing overdraft facility from $60000 to $140 000. This allows the company to put down a deposit of $60 000 on the building and pay the transfer fee of $20 000. BACKGROUND The Business: A profile Lettera, which is a proprietary limited company, abbreviated as 'Pty Ltd' is a business structure that has at least one shareholder with a limited number of shares. The company limited by shares, where shareholders are afforded more protection when it comes to the level of liability that they face for company debts. In this case, the type of business for the Lettera (Pty) Ltd is printing and it has existed for five years in the printing industry. The Printing industry consists of establishments mainly engaged in commercial or job printing (including commission printing of paper stationery), including printing onto textiles or other surfaces. Regarding to the industry of printing in Australia, the printing and graphic communications industry is the third largest in the manufacturing...
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...Question 1. Ahmad Trading Enterprise started his business on 1st June 2012 and made the following transactions for whole month of June 2012. All Cash transactions are referred to Cash at Bank. June 2012 1. Owner invested Rm30,000 in cash, car valued at Rm20,000 and furniture valued at Rm5,500 to start the business. 2. Paid rent of Rm2,000, and bought stationery costing Rm500 for cash. 3. Paid for insurance Rm200. 5. Purchased office equipment costing Rm5,000 paying Rm1,000 as down payment with the balance to be paid by 30.6.2008. 7. Purchased goods for resale on credit Rm8,000. 8. Sold goods for Rm5,000 on credit. 9. Paid travel expenses Rm6,00. 12. Sold goods for cash Rm2,500. 14. Paid trade creditors Rm5,000. 16 Received from customers Rm4,500. 19 Sold goods on credit Rm3,500. 20 Purchased goods for cash Rm1,500. 23 Collected from customers Rm2,500. 25 Paid utility bills Rm800. 28 Paid creditors the balance due for office equipment. 29 Bought delivery van costing rm50,000, paid Rm10,000 cash, with the balance to be settled later. 30 Owner withdrew cash rm2,500 and stock costing Rm2,000 for personal use. 30. Paid salaries of workers Rm12,000. Record the above transaction in ledgers and prepare a trial balance on 30 June 2008. Solution to Q1 Capital Account Date | Details | Amt RM | Date | Details | Amt RM | 30.6. | Bal Car/ for | 55500 | 1.6. | bank | 30000 | | ...
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...Question 1. Ahmad Trading Enterprise started his business on 1st June 2012 and made the following transactions for whole month of June 2012. All Cash transactions are referred to Cash at Bank. June 2012 1. Owner invested Rm30,000 in cash, car valued at Rm20,000 and furniture valued at Rm5,500 to start the business. 2. Paid rent of Rm2,000, and bought stationery costing Rm500 for cash. 3. Paid for insurance Rm200. 5. Purchased office equipment costing Rm5,000 paying Rm1,000 as down payment with the balance to be paid by 30.6.2008. 7. Purchased goods for resale on credit Rm8,000. 8. Sold goods for Rm5,000 on credit. 9. Paid travel expenses Rm6,00. 12. Sold goods for cash Rm2,500. 14. Paid trade creditors Rm5,000. 16 Received from customers Rm4,500. 19 Sold goods on credit Rm3,500. 20 Purchased goods for cash Rm1,500. 23 Collected from customers Rm2,500. 25 Paid utility bills Rm800. 28 Paid creditors the balance due for office equipment. 29 Bought delivery van costing rm50,000, paid Rm10,000 cash, with the balance to be settled later. 30 Owner withdrew cash rm2,500 and stock costing Rm2,000 for personal use. 30. Paid salaries of workers Rm12,000. Record the above transaction in ledgers and prepare a trial balance on 30 June 2008. Solution to Q1 Capital Account Date | Details | Amt RM | Date | Details | Amt RM | 30.6. | Bal Car/ for | 55500 | 1.6. | bank | 30000 | | ...
Words: 2848 - Pages: 12