Exam papers, notes, holiday assignments and topical questions – all aligned to the Kenyan curriculum.
On 1 January 2009, Kamulu Limited leased a machine from General Machines Ltd. under a finance lease agreement. Kamulu Limited was to make installment lease payments of Sh. 14,000,000 every six months on 30 June and 31 December in arrears.The first payment was made on 30 June 2009.The fair value of the machine was Sh.60,000,000 with an estimated useful life of 3 years.The interest rate implicit in the lease was 10% per six months.Determine Extracts of the statement of financial position as at December 2009 and 2010
Answer Attachments
Next: Determine Extracts of the statement of comprehensive income for the years ended 31 December 2009 and 2010
Previous: Outline the four main categories of financial instruments in the context of International Accounting Standard (IAS) 39
View more CPA Financial Reporting Questions and Answers | Return to Questions Index
On 1 January 2009, Kamulu Limited leased a machine from General Machines Ltd. under a finance lease agreement. Kamulu Limited was to make installment lease payments of Sh. 14,000,000 every six months on 30 June and 31 December in arrears.The first payment was made on 30 June 2009.The fair value of the machine was Sh.60,000,000 with an estimated useful life of 3 years.The interest rate implicit in the lease was 10% per six months.Determine Extracts of the statement of comprehensive income for the years ended 31 December2009 and 2010.
Date posted: February 8, 2019 . Answers (1)
Distinguish between "deferred tax liabilities" and "deferred tax assets".
Assure Ltd. borrowed Sh 30 million to finance two capital projects "A" and "B" on 1 July 201 1. The money was utilized on the two projects as follows:Calculate The value of the assets in the books of Assure Ltd as at 30 June 2012
Assure Ltd. borrowed Sh 30 million to finance two capital projects "A" and "B" on 1 July 201 1. The money was utilized on the two projects as follows:Calculate Borrowing costs to be capitalized for each of the projects as at 30 June 2012
Equip Agencies Ltd. purchased an equipment for Sh.4,000,000 on 1 July 2008. Depreciation on equipment is provided on a straight line basis at the rate of 25% per annum.During the four years from 1 July 2008 to 30 June 2012 the profit after tax and allowedwear and tear charges for tax purpose were as follows:Calculate the Deferred tax account
Equip Agencies Ltd. purchased an equipment for Sh.4,000,000 on 1 July 2008. Depreciation on equipment is provided on a straight line basis at the rate of 25% per annum.During the four years from 1 July 2008 to 30 June 2012 the profit after tax and allowedwear and tear charges for tax purpose were as follows:Calculate the Temporary differences
Equip Agencies Ltd. purchased an equipment for Sh.4,000,000 on 1 July 2008. Depreciation on equipment is provided on a straight line basis at the rate of 25% per annum.During the four years from 1 July 2008 to 30 June 2012 the profit after tax and allowedwear and tear charges for tax purpose were as follows:Calculate the Taxable profits
Differentiate between “taxable temporary differences” and “deductible temporary differences”
In the context of international Accounting Standard (IAS) 39 “Financial instruments”.Distinguish between a financial asset and financial liability
Distinguish between a finance lease and an operating lease indicating how they should be treated in the financial statements as per International Accounting Standard (IAS) 17 “Leases”.