Reference no: EM132591378

Questions -

Q1. Abu Express Sdn Bhd company in the process of dissolution. A total of 40% of the accounts receivable amounting to RM100,000 is pledged on 5% payable notes amounting to RM50,000. Its net realizable value is RM35,000. Whereas all RM3 00,000 8% unpaid notes are pledged to machines with a RM200,000 realizable value. A sum of cash is still available in the bank of RM20,000. In the statement of business, the net realizable value of an independent asset is

A. RM80,000

B. RM40,000

C. RM60,000.

D. RM30,000

Q2. Syarikat Drink Panda Sdn Bhd is preparing a statement of affairs for the liquidation process. Information shows that the inventory of ?nished goods amounting to RM336,000 can be sold with a pro?t of 20%. Meanwhile, in-process work is worth RM234,000 and can be sold at a price of RM330,000 if completed with an additional raw material cost of RM60,000 and labor cost of RM40,000. The remaining raw materials costing RM15,000 can be sold at 85% of the cost. The net realizable value of all inventory is

A. RM403,200

B. RM645,950

C. RM749,950

D. RM709,950

Q3. Syarikat Asafa Sdn Bhd has building and land assets at a carrying value of RM800,000 and RM1,250,000 respectively. These assets are acquired by lease. The balance of the lease has not been paid and the interest is RM1,500,000 and RMS 1,000 respectively. The market value of buildings and land based on valuation by independent quali?ed appraisers is RM650,000 and RM1,300,000 respectively. The following statement regarding the above liquidation transactions is EXCEPT

A. A lease liability is a partially secured liability.

B. The asset is a fully secured asset.

C. These leasehold liabilities need to be prioritized before settlement of the priority shares.

D. The net realizable value of both property assets is RM 1,950,000

Q4. Kasio Bhd Company is in the process of dissolution. 40% of the current assets amounting to RM100,000 were pledged on unpaid notes, 5% amounting to RM50,000. The net realizable value of the pledged asset is RM65,000 and the remaining is RM55,000. A lease of RM 100,000 is secured by a non-current asset with a net realizable value of RM80,000. The investment asset costing RM 159,000 is an investment in 20,000 units of Permanic Bhd equity shares which currently has a market value of RM11.00 per share. The Company has also issued 10,000 units of cumulative preference shares, 5% amounting to RM4.00 per share with a 2-year outstanding dividend. The total unsecured debt is RM180,000. Select the correct answer for the above transaction.

I. All assets are secured assets.

II. Priority shares are a priority liability in liquidation solutions.

III. The net realizable value of all the above assets is RM420,000.

IV. The de?cit amount in the statement of affairs is RM30,000.

A. I AND II

B. II AND III.

C. III ONLY

D. III AND IV.