Mujahid Limited

Extracts of notes
for the year ending December 31, 2015

1. Property, plant and equipment

Apartments P&M Furniture Total

------------------------ Rs. '000 --------------------------
Cost / Revalued amount: 1 mark 1.5 marks 0.5 mark
Balance as at 01-01-15 59,400 13,200 2,500 75,100
Addition 0.5 mark - - 500 500
Revaluation 1 mark (10,800) - - (10,800)
Disposal [59.4 / 3] 1.5 marks (19,800) - - (19,800)
Balance as at 31-12-15 28,800 13,200 3,000 45,000

Accumulated depreciation: 0.5 mark 1 mark 1 mark

Balance as at 01-01-15 6,600 1,980 900 9,480
Charge for the year [2.5 / 0.5 / 1 marks] 5,220 1,320 345 6,885
Disposal [(6.6 + 3.3)/3] 1 mark (3,300) - - (3,300)
Revaluation 1 mark (6,600) - - (6,600)
Balance as at 31-12-15 1,920 3,300 1,245 6,465

NBV as at 31-12-15 1 mark 26,880 9,900 1,755 38,535

1.1 - Office apartments were revalued on July 01, 2015 by M/s Sigma Consultants.
0.5 mark
1.2 - Net book value of office apartments would have been determined at Rs. 28 million [20 x 2 x
7/10] had cost model been followed.
1 mark
1.3 - Movement in revaluation surplus:
Rs.'000
Balance as at 01-01-15 4,800 0.5 mark
Transfer to retained earnings [1,500 + 300 + 200] (4,800) 0.5 mark
Revaluation during the year - 0.5 mark
Balance as at 31-12-15 - 0.5 mark

Workings
W-1 Office apartments
NBV Surplus P&L
 01-01-13 Cost [20 x 3] 60,000
31-12-13 Dep [60 / 10] (6,000)
54,000
01-01-14 Revaluation 5,400 5,400
59,400 5,400
31-12-14 Dep [59.4 / 9] (6,600) (600)
52,800 4,800
01-07-15 Dep [59.4 / 9 x 6/12] (3,300) (300)
49,500 4,500
01-07-15 Disposal [49,500 /3] (16,500) (1,500)
33,000 3,000
1/7/2015 Revaluation (4,200) (3,000) (1,200)
28,800 (1,200)
31-12-15 Dep(28,800/7.5×0.5) (1,920) 80 1200/7.5×0.5
26,880 (1,120)

W-2 P&M
Cost Rs.'000
Invoice value [11,500 / 1.15] 10,000
Transportation 1,200
Installation & testing [1,900 / 0.95] 2,000
13,200

Acc. dep as at 01-01-15 [13,200 x 1.5/10] 1,980

W-3 Furniture NBV Dep

Cost 2,500
31-12-13 Dep [2,500 x 20%] (500) 500
2,000
31-12-14 Dep [2,000 x 20%] (400) 400
1,600 900

Depreciation:
[1,600 x 20%] 320
[500 x 20% x 3/12] 25
345
Ans.1
All figures in thousands
Year 2014
Date Particulars Dr. Cr.
01-Jan-14 Acc. Depreciation - Building 0.5 mark 300
Building 0.5 mark 300
[Elimination of acc. depreciation of building]
01-Jan-14 Building 0.5 mark 340
Land 0.5 mark 200
Revaluation surplus0.5 mark 540
[Property revaluation]
01-Jan-14 Acc. Depreciation - Buses 0.5 mark 6,750
Buses 0.5 mark 6,750
[Elimination of acc. depreciation of regular buses]
01-Jan-14 Buses 0.5 mark 300
Revaluation surplus 0.5 mark 300
[Revaluation of regular buses]
01-Jul-14 Depreciation 0.5 mark 1,000
Acc. Depreciation - Buses 0.5 mark 1,000
[Depreciation for luxury buses]
01-Jul-14 Acc. Depreciation - Buses 0.5 mark 5,000
Buses 0.5 mark 5,000
[Elimination of acc. depreciation of luxury buses]
01-Jul-14 Revaluation loss [P&L] 0.5 mark 110
Buses 0.5 mark 110
[Revaluation of luxury buses]
31-Dec-14 Depreciation [W-2] 0.5 mark 4,610
Acc. depreciation - Building 0.5 mark 120
Acc. depreciation - Buses 0.5 mark 4,300
Acc. depreciation - Furniture 0.5 mark 150
Acc. depreciation - Equipment 0.5 mark 40
[Depreciation charge for the year]
31-Dec-14 Revaluation surplus 0.5 mark 20
Retained earnings 0.5 mark 20
[Incremental depreciation of building]
31-Dec-14 Revaluation surplus 0.5 mark 60
Retained earnings 0.5 mark 60
[Incremental depreciation of regular buses]

Year 2015
Date Particulars Dr. Cr.
31-Dec-15 Depreciation [W-2] 0.5 mark 4,640
Acc. depreciation - Building 0.5 mark 120
Acc. depreciation - Buses 0.5 mark 4,290
 Acc. depreciation - Furniture 0.5 mark 150
Acc. depreciation - Equipment 0.5 mark 80
[Depreciation charge for the year]
31-Dec-15 Revaluation surplus 0.5 mark 20
Retained earnings 0.5 mark 20
[Incremental depreciation of building]
31-Dec-15 Revaluation surplus 0.5 mark 60
Retained earnings 0.5 mark 60
[Incremental depreciation of buses]
31-Dec-15 Acc. Depreciation - Building 0.5 mark 240
Building 0.5 mark 240
[Elimination of acc. depreciation of building]
31-Dec-15 Revaluation surplus 0.5 mark 90
Land 0.5 mark 40
Building 0.5 mark 50
[Property revaluation]

W-1
Building
NBV Surplus P&L
01-01-11 Cost 2,000
31-12-11/13 Depreciation [2,000 x3/20] (300)
1,700
01-01-14 Revaluation 340 340
2,040 340
31-12-14 Depreciation [2,040 / 17] (120) (20)
1,920 320
31-12-15 Depreciation (120) (20)
1,800 300
31-12-15 Revaluation (50) (50)
1,750 250
Land
NBV Surplus P&L
01-01-14 Cost 1,000
01-01-14 Revaluation 200 200
1,200 200
31-12-15 Revaluation (40) (40)
1,160 160
Regular buses
NBV Surplus P&L
01-01-11 Cost [6,000 x 3] 18,000
31-12-11/13 Depreciation [18,000 x3/8] (6,750)
11,250
01-01-14 Revaluation 300 300
[3,850 x 3] 11,550 300
31-12-14 Depreciation [11,550/5] (2,310) (60)
9,240 240
31-12-15 Depreciation (2,310) (60)
6,930 180

Luxury buses
NBV Surplus P&L
01-01-12 Cost [8,000 x 2] 16,000
31-12-12/13 Depreciation [16,000 x2/8] (4,000)
12,000
01-07-14 Depreciation (1,000)
[16,000/8 x 6/12] 11,000
01-07-14 Revaluation (110) (110)
[5,445 x 2] 10,890 -
31-12-14 Depreciation (990) -
[10,890/5.5 x 6/12] 9,900 -
31-12-15 Depreciation [990 x 2] (1,980) -
7,920 -

W-2
Depreciation for 2014
Building (W-1) 120
Buses (W-1) [1,000 + 2,310 + 990] 4,300
Furniture [900 / 6] 150
Equipment [800/10 x 6/12] 40
4,610

Depreciation for 2015

Building (W-1) 120
Buses (W-1) [2,310 + 1,980] 4,290
Furniture [900 / 6] 150
Equipment [800 / 10] 80
4,640
Q-1(SOLUTION)
Wahab Limited
Journal Entries

DR. CR.
Date Pariculars
Rs(Million)
Acc Depreciation 102.79
1-Jul-16 Building a/c 102.79

Building a/c 22.79

30-Jun-16 Surlpus a/c 22.79

Depreciation(sold) 5.85
1-Jan-17 Acc dep a/c 5.85

Cash 100
Acc Depreciation 5.85
1-Jan-17 Profit A/c 0.85
Building 105

Surplus(0.45+5.25) 5.7
1-Jan-17 Retain earnings 5.7

Depreciation 35.12
30-Jun-17 Acc Dep 35.12

Surplus A/c 2.74

30-Jun-17 Retain earning 2.74

Depreciation 31.21
30-Jun-18 Acc Dep 31.21

Surplus A/c 2.35

30-Jun-18 Retain Earning 2.35

Acc Depreciation(35.12+31.21) 66.33

1-Jul-18 Building 66.33

Surplus 12
P/L 16.67
1-Jul-18
Building 28.67

Depreciation 27.434
30-Jun-19 Acc Depreciation 27.434
W-1

Orginal(NBV) NBV Surplus P/L

Date Particalar
Rs Million
1/7/2014 Cost 500.00 500.00
30/06/15 Dep(10.87%×500)(W1.1) (54.35) (54.35)
445.65 445.65
30/06/16 Dep(10.87%×445.65) (48.44) (48.44)
397.21 397.21
1/7/2016 Revaluation 22.79 22.79
397.21 420.00 22.79
1/1/2017 Dep (only of sold building )(W-2) (5.40) (5.85) (0.45)
NBV (only of sold building)(W-2) (93.90) (99.15) (5.25)
297.91 315.00 17.09
30/06/2017 Remaining Dep (3 Buildings)W-3 (32.38) (35.12) (2.74)
265.53 279.88 14.35
30/06/2018 Dep(265.53×10.87%),(279.88×11.15%)(28.86) (31.21) (2.35)
236.67 248.67 12.00
1/7/2018 Revaluation Loss (28.67) (12.00) (16.67)
236.67 220.00 (16.67)
30/06/2019 Dep(w-4) (30.34) (27.43) 2.91
206.33 192.57 (13.76)

w-1.1 rate=1-20√(50/500)=10.87%

w-2 Nbv of sold Building 500/4=125*89.13%*89.13%=99.3

99.3*0.5*10.87%=5.4
99.3-5.4=93.9

w-3 297.91×10.87%=32.38
315×11.15%= 35.12
new rate =1-18√(50/420)=11.15%
105*11.15%*0.5=5.85

nbv 105-5.85=99.15
w-4
2018 rate
1-18√(20/236.67)= 12.82% 236.67×12.82%=30.34
1-18√(20/220)=12.47% 220×12.47%=27.43
W-1

Orginal(NBV) NBV Surplus

Date Particalar
Rs Million
1/7/2014 Cost 500.00 500.00
30/06/15 Dep(10.87%×500)(W1.1) (54.35) (54.35)
445.65 445.65
30/06/16 Dep(10.87%×445.65) (48.44) (48.44)
397.21 397.21
1/7/2016 Revaluation - 22.79 22.79
397.21 420.00 22.79
1/1/2017 Dep (only of sold building )(W-2) (5.40) (5.85) (0.45)
NBV (only of sold building)(W-2) (93.90) (99.15) (5.25)
297.91 315.00 17.09
30/06/2017 Remaining Dep (3 Buildings)W-3 (32.38) (35.12) (2.74)
265.53 279.88 14.35
30/06/2018 Dep(265.53×10.87%),(279.88×11.15%) (28.86) (31.21) (2.35)
236.67 248.67 12.00
1/7/2018 Revaluation Loss - (28.67) (12.00)
236.67 220.00
30/06/2019 Dep(w-4) (30.34) (27.43)
206.33 192.57

w-1.1 rate=1-20√(50/500)=10.87%

w-2 Nbv of sold Building 500/4=125*89.13%*89.13%=99.3

99.3*0.5*10.87%=5.4
99.3-5.4=93.9

w-3 297.91×10.87%=32.38
315×11.15%= 35.12
new rate =1-18√(50/420)=11.15%
105*11.15%*0.5=5.85

nbv 105-5.85=99.15
w-4
2018 rate
1-18√(20/236.67)= 12.82% 236.67×12.82%=30.34
1-18√(20/220)=12.47% 220×12.47%=27.43
P/L

(16.67)
(16.67)
2.91
(13.76)
Ans.1
All figures in thousands
Year 2014
Date Particulars Dr. Cr.
1-Jan-14 Acc. Depreciation - Bu0.5 mark 300
Building 0.5 mark 300
[Elimination of acc. depreciation of building]
1-Jan-14 Building 0.5 mark 340
Land 0.5 mark 200
Revaluation surplus 0.5 mark 540
[Property revaluation]
1-Jan-14 Acc. Depreciation - B 0.5 mark 6,750
Buses 0.5 mark 6,750
[Elimination of acc. depreciation of regular buses]
1-Jan-14 Buses 0.5 mark 300
Revaluation surplus 0.5 mark 300
[Revaluation of regular buses]
1-Jul-14 Depreciation 0.5 mark 1,000
Acc. Depreciation - Buses 0.5 mark 1,000
[Depreciation for luxury buses]
1-Jul-14 Acc. Depreciation - Buses 0.5 mark 5,000
Buses 0.5 mark 5,000
[Elimination of acc. depreciation of luxury buses]
1-Jul-14 Revaluation loss [P&L] 0.5 mark 110
Buses 0.5 mark 110
[Revaluation of luxury buses]
31-Dec-14 Depreciation [W-2] 0.5 mark 4,610
Acc. depreciation - Building 0.5 mark 120
Acc. depreciation - Buses 0.5 mark 4,300
Acc. depreciation - Furniture 0.5 mark 150
Acc. depreciation - Equipment 0.5 mark 40
[Depreciation charge for the year]
31-Dec-14 Revaluation surplus 0.5 mark 20
Retained earnings 0.5 mark 20
[Incremental depreciation of building]
31-Dec-14 Revaluation surplus 0.5 mark 60
Retained earnings 0.5 mark 60
[Incremental depreciation of regular buses]

Year 2015
Date Particulars Dr. Cr.
31-Dec-15 Depreciation [W-2] 0.5 mark 4,640
Acc. depreciation - Building 0.5 mark 120
Acc. depreciation - Buses 0.5 mark 4,290
 Acc. depreciation - Furniture 0.5 mark 150
Acc. depreciation - Equipment 0.5 mark 80
[Depreciation charge for the year]
31-Dec-15 Revaluation surplus 0.5 mark 20
Retained earnings 0.5 mark 20
[Incremental depreciation of building]
31-Dec-15 Revaluation surplus 0.5 mark 60
Retained earnings 0.5 mark 60
[Incremental depreciation of buses]
31-Dec-15 Acc. Depreciation - Bu0.5 mark 240
Building 0.5 mark 240
[Elimination of acc. depreciation of building]
31-Dec-15 Revaluation surplus 0.5 mark 90
Land 0.5 mark 40
Building 0.5 mark 50
[Property revaluation]

W-1
Building
NBV Surplus P&L
1/1/2011 Cost 2,000
31-12-11/13 Depreciation [2,000 x -300
1,700
1/1/2014 Revaluation 340 340
2,040 340
31-12-14 Depreciation [2,040 / -120 -20
1,920 320
31-12-15 Depreciation -120 -20
1,800 300
31-12-15 Revaluation -50 -50
1,750 250
Land
NBV Surplus P&L
1/1/2014 Cost 1,000
1/1/2014 Revaluation 200 200
1,200 200
31-12-15 Revaluation -40 -40
1,160 160
Regular buses
NBV Surplus P&L
1/1/2011 Cost [6,000 x 3] 18,000
31-12-11/13 Depreciation [18,000 -6,750
11,250
1/1/2014 Revaluation 300 300
[3,850 x 3] 11,550 300
31-12-14 Depreciation [11,550 -2,310 -60
9,240 240
31-12-15 Depreciation -2,310 -60
6,930 180

Luxury buses
NBV Surplus P&L
1/1/2012 Cost [8,000 x 2] 16,000
31-12-12/13 Depreciation [16,000 -4,000
12,000
1/7/2014 Depreciation -1,000
[16,000/8 x 6/12] 11,000
1/7/2014 Revaluation -110 -110
[5,445 x 2] 10,890 -
31-12-14 Depreciation -990 -
[10,890/5.5 x 6/12] 9,900 -
31-12-15 Depreciation [990 x 2 -1,980 -
7,920 -

W-2
Depreciation for 2014
Building (W-1) 120
Buses (W-1) [1,000 + 2,310 + 990] 4,300
Furniture [900 / 6] 150
Equipment [800/10 x 6/12] 40
4,610

Depreciation for 2015

Building (W-1) 120
Buses (W-1) [2,310 + 1,980] 4,290
Furniture [900 / 6] 150
Equipment [800 / 10] 80
4,640