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Section C: Problem Solving (Total: 10 marks) Exercise 1: Additional Information: (i) The number of...

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Accounting

image Section C: Problem Solving (Total: 10 marks) Exercise 1: Additional Information: (i) The number of shares owned by Muslim shareholders is 280,000 units (at $1.50 ). (ii) During the year, the Accountant of Barakah Company disclosed to the zakat authority that the company purchased the tooling equipment amounting to $17,000 from one of their trade creditors on credit and the amount has been included as part of the total amount of trade creditors. (iii) During the year, it was also disclosed that part of the stocks had been acquired from one of the suppliers who agreed for the payment to be deferred for three years amounting to $15,000 and this has been accounted for as long-term liabilities. iv) Work-in-Progress is a fifth of the total Inventory. (v) Provision for bad debts for the year ended 2021 is expected to be 17% of the total amount of debtors and this provision has not been considered by the company. Required: (a) Determine the zakat base and zakat payable based on the Net Current Assets method and Net Invested Fund method. (10 marks)

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