COURSE
COURSE CODE EXAMINATION TIME
UNIVERSITI TEKNOLOGI MARA FINAL EXAMINATION
INTERMEDIATE FINANCIAL ACCOUNTING AND REPORTING
ACC406
DECEMBER 2019 3 HOURS
INSTRUCTIONS TO CANDIDATES
1. This question paper consists of four (4) questions.
2. Answer ALL questions in the Answer Booklet. Start each answer on a new page.
3. Do not bring any material into the examination room unless permission is given by the
invigilator.
4. Please check to make sure that this examination pack consists of:
i) the Question Paper
ii) an Answer Booklet - provided by the Faculty 5. Answer ALL questions in English.
DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO This examination paper consists of 6 printed pages
QUESTION 1
Fasha llman, a fashion designer owns a boutique located in Bangi, Selangor. The business started its operation since April 2017. It sells various types of women's wear which includes shawl, blouses, t-shirt, jeans and skirts. Fasha contributed RM20.000 as an initial capital for her business. Besides personal investment, she took an initiative by applying loan from AKZ Bank amounted to RM50,000 to finance the business. Any goods or money taken from her business for personal purpose will be recorded as drawings in her account. Due to overwhelming demand from its customers, her business is expected to gain a better reputation and will continue its operation for foreseeable future. All the business transactions are measured in term of Ringgit Malaysia.
The financial year end of the business is on 31 December every year. On 31 December 2018, she gathered the following financial information of the business.
Details Price Per Unit
(RM)
Units
Shawl 5.00 2,500
Blouse 25.00 1,000
T-shirt 15.00 2,000
Computer 2,000.00 2
Display statue 200.00 15
Wardrobe 600.00 5
Steam iron 250.00 3
The total account receivables and payables were RM10,000 and RM7.000 respectively. The business also incurred the following expenses:
i. Monthly rental premise amounted to RM1,000.
ii. Interest on loan at 4% per annum.
The business had a bank balance of RM17,000. Fasha needs to buy more equipment for her business, thus she plans to acquire another loan in a near future.
Required:
a. Discuss four (4) types of accounting process.
(6 marks) b. Briefly explain three (3) accounting concepts applied by the business.
(6 marks) c. Classify the above business items into non-current asset, current asset, non-current
liability, current liability, equity and expense.
(7 marks) d. Calculate the total amount of profit or loss of the business for the year ended 31
December 2018 using accounting equation.
(6 marks)
Miss Jupiter is the owner of Jay Cafe which is located exclusively at Bangsar. The following
are the business transactions for the month of November 2019:
November
2019 Details
1 Purchased goods worth RM 2,000 from Mini Market on credit.
2 Some of the damaged goods worth RM200 were returned to Mini Market.
3 Made cash sales worth RM500.
5 The cafe provided catering service to Kamil Enterprise worth RM 4,000 on
credit.
7 Paid utility bills amounted to RM 1,500 by cash.
11 Paid full amount to Mini Market on the purchased goods by cheque.
15 Kamil Enterprise settled its account by cheque.
19 Purchased a brand new microwave worth RM6,000 on credit from Bobo Equipment.
22 Miss Jupiter took goods worth RM250 for her personal use.
25
Delivered food to customer at several office premises and colleges. Total
sales worth RM 2,000 for cash.
29
Sent the business's delivery van to workshop for repairs. The cost was
RM 600 and paid by cash.Required:
a. Identify the effects (increase or decrease) on assets, liabilities, revenues, expenses or
owner's equity for the above transactions.(11 marks) b. Show the accounts to be debited and credited for all of the above transactions.
(11 marks) c. State the appropriate books of prime entry for the transactions from 2 November until
22 November 2019.
(8 marks) (Total: 30 marks)
QUESTION 3
Amra Enterprise is owned by Mr. Ganesan. Below is the trial balance for Amra Enterprise as
at 30 June 2019.
Debit (RM) Credit (RM)
Sales 1,793,350
Purchases 740,000
Administrative expenses 85,000
Advertising expenses 50,000
Interest on loan 15,000
Audit fees 10,000
Insurance expense 2,000
Rental expense 12,000
Carriage outwards 3,000
Drawings 150
Discount allowed 200
Discount received 200
Custom duty on purchases 1,000
Income on investment 11,000
8% Bank loan 300,000
Capital 1,259,100
Investment in ABS Bhd 100,000
Land 1,090,000
Motor Vehicle (cost) 520,000
Office furniture (cost) 750,000
Accumulated depreciation as at 1 July 2018:
Motor vehicle 192,500
Office furniture 112,500
Sales return 500
Purchase return 1,000
Account receivables 62,300
Allowance for doubtful debt as at 1 July 2018 1,500
Account payables 61,500
Cash in hand 5,000
Cash at bank 270,000
Inventory as at 1 July 2018 16,500
3,732,650 3,732,650
Additional information:
1. The following depreciation on non-current assets are to be provided for the year:
i. Motor vehicle -10% p.a using reducing balance method ii. Office furniture -15% p.a using straight line method 2. Part of the interest on loan was not yet paid.
4. Allowance for doubtful debt is to be adjusted to 5% at the end of the year. One of the
account receivables amounted to RM500 needs to be written off.
5. The owner took goods and cash amounted to RM250 and RM200 respectively.
6. Audit fees of RM1,000 was still accrued.
7. Inventory as at 30 June 2019 was valued at RM20.000.
Required:
a. Statement of Profit or Loss for the year ended 30 June 2019.
(18 marks)
b. Statement of Financial Position as at 30 June 2019.
(12 marks)
Note 1: Use vertical format presentation for both statements and show all working.
Note 2: Calculate to the nearest RM.
(Total: 30 marks)
QUESTION 4
Farid, Addin and Hafizan were partners of Marika Enterprise, sharing profits and losses in the ratio of 3:2:1 respectively. The following balances were obtained from their partnership books
for the financial year ended 30 June 2019:Capital account: RM
Farid 130,000
Addin 110,000
Hafizan 120,000
Current account:
Farid 12,500
Addin (13,000)
Hafizan 14,000
Net Profit 113,000
Additional information:
1. Farid and Addin are entitled to receive monthly salary of RM1,000.
2. Interest on capital is allowed at the rate of 5% per annum and is based on opening
balance.
3. As at 30 June 2019, the partners only received salaries up to September 2018. Farid has advanced RM3.000 as a loan to the partnership on 1 October 2018. He is entitled to an interest of 2% per annum which is to be included in the Statement of Profit or Loss.
4. On 1 September 2018, Hafizan withdrew RM2.000 cash from the partnership's account to buy his daughter a gift. Two months later, Hafizan made another cash withdrawal
amounted to RM500 for himself.
5. Interest on drawings is to be charged at the rate of 4% per annum.
Required:
a. Prepare an appropriation statement for the year ended 30 June 2019.
b. Prepare the partners' current account for the year ended 30 June 2019.
c. State two (2) advantages of a partnership business.
(8 marks)
(5 marks)
(2 marks) (Total: 15 marks)
END OF QUESTION PAPER
