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CONFIDENTIAL AC/MAY 2018/ACC106/TEST1

UNIVERSITI TEKNOLOGI MARA


TEST 1 – SUGGESTED SOLUTION

COURSE : INTRODUCTION TO FINANCIAL ACCOUNTING AND


REPORTING

COURSE CODE : ACC 106

EXAMINATION : MAY 2018

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CONFIDENTIAL AC/MAY 2018/ACC106/TEST1

QUESTION 1

a. Current assets:

Cash at bank, account receivable, inventories, prepaid insurance √√ (any 2)

Current liabilities:

Accounts Payable and Accrued rental √√

(4√ x 1= 4 marks)

b. Total liabilities = RM12,000√ + RM6,000√ + RM50,000√ = RM68,000

(3√ x 1 = 3 marks)

QUESTION 2

Date Effects Journal entry


April 2018 Increase Decrease Debit Credit

1 Asset√ Cash √
Owner’s Capital √
equity√

3 Expenses√ Purchases √
Liability√ AP-Kek Lapis
Asam Bhd √

9 Asset√ Bank √
Revenue√ Sales √

12 Liability √ AP-Kek Lapis


Asam Bhd √
Expenses √ Purchase
return√

15 Owner’s equity √ Drawings/capital √


Expenses √ Purchases √

(20√ x ½= 10 marks)

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CONFIDENTIAL AC/MAY 2018/ACC106/TEST1

QUESTION 3

Senang Enterprise /
Statement of Profit or Loss for the year ended 30th June 2018/

RM RM RM

Sales 170,500 /

Less: Return Inwards (1,230)/


Less: Disc allowed (1,850) /

Net Sales / 167,420

Less: Cost of Goods Sold/

Opening Inventory 5,000 /

Purchases 78,000 /

Less: Return Outwards (550)/


Less: Disc received (2,450) /

Net Purchases 75000


+ Carriage inwards 1,000/

+ Duty on purchase 1,320/ 77,320

Cost of Goods Available for Sale 82,320

Less: Closing Inventory (13,500)/

COGS (68,820)

Gross Profit/ 98,600

Add: Other Revenues

Interest on fixed deposit ( 10% x 50,000 x 12/12) 5,000///

Rental received ( 5,750 + 750) 6,500// 11,500

110,100

Less: Operating expenses

Insurance expenses (5,500 – 700) 4,800//


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CONFIDENTIAL AC/MAY 2018/ACC106/TEST1

Rent expenses 12,000/

Water and electricity (6,660 + 550) 7,210//

Salaries and wages (20,500 – 950) 19,550 //

Stationeries 440/
Carriage outwards 800/

Depreciation –Motor vehicle [10% x (100,000-11,500)] 8,850 ///

Depreciation - Furniture& fittings (20% x 40,000) 8,000 //

Interest on loan (10% x 150,000 x 6/12) 7,500///

Increase in AFDD(5,500 -5,000) 500// (69,650)

Net Profit/ 40,450


(40/ x ½ =20 marks)

Senang Enterprise
Statement of Financial Position as 30th June 2018/
RM
RM RM Carrying
Cost (Acc Dep) Amount

Non-current assets
Motor vehicle 100,000 / (20,350)// 79,650
Furniture& fittings 40,000 / (15,500) // 24,500

10% Fixed deposit 50,000/

154,150

Current assets

Closing inventory 13,500 /

Accounts Receivable 43,500/

Less: AFDD (5,500)/ 38,000

Cash (13,800 – 500) 13,300//

Bank 44,400/

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CONFIDENTIAL AC/MAY 2018/ACC106/TEST1

Prepaid salaries and wages 950/


Prepaid insurance 700/

Accrued interest on fixed deposit 5,000/


Accrued rental received 750 /

116,600

270,750

Financed by:

Owner’s equity

Capital 42,750 /

Add: Net Profit / 40,450

Less: Drawings (3,500 + 500) (4,000)//

79,200

Non-current liabilities

10% Bank loan


150,000 /

Current liabilities

Accounts Payable 33,500/

Accrued interest on loan 7,500/

Accrued water and electricity 550/ 41,550

270,750

(26/ x½ = 13 MARKS)
(TOTAL: 33 MARKS)

END OF SUGGESTED SOLUTION