DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO
CONFIDENTIAL
BM/OCT2003/ACC100/
107/111/114/115
UNIVERSITI TEKNOLOGI MARA
FINAL EXAMINATION
COURSE
FINANCIAL ACCOUNTING
COURSE CODE
ACC100/107/111/114/115
DATE
17 OCTOBER 2003
TIME
3 HOURS (8.30 a.m -11.30 a.m)
FACULTY
Business and Management / Administration and Law
SEMESTER
PROGRAMME/CODE
Office Management and Technology
Information Technology and Science Computer
June 2003- November 2003
Diploma in Business Studies/BM111
Diploma in Banking / BM112
Diploma in Investment Analysis / BM114
Diploma in Business Studies (Insurance) / BM115
Diploma in Business Studies (Transport) / BM117
Diploma in Public Administration/AL110
Diploma in Office Management and Technology / OM114
Diploma in Science Computer / CS110
Diploma in Statistic/ CS111
Diploma in Planting Industry Management / AS110
Diploma in Actuarial Science/CS112
Bachelor of Science (Hons) (Statistic) / CS221
Bachelor of Science (Hons) (Actuarial Science) / CS222
Bachelor of Science (Hons) (Intelligent System) / CS223
Bachelor of Science (Hons) (Business Computerization) / CS224
Bachelor of Science (Hons) (Data Communication and Network) /
CS225
Bachelor of Science (Hons) (Information System Engineering) /
CS226
INSTRUCTIONS TO CANDIDATES
1.
Answer ALL questions in the answer booklet.
Start each answer on a new page.
Do not bring any material into the examination room unless permission is given by the invigilator.
Please check to make sure that this examination pack consists of:
i)
the Question Paper
ii)
an Answer Booklet - provided by the Faculty
iii)
an Objective Answer Sheet - included
DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO
This examination paper consists of 8 printed pages
CONFIDENTIAL
CONFIDENTIAL
2
BM/OCT 2003/ACC100/1077
111/114/115
SECTION A
This section consists of 9 multiple-choice questions. Choose the most suitable
answer and shade the corresponding alphabet representing the answer in the
multiple choice answer sheet provided.
1.
Depreciation of fixed asset is the process of
a.
b.
c.
d.
Valuing asset for statement of financial position purposes
Allocating cost of asset to the useful life
Accumulating fund for asset replacement
Valuing asset based on current replacement cost
(1 mark)
2.
A lorry was bought on 1st January 2003 at a cost of RM55.000. Its estimated useful
life was 5 years with RM10,500 salvage value. Determine the lorry's second year's
depreciation based on the straight-line basis.
a.
b.
c.
d.
RM11,000
RM13.100
RM8,900
RM17.800
(1 mark)
3.
The provision of depreciation account will be treated
a.
b.
c.
d.
in the asset account
in the Profit and Loss account as an expense
a debit balance in the Trial Balance
as a deduction from asset in the Balance Sheet
(1 mark)
4.
The effect of recognizing Accrued Rent Receivable in the Balance Sheet is:
a.
b.
c.
d.
A decrease in Asset
An increase in Liability
A decrease in Liability
An increase in Asset
(1 mark)
5.
A decrease in the provision for doubtful debts would result in
a.
b.
c.
d.
An increase in liability
A decrease in working capital
A decrease in net profit
An increase in net profit
(1 mark)
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6.
3
BM/OCT 2003/ACC100/107/
111/114/115
At the end of the accounting year, 31 December 2002, a debtor's account showed a
balance of RM13,950. In 2002, debts amounting to RM750 proved to be bad and
were written off. It was decided that the provision for doubtful debt and the provision
for discount allowed was to be 2.5% and 2% respectively. How much is the net
debtors?
a.
b.
c.
d.
RM12.606
RM12.572.25
RM13.322.25
RM12,612.60
(2 marks)
7.
In preparing a bank reconciliation statement, which of the following items will not be
used in updating the Cash Book.
a.
b.
c.
d.
Interest changes
Unpresented cheques
Bank charges
Standing orders
(1 mark)
8.
In a bank reconciliation, outstanding cheques are:
a.
b.
c.
d.
Deducted from the book balance
Added to the book balance
Added to the bank balance
Deducted from the bank balance
(1 mark)
9.
The bank statement shows an overdraft of RM150. A creditor has not presented a
cheque for RM50. When the cheque is presented for payment, the bank balance will
be:
a.
b.
c.
d.
RM200
RM100
RM100 overdrawn
RM200 overdrawn
(1 mark)
(Total: 10 marks)
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4
BM/OCT 2003/ACC100/1077
111/114/115
SECTION B
Question 1
The following are the fixed assets of Syarikat Ni Mo Joy, a manufacturer of toys, as at 31
December 2001:
Fixed Assets
Office Equipment
Furniture and Fittings
Motor Vehicle
Purchase Price
RM50,000
RM40,000
RM120.000
Date of Purchase
4 February 2000
3 May 2000
5 August 2000
During the year 2002, Syarikat Ni Mo Joy purchased additional fixed assets by cheques:
Date of Purchase
1 May 2002
15 September 2002
Fixed Assets
Office Equipment
Furniture and Fittings
Purchase Price
RM10,000
RM8,000
It is the policy of Syarikat Ni Mo Joy to calculate depreciation based on the balance of its
fixed assets at the end of each financial year. The depreciation charge is to be calculated
as follows:
Office Equipment
Furniture and Fittings
Motor Vehicle
Rate
10% p.a.
5% p.a.
20% p.a.
Method
Straight line
Straight line
Reducing balance
Syarikat Ni Mo Joy has not disposed of any of the above fixed assets as at 31 December
2002.
Required:
a)
Calculate the Accumulated Depreciation for Office Equipment, Furniture and Fittings
and Motor Vehicle Accounts as at 1 January 2002;
(4.5 marks)
b)
Prepare the Office Equipment, Furniture and Fittings and Motor Vehicle Accounts
and their respective Accumulated Depreciation Accounts for the year ended 31
December 2002; and
(9 marks)
Balance Sheet extract of Syarikat Ni Mo Joy as at 31 December 2002
(4.5 marks)
c)
d)
State two causes of depreciation.
(2 marks)
e)
State the main difference between the straight-line method and the reducing balance
method for calculating depreciation.
(2 marks)
(Total: 22 marks)
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BM/OCT 2003/ACC100/107/
111/114/115
Question 2
a)
b)
List two users of Accounting Information and briefly explain why do they need the
Information.
(4 marks)
Briefly explain the following Accounting Concepts.
i.
ii.
Going Concern
Historical Costs
(4 marks)
c)
d)
Explain the meaning of Capital Expenditure and Revenue Expenditure and give
examples.
(4 marks)
Explain the difference between bad debt and bad debt recovered.
(3 marks)
(Total: 15 marks)
Question 3
From the following trial balance of Syarikat Awang Salleh, prepare a Trading and Profit and
Loss Account for the year ended 31 December 2002, and a Balance Sheet as at that date,
taking into consideration the adjustments shown below:
Trial Balance as at 31 December 2002
Dr
Cr
RM
RM
Sales
Purchases
Sales returns
Opening stock at 1 January 2002
Wages and salaries
Rates
Telephone expenses
Freehold Land and Building
Fixtures and fittings, at cost
Van at cost
Debtors
Creditors
Bad Debts
Capital
Cash balance
Bank balance
Drawings
Advertising
Carriage Inwards
Carriage Outwards
400,000
250,000
5,000
90,000
50,000
4,000
3,000
500,000
80,000
60,000
8,000
15,000
1,000
675,000
2,000
21,000
7,000
6,000
1,000
2,000
1.090,000
1.090.000
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1.
2.
3.
4.
5.
6.
6
BM/OCT 2003/ACC100/1077
111/114/115
Closing stock at 31 December 2002 RM120,000.
Accrued wages RM5,000.
Prepaid rates RM400.
Telephone account outstanding RM300.
Depreciate fixtures and fittings at 10% per annum on cost.
Depreciate van at 20% per annum, on cost.
Required:
a)
b)
Prepare a Trading and Profit and Loss Account for the year ended 31 December
2002 and;
(13 marks)
Balance Sheet as at that date, using the vertical presentation.
(11 marks)
(Total: 24 marks)
Question 4
The cash book (column) of RSZ Sdn Bhd for the month of September 2003 is summarized
as follows:
Cash Book Bank column)
RM
Payments
Balance b/d
10,600
Receipts
13,476
Balance c/d
RM
12,848
1 1 ,228
24,076
24,076
However, when the bank statement was received the balance did not agree with the cash
book figure shown above. On investigation, the following were discovered:
1.
A cheque received for RM240 had been returned by the bank and marked "no
funds available".
2.
A payment of RM100 had been incorrectly entered in the cash book as RM1,100.
3.
Cheque drawn amounting to RM12,460 had not been presented to the bank for
payment.
4.
There was a standing order for payment of insurance amounting to RM140 in the
bank statement.
5.
Credit transfer received from Jaya Enterprise amounting to RM248.
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7
BM/OCT 2003/ACC100/1077
111/114/115
6.
A cheque for RM120 drawn by another customer HYZ Enterprise had been charged
to RSZ's bank account in error.
7.
Bank charges for RM40 has not been recorded in the cash book.
Required:
a)
Update the cash book (bank column)
(7 marks)
b)
Prepare bank reconciliation statement as at 30 September 2003
(4 marks)
(Total: 11 marks)
Question 5
Yahoo Trading is a business selling stationery and located at Puncak Alam. The financial
statement of Yahoo Trading for the year ended 30 June 2003 are as follows:
Yahoo Trading
Trading, Profit and Loss Account For The Year Ended 30 June 2003
RM
Sales Revenue
Less: Cost of Sales:
Opening stock
Add: purchases
RM
170,000
80,000
105.000
185,000
Less: closing stock
Gross Profit
Less: Expenses
Net Profit
(78.000)
(107.000)
63,000
(41.000)
22,000
Yahoo Trading
Balance Sheet as at 30 June 2003
RM
Fixed Assets
Current Assets:
Inventories
Accounts Receivables
Cash in Bank
RM
85,000
78,000
81,000
69,000
228,000
Less: Current Liabilities
(200,000)
28.000
113,000
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8
Financed by:
Capital
Add: net profit
BM/OCT 2003/ACC100/1077
111/114/115
80,000
22.000
102,000
Less: Drawings
(6,000)
96,000
17.000
Long Term Liabilities
113,000
Required:
Compute and comment on the following ratios:
a)
current ratio
b)
acid test ratio
c)
stock turnover ratio
d)
gross profit margin
e)
net profit margin
f)
return on investment
(18 marks)
END OF QUESTION PAPER
CONFIDENTIAL
BM/OCT2003/ACC100/
107/111/114/115
UNIVERSITI TEKNOLOGI MARA
FINAL EXAMINATION
COURSE
FINANCIAL ACCOUNTING
COURSE CODE
ACC100/107/111/114/115
DATE
17 OCTOBER 2003
TIME
3 HOURS (8.30 a.m -11.30 a.m)
FACULTY
Business and Management / Administration and Law
SEMESTER
PROGRAMME/CODE
Office Management and Technology
Information Technology and Science Computer
June 2003- November 2003
Diploma in Business Studies/BM111
Diploma in Banking / BM112
Diploma in Investment Analysis / BM114
Diploma in Business Studies (Insurance) / BM115
Diploma in Business Studies (Transport) / BM117
Diploma in Public Administration/AL110
Diploma in Office Management and Technology / OM114
Diploma in Science Computer / CS110
Diploma in Statistic/ CS111
Diploma in Planting Industry Management / AS110
Diploma in Actuarial Science/CS112
Bachelor of Science (Hons) (Statistic) / CS221
Bachelor of Science (Hons) (Actuarial Science) / CS222
Bachelor of Science (Hons) (Intelligent System) / CS223
Bachelor of Science (Hons) (Business Computerization) / CS224
Bachelor of Science (Hons) (Data Communication and Network) /
CS225
Bachelor of Science (Hons) (Information System Engineering) /
CS226
INSTRUCTIONS TO CANDIDATES
1.
Answer ALL questions in the answer booklet.
Start each answer on a new page.
Do not bring any material into the examination room unless permission is given by the invigilator.
Please check to make sure that this examination pack consists of:
i)
the Question Paper
ii)
an Answer Booklet - provided by the Faculty
iii)
an Objective Answer Sheet - included
DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO
This examination paper consists of 8 printed pages
CONFIDENTIAL
CONFIDENTIAL
2
BM/OCT 2003/ACC100/1077
111/114/115
SECTION A
This section consists of 9 multiple-choice questions. Choose the most suitable
answer and shade the corresponding alphabet representing the answer in the
multiple choice answer sheet provided.
1.
Depreciation of fixed asset is the process of
a.
b.
c.
d.
Valuing asset for statement of financial position purposes
Allocating cost of asset to the useful life
Accumulating fund for asset replacement
Valuing asset based on current replacement cost
(1 mark)
2.
A lorry was bought on 1st January 2003 at a cost of RM55.000. Its estimated useful
life was 5 years with RM10,500 salvage value. Determine the lorry's second year's
depreciation based on the straight-line basis.
a.
b.
c.
d.
RM11,000
RM13.100
RM8,900
RM17.800
(1 mark)
3.
The provision of depreciation account will be treated
a.
b.
c.
d.
in the asset account
in the Profit and Loss account as an expense
a debit balance in the Trial Balance
as a deduction from asset in the Balance Sheet
(1 mark)
4.
The effect of recognizing Accrued Rent Receivable in the Balance Sheet is:
a.
b.
c.
d.
A decrease in Asset
An increase in Liability
A decrease in Liability
An increase in Asset
(1 mark)
5.
A decrease in the provision for doubtful debts would result in
a.
b.
c.
d.
An increase in liability
A decrease in working capital
A decrease in net profit
An increase in net profit
(1 mark)
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CONFIDENTIAL
6.
3
BM/OCT 2003/ACC100/107/
111/114/115
At the end of the accounting year, 31 December 2002, a debtor's account showed a
balance of RM13,950. In 2002, debts amounting to RM750 proved to be bad and
were written off. It was decided that the provision for doubtful debt and the provision
for discount allowed was to be 2.5% and 2% respectively. How much is the net
debtors?
a.
b.
c.
d.
RM12.606
RM12.572.25
RM13.322.25
RM12,612.60
(2 marks)
7.
In preparing a bank reconciliation statement, which of the following items will not be
used in updating the Cash Book.
a.
b.
c.
d.
Interest changes
Unpresented cheques
Bank charges
Standing orders
(1 mark)
8.
In a bank reconciliation, outstanding cheques are:
a.
b.
c.
d.
Deducted from the book balance
Added to the book balance
Added to the bank balance
Deducted from the bank balance
(1 mark)
9.
The bank statement shows an overdraft of RM150. A creditor has not presented a
cheque for RM50. When the cheque is presented for payment, the bank balance will
be:
a.
b.
c.
d.
RM200
RM100
RM100 overdrawn
RM200 overdrawn
(1 mark)
(Total: 10 marks)
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4
BM/OCT 2003/ACC100/1077
111/114/115
SECTION B
Question 1
The following are the fixed assets of Syarikat Ni Mo Joy, a manufacturer of toys, as at 31
December 2001:
Fixed Assets
Office Equipment
Furniture and Fittings
Motor Vehicle
Purchase Price
RM50,000
RM40,000
RM120.000
Date of Purchase
4 February 2000
3 May 2000
5 August 2000
During the year 2002, Syarikat Ni Mo Joy purchased additional fixed assets by cheques:
Date of Purchase
1 May 2002
15 September 2002
Fixed Assets
Office Equipment
Furniture and Fittings
Purchase Price
RM10,000
RM8,000
It is the policy of Syarikat Ni Mo Joy to calculate depreciation based on the balance of its
fixed assets at the end of each financial year. The depreciation charge is to be calculated
as follows:
Office Equipment
Furniture and Fittings
Motor Vehicle
Rate
10% p.a.
5% p.a.
20% p.a.
Method
Straight line
Straight line
Reducing balance
Syarikat Ni Mo Joy has not disposed of any of the above fixed assets as at 31 December
2002.
Required:
a)
Calculate the Accumulated Depreciation for Office Equipment, Furniture and Fittings
and Motor Vehicle Accounts as at 1 January 2002;
(4.5 marks)
b)
Prepare the Office Equipment, Furniture and Fittings and Motor Vehicle Accounts
and their respective Accumulated Depreciation Accounts for the year ended 31
December 2002; and
(9 marks)
Balance Sheet extract of Syarikat Ni Mo Joy as at 31 December 2002
(4.5 marks)
c)
d)
State two causes of depreciation.
(2 marks)
e)
State the main difference between the straight-line method and the reducing balance
method for calculating depreciation.
(2 marks)
(Total: 22 marks)
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BM/OCT 2003/ACC100/107/
111/114/115
Question 2
a)
b)
List two users of Accounting Information and briefly explain why do they need the
Information.
(4 marks)
Briefly explain the following Accounting Concepts.
i.
ii.
Going Concern
Historical Costs
(4 marks)
c)
d)
Explain the meaning of Capital Expenditure and Revenue Expenditure and give
examples.
(4 marks)
Explain the difference between bad debt and bad debt recovered.
(3 marks)
(Total: 15 marks)
Question 3
From the following trial balance of Syarikat Awang Salleh, prepare a Trading and Profit and
Loss Account for the year ended 31 December 2002, and a Balance Sheet as at that date,
taking into consideration the adjustments shown below:
Trial Balance as at 31 December 2002
Dr
Cr
RM
RM
Sales
Purchases
Sales returns
Opening stock at 1 January 2002
Wages and salaries
Rates
Telephone expenses
Freehold Land and Building
Fixtures and fittings, at cost
Van at cost
Debtors
Creditors
Bad Debts
Capital
Cash balance
Bank balance
Drawings
Advertising
Carriage Inwards
Carriage Outwards
400,000
250,000
5,000
90,000
50,000
4,000
3,000
500,000
80,000
60,000
8,000
15,000
1,000
675,000
2,000
21,000
7,000
6,000
1,000
2,000
1.090,000
1.090.000
CONFIDENTIAL
CONFIDENTIAL
1.
2.
3.
4.
5.
6.
6
BM/OCT 2003/ACC100/1077
111/114/115
Closing stock at 31 December 2002 RM120,000.
Accrued wages RM5,000.
Prepaid rates RM400.
Telephone account outstanding RM300.
Depreciate fixtures and fittings at 10% per annum on cost.
Depreciate van at 20% per annum, on cost.
Required:
a)
b)
Prepare a Trading and Profit and Loss Account for the year ended 31 December
2002 and;
(13 marks)
Balance Sheet as at that date, using the vertical presentation.
(11 marks)
(Total: 24 marks)
Question 4
The cash book (column) of RSZ Sdn Bhd for the month of September 2003 is summarized
as follows:
Cash Book Bank column)
RM
Payments
Balance b/d
10,600
Receipts
13,476
Balance c/d
RM
12,848
1 1 ,228
24,076
24,076
However, when the bank statement was received the balance did not agree with the cash
book figure shown above. On investigation, the following were discovered:
1.
A cheque received for RM240 had been returned by the bank and marked "no
funds available".
2.
A payment of RM100 had been incorrectly entered in the cash book as RM1,100.
3.
Cheque drawn amounting to RM12,460 had not been presented to the bank for
payment.
4.
There was a standing order for payment of insurance amounting to RM140 in the
bank statement.
5.
Credit transfer received from Jaya Enterprise amounting to RM248.
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7
BM/OCT 2003/ACC100/1077
111/114/115
6.
A cheque for RM120 drawn by another customer HYZ Enterprise had been charged
to RSZ's bank account in error.
7.
Bank charges for RM40 has not been recorded in the cash book.
Required:
a)
Update the cash book (bank column)
(7 marks)
b)
Prepare bank reconciliation statement as at 30 September 2003
(4 marks)
(Total: 11 marks)
Question 5
Yahoo Trading is a business selling stationery and located at Puncak Alam. The financial
statement of Yahoo Trading for the year ended 30 June 2003 are as follows:
Yahoo Trading
Trading, Profit and Loss Account For The Year Ended 30 June 2003
RM
Sales Revenue
Less: Cost of Sales:
Opening stock
Add: purchases
RM
170,000
80,000
105.000
185,000
Less: closing stock
Gross Profit
Less: Expenses
Net Profit
(78.000)
(107.000)
63,000
(41.000)
22,000
Yahoo Trading
Balance Sheet as at 30 June 2003
RM
Fixed Assets
Current Assets:
Inventories
Accounts Receivables
Cash in Bank
RM
85,000
78,000
81,000
69,000
228,000
Less: Current Liabilities
(200,000)
28.000
113,000
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8
Financed by:
Capital
Add: net profit
BM/OCT 2003/ACC100/1077
111/114/115
80,000
22.000
102,000
Less: Drawings
(6,000)
96,000
17.000
Long Term Liabilities
113,000
Required:
Compute and comment on the following ratios:
a)
current ratio
b)
acid test ratio
c)
stock turnover ratio
d)
gross profit margin
e)
net profit margin
f)
return on investment
(18 marks)
END OF QUESTION PAPER
CONFIDENTIAL