UNIVERSITI TEKNOLOGI MARA FINAL EXAMINATION COURSE COURSE CODE DATE

BM/SEPT2001/ACC100/
107/111/114/115

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UNIVERSITI TEKNOLOGI MARA
FINAL EXAMINATION

COURSE

FINANCIAL ACCOUNTING

COURSE CODE

ACC100/107/111/114/115

DATE

30 SEPTEMBER 2001

TIME

3 HOURS (9.00 a.m - 12.00 noon)
Business and Management / Administration and Law

FACULTY

Office Management and Technology
Information Technology and Science Computer

T>nrTTMENT TD; 100000 ^ S" 7-0
SEMESTER

:

PROGRAMME / CODE

:

May - October 2001
Diploma in Business Studies / BM 1 11

Diploma in Banking / BM 112
Diploma in Investment Analysis / BM 114
Diploma in Business Studies (Insurance) / BM 115
Diploma in Business Studies (Transport) / BM 117
Diploma in Public Administration/ AL 110
Diploma in Office Management and Technology /OM 114
Diploma in Science Computer / CS 1 1 0
Diploma in Statistic / CS 1 11
Diploma in Actuarial Science / C S 112
Bachelor of Science (Hons) (Statistic) / CS 221
Bachelor of Science (Hons) (Actuarial Science) / CS 222
Bachelor of Science (Hons) (Intelligent System) / CS 223
Bachelor of Science (Hons) (Business Computerization) / CS 224
Bachelor of Science (Hons) (Data Communication and Network) /
CS225
Bachelor of Science (Hons) (Information System Engineering) / CS

226

INSTRUCTIONS TO CANDIDATES

1.

Answer ALL questions.

2.

Start each answer on a new page.

3.

Do not bring any material into the examination room unless permission is given by the
invigilator.

DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO
This examination paper consists of 8 printed pages
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SECTION A

Choose the most appropriate answer.
1.

2.

The following are accounting concepts except
a.

going concern

b.
c.
d.

consistency
prudence
value - added

Which of the following is revenue expenditure
a.
b.
c.
d.

3.

painting a new building
extension to a factory
utilities expenses
installation cost of air conditioning to a building

Your bank statement showed a balance of RM5.152 and you discovered that there
was uncredited cheque of RM826.50 and unpresented cheque of RM3.052.50. What

would be the adjusted bank statement balance ?

4.

a.
b.

RM1.273
RM7.378

c.
d.

RM2,926
RM2,921

Ratio Analysis is used to determine the
a.
b.

5.

profitability of an enterprise
ability of an enterprise to survive over a period of time

c.

financial position of an enterprise

d.

cash position of an enterprise

A provision for doubtful debt is
a.
b.
c.

a revenue account
an expense account

an asset account

d.

a liability account

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6.

7.

a.
b. .
c.

RM13,200
RM15,200

RM20.200

d.

RM18,200

You pay RM720 as insurance for your car on 1.3.2000 for a year. As at 31.12.2000,
calculate the amount of prepaid expenses.

10.

RM120
RM60
Nil
RM720

A business whose financial year ends at 31 December purchased on 1.1.x1 a
machine for RM180.000 depreciated at a rate of 7% p.a. using the reducing balance
method. Calculate the amount of accumulated depreciation to be shown in the
balance sheet as at 31.12.x2.

a.
b.
c.
d.

9.

BM/SEPT2001/ACC100/
107/111/114/115

Kok Sang set up a new business. Before he starts trading , he bought a second
hand car from his savings for RM15,000, stock of goods for RM3.000 on credit and
borrowed RM2,000 from his father . He has RM200 cash in hand. Calculate the
amount of his capital.

a.
b.
c.
d.
8.

3

RM25.200
RM11.718
RM24,318
RM12,600

When banking money into your current account you should always use a
a.
b.

cheque book
bank book

c.

paying in slip

d.

withdrawal form

If RM300 was added to purchases instead of being added to fixed assets,
a.
b.
c.
d.

both gross and net profits would be understated
both gross and net profits would be overstated
net profit only would be overstated
net profit only would be understated

(10 marks)

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BM/SEPT2001/ACC100/
107/111/114/115

SECTION B

Question 1
The following trial balance was extracted from the books of Suria Enterprise as at 31 March
2001.
Particulars

Capital
Provision for depreciation - Motor vehicle
Motor vehicles
Freehold premises
Purchases

Debit

Credit

RM

RM

90,000
8,000

60,000
120,000
50,000

Sales
Stock as at 1 /04/00
7% loan from Affin Bank

34,000

170,000

Investment
Bad debt

6,500
200

15,000

Rent

1,560

Trade debtors
Trade creditors
Delivery expenses
General expenses

7,950

Bank

3,250

Wages & salaries
Rates & insurance
Discount allowed
Discount received
Drawings
Return inwards
Return outwards

9,500
1,520
1,750

Carriage outwards

400

3,600

10,400
1,350
400

2,350
400
1,200
630

299,980

299,980

You are given the following information.
i) Stock on 31 March 2001 was RM12.900.

ii) Prepaid rates and insurance was RM25.
iii) Additional bad debt to be written off is RM70.
iv) A provision is to be made for depreciation for motor vehicle at the rate of 20% p.a. on

book value.
v) During the year, the owner took goods worth RM350 out of the business stock for his own

use.
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BM/SEPT2001/ACC100/
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vi) Interest on loan for the year is still accrued.

vii) A provision for doubtful debt is to be adjusted to 2% of trade debtors.
Required:
a.
b.

Trading, Profit and Loss Account for the year ended 31 March 2001
Balance Sheet as at that date. (Vertical style preferred)
(24 marks)

Question 2

The debtor's balance of Amee Sdn Bhd as at 30 June 1999 is RM20.100. In preparing the

accounts, Amee Sdn Bhd needs to consider the adjustment for bad debts of RM100 and
provision for doubtful debt amounted to RM320.
During the year ended 30 June 2000, amount totaling RM270 is to be written off as bad and
the provision for doubtful debt is 4% of outstanding debtors.
To close the accounts on 30 June 2001, bad debts amounted to RM 1,680 should be
considered. The provision for doubtful debt is to be maintained at 4% of debtors.
For this accounting period, Amee Sdn Bhd also make a provision for discount allowable of
2% out of outstanding debtors.

Required:
Show the accounts for the year ended 30 June 1999, 2000 and 2001:
a)
b)
c)
d)
e)

Bad debts account
Provision for doubtful debt account
Discount allowable account
Provision for discount allowable account
Extract of balance sheet as at 30 June 2001 only, (round up all figures)

(15 marks)

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Question 3

Given below is the summarized cashbook of Kaya Minimarket for the month of May 2001;

EM

RM
Receipt
Balance c/d

11,250
4.070

Balance b/d
Payments

5,470
9.850
15.320

All receipts are banked intact and all payments are made by cheque.
The cashier discovered the following while checking the cashbook with the bank statement.
a)

Bank charges amounting to RM207 had been debited by the bank in their customer's
account but had not been entered in the cash book.

b)

A transposition error had occurred in the opening cashbook balance, which should be
carried down as RM5.740.

c)

A payment of RM141 had been entered twice in the cashbook by mistake.

d)

The cash book receipts side had been overcast by RM25.

e)

A cheque for RM407 drawn on 28 May 2001 were paid by the bank on 12 June 2001.

f)

The bank has wrongly debited a cheque amounting to RM399 into Kaya Minimarket
account.

g)

Dividends on investments of RM112 had been credited in the bank statement but
there is no record in the cashbook.

h)

On 27 May 2001 a deposit of RM699 had been sent to the bank but was not credited
by the bank until 2 June 2001.

You are required to:
a)

Show an updated cashbook.

b)

Prepare the Bank Reconciliation Statement as at 31 May 2001.
(14 marks)

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Question 4
Timberlake Enterprise starts its business in March 1993 with financial year ended
31 December. The Balance Sheet (extract) as at 31 December 1998, showed the following :
Net Book Value
Machinery (cost RM200tOOO)
Motor vehicle (cost RM36.000)

RM28.000

On 30 April 1999, the company bought a new machine to replace the old machines at a cost
of RM250,000. On 7 July in the same year, the company bought a new motor vehicle worth
RM38,000 in cash.
During the year ended 31 December 2000, the company bought another machine at a cost
of RM300,000. All payments for purchases of machinery are made by cheque.
It is agreed that the machines will be depreciated at 10% annually on cost and motor vehicle
is to be depreciated at double depreciation rate of the machinery using reducing balance
method. The company provides a full year depreciation for all fixed assets in use at the end
of each year.
Required:
Show the following account of Timberlake Enterprise for the year ended 31 December 1999
and 2000.
a.

All fixed assets account.

b.

Provision for depreciation account.

c.

Extract of Balance Sheet.
{22 marks)

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Question 5
a.

Differentiate between straight-line method and reducing balance method of
depreciation.
(4 marks)

b.

Explain two (2) of the following concepts.
i

Accrual concept

ii Going concern concept
iii Consistency concept

(5 marks)

c.

State whether the following expenditures are "capital expenditure" or "revenue
expenditure".
i

Purchase of second hand furniture.

ii

Cost of building extension to factory.

iii

Maintenance expenditure for motor vehicle.

iv

Repairing the factory chimney.

v

Renewing road tax for company's car.

vi Installing air-conditioner in a vehicle.
(6 marks)
(Total : 15 marks)

END OF QUESTION PAPER

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