DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO
AC/MAR 2004/ACC100/105
107/111/114/115
CONFIDENTIAL
UNIVERSITI TEKNOLOGI MARA
FINAL EXAMINATION
COURSE
FINANCIAL ACCOUNTING
COURSE CODE
ACC100/105/107/111/114/115
DATE
3 MARCH 2004
TIME
3 HOURS (9,00 a.m - 12.00 p.m)
FACULTY
Business and Management / Administration and Law /
Office Management and Technology /
Information Technology and Science Computer
November 2003 - March 2004
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
SEMESTER
PROGRAMME/CODE
INSTRUCTIONS TO CANDIDATES
1.
Answer ALL questions in the answer booklet.
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.
4.
Please check to make sure that this examination pack consists of:
i)
the Question Paper
ii)
an Answer Booklet - provided by the Faculty
an Objective Answer Sheet
iii)
DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO
This examination paper consists of 9 printed pages
© Hak Clpta Unlversitl Teknologi MARA
CONFIDENTIAL
CONFIDENTIAL
2
AC/MAR 2004/ACC100/1057
107/111/114/115
SECTION A
This section consist of 13 multiple choice questions. Choose the most suitable
answer and shade the corresponding alphabet representing the answer in the
multiple choice answer sheet provided.
1.
ECO Travel Sdn Bhd bought a building at a cost of RM500.000. The current market
value of the building is RM700.000. The asset will be reported in the Balance Sheet
at the value of
a.
b
c.
RM700.000
RM200.000
RM500.000
d.
None of the above
(1 mark)
2.
Kedai Supinah has a current ratio of 2:1. Its working capital amounts to RM300.000.
The amount of current assets will be
a.
b.
c.
d.
RM300.000
RM200.000
RM500.000
RM100,000
(2 marks)
3.
Nazirul Enterprise has net sales of RM380.000 and gross profit of RM72.000. What
is the opening stock if the net purchases are RM183,000 and the closing stock is
RM35.000.
a.
b.
c.
a.
RM160,000
RM90.000
RM 155,00
RM95,000
(1 mark)
4.
Natasha Enterprise had total assets of RM400,000 and owner's equity of RM208.000
at the beginning of the year. During the year, assets increased by RM52,000 and
liabilities decreased by RM82.000. Owner's equity at the end of the year was
b.
c.
d.
e.
RM370.000
RM342.000
RM338.000
RM178,000
(2 marks)
© Hak Cipta Universal Teknologi MARA
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5.
AC/MAR 2004/ACC100/105/
107/111/114/115
A bank reconciliation statement is a statement
a.
b.
c.
d.
6.
3
Sent by the bank when the account is overdrawn
Drawn up by a business to verify the cash book balance with the bank
statement balance
Drawn up by the bank to verify the cash book
Sent by the bank when we have made error
(1 mark)
What is net profit?
a.
b.
c.
d.
Purchases + sales
Gross profit + other incomes - expenses
Sales less cost of goods sold
Excess of cost of sales over sales
(1 mark)
7.
When the owner invests cash in the business, what is the effect?
a.
b.
c.
d.
Liabilities increase and capital decreases
Both assets and liabilities increase
Both assets and liabilities decrease
Both assets and capital increase
(1 mark)
8.
General journal is used to
a.
b
c.
d.
record opening entries only
record adjusting and closing entries only
record correction of errors only
record all of the above
(1 mark)
9.
The owner taking some goods from the business for personal use will result in:
a.
b.
c.
d.
an increase in gross profit, a decrease in drawings
an increase in gross profit, an increase in drawings
a decrease in gross profit, a decrease in drawings
a decrease in gross profit, an increase in drawings
(1 mark)
© Hak Cipta Universitl Teknologl MARA
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10.
4
AC/MAR 2004/ACC100/105/
107/111/114/115
The provision of the annual depreciation will result in:
a.
b.
c.
c.
An increase in net profit and increase in provision for accumulated
depreciation
A decrease in net profit and decrease in provision for accumulated
A decrease in net profit and decrease in net book value of fixed assets
A decrease in net profit and increase in net book value of fixed assets
(1 mark)
11.
Which of the following is NOT the purpose of the trial balance ?
a.
b.
c.
d.
12.
Which of the following statement is incorrect?
a.
b.
c.
d.
13.
To check and test of the equality of the debit and credit balances in the ledger
To identify unethical preparation of the accounts
To assist in localizing errors within a given time period
To help in facilitating the preparation of the financial statements
(1 mark)
Under sole trader, the owner is not responsible for the liabilities of the
business when the business goes bankrupt
The minimum number of members of a partnership is 2
The partners of a partnership is responsible for the partnership liabilities if the
partnership is bankrupt
The liability of shareholders of a limited company is limited to their
investment in the company
(1 mark)
Every year, a business needs to provide for doubtful debts under the
_______concept.
a.
b.
c.
d.
Accrual concept
Materiality concept
Consistency concept
Prudence concept
(1 mark)
(Total: 15 marks)
© Hak Clpta Unlversitl Teknologl MARA
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5
AC/MAR 2004/ACC100/105/
107/111/114/115
SECTION B
Question 1
The following is the trial balance extracted from the books of Syarikat Unicity at 31 December
2003.
Debit
RM
Capital at 1 January 2003
Drawings
Freehold premises (cost)
Furniture and fittings (cost)
Stock at 1 January 2003
Cash
Debtors
Creditor
Loan from M Bank (at 1.1.2003)
Accumulated depreciation:
Furniture and fittings
Bad debts
Rent
Bank charges
Carriage inwards
Carriage outwards
Discount allowed
Electricity and water
General expenses
Printing and stationery
Salaries and wages
Travelling expenses
Purchases
Sales
Returns inwards
Returns outwards
50,000
2,400
16,000
16,600
16,000
4,600
42,660
18,592
5,000
7,800
640
4,970
240
380
1,092
250
5,720
4,750
2,350
33,300
3,480
173,096
247,090
500
270
276
Discount received
329,028
© Hak Cipta Unlversltl Teknologi MARA
Credit
RM
__329,028
CONFIDENTIAL
CONFIDENTIAL
6
AC/MAR 2004/ACC100/1057
107/111/114/115
You are provided with the following information:
1.
Stock at 31 December 2003 is valued at RM16,100.
2.
Interest on loan at 7% per annum had not been paid at 31 December 2003.
3.
Depreciation was provided using the rates as follows:
Furniture and fittings by 10% per annum on cost
4.
The owner had taken RM200 cash from the business to buy a birthday present for
his wife.
5.
Accrual at 31 December 2003:
Rent
RM350
Travelling Expenses RM170
6.
Prepayments at 31 December 2003:
General Expenses RM200
Salaries and wages RM400
You are required to prepare:
a)
Trading and Profit and Loss accounting for the year ended 31 December 2003; and
(12 marks)
b)
Balance Sheet as at that date.
(12 marks)
(Total: 24 marks)
Question 2
a)
Give two reasons why ratio analysis is important?
(4 marks)
b)
Briefly explain the following :
i)
ii)
Standing orders
Dishonoured cheque
(4 marks)
© Hak Cipta Universiti Teknologl MARA
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c)
d)
7
AC/MAR 2004/ACC100/105/
107/111/114/115
A business needs to prepare a monthly bank reconciliation statement to reconcile the
differences between the Bank Statement and the Cash Book (Bank Column). Briefly
explain 3 reasons for the differences.
(6 marks)
Differentiate between:
i)
ii)
sales journal and sales ledger
purchases journal and purchases ledger
(4 marks)
(Total: 18 marks)
Question 3
The Cash Book of Sapuany Trading as at 30 November 2003 shows a debit balance of
RM7.733 which is different from that of the Bank Statement that was received on 3
December 2003. The difference was due to the following:
1.
The Bank Statement recorded a cheque of RM480 which was returned by the bank,
marked "Insufficient Fund".
2.
Interest on Fixed Deposit of RM650 was credited directly into the bank account.
3.
The bank has credited a cheque amounting to RM850 into Sapuany Trading's
account by mistake. The cheque was actually made to Supay Trading.
4.
A customer credited a payment of RM1.450 directly into Sapuany Trading's bank
account. This has not been recorded in the Cash Book.
5.
Bank charges and interest of RM237 had not been recorded in the cash book.
6.
A cheque for RM2.290 drawn in favour of a supplier was wrongly credited as
RM2.920 in the Cash Book.
7.
A standing instruction to pay rental for the month of November 2003 of RM1,105 was
recorded in the bank statement but not in the cash book.
8.
Cheques drawn in favour of Ali Trading and Mee Cheong Trading amounting
RM1.807 and RM700 respectively, had not been presented to the bank for payments
as at 30 November 2003.
9.
A cheque of RM4.105 from a debtor was debited in the Cash Book on 15 November
2003 but this entry did not appear in the bank statement.
10.
Receipts amounted to RM4.850 which were debited in the Cash Book on the 15
November 2003, were not yet entered in the Bank statement as at 30 November
2003.
11.
A cheque of RM480 received from a customer was recorded on the wrong side of
the Cash book.
© Hak Clpta Universlti Teknologi MARA
CONFIDENTIAL
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8
AC/MAR 2004/ACC100/105/
107/111/114/115
You are required to:
a)
Update the Cash Book; and
b)
Prepare the Bank Reconciliation Statement as at 30 September 2003.
(Total: 14 marks)
Question 4
Encik Jiwari, the owner of Jiwari Trading, does not have much experience in accounting and
he requests your help to help him prepare the following five ratios. He was able to supply
you with the following information:
RM
Net sales
120,000
Opening stock
10,000
Purchases
Closing stock
Discounts Received
Total expenses
Debtors
Creditors
Cash
Bank
25,000
5,000
5,000
35,000
25,000
30,000
40,000
20,000
Bank loan
15,000
You are required to prepare the following ratios with brief explanation on each to help Encik
Jiwari understand them. Assume 360 days in a year.
a)
b)
c)
d)
e)
Current ratio
Gross profit margin
Net profit margin
Debtors collection period
Acid test ratio
(Total: 10 marks)
© Hak Clpta Unlversiti Teknologl MARA
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9
AC/MAR 2004/ACC100/1 OS/
107/111/114/115
Question 5
a)
On 1 January 2001 there was a balance of RM300 in the Provision for Bad Debts
Account, and it was decided to maintain the provision at 5% of the debtors at each
year end.
The debtors on 31 December each year were:
2001
2002
2003
RM
10,000
5,000
5,000
Show the necessary entries for three years ended 31 December 2001 to 31
December 2003 inclusive in the following:
the Provision for Doubtful Debts Accounts;
the Balance Sheet extracts.
(6 marks)
b)
On 1 January 2004 Wahab owed Syarikat Din RM150. On 31 January 2004, Wahab
was declared a bankrupt. For every ringgit Wahab owed, he could only pay 20 sen in
full settlement to Syarikat Din. The remaining balance was written off as a bad debt.
Write up the account of Wahab in Syarikat Din's ledger.
(3 marks)
c)
A manufacturing firm purchased a van for RM150,000 by cheque on 2 January 2001.
The van is to be depreciated at a rate of 10% using reducing balance method.
You are required to prepare:
i)
ii)
iii)
iv)
Van Account at 31 December 2003
Provision for Depreciation Account at 31 December 2003
Depreciation Account at 31 December 2003
Balance Sheet Extract as at 31 December 2003
Show all your workings.
(10 marks)
(Total: 19 marks)
END OF QUESTION PAPER
© Hak Cipta Universiti Teknologi MARA
CONFIDENTIAL
107/111/114/115
CONFIDENTIAL
UNIVERSITI TEKNOLOGI MARA
FINAL EXAMINATION
COURSE
FINANCIAL ACCOUNTING
COURSE CODE
ACC100/105/107/111/114/115
DATE
3 MARCH 2004
TIME
3 HOURS (9,00 a.m - 12.00 p.m)
FACULTY
Business and Management / Administration and Law /
Office Management and Technology /
Information Technology and Science Computer
November 2003 - March 2004
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
SEMESTER
PROGRAMME/CODE
INSTRUCTIONS TO CANDIDATES
1.
Answer ALL questions in the answer booklet.
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.
4.
Please check to make sure that this examination pack consists of:
i)
the Question Paper
ii)
an Answer Booklet - provided by the Faculty
an Objective Answer Sheet
iii)
DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO
This examination paper consists of 9 printed pages
© Hak Clpta Unlversitl Teknologi MARA
CONFIDENTIAL
CONFIDENTIAL
2
AC/MAR 2004/ACC100/1057
107/111/114/115
SECTION A
This section consist of 13 multiple choice questions. Choose the most suitable
answer and shade the corresponding alphabet representing the answer in the
multiple choice answer sheet provided.
1.
ECO Travel Sdn Bhd bought a building at a cost of RM500.000. The current market
value of the building is RM700.000. The asset will be reported in the Balance Sheet
at the value of
a.
b
c.
RM700.000
RM200.000
RM500.000
d.
None of the above
(1 mark)
2.
Kedai Supinah has a current ratio of 2:1. Its working capital amounts to RM300.000.
The amount of current assets will be
a.
b.
c.
d.
RM300.000
RM200.000
RM500.000
RM100,000
(2 marks)
3.
Nazirul Enterprise has net sales of RM380.000 and gross profit of RM72.000. What
is the opening stock if the net purchases are RM183,000 and the closing stock is
RM35.000.
a.
b.
c.
a.
RM160,000
RM90.000
RM 155,00
RM95,000
(1 mark)
4.
Natasha Enterprise had total assets of RM400,000 and owner's equity of RM208.000
at the beginning of the year. During the year, assets increased by RM52,000 and
liabilities decreased by RM82.000. Owner's equity at the end of the year was
b.
c.
d.
e.
RM370.000
RM342.000
RM338.000
RM178,000
(2 marks)
© Hak Cipta Universal Teknologi MARA
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CONFIDENTIAL
5.
AC/MAR 2004/ACC100/105/
107/111/114/115
A bank reconciliation statement is a statement
a.
b.
c.
d.
6.
3
Sent by the bank when the account is overdrawn
Drawn up by a business to verify the cash book balance with the bank
statement balance
Drawn up by the bank to verify the cash book
Sent by the bank when we have made error
(1 mark)
What is net profit?
a.
b.
c.
d.
Purchases + sales
Gross profit + other incomes - expenses
Sales less cost of goods sold
Excess of cost of sales over sales
(1 mark)
7.
When the owner invests cash in the business, what is the effect?
a.
b.
c.
d.
Liabilities increase and capital decreases
Both assets and liabilities increase
Both assets and liabilities decrease
Both assets and capital increase
(1 mark)
8.
General journal is used to
a.
b
c.
d.
record opening entries only
record adjusting and closing entries only
record correction of errors only
record all of the above
(1 mark)
9.
The owner taking some goods from the business for personal use will result in:
a.
b.
c.
d.
an increase in gross profit, a decrease in drawings
an increase in gross profit, an increase in drawings
a decrease in gross profit, a decrease in drawings
a decrease in gross profit, an increase in drawings
(1 mark)
© Hak Cipta Universitl Teknologl MARA
CONFIDENTIAL
CONFIDENTIAL
10.
4
AC/MAR 2004/ACC100/105/
107/111/114/115
The provision of the annual depreciation will result in:
a.
b.
c.
c.
An increase in net profit and increase in provision for accumulated
depreciation
A decrease in net profit and decrease in provision for accumulated
A decrease in net profit and decrease in net book value of fixed assets
A decrease in net profit and increase in net book value of fixed assets
(1 mark)
11.
Which of the following is NOT the purpose of the trial balance ?
a.
b.
c.
d.
12.
Which of the following statement is incorrect?
a.
b.
c.
d.
13.
To check and test of the equality of the debit and credit balances in the ledger
To identify unethical preparation of the accounts
To assist in localizing errors within a given time period
To help in facilitating the preparation of the financial statements
(1 mark)
Under sole trader, the owner is not responsible for the liabilities of the
business when the business goes bankrupt
The minimum number of members of a partnership is 2
The partners of a partnership is responsible for the partnership liabilities if the
partnership is bankrupt
The liability of shareholders of a limited company is limited to their
investment in the company
(1 mark)
Every year, a business needs to provide for doubtful debts under the
_______concept.
a.
b.
c.
d.
Accrual concept
Materiality concept
Consistency concept
Prudence concept
(1 mark)
(Total: 15 marks)
© Hak Clpta Unlversitl Teknologl MARA
CONFIDENTIAL
CONFIDENTIAL
5
AC/MAR 2004/ACC100/105/
107/111/114/115
SECTION B
Question 1
The following is the trial balance extracted from the books of Syarikat Unicity at 31 December
2003.
Debit
RM
Capital at 1 January 2003
Drawings
Freehold premises (cost)
Furniture and fittings (cost)
Stock at 1 January 2003
Cash
Debtors
Creditor
Loan from M Bank (at 1.1.2003)
Accumulated depreciation:
Furniture and fittings
Bad debts
Rent
Bank charges
Carriage inwards
Carriage outwards
Discount allowed
Electricity and water
General expenses
Printing and stationery
Salaries and wages
Travelling expenses
Purchases
Sales
Returns inwards
Returns outwards
50,000
2,400
16,000
16,600
16,000
4,600
42,660
18,592
5,000
7,800
640
4,970
240
380
1,092
250
5,720
4,750
2,350
33,300
3,480
173,096
247,090
500
270
276
Discount received
329,028
© Hak Cipta Unlversltl Teknologi MARA
Credit
RM
__329,028
CONFIDENTIAL
CONFIDENTIAL
6
AC/MAR 2004/ACC100/1057
107/111/114/115
You are provided with the following information:
1.
Stock at 31 December 2003 is valued at RM16,100.
2.
Interest on loan at 7% per annum had not been paid at 31 December 2003.
3.
Depreciation was provided using the rates as follows:
Furniture and fittings by 10% per annum on cost
4.
The owner had taken RM200 cash from the business to buy a birthday present for
his wife.
5.
Accrual at 31 December 2003:
Rent
RM350
Travelling Expenses RM170
6.
Prepayments at 31 December 2003:
General Expenses RM200
Salaries and wages RM400
You are required to prepare:
a)
Trading and Profit and Loss accounting for the year ended 31 December 2003; and
(12 marks)
b)
Balance Sheet as at that date.
(12 marks)
(Total: 24 marks)
Question 2
a)
Give two reasons why ratio analysis is important?
(4 marks)
b)
Briefly explain the following :
i)
ii)
Standing orders
Dishonoured cheque
(4 marks)
© Hak Cipta Universiti Teknologl MARA
CONFIDENTIAL
CONFIDENTIAL
c)
d)
7
AC/MAR 2004/ACC100/105/
107/111/114/115
A business needs to prepare a monthly bank reconciliation statement to reconcile the
differences between the Bank Statement and the Cash Book (Bank Column). Briefly
explain 3 reasons for the differences.
(6 marks)
Differentiate between:
i)
ii)
sales journal and sales ledger
purchases journal and purchases ledger
(4 marks)
(Total: 18 marks)
Question 3
The Cash Book of Sapuany Trading as at 30 November 2003 shows a debit balance of
RM7.733 which is different from that of the Bank Statement that was received on 3
December 2003. The difference was due to the following:
1.
The Bank Statement recorded a cheque of RM480 which was returned by the bank,
marked "Insufficient Fund".
2.
Interest on Fixed Deposit of RM650 was credited directly into the bank account.
3.
The bank has credited a cheque amounting to RM850 into Sapuany Trading's
account by mistake. The cheque was actually made to Supay Trading.
4.
A customer credited a payment of RM1.450 directly into Sapuany Trading's bank
account. This has not been recorded in the Cash Book.
5.
Bank charges and interest of RM237 had not been recorded in the cash book.
6.
A cheque for RM2.290 drawn in favour of a supplier was wrongly credited as
RM2.920 in the Cash Book.
7.
A standing instruction to pay rental for the month of November 2003 of RM1,105 was
recorded in the bank statement but not in the cash book.
8.
Cheques drawn in favour of Ali Trading and Mee Cheong Trading amounting
RM1.807 and RM700 respectively, had not been presented to the bank for payments
as at 30 November 2003.
9.
A cheque of RM4.105 from a debtor was debited in the Cash Book on 15 November
2003 but this entry did not appear in the bank statement.
10.
Receipts amounted to RM4.850 which were debited in the Cash Book on the 15
November 2003, were not yet entered in the Bank statement as at 30 November
2003.
11.
A cheque of RM480 received from a customer was recorded on the wrong side of
the Cash book.
© Hak Clpta Universlti Teknologi MARA
CONFIDENTIAL
CONFIDENTIAL
8
AC/MAR 2004/ACC100/105/
107/111/114/115
You are required to:
a)
Update the Cash Book; and
b)
Prepare the Bank Reconciliation Statement as at 30 September 2003.
(Total: 14 marks)
Question 4
Encik Jiwari, the owner of Jiwari Trading, does not have much experience in accounting and
he requests your help to help him prepare the following five ratios. He was able to supply
you with the following information:
RM
Net sales
120,000
Opening stock
10,000
Purchases
Closing stock
Discounts Received
Total expenses
Debtors
Creditors
Cash
Bank
25,000
5,000
5,000
35,000
25,000
30,000
40,000
20,000
Bank loan
15,000
You are required to prepare the following ratios with brief explanation on each to help Encik
Jiwari understand them. Assume 360 days in a year.
a)
b)
c)
d)
e)
Current ratio
Gross profit margin
Net profit margin
Debtors collection period
Acid test ratio
(Total: 10 marks)
© Hak Clpta Unlversiti Teknologl MARA
CONFIDENTIAL
CONFIDENTIAL
9
AC/MAR 2004/ACC100/1 OS/
107/111/114/115
Question 5
a)
On 1 January 2001 there was a balance of RM300 in the Provision for Bad Debts
Account, and it was decided to maintain the provision at 5% of the debtors at each
year end.
The debtors on 31 December each year were:
2001
2002
2003
RM
10,000
5,000
5,000
Show the necessary entries for three years ended 31 December 2001 to 31
December 2003 inclusive in the following:
the Provision for Doubtful Debts Accounts;
the Balance Sheet extracts.
(6 marks)
b)
On 1 January 2004 Wahab owed Syarikat Din RM150. On 31 January 2004, Wahab
was declared a bankrupt. For every ringgit Wahab owed, he could only pay 20 sen in
full settlement to Syarikat Din. The remaining balance was written off as a bad debt.
Write up the account of Wahab in Syarikat Din's ledger.
(3 marks)
c)
A manufacturing firm purchased a van for RM150,000 by cheque on 2 January 2001.
The van is to be depreciated at a rate of 10% using reducing balance method.
You are required to prepare:
i)
ii)
iii)
iv)
Van Account at 31 December 2003
Provision for Depreciation Account at 31 December 2003
Depreciation Account at 31 December 2003
Balance Sheet Extract as at 31 December 2003
Show all your workings.
(10 marks)
(Total: 19 marks)
END OF QUESTION PAPER
© Hak Cipta Universiti Teknologi MARA
CONFIDENTIAL