DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO
AC/APR 2010/ACC100/105/107/
111/1147115
CONFIDENTIAL
UNIVERSITI TEKNOLOGI MARA
FINAL EXAMINATION
COURSE
:
ACCOUNTING / FINANCIAL ACCOUNTING 1/
ACCOUNTING 1 / INTRODUCTION TO
ACCOUNTING 1/ FINANCIAL ACCOUNTING
COURSE CODE
ACC100/105/107/111/114/115
EXAMINATION
APRIL 2010
TIME
3 HOURS
INSTRUCTIONS TO CANDIDATES
1.
This question paper consists of two (2) parts :
PART A (9 Questions)
PART B (5 Questions)
2.
3.
4.
Answer ALL questions from all two (2) parts :
i) Answer PART A in the Objective Answer Sheet.
ii) Answer PART B 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)
ii)
iii)
the Question Paper
an Answer Booklet - provided by the Faculty
an Objective Answer Sheet - provided by the Faculty
DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO
This examination paper consists of 9 printed pages
© Hak Cipta Universiti Teknologi MARA
CONFIDENTIAL
CONFIDENTIAL
2
AC/APR 2010/ACC100/105/107/
111/114/115
PART A
This part 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.
The process of accounting can be described as:
a)
b)
c)
d)
Classifying, summarizing, recording and interpreting
Interpreting, classifying, summarizing and recording
Recording, summarizing, interpreting and classifying
Recording, classifying, summarizing and interpreting
(1 mark)
2.
A decrease in the Allowance for Discount Allowable would result in:
a)
b)
c)
d)
a decrease in the net profit
an increase in the net profit
a decrease in capital
a decrease in the current assets
(1 mark)
3.
A bank reconciliation statement is a statement
a)
b)
c)
d)
4.
Sent by the bank when they have made an error
Drawn up by us to verify our cash book balance with the bank statement
Sent by the bank when the account is overdrawn
Drawn up by the bank to verify the cash book
(1 mark)
An instruction given by our supplier to the bank to debit our account every month with
our permission can be referred to as:
a)
b)
c)
d)
Direct Debit
Standing Order
Credit Transfer
Dishonoured Cheque
(1 mark)
D Jaya Enterprise bought office equipment on credit from Sakura Sdn. Bhd. What is
the effect of this transaction?
a)
b)
c)
d)
Decrease in liability and increase in assets
Increase in assets and increase in liability
Decrease in both assets and liability
Increase in assets and increase in capital
(1 mark)
© Hak Cipta Universiti Teknologi MARA
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6.
3
AC/APR 2010/ACC100/105/107/
111/114/115
Which of the following is the purpose of Ratio Analysis?
a)
b)
c)
d)
to measure the company's performance
to measure the control of working capital
to measure solvency and liquidity
all of the above
(1 mark)
7.
Which of the following can be considered as capital expenditure?
a)
b)
c)
d)
Purchase of non-current assets
Cost of modification
Cost of extension
all of the above
(1 mark)
8.
Ahmad, the owner of Berjaya Sdn. Bhd. purchased a motor vehicle for RM400,000 in
February 2007. The depreciation rate is 20% per annum based on reducing balance
method on yearly basis. What is the net book value of the motor vehicle on 31
December 2009? The accounting year end is 31 December each year.
a)
b)
c)
d)
RM320.000
RM144.000
RM204,800
RM195,200
(2 marks)
9.
Recognizing accrued salary expense in the Balance Sheet would result in
a)
b)
c)
d)
increase in liability
decrease in asset
increase in asset
decrease in liability
(1 mark)
(Total: 10 marks)
© Hak Cipta Universiti Teknologi MARA
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4
AC/APR 2010/ACC100/105/107/
111/114/115
PART B
QUESTION 1
A.
Rendra Trading started its business on 1 November 2009 in Kota Bharu Megamall.
The following transactions took place in the month of November 2009.
Nov 1
Mr. Rendra (the owner) started a business by depositing RM15,000 into
his business bank account.
Nov 3
Bought goods from Medina Enterprise on credit worth RM5.000.
Nov 5
Sold goods on credit to Shiela Bambo costing RM4.000. (Term applied:
5/10, net 30).
Nov 10
Purchased a secondhand delivery van worth RM20.000 from Sri Benteng
Sdn. Bhd. No payment was made.
Nov 15
Paid salaries by cheque RM 1,300.
Nov 23
The owner took some goods for his personal use amounting to RM500.
You are required to:
a)
b)
B.
Record the above transactions in the appropriate ledgers of Rendra Trading.
Note: Students are not required to balance off the accounts.
(6 marks)
List down two (2) characteristics of both a partnership and a company.
(4 marks)
Identify the accounting concept that describes each situation below:
1.
Impiana Enterprise purchased a freehold premise costing RM100.000 in 2004
by cheque. According to the property agent, the current value of the premise
is much higher than the actual price.
2.
At the end of the accounting period, there was stock of stationery amounting
to RM250.
3.
Al-Aimi Trading acquired new office equipment. The equipment will be used
for 10 years in the business. Depreciation will be provided on a straight line
basis as to be similar to the other equipments owned by the business.
4.
As an accounts clerk, Rohani only records those transactions that can be
measured in monetary terms.
5.
The owner of Tirai Seri Sdn. Bhd. took RM5.000 worth of goods for his wife.
For accounting purposes, the owner is always considered to be separate and
distinct from the business which he owns.
(5 marks)
(Total: 15 marks)
© Hak Cipta Universiti Teknologi MARA
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5
AC/APR 2010/ACC100/105/107/
111/114/115
QUESTION 2
The following are information extracted from the balance sheet of Salomon Enterprise as at
31 December 2008.
Non-current asset
Machinery
Motor Vehicles
Office Equipment
Date of purchase
Cost (RM)
3 March 2006
25 July 2005
16 September 2004
134,000
267,000
245,000
During the year ended 31 December 2009, Salomon Sdn. Bhd. purchased the following
assets and paid by cheque.
Non-current asset
Machinery
Motor Vehicle
Office Equipment
Cost
Date of purchase
23 March 2009
RM35.000 (excluding
transportation charges of
RM 1,500 and installation
cost of RM500)
14 April 2009
RM85.000 (including
painting of business name
on the motor vehicle
RM2,000)
2 July 2009
RM 15,000
It is the policy of the company to charge depreciation for both its machinery and motor
vehicles at the rate of 20% per annum on straight line method while office equipment is
depreciated at 10% per annum on reducing balance method. All assets are depreciated in
full in the year of purchase.
You are required to:
a)
Prepare the following:
i.
All non-current assets accounts
ii.
Accumulated Depreciation Accounts for each non-current asset
iii.
Balance Sheet Extract as at 31 December 2009
(16 marks)
b)
List two (2) causes of depreciation.
(2 marks)
(Total: 18 marks)
© Hak Cipta Universiti Teknologi MARA
CONFIDENTIAL
CONFIDENTIAL
6
AC/APR 2010/ACC100/105/107/
111/114/115
QUESTION 3
The following balances were extracted from the books of Read Space Press Sdn Bhd as at
31 December 2009:
DR (RM)
Capital
Purchases/Sales
Bank
Cash
Insurance on Purchases
Plant and Machinery
Motor Vehicles
Copyright
Ijoan from TEKUN
Long Term Investment
Carriage Inwards
Ihventory 1 January 2009
Commission received
Returns
Water and Electricity
Telephone and Internet
Rental Income
Repairs on motor vehicles
Account receivables
Account payables
Salaries
Allowance for doubtful debts
Allowance for discount allowable
Mortgage on Plant
Advertising
Dividend
Accumulated depreciation:
Plant and Machinery
Motor Vehicles
360,000
43,000
7,600
4,300
140,000
80,000
22,000
CR (RM)
100,000
567,320
50,000
10,000
7,100
42,400
19,000
9,230
2,200
6,800
8,000
4,800
2,800
90,490
27,000
33,900
1,200
900
20,800
16,700
5,500
890,720
50,400
48,000
890,720
At the end of the accounting period, you are provided with the following information:
i.
The inventory as at 31 December 2009 was valued at RM21,000.
ii.
En. Qawiem, the owner of the business, took goods worth RM1.200 for his personal
use.
iii.
En. Qawiem decided to write off debts worth RM2,300 when he discovered one of
the debtor was in financial difficulties.
© Hak Cipta Universiti Teknologi MARA
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7
AC/APR 2010/ACC100/105/107/
111/114/115
iv.
Allowance for doubtful debts is to be adjusted to 2% on the outstanding debtors,
while the allowance for discount allowable is to be provided at 3%.
v.
It is the company's policy to depreciate its non-current assets as follows:
Plant and machinery - 20% on reducing balance method
Motor vehicles
- 20% on straight line method.
vi.
The company had been guaranteed a commission of RM680 per month.
vii.
Interest on loan is 5% per annum. The loan was taken on 1 February 2009.
viii.
RM5,000 of the advertising expenses is for a campaign which will be held in year
2010.
You are required to prepare:
a)
Income Statement for the year ended 31 December 2009 and;
(16 marks)
b)
Balance Sheet as at 31 December 2009.
(14 marks)
(Total: 30 marks)
QUESTION 4
The following is a summary from the cash book (bank column) and the bank statement of
Simba Enterprise for the month of September 2009.
Cash Book
DR
2009
September
1
8
9
17
31
Refence No
Bal b/d
Irfan - BS224
Nora - BS432
Bala - BS650
Sandra-BS711
© Hak Cipta Universiti Teknologi MARA
RM
2009
September
21,895 6
970 13
465 17
1,535 30
3,120 31
27,985
Particulars
Cheque No
TNB
Purchases
Maintenance
Utility
511322
511323
511324
511325
Bal c/d
CR
RM
750
2,165
440
285
24,345
27,985
CONFIDENTIAL
CONFIDENTIAL
8
AC/APR 2010/ACC100/105/107/
111/114/115
Bank Statement for the month ended
2009
September
1
8
9
17
18
19
26
28
30
30
Particulars
Balance b/d
Deposit
Cheque
Deposit
Cheque
Cheque
Deposit
Standing Order
Credit Transfer
Bank Charges
Reference
BS224
511322
BS432
511323
511324
BS650
CR
DR
790
750
465
2,165
440
1,530
220
450
350
Balance
21,895
22,685
21,935
22,400
20,235
19,795
21,325
21,105
21,555
21,205
Additional information:
1.
A cheque received from Irfan was wrongly recorded in the cash book as RM970.
2.
The amount received from Bala RM 1,535 was wrongly recorded by the bank as
RM1.530.
You are required to:
a)
Update the Cash Book for the month of September 2009.
b)
Draw up a Bank Reconciliation Statement as at 30 September 2009.
c)
Explain the following terms:
i.
ii.
(4 marks)
(6 marks)
Standing Order
Unpresented Cheque
(5 marks)
(Total: 15 marks)
© Hak Cipta Universiti Teknologi MARA
CONFIDENTIAL
CONFIDENTIAL
9
AC/APR 2010/ACC100/105/107/
111/114/115
QUESTION 5
MAJU AMMAR Trading ends its financial year at 31 December every year. Given below is
the information concerning its debtors, bad debts and allowance for doubtful debts for the
year ended 31 December 2007, 2008 and 2009.
Total sales
Total credit sales (before bad debts)
Bad debts
Allowance for Doubtful Debts
2007
(RM)
6,000,000
4,000,000
5,500
51,000
2008
(RM)
6,200,000
4,500,000
1,300
42,000
2009
(RM)
4,800,000
3,600,000
2,500
49,000
You are required to prepare:
a)
Allowance for Doubtful Debts account.
b)
Income Statement for each of the three years.
c)
Balance Sheet (extract) for each of the three years.
(10 marks)
d)
List two (2) circumstances that might lead you to write off a debt as bad.
(2 marks)
(Total: 12 marks)
END OF QUESTION PAPER
© Hak Cipta Universiti Teknologi MARA
CONFIDENTIAL
111/1147115
CONFIDENTIAL
UNIVERSITI TEKNOLOGI MARA
FINAL EXAMINATION
COURSE
:
ACCOUNTING / FINANCIAL ACCOUNTING 1/
ACCOUNTING 1 / INTRODUCTION TO
ACCOUNTING 1/ FINANCIAL ACCOUNTING
COURSE CODE
ACC100/105/107/111/114/115
EXAMINATION
APRIL 2010
TIME
3 HOURS
INSTRUCTIONS TO CANDIDATES
1.
This question paper consists of two (2) parts :
PART A (9 Questions)
PART B (5 Questions)
2.
3.
4.
Answer ALL questions from all two (2) parts :
i) Answer PART A in the Objective Answer Sheet.
ii) Answer PART B 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)
ii)
iii)
the Question Paper
an Answer Booklet - provided by the Faculty
an Objective Answer Sheet - provided by the Faculty
DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO
This examination paper consists of 9 printed pages
© Hak Cipta Universiti Teknologi MARA
CONFIDENTIAL
CONFIDENTIAL
2
AC/APR 2010/ACC100/105/107/
111/114/115
PART A
This part 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.
The process of accounting can be described as:
a)
b)
c)
d)
Classifying, summarizing, recording and interpreting
Interpreting, classifying, summarizing and recording
Recording, summarizing, interpreting and classifying
Recording, classifying, summarizing and interpreting
(1 mark)
2.
A decrease in the Allowance for Discount Allowable would result in:
a)
b)
c)
d)
a decrease in the net profit
an increase in the net profit
a decrease in capital
a decrease in the current assets
(1 mark)
3.
A bank reconciliation statement is a statement
a)
b)
c)
d)
4.
Sent by the bank when they have made an error
Drawn up by us to verify our cash book balance with the bank statement
Sent by the bank when the account is overdrawn
Drawn up by the bank to verify the cash book
(1 mark)
An instruction given by our supplier to the bank to debit our account every month with
our permission can be referred to as:
a)
b)
c)
d)
Direct Debit
Standing Order
Credit Transfer
Dishonoured Cheque
(1 mark)
D Jaya Enterprise bought office equipment on credit from Sakura Sdn. Bhd. What is
the effect of this transaction?
a)
b)
c)
d)
Decrease in liability and increase in assets
Increase in assets and increase in liability
Decrease in both assets and liability
Increase in assets and increase in capital
(1 mark)
© Hak Cipta Universiti Teknologi MARA
CONFIDENTIAL
CONFIDENTIAL
6.
3
AC/APR 2010/ACC100/105/107/
111/114/115
Which of the following is the purpose of Ratio Analysis?
a)
b)
c)
d)
to measure the company's performance
to measure the control of working capital
to measure solvency and liquidity
all of the above
(1 mark)
7.
Which of the following can be considered as capital expenditure?
a)
b)
c)
d)
Purchase of non-current assets
Cost of modification
Cost of extension
all of the above
(1 mark)
8.
Ahmad, the owner of Berjaya Sdn. Bhd. purchased a motor vehicle for RM400,000 in
February 2007. The depreciation rate is 20% per annum based on reducing balance
method on yearly basis. What is the net book value of the motor vehicle on 31
December 2009? The accounting year end is 31 December each year.
a)
b)
c)
d)
RM320.000
RM144.000
RM204,800
RM195,200
(2 marks)
9.
Recognizing accrued salary expense in the Balance Sheet would result in
a)
b)
c)
d)
increase in liability
decrease in asset
increase in asset
decrease in liability
(1 mark)
(Total: 10 marks)
© Hak Cipta Universiti Teknologi MARA
CONFIDENTIAL
CONFIDENTIAL
4
AC/APR 2010/ACC100/105/107/
111/114/115
PART B
QUESTION 1
A.
Rendra Trading started its business on 1 November 2009 in Kota Bharu Megamall.
The following transactions took place in the month of November 2009.
Nov 1
Mr. Rendra (the owner) started a business by depositing RM15,000 into
his business bank account.
Nov 3
Bought goods from Medina Enterprise on credit worth RM5.000.
Nov 5
Sold goods on credit to Shiela Bambo costing RM4.000. (Term applied:
5/10, net 30).
Nov 10
Purchased a secondhand delivery van worth RM20.000 from Sri Benteng
Sdn. Bhd. No payment was made.
Nov 15
Paid salaries by cheque RM 1,300.
Nov 23
The owner took some goods for his personal use amounting to RM500.
You are required to:
a)
b)
B.
Record the above transactions in the appropriate ledgers of Rendra Trading.
Note: Students are not required to balance off the accounts.
(6 marks)
List down two (2) characteristics of both a partnership and a company.
(4 marks)
Identify the accounting concept that describes each situation below:
1.
Impiana Enterprise purchased a freehold premise costing RM100.000 in 2004
by cheque. According to the property agent, the current value of the premise
is much higher than the actual price.
2.
At the end of the accounting period, there was stock of stationery amounting
to RM250.
3.
Al-Aimi Trading acquired new office equipment. The equipment will be used
for 10 years in the business. Depreciation will be provided on a straight line
basis as to be similar to the other equipments owned by the business.
4.
As an accounts clerk, Rohani only records those transactions that can be
measured in monetary terms.
5.
The owner of Tirai Seri Sdn. Bhd. took RM5.000 worth of goods for his wife.
For accounting purposes, the owner is always considered to be separate and
distinct from the business which he owns.
(5 marks)
(Total: 15 marks)
© Hak Cipta Universiti Teknologi MARA
CONFIDENTIAL
CONFIDENTIAL
5
AC/APR 2010/ACC100/105/107/
111/114/115
QUESTION 2
The following are information extracted from the balance sheet of Salomon Enterprise as at
31 December 2008.
Non-current asset
Machinery
Motor Vehicles
Office Equipment
Date of purchase
Cost (RM)
3 March 2006
25 July 2005
16 September 2004
134,000
267,000
245,000
During the year ended 31 December 2009, Salomon Sdn. Bhd. purchased the following
assets and paid by cheque.
Non-current asset
Machinery
Motor Vehicle
Office Equipment
Cost
Date of purchase
23 March 2009
RM35.000 (excluding
transportation charges of
RM 1,500 and installation
cost of RM500)
14 April 2009
RM85.000 (including
painting of business name
on the motor vehicle
RM2,000)
2 July 2009
RM 15,000
It is the policy of the company to charge depreciation for both its machinery and motor
vehicles at the rate of 20% per annum on straight line method while office equipment is
depreciated at 10% per annum on reducing balance method. All assets are depreciated in
full in the year of purchase.
You are required to:
a)
Prepare the following:
i.
All non-current assets accounts
ii.
Accumulated Depreciation Accounts for each non-current asset
iii.
Balance Sheet Extract as at 31 December 2009
(16 marks)
b)
List two (2) causes of depreciation.
(2 marks)
(Total: 18 marks)
© Hak Cipta Universiti Teknologi MARA
CONFIDENTIAL
CONFIDENTIAL
6
AC/APR 2010/ACC100/105/107/
111/114/115
QUESTION 3
The following balances were extracted from the books of Read Space Press Sdn Bhd as at
31 December 2009:
DR (RM)
Capital
Purchases/Sales
Bank
Cash
Insurance on Purchases
Plant and Machinery
Motor Vehicles
Copyright
Ijoan from TEKUN
Long Term Investment
Carriage Inwards
Ihventory 1 January 2009
Commission received
Returns
Water and Electricity
Telephone and Internet
Rental Income
Repairs on motor vehicles
Account receivables
Account payables
Salaries
Allowance for doubtful debts
Allowance for discount allowable
Mortgage on Plant
Advertising
Dividend
Accumulated depreciation:
Plant and Machinery
Motor Vehicles
360,000
43,000
7,600
4,300
140,000
80,000
22,000
CR (RM)
100,000
567,320
50,000
10,000
7,100
42,400
19,000
9,230
2,200
6,800
8,000
4,800
2,800
90,490
27,000
33,900
1,200
900
20,800
16,700
5,500
890,720
50,400
48,000
890,720
At the end of the accounting period, you are provided with the following information:
i.
The inventory as at 31 December 2009 was valued at RM21,000.
ii.
En. Qawiem, the owner of the business, took goods worth RM1.200 for his personal
use.
iii.
En. Qawiem decided to write off debts worth RM2,300 when he discovered one of
the debtor was in financial difficulties.
© Hak Cipta Universiti Teknologi MARA
CONFIDENTIAL
CONFIDENTIAL
7
AC/APR 2010/ACC100/105/107/
111/114/115
iv.
Allowance for doubtful debts is to be adjusted to 2% on the outstanding debtors,
while the allowance for discount allowable is to be provided at 3%.
v.
It is the company's policy to depreciate its non-current assets as follows:
Plant and machinery - 20% on reducing balance method
Motor vehicles
- 20% on straight line method.
vi.
The company had been guaranteed a commission of RM680 per month.
vii.
Interest on loan is 5% per annum. The loan was taken on 1 February 2009.
viii.
RM5,000 of the advertising expenses is for a campaign which will be held in year
2010.
You are required to prepare:
a)
Income Statement for the year ended 31 December 2009 and;
(16 marks)
b)
Balance Sheet as at 31 December 2009.
(14 marks)
(Total: 30 marks)
QUESTION 4
The following is a summary from the cash book (bank column) and the bank statement of
Simba Enterprise for the month of September 2009.
Cash Book
DR
2009
September
1
8
9
17
31
Refence No
Bal b/d
Irfan - BS224
Nora - BS432
Bala - BS650
Sandra-BS711
© Hak Cipta Universiti Teknologi MARA
RM
2009
September
21,895 6
970 13
465 17
1,535 30
3,120 31
27,985
Particulars
Cheque No
TNB
Purchases
Maintenance
Utility
511322
511323
511324
511325
Bal c/d
CR
RM
750
2,165
440
285
24,345
27,985
CONFIDENTIAL
CONFIDENTIAL
8
AC/APR 2010/ACC100/105/107/
111/114/115
Bank Statement for the month ended
2009
September
1
8
9
17
18
19
26
28
30
30
Particulars
Balance b/d
Deposit
Cheque
Deposit
Cheque
Cheque
Deposit
Standing Order
Credit Transfer
Bank Charges
Reference
BS224
511322
BS432
511323
511324
BS650
CR
DR
790
750
465
2,165
440
1,530
220
450
350
Balance
21,895
22,685
21,935
22,400
20,235
19,795
21,325
21,105
21,555
21,205
Additional information:
1.
A cheque received from Irfan was wrongly recorded in the cash book as RM970.
2.
The amount received from Bala RM 1,535 was wrongly recorded by the bank as
RM1.530.
You are required to:
a)
Update the Cash Book for the month of September 2009.
b)
Draw up a Bank Reconciliation Statement as at 30 September 2009.
c)
Explain the following terms:
i.
ii.
(4 marks)
(6 marks)
Standing Order
Unpresented Cheque
(5 marks)
(Total: 15 marks)
© Hak Cipta Universiti Teknologi MARA
CONFIDENTIAL
CONFIDENTIAL
9
AC/APR 2010/ACC100/105/107/
111/114/115
QUESTION 5
MAJU AMMAR Trading ends its financial year at 31 December every year. Given below is
the information concerning its debtors, bad debts and allowance for doubtful debts for the
year ended 31 December 2007, 2008 and 2009.
Total sales
Total credit sales (before bad debts)
Bad debts
Allowance for Doubtful Debts
2007
(RM)
6,000,000
4,000,000
5,500
51,000
2008
(RM)
6,200,000
4,500,000
1,300
42,000
2009
(RM)
4,800,000
3,600,000
2,500
49,000
You are required to prepare:
a)
Allowance for Doubtful Debts account.
b)
Income Statement for each of the three years.
c)
Balance Sheet (extract) for each of the three years.
(10 marks)
d)
List two (2) circumstances that might lead you to write off a debt as bad.
(2 marks)
(Total: 12 marks)
END OF QUESTION PAPER
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