CONFIDENTIAL 1 ACC117/ACC106/TEST2/JAN2024

UNIVERSITI TEKNOLOGI MARA

TEST 2

INTRODUCTION TO FINANCIAL ACCOUNTING/

COURSE : INTRODUCTION TO FINANCIAL ACCOUNTING AND
REPORTING
COURSE CODE : ACC117/ ACC106
EXAMINATION : 5 JAN 2024
TIME : 2 HOURS

INSTRUCTIONS TO CANDIDATES

1. This question paper consists of three (3) questions.

2. Answer ALL questions in the Answer Booklet. Start each answer on a new page.

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

4. Answer ALL questions in English.

DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO

This examination paper consists of 5 printed pages

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CONFIDENTIAL 2 ACC117/ACC106/TEST2/JAN2024

QUESTION 1

Encik Aryan initiated a business name Chocolatey Biz on 1 January 2021, focusing on the
sale of chocolate-based products. He closes his business accounts on 31 December each
year. The following are transactions which occurred in the month of January 2023.

2023
TRANSACTION
JANUARY
1
As of 1 January 2023, the opening balances for assets, liabilities, and capital
are as follows:
RM
Inventories 40,000
Cash at bank 150,000
Accounts receivable 30,000
Cash in hand 3,500
Accounts payable 25,000
Capital 198,500
3 Encik Aryan withdrew RM2,000 from the business's bank account to cover
the cost of purchasing Dark Chocolate from Berylls Sdn Bhd.
5 Chocolatey Biz acquired a chiller from Frozen Enterprise for RM6,000, and
the payment is scheduled for March 2023.
7 Tasty Bite Trading bought chocolate chips and sprinkles from Chocolatey Biz
for a total of RM2,100. The transaction is completed through online banking.
10 Chocolatey Biz purchased hazelnut-chocolate flavour spread on credit from
Houten Trading for a total of RM1,400.
13 Houten Trading issued a credit note to Chocolatey Biz for the returned spread,
as it was the wrong flavour.
16 Encik Aryan personally covered the RM500 expense for repairing the chiller
with his own money
20 Chocolatey Biz invoiced Manis Bakery for the sale of chocolate powder
amounting to RM900.
22 Chocolatey Biz paid RM50 in cash for courier expenses related to delivering
the chocolate powder to Manis Bakery.
25 A commission of RM1,800 for the sale of chocolate drinks was deposited into
the business's bank account.

Required:

Specify the respective books of prime entry for each of the above mentioned transactions.

(Total: 10 marks)

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CONFIDENTIAL 3 ACC117/ACC106/TEST2/JAN2024

QUESTION 2

Qistina Fashion House has been in operation since 1 January 2019. Most of the apparel
supplied by the business was imported from China and Vietnam. The following is its Trial
Balance as at 31 December 2023.

Qistina Fashion House

Trial Balance as at 31 December 2023
Debit (RM) Credit (RM)
Sales 858,760
Purchases 420,000
Return Inwards 8,500
Return Outwards 8,500
Opening Inventory ( 1 January, 2023) 90,000
Import duty on purchases 13,000
Insurance on purchases 24,000
Staff Salaries 45,000
Insurance Expense 18,000
Utilities Expense 8,500
Interest on loan 2,000
Discount Allowed 9,000
Discount Received 6,000
Rental Income 20,000
Commission Income 3,500
Building 300,000
Furniture 70,000
Motor Vehicles 160,000
Accumulated Depreciation - Building 60000
Accumulated Depreciation - Furniture 28,000
Accumulated Depreciation - Motor Vehicles 61,740
Accounts Receivable 65,000
Accounts Payable 62,000
Cash at Bank 185,000
Cash in hand 9,500
Loan from Bank Bersatu (annual interest rate 6%) 75,000
Bank overdraft 18,000
Allowance for Doubtful Debts (1 January, 2023) 2,000
Drawings 6,500
Capital 230,500
1,434,000 1,434,000

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CONFIDENTIAL 4 ACC117/ACC106/TEST2/JAN2024

Additional Information:

1. Inventory as at 31 December 2023 is RM36,000.

2. Commission income earned by the business during the year ended 31 December 2023
was RM2,500. As for the rental income, an amount totaling RM4,000 for the months of
November and December 2023 has not been received yet.

3. The insurance expense covered a 12-month period spanning from July 2023 to June
2024.

4. Interest on loan from Bank Bersatu for the year ending 31 December 2023 has not
been entirely paid.

5. One of the accounts receivable amounting to RM900 has been recognized as

uncollectible. In response, as a prudence measure, the business decided to set aside
4% of the net accounts receivable as an allowance for doubtful debts for the year ended
31 December 2023.

6. A previously written-off bad debt of RM1,500 from the year 2021 was successfully
recovered during the period ended 31 December 2023, which was paid by cheque.
However, no record has been made for this recovery yet.

7. The owner took several clothing items, worth RM800, as gifts for family members.

8. The business depreciates its non-current assets on a yearly basis, using the following
criteria:
(i) Both Building and Furniture are subject to straight-line method of depreciation.
The Building is depreciated over its 20-year useful life, while Furniture is
depreciated at a rate of 10%.
(ii) For motor vehicles, they are depreciated at a rate of 15% using the reducing
balance method.

Required:

a. Prepare the Statement of Profit or Loss for the year ended 31 December 2023.

b. Prepare the Statement of Financial Position as at 31 December 2023.

(Total: 25 marks)

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CONFIDENTIAL 5 ACC117/ACC106/TEST2/JAN2024

QUESTION 3

Puan Naz, the proprietor of Lavender Enterprise, maintained the Cash Receipt Journal and
Cash Payment Journal for the month of November 2023.

Cash Receipt Journal

Reference/
Date Cheque No Bank
2023 RM
November
2 Sales 11101 2,000
6 Sales 11102 5,000
12 Camar Trading 22002 4,500
14 Sales 11103 6,000
20 Sales 11104 7,000
30 Teritip Trading 40004 3,800
28,300

Cash Payment Journal

Date Cheque No Bank
2023 RM
November
1 Kerinci Enterprise 50015 2,300
4 Rental 50016 2,500
10 Purchases 50017 4,060
15 Advertising 50018 8,000
20 Astana Kirana 50019 4,900
25 Kencana Dewi 50020 2,400
24,160

The following is the Lavender Enterprise’s bank statement for November 2023, which was
received from APMB Bank in December 2023.

Bank Statement
APMB BANK
Debit Credit Balance
Date Reference (RM) (RM) (RM)
2023
November
1 Balance b/d 120,000 CR
3 Deposit 11101 2,000 122,000
5 Cheque clearance 50015 2,800 119,200
7 Deposit 11102 5,000 124,200
8 Cheque clearance 50016 2,500 121,700
12 Cheque clearance 50017 4,060 117,640
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CONFIDENTIAL 6 ACC117/ACC106/TEST2/JAN2024

13 Deposit 22002 4,500 122,140

14 Deposit 11103 6,000 128,140
15 Dishonoured cheque 22002 4,500 123,640
17 Credit transfer 88008 3,200 126,840
20 Cheque clearance 50018 8,300 118,540
22 Deposit 11104 7,000 125,540
25 Charges for cheque books 123 200 125,340
Direct debit - Payung
26 Insurance Bhd 777 1,200 124,140
Standing instruction -
28 salary 999 5,500 118,640
30 Deposit 50020 2,400 121,040 CR

Additional information:

1. The bank account in general ledger of Lavender Enterprise as of 1 November 2023

showed a debit balance of RM120,000.

2. The bank correctly recorded a cheque numbered 50015.

3. The bank incorrectly recorded the amount for cheque number 50018.

4. The bank made a mistake by crediting the cheque (number 50020) issued to Kencana
Dewi.

Required:

a. Prepare the Adjusted Cash Book for the month of November 2023.

b. Prepare the Bank Reconciliation Statement for the month of November 2023.

(Total: 15 marks)

END OF QUESTIONS

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