LESSON PLAN FOR BBAW2103

FINANCIAL ACCOUNTING

TUTORIAL 3
About Tutorial Lesson
Plan (for tutors)
• Purpose:
– For you to guide and facilitate learning
– For you to encourage engaged and active learning
– For you to create constructivist classroom and guide learners to
construct new knowledge from their past experience
• How to Use?
– Go through the slides and be prepared
– Complete the lesson within the time duration
– Connect the lesson with the module & assessment
– Encourage learners to participate / discuss & do the activities
– Apply scaffolding techniques to increase cognitive level
– Always provide feedback / explanation
– Never read out the slides as it is without doing the activities
Overview of the Course
Overview of Tutorial 3
In this tutorial, we will cover the following:

Discussion Topic Duration (minutes)

Topic 8: Accounting for Inventory 35
Topic 9: Cash Management and Control 30
Topic 10: Financial Statement Analysis 35
Past year exam 15
Summary 5
 TOPIC 8
Accounting for
Inventory

Discussions
(35 minutes)
Focus of Discussion for
Topic 8
1. Methods of accounting for
inventory;
2. Inventory valuation.
Methods of accounting for
inventory
Do you know the purpose of bar
code displayed on the products sold
in shops? In your opinion, which is
the most likely method for recording
inventory will be applied by using
the bar code system? Why?
(10 minutes)

Section 8.1.1 & 8.1.2,

Page 174 - 176
Inventory valuation (1/2)

The Delta company uses a periodic inventory

system. The beginning balance of inventory
and purchases made by Delta during the
month of July are shown below:
Date Description Units Unit Cost Total Cost
July 01 Beginning inventory 500 RM20 RM10,000
July 18 Purchases 800 RM24 RM19,200
July 25 Purchases 700 RM26 RM18,200
Total 2,000 RM47,400

The Delta company sold 1,400 units during the

month of July.
Inventory valuation (2/2)

You are required to compute inventory on 31st

July and Cost of Goods Sold for the month of
July using following inventory costing
methods:

a) First in first out (FIFO) method

b) Last in first out (LIFO) method
c) Weighted average method
(25 minutes)
Section 8.4.2, 8.4.3 & 8.4.4
Page 189 - 193
 TOPIC 9
Cash Management and
Control

Discussions
(25 minutes)
Focus of Discussion for
Topic 9
1. Cash management;
2. Internal control of cash;
3. Bank reconciliation.
Cash management

Liquidity of cash is important in

the business for survival.
In order to sustain in a
business, how do you ensure
that you practice the good cash
management system in your
business?
(5 minutes)
Section 9.2,
Pages 211 - 212
Internal control of cash

You have allocated RM1,000 in the

petty cash. However, two months
consecutively, the account clerk keep
informing that there is not enough
cash in the petty cash.
How would you overcome this
problem?
(10 minutes)

Section 9.3.1 & 9.3.2,

Pages 212 - 215
Bank reconciliation
In July, the bank statement balance was RM35,500.
You have issued a cheque to pay the supplier
amounting to RM23,000. Suddenly you received a
call from the bank officer informing you that there
is not enough fund in your bank account to clear
the cheque.
As such, you have requested the balance in the
Cash at Bank account from your executive, it
showed RM22,000. How would you reconcile the
disagreement between the bank statement and the
Cash at Bank account?

(15 minutes)
Section 9.4,
Pages 217 - 220
 TOPIC 10
Financial Statement
Analysis

Discussions
(35 minutes)
Focus of Discussion for
Topic 10
1. Purpose of financial statement
analysis;
2. Techniques of analysis;
3. Classification and interpretation
of financial ratios
Purpose of financial
statement analysis

How do you compare the

performance of your
company with the
competitor?
(10 minutes)
Section 10.1, 10.2 & 10.3
Pages 222 - 225
Techniques of analysis

In your opinion, which

analysis technique is
suitable for comparing
performances of food
retailing businesses? Why?
(10 minutes)
Section 10.4, 10.5, 10.6, 10.7, 10.8,
10.9, 10.10, 10.11,
Pages 226 - 249
Financial ratios
Zaman Trading
Comparative Income Statement for the year ended 31 December
2014 2015
RM RM
Sales 200,000 280,000
Cost of goods sold (150,000) (210,000)

Gross profit 50,000 70,000

Administration expenses (38,000) (46,000)

Debenture interest - (4,000)

Net Profit 12,000 20,000

Financial ratios
Balance Sheet as at 31 December
2014 2015
RM RM
Fixed assets at cost less depreciation 110,000 140,000

Stock 20,000 30,000

Debtors 25,000 28,000
Bank - 5,000
45,000 63,000
Creditors (15,000) (12,000)
Bank (10,000) -
20,000 51,000
130,000 191,000
8% Debentures - (50,000)
130,000 141,000
Ordinary share capital 100,000 100,000
Profit and loss account 30,000 41,000
130,000 141,000
Stock at 1 January 2014 was RM 50,000
Financial ratios
Required:
a. Calculate the following ratios for 2014 and 2015
i. Quick ratio
ii. Current ratio
iii. Gross profit margin
iv. Net profit margin
v. Debt ratio
vi. Equity ratio
b. Discuss the usefulness of the above ratios for determining the
profitability, liquidity and financial leverage for the company.

(15 minutes)
Section 10.12,
Pages 249 - 259
Past Year Exam
Discussion
Discussions
(15 minutes)
Past year exam

Refer to the past year

examination questions.
(15 minutes)
Past year exam
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Past year exam

MODE (%) FORMAT Details

40 questions. Answer all.

Dual-language (English & Malay)

Coverage last 60% of the module.

• Topic 5 – Completing the Accounting

Cycle
EXAMINATION 50 MCQ •Topic 6 – Financial Reporting
Standards
•Topic 7 – Trading Business
Environment
•Topic 8 – Accounting for Inventory
•Topic 9 – Cash Management and
Control
•Topic 10 – Financial Statement
Analysis
Summary
Topic 8 Topic 9 Topic 10
Accounting for Cash Management Financial
Inventory and Control Statement Analysis

Methods of Purpose of
Cash
accounting for financial
management
inventory statement analysis

Periodic Inventory
System and Internal control of Techniques of
Perpetual cash analysis
Inventory System

Classification and
Inventory Bank
interpretation of
valuation reconciliation
financial ratios

(5 minutes)