MID TERM TEST

Faculty of Business

Course :
BBCA1033
Introduction to Accounting

Deadline : 22 November 2020

Lecturer : Nurul Atiqah Binti Mohd Rahim

Total marks : 50 Marks (worth 20%)

Instructions to candidates:

1. Write your student number on the Examination Paper AND Answer Book

2. Attempt ALL questions

3. Do not detach any portion of the examination paper

4. Begin writing, as indicated, after the reading time has ended

Materials allowed for this examination:

1. Hardcopy of dictionary
2. Non-programmable Calculator

DO NOT REMOVE ANY PART OF THIS EXAMINATION PAPER FROM THE

EXAMINATION ROOM

Name : MUHAMMAD HAFIZ BIN JOHARI

Student ID : 202009040077

NRIC/Passport No : 950614-01-5979

Program : BBACA 1033

Date : 22 November 2020 Course: BBCA1033 Introduction to Accounting

SECTION A – MULTIPLE CHOICE QUESTIONS [TOTAL = 20 MARKS]

Answer ALL questions.

QUESTION 1 (10 Marks)

1. “___________need accounting information to determine the firm‘s ability to repay loans. It

may help them to decide whether to approve the loan application applied by the
business”. The word THEM refers to:

A. Employees
B. Managers
C. Investors
D. Financial institutions

2. Which of the following accounting equation is correct?

I. Assets + Liabilities = Owner’s Equity

II. Assets – Owner’s Equity = Liabilities
III. Owner’s Equity + Liabilities + Revenue = Expenses + Drawings + Assets
IV. Revenues + Assets + Drawing = Owner’s Equity + Liabilities + Expenses

A. I and II only
B. II and III only
C. III and IV only
D. I and IV only

3. All the following are regarded as assets of a business except

A. A machine owned by the business

B. A sum of money owed to the business
C. An inventory of goods that have yet to be sold
D. A shop lot that has been rented for use by the business √

4. The following accounts are liabilities balance except

A. Bank overdraft
B. Loan to Maya
C. Payables
D. Loan from a bank

5. In a double entry system, a credit is used to record ___________.

A. An increase in liability, revenue and capital; and a decrease in asset and expenses √
B. A decrease in liability and capital; and an increase in expenses
C. A decrease in revenue and increase in assets

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Date : 22 November 2020 Course: BBCA1033 Introduction to Accounting

D. An increase in assets and expenses; and a decrease in liability, revenue and capital

6. An objective of financial reporting is

A. Providing information useful to investors, creditors, donors, and other users for
decision making.
B. Assessing the adequacy of internal control.
C. Evaluating management results compared with standards.
D. Providing information on compliance with established procedures.

7. One of the following is not a transaction.

A. Mr. John started business with cash of $100,000
B. Received a price list from suppliers.
C. Received interest from Bank $5,000
D. Paid salaries $300

8. Keeping the log of financial information in books of original entries is called:

A. Recording
B. Summarizing
C. Grouping
D. Processing

9. Are assets recorded in debited or credited when it increases?

A. Debited
B. Both can be done
C. Credited
D. Assets are never recorded in the books of accounts

10. The process of recording is done:

A. Two times a year
B. Once a year
C. Frequently during the accounting period
D. At the end of an accounting period

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Date : 22 November 2020 Course: BBCA1033 Introduction to Accounting

SECTION B – STRUCTURED QUESTIONS [TOTAL = 30 MARKS]

Answer ALL the questions

QUESTION 1 (30 MARKS)

Mr Tan is the owner of Master IQ Bookstore Sdn Bhd. The transactions for the month of
January 2020 are as follow:

Date Transactions
Jan 1 Mr Tan contributed RM100,000 cash into the business.
3 Purchased good from Jenny RM20,000 on credit.
5 Purchased machinery RM45,000 from Singer Sdn Bhd by cheque and
received 5% trade discount.
7 Sold goods on credit to Kenneth for RM25,000 .
9 Paid water bill RM150 by cash.
13 Returned goods RM5,000 to Jenny.
15 Purchased stationary RM50 by cash.
17 Owner withdrew RM300 from bank account for his personal use.
21 Received commission RM100 from Brian Trading.
25 Paid all debt by cheque to Jenny and received 5% cash discount.

REQUIRED:

(a) Journalize (double entry) the above transactions of IQ Bookstore Sdn Bhd for the month
of January 2020.

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Date : 22 November 2020 Course: BBCA1033 Introduction to Accounting

Master IQ Bookstore Sdn Bhd

Double- entry for the month of January 2020

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Date : 22 November 2020 Course: BBCA1033 Introduction to Accounting

Date Debit (RM) Credit

(RM)
1-Jan-20 Cash 100,000.00
Owner Capital - Mr Tan
(owner contributed capital into the business) 100,000.00

3-Jan-20 Purchase 20,000.00

Account Payable- Jenny
(purchase of good on credit from Jenny) 20,000.00

5-Jan-20 Machinery 42,750.00

Bank
(purchase of machinery from bank) 42,750.00

7-Jan-20 Sales 25,000.00

Account receivable- Kenneth
(sold of goods on credit to Kenneth) 25,000.00

9-Jan-20 Expenses- water bill 150.00

Cash 150.00
(paid of utilities by cash)

13-Jan-20 Account Payable - Jenny 5,000.00

Return Outward 5,000.00
(return purchased to Jenny)

15-Jan-20 Stationary 50.00

Cash 50.00
(purchased stationary by cash)

17-Jan-20 Drawings
Bank 300.00
(owner withdraw money from bank for personal use) 300.00

21-Jan-20 Cash 100.00

Commission- Brian Trading 100.00
(commission received from Brian Trading)

25-Jan-20 Account Payable – Jenny 15,000.00

Bank
Discount Received 5% 14,250.00
(pay full payment to Jenny by cheque) 750.00

208,350.00 208,350.00

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Date : 22 November 2020 Course: BBCA1033 Introduction to Accounting

Additional information :  
3-Jan-20 step 1 : total purchased RM 45,000  
  step 2 : received 5% trade discount  
  step 3 : 45,000 x 0.05 = RM 42,750  
  step 4 : RM 42,750 recorded in double entry  

-END OF QUESTIONS-

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Date : 22 November 2020 Course: BBCA1033 Introduction to Accounting

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Date : 22 November 2020 Course: BBCA1033 Introduction to Accounting

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