KOLE UNIVERSITY TUNKU ABDUL RAHMAN FACULTY OF ACCOUNTANCY, FINANCE AND BUSINESS ACADEMIC YEAR 20197020 JANUARY/FEBRUARY EXAMINATION yAMENTALS "THURSDAY, 30 JANUARY 2020 ‘TIME: 9.00 AM 11.00 AM @ HOURS) DIPLOMA IN BUSINESS STUDIES (FINANCE AND INVESTMENT) DIPLOMA IN BUSINESS STUDIES (INTERNATIONAL BUSINESS) DIPLOMA IN BUSINESS STUDIES (LOGISTICS AND SUPPLY CHAIN MANAGEMENT) DIPLOMA IN ACCOUNTING DIPLOMA IN BANKING AND FINANCE DIPLOMA IN BUSINESS ADMINISTRATION DIPLOMA IN E-MARKETING DIPLOMA IN HUMAN RESOURCE MANAGEMENT DIPLOMA IN MARKETING Instructions o Candidate: ‘Thi paper consists of four queton nd you ae requir to answer ALL FOUR) qestions. All workings that suport the answers shouldbe shown ‘Marks wil be awarded fo layin presentation an logical arguments. ‘You ae required to continue with fresh page when answering new questions or parts ofthe question. "This question paper consists oF quaions on 9 pnd pagesABEAL023 FUNDAMENTALS OF ACCOUNTING Answer ALL FOUR (question, ‘Question ‘The following figures have been exacted fiom the books of Abraham Enterprise forthe month of ‘November 2019 1 Sales tdger balance bf De 83,570 cr so Purchases ledger blancs bit Dre 550 cr 4at0 30 Monthly tol of: (Cash purcases| 230,600 Credit purchases 330,700 Cath sales 250,200 : CCeditsales 440,300 Retum ouivards 2,800 Discounts reeived(on eet puretased) ‘4400 Interestcharged by supplies 350 Bad debis writen off 190 Return inwards 1650 Interest charged on eustomers 70 Increase inthe allowance for doubt debts 3.80 Discounts allowed(on credit sles) 3.340 Receipts fom customers 346,600 Payments to supplies 337,950, Bills payable ised bythe company forthe debt owed to thecompany 13,500 Dills receivable sue bythe customers forthe debt cowed to the company 109,00 Sls ledger balance oft aginst purchases ledger 15,50 Sales leer credit balance as at 30 November 1,080 Purchases ledger debit belance as at 30 November ‘660 ‘The accountant has discovered thatthe tol of all tho inividusl accounts in the sales ledger was RMI20,290, The amount didnot agree with te balance refleted inthe wade receivables conte account: Upon vestigation, te following errors were foun: 1, Thesale journal was undercastby RMG,S00, 2. Alba debt of RMT0O was coestly debited to tho bad debts account in the general ledger but ‘omit om the Fit of blares, above, 3. Retur inwards of AMI, 110 was property postod tothe respective subsidiary ledger but omited ftom the contol acourt, 4. Adliscount of RM200 allowed on credit sles wat propery recorded the ash receipts ura bt omited from the eubidiary edge. “This question paper consists 074 quis on paad pases,AREAIO23 FUNDAMENTALS OF ACCOUNTING usin 1 Contnsed) 5 ‘An individual account (bit balance) of RM3O0 was listed twice inthe subdir ledger ‘edule. A cash refund of RM230 had been made to Bryan, entered into his secount and in the contro ‘account but no credit not a ben raze, Required: o © © CConstict the Trade receivables control account and Trade peyables cont secount for the ‘month of November 2019 (smacks) Prepare a revised trade receivables contol account afer adjustments fr the errors and comisions. (Saks) Prepare a statement showing the adjustment that are necessary tthe list of personal eecount ‘alaces in the sales ledge (Gas) (Total 25 marks "Tie quanln paper coniats of 4 guess on paved poo4 ‘ABEA1023 FUNDAMENTALS OF ACCOUNTING Question ‘Aurore Sn, Bhd bas provided the following bank statement and cash bock (bank com) forthe ‘month of November 2019 Cash book (bank column only) 2019 2019 Novemier at | Nove Sow 25 Sales 5368 | 25 Balance bid 3,540 26 Queen Bhd 25,012 [25 BerotCo. 32s 26 Prince Bhd 18722 |25 Giggle Bot. 10322 68,921 2 Alex Sin.Bhi. 108314 | 26 Machinery 10823 7,700, 2 Commission 3.720 | 26 Foais Trang 10324 5200 2 toms anz20 n 103266830 . 28 10527400 29 10328 3,500, 30 Blane eld 2010 - Bee 159,636 Desomber oo ta i ‘Cheque No, 10520 “i300 | ~ [Sting re: as “iso ride Denes : W279 De Inet 029 be Fr Tha Na TORT seo hago Ne. 1222 = S155 “Chagse Ns 10225-— “mss TESS Dr Tos | ~~ br se : 29305 Dr‘AEA 1023 FUNDAMENTALS OF ACCOUNTING @ mas) 6inais) (© mais) (Sais) (Tost: 25 marks] Question 2 (Continued) Required: () Reconcile so opening balances of the Bank account andthe Bank Statement, (©) Prepare te revised cash book forthe month of November 2019. (©) Prepare abank reconliation statement a8 a 30 November 2019, (© Enplan the following ms: © Stanting order, )—_Unpresente cheque i) Bankechargs. Question 3 . “ ‘Beyan and Sana rin partnership sharing profits and fase a 0 per cnt an 40 pce respostively Adkitional information ‘At Apri 2018, the partners have the flowing balances: artets | Capa ascount | Cart account RM RM. oat 0000 2,000 Salina 50,000 ‘400 Cr (0n30 September 2018, he following partners’ drawing were made: Bryan RM8,00, Salina 'RM24,000. There were no other drawings. Interest charged on partners" ravings athe rate of 10 per ant per your, ‘There have bgen no changes to the capital accounts during the year: ineest was agreat atthe rate of 8 per cenboneapitlnecounts ‘The net ming prof ofthe frm befor dealing with partners interest and Sling salary for ‘he yar ended 31 March 2018 was RMH2,000 Salina sented toa sry of RMI6,000 po year. ‘Ths question paper consists of4 questions on pred pagesa Required: Prepare the road os ppopiion scout fr the yer cade 31 Mach 2015 (sma) (©) Preprthe pane’ caret scouts aa 31 March 20195 raat) (© Give ANY TWO @) advantages of purer nas) ® Cardiff Ato Mast ses a perpetual method inventory sytem and reports the following transactions forthe month of November for one of ts product: : Dave TBaplanaon | Unit] CosiPrice November RM, 1 | Beginning inventory 20 3.00 + 5 | Purhases 3 325 13 | Sates 2 19 20| Purchases 1 355 24 Purchases 3 370) 30) sales 3B 799) Required: (@) Prepare inventory records using the FIFO metho. (omarks) (©) Give ANY ONE () disadvantage of using te FIFO method fer valuation of invertors. ‘maek) (otal: 25 mars) Ts gaeton paper consi oF quewions on pated pages1 ABEA1025 FUNDAMENTALS OF ACCOUNTING Qusstion “ ‘A rele of cildens clothing has pepared his draft financial statements forthe year ended 31 ‘December 2018, The suspense account stowed an opening debit balance of RM&.S0. Also, he drat ‘0 profi was RMS0,00. o “The debit side ofthe cash ook has been undesast by RM20,00. (©) Last year's allowsnoe for doubtful debs was RMT,700. This yes allowance fer doubt debts amounted to RMIG000, “Tae amount was incoresly debited inthe allowance for ‘abil des account (©) Tas bank semen saws «oa irs of RMN, bt hi as ot Bean eso in the (G) Depreciation was calculated at RMSO0 but entered into depreciation account as RMSO. However, vas conety recorded in the aseumtlated depreciation account (© Discounts resived of RMS,700 ha ben redid to the ade Payables Contol Account (—Cariage inwards of RN2.200 bas ben entered a a credit in the cariag inwards acount. Required: (2) Prepare the suspense acount o clea the diferences, (Smal) ©) Compe the adjusted net profit forthe year ended 31 December 2019. mais) (2) Briefly explain the following eors: ©) Bnorofcommision, co) ()— Brorof principle co) ‘hs quesion paper comin OF4 questions Oa pied pagesABEALO23 FUNDAMENTALS OF ACCOUNTING Question 4 (Continasi ® Presented below are the summarised financial statements of Hip Trading and Hop Enterprise. ‘Statements of profit or los forthe year ended 31 December 2019, Sales Less: Cost of goods sod Opening inventories Purchases ‘Less Closing inventories oss Prot Less: Expenses Depreciation wages an saree Question 4 (continued) Other expenses Nerpirosie ip Enterprise Statements of financial position a 31 December 2019 Non-current ates Bauipment Current ase Inventories ‘Trade receivables Banke : guy pening capital |Adé: NevPrfit Less Drawings Curent ible “rade payables me RM, = RM 730,000 980,000 150,000 100,000 300,000 420,000 450,000 520,000 130,000 320,000 95,000 440,000, 410,000 540,000 5,000 20,000 190,000 300,000 65,900 260.000 50,000_370,000, 150,600 370,00 65,000 42000 130,000 95,000 135,000 150,00 25, 290,000 12,500 __357:500 355,000 299,50 35,000 32,000 10,000 170,000 235,000 252,000 39,000 196,000, $8500 193,00 139,000 106,000 355,000, 299,500 "This qusion pape consis oF 4 questions on 9 prints pees,ABEA1023 FUNDAMENTALS OF ACCOUNTING Question 4 Continved) Required: (©) Caleustethe following ratios foreach business: © Camentrato, mats) ()—uickraticg mats) (Gi) Gross profit asa percentage of sles marks) Go) _Netprofitas percentage of sles; macs) (©) Inventories tumover kines; marks) (09) Tre reoeivabestumover days marks) (Comment on th aaci pero of Hp Enterprise and Kop Enterprise, Which business seems tobe the mors efficent? Give possible reasons. ‘mats, (Teva: 25 marks} ‘This question paper consists O74 quedions on pated pages,