DBA111 RFS/SGB

Group Assignment Sem1, 2019

DBA111 REPORTING FINANCIAL TRANSACTION

Assignment Information Sheet

Group Assignment (20%)

You must form groups of 3 to complete the assignment. The objective of this
assessment is to display your group’s knowledge and understanding of how to
explain and use the general ledger rules for different types of accounts, record
basic financial transactions using the double-entry rule and prepare and
interpret the Trial Balance.

This assignment requires you to complete all relevant ledger accounts and prepare
trial balance of a company.

The lecturer will mention the team members’ names. The group members should be
from the same tutorial group. The team members are advised to work together in
order to produce quality work. The team members are advised to notify the lecturer
immediately if any of the members does not actively participate in contributing
towards their work.

ASSESSMENT

The assignment constitutes 20% of the final grade for the subject, and will be given a
grade out of 80. The assignment will be assessed as per the criteria attached, hence
it is recommended to check these criteria and ensure the assignment fulfils all of
them.

The students are required to answer all questions and show detailed workings clearly
and systematically.

FORMAT

The report should contain appropriate referencing using the Harvard System (the
guidelines are available in the library). References to online sources should provide
direct links to the source in the bibliography. In-text references should only refer to
the surname of the author/authors and the date of the publication.

The body of the report should be 3500 words (plus/minus 10 percent) including
tables and graphs and diagrams. Please provide a word count on the cover sheet or
on the first page of the report. Reports in excess of the allowable word limit will be
returned for correction.

DUE DATE

Assignments will be handed to your tutor in the week 12, latest by Friday 5th July,
2019.

Students are required to submit a ‘hard’ copy’ of their assignment. The hard-copy
should be accompanied by the cover sheet. The hard copy should also be stapled. If
necessary, please use size A4 paper envelopes. Plastic binders, plastic
DBA111 RFS/SGB
Group Assignment Sem1, 2019
envelopes, plastic covers of any sort (including cases/covers for CD’s) are not
permitted. Students are reminded to review University policy on plagiarism.

Semester 1, 2019
DBA111 REPORTING FINANCIAL TRANSACTION
Group members & student ID:
1.
2.
3.
4.

ASSIGNMENT QUESTION

QUESTION 1 (18 MARKS)

Mr Roger started a bakery business on 1st May, 2018 by the name, Nice
Bakery. This business operates at Kuching, Sarawak. Apart from selling buns,
biscuits, breads and cakes, Mr Roger also provides baking classes. He
decided to record all his businesses only in one account. This business
operates as a sole proprietorship with a cash contribution of $100,000. He
employed ten employees including Mr Danson who was appointed as an
accountant. He was a qualified accountant and responsible in handling all
accounting records. One evening, Mr Roger decided to bring back home one
office computer to be given to his daughter a birthday gift. Mr Roger is a big
dreamer. He expressed his intention to invest in Sunny Shipping Company to
his accountant. Currently, Sunny Shipping company has a profit of $200,000.
However, Sunny Shipping Company has making losses for the past two
years. Mr Danson was quite not convinced with the idea to invest in Sunny
Shipping Company.

Two weeks later, Mr Roger purchased a Toyota van for $90,000 to be used in
his business. Unfortunately, a huge concrete fell onto his van when he parked
nearby the construction site. After sending for repair, the insurance company
priced the van at $50,000. Mr Roger has another bread mixture machine
worth $70,000. He needs to make a careful decision to continue or
discontinue the business operation in order to maintain the cost of the bread
mixture machine.

Discuss the qualitative characteristics, accounting principles and assumptions

apply in the above case.

0 1 2 3 Total
Score
Explanation 2 Need Satisfactory Good Excellent 6
on the improvement
qualitative Few or no Some main Most All factors
characteristics main factors factors were main were
to the related were explained factors explained
matters explained clearly on were clearly to
clearly, only the related explained support
slightly matters. clearly on four main
related to the factors to
DBA111 RFS/SGB
Group Assignment Sem1, 2019
matters. related to the
matters. related
matters.
Explanation 2 Need Satisfactory Good Excellent 6
on the improvement
accounting Few or no Some main Most All factors
principles to main factors factors were main were
the related were explained factors explained
matters explained clearly on were clearly to
clearly, only the related explained support
slightly matters. clearly on four main
related to the factors to
matters. related to the
matters. related
matters.
Explanation 2 Need Satisfactory Good Excellent 6
on the improvement
accounting Few or no Some main Most All factors
assumptions main factors factors were main were
to the related were explained factors explained
matters explained clearly on were clearly to
clearly, only the related explained support
slightly matters. clearly on four main
related to the factors to
matters. related to the
matters. related
matters.
6 18
Total score

QUESTION 2 (50 MARKS)

Zebra opened a housemaid services company, Smile Housemaid Services on

1 January 2019. The following transactions were recorded in the first month of
the business:

Date
Jan 1 Zebra commenced the business and invested $50,000 in cash
into the business.
Jan 2 Purchased a portable fax machine of $400 by cash.
Jan 5 Purchased an office desktop computer of $6,000 from Fast
Furniture. The housemaid services company paid $3,000 and
the balance is on credit.
Jan 6 Purchased office filling cabinet on credit from Furniture Excellent
for $2,000.
Jan 7 Paid rental expense of $800 by cash.
Jan 8 Purchased a pick-up lorry, paid by cash of $4,500.
Jan 15 Paid $300 for utilities expense.
Jan 20 Zebra withdrew cash of $1,500 from the business for a short
vacation with his wife.
DBA111 RFS/SGB
Group Assignment Sem1, 2019
Jan 21 Paid amount owing to Furniture Excellent of $1,300 by cash.
Jan 22 Received $2,100 of cash from customers for the service
rendered.

You are required to:

a) Analyse the effects of the above transactions on the accounting equations

using the format given below:

Assets = Liabilities + Owner’s Equity

(10 MARKS)

b) Using the information above, prepare ledger accounts for Smile Housemaid
Services.
(18 MARKS)

c) Prepare the Trial Balance as at 31st January, 2019.

(9.5 MARKS)

d) Prepare the Income Statement for the month ended 31stJanuary, 2019.
(3 MARKS)

e) Prepare the Balance Sheet as at 31st January, 2019.

(7.5 MARKS)

f) Briefly explain who are the external users of accounting information and
support your explanation with examples.
. (2 MARKS)

QUESTION 3 (12 MARKS)

Assume you are operating a business with no accounting knowledge. In my
view, it is important to have some basic accounting knowledge so that you will
be able prepare necessary accounts.

What are your views on the above statement? How accounting can help in
business?

0 1 2 3 Total
Score

Detail 4 Need Satisfactory Good Excellent 12

explanation improvement
on the Little or no Some data Most data All data were
accounting attempt to were were completely
to the explain the explained explained and
related related data. correctly and correctly appropriately
matters clearly. and explained.
clearly.

(TOTAL MARKS: 80)