Section A: Compulsory Questions (60%) Attempt all the questions in this section. 1. Axiata Group Bhd has an authorised capital of 300,000 6% preferred shares of RM | each and 300,000 ordinary shares of RM 2 each. All the shares were issued and fully paid. The following balances were extracted at 31 December 2017 after the preparation of the Income Statement (Trading account section): Debit Credit RM RM Ordinary Shares Capital, called and paid up 1,000,000 6% Preferred Shares Capital, nominal value and fully paid 300,000 Gross Profit 90,250 Balance Of Retained Profits, 1 January 2017 43.210 Land And Leasehold Premises (Cost Of Land RM 500,000) ‘1.150.000 ; Motor Vehicles at cost 259,000 Goodwill 11,000 Investment quoted at cost 83,000 Inventory at 31 December 2017 22,960 Trade Receivables and Trade Payables 42,150 11,394 5 Fixed Deposit 24,000 Cash 19,094 9% Loan Notes (repayable year 2024) 30,000 & Loan Notes Interest (until 30 June 2017) 1.350 Bank Overdraft 3,120 b Bad Debts 2,700 E Insurance Premium: 15,000 Directors’ Emolument 5,900 General Reserves 14,000 Interim Dividend Paid: Preferred Shares 9,000 Ordinary Shares 20,000 Formation Expenses 5,000 General Administrative Expenses 4.480 Miscellaneous Expenses 3,960 Accumulated Depreciation: : Leasehold Premises 150,000 Motor Vehicles 32,520 Allowance For Doubtful Debts 3.300 1,680,594 594 Additional Information: (®) A customer owing RM 1,950 was declared bankrupt on 31 December 2017. The allowance for doubtful debts is to be provided at 8% of existing accounts receivable. (ii) The depreciation policies on company’s assets are as follows: Land is not subjected to any depreciation; The leasehold period of premises is 20 years; Motor vehicles - 10% on carrying amount. 2018 CPSS Copyright Reserved CONFIDENTIAL Scanned with CamScannerii) (iv) w) wi) (vii) (viii) (ix) Annual insurance paid on I April 2017, a quarter of it was not expired yet. Miscellaneous expenses of RM 610 were included in the amount of general administrative expenses. Audit and legal fees RM 1,300 were charged. Loan notes interest for the half year was still outstanding, The fixed deposit was open on | Februa not been received yet. ry 2017. but the interest rate of 4% per annum had The quoted investment still had a market value of RM 100,000 on the reporting date. The directors recommended: * increase the general reserve to RM 20,000; * creation of staff pension fund RM 10,00 * proposed the remaining dividend for preferred shares: © proposed a dividend of RM 0.09 per ordinary shares. You are required to prepare: @) (b) (c) Income Statement for the year ended 31 December 2017; (7%) Statement of Changes in Equity for the year ended 31 December 2017; (4.5%) The Statement of Financial Position as at 31 December 2017. (8.5%) (Total: 20%) Scanned with CamScanner2. Khoi, Chang and Hong were in the partnership for many years sharing profit and losses equally. It was agreed that the partnership to be dissolved on | April 2018 Statement of Financial Position as at 31 March 2018 Cost] Accumulated | Depreciation RM 40,000 75.000 30,000 Non-Current Assets; Office Equipment Machinery Motor Vehicles (5 cars) Current Assets: Inventory 6.120 Accounts Receivables 10.766 Cash 214 17,100 Total Assets 172.100 Owner's Equity: Capital ~ Khoi 50,000 + Chang 25,000 - Hong 000 79,000 Current - Khoi 20,940 ~ Chang 19,260, ~ Hong (2,890) Total Equity ‘Non-Current Liabilities: Bank Loan 30,000 Current Liabi Accounts Paya 16,936 Bank Overdraft 7,994 Accrued Rental 860 Total Liabilities 33,790 Total Equity and Liabilities 172,100 Additional Information: @) Machinery was sold for RM 21,500 and office equipment sold with a profit of RM 5,000. ii) Accounts receivables paid in full ater deducting discounts allowed RM 766 and bad debts of RM 1,000, (iii) Inventory was taken over by Chang at its book value less 15%, 2018 CPSS Copyrixht Reserved CONFIDENTIAL, Scanned with CamScanner(iV) Khoi took over two of the motor vehicles at agreed price of RM 20,000 each. The others Were sold for RM 19,000 cach. () Accounts payable were settled by Khoi with payment of RM 16,000. (vi) Bank loan and aceruals rental were repaid and the cost of dissolution RM 1.292 was paid by cheques, (vii) Hong is insolvent and could only pay RM 1,070 out of his account deficiency. The partnership decd required that such loss was to be bome between the remaining partners, according to Gamer Vs Murray rule. You are required to prepare: (a) Realisation aecount; (9%) (b) Capital account of each partner in columnar form; rs) (©) Bank account, (6%) (Total: 20%) 2008 CPSS Copyright Reserved Ci CONFIDENTIAL, Scanned with CamScanner3a) Yoke’s Cash Book (Bank Columns only) for the month of July 2018 was as follows: Cash Book (Bank Column Only) 2018 RM | 2018 Chq No RM Jul) Balance bid 6,160 | Jul 2 Rental aotoor 2.120 8 Louis 3.400 6 Purchases 001002 880 17 Sales 10 Cody 001003 1.230 22, Damian 15 Song Sen 001004 1.400 29° Adrian 18 Tong Tong oor00s 500 30 Ricky 23° Carol 001006 1.190 26 Derby 001007 x60) 3 Balance ed Aug! Balance bid The following was the Bank Statement for the same month: Year Particulars Debit Credit 2018 [__RM RM Jul_T | Balance b/d 3 | Deposit June) [ 1.000 5 | Cheque No 000999 980 9 | Cheque No 001001 [2.120 9 | Cheque No 001002 |__880 13 | Cheque No 001000 [7.200 13 | Deposit I 3,400 15 | Standing Order - Car Installment | _1.380 18 | Deposit [ 1350 19 | Dividends - Sime Darby Company _| 700 20 | Cheque No 001003 | 1,230 22 | Deposit { 1.700 23 | Cheque No 001004 [Vaio 23 [ Cheque No 001005 [500 23 | Dishonoured Cheque 1,700 29 | Credit Transfer - Nigel 2.405 29 | Direct Debit - CPSS Enterprise 180 31_| Bank Charges 15 31 [Interest on Fixed Deposit | 300 Additional Information: @ A cheque of RM 1,410 (Cheque number 001004) issued to a supplier, Song Sen had been recorded as RM 1,400 in the Cash Book. (ii) A cheque of RM 1,700 which banked in on 22 July 2018 had been retumed by the bank as dishonoured cheque. You are required to prepare: (a) Adjusted Cash Book; 4.5%) (>) Bank Reconciliation Statement as at 31 July 2018. 4.5%) -6- 2018 CPSS Copyright Reserved CONFIDENTIAL Scanned with CamScanner3. (b) The following balances appeared in the Trial Balance of Mercury Company on 31 December 2017; ' Debit Credit RM RM Rental Income 1,600 Stationery 280 Accounts Recci les, 3,500 Allowance For Doubttill Debts, | January 2017 170 Fumiture 30,000 Accumulated Depreciation Of Furniture, | y 2017 12,900 Bank 9,400 Additional information for the year ended 31 December 2017: (i) (ii) (iii) (iv) w) (vi) The own ed a tenaney agreement with Chong (a sub-tenant) for 40% shop space occupied. Monthly rental income charges RM 400 started from 1 August 2017. Inventory of unused stationery amounted to RM 50. In year 2017, a customer who owed RM 500 promised to repay RM 0.40 for every RM 1 owed and the balance will be treated as uncollectible, On 31 December 2017, furniture which was bought on I July 2015 for the cost of RM 15,000 was traded for a new fumiture cost RM 18,000. The company paid RM 8,000 by cheque to settle the full payment of the new furniture. Allowance for doubtful debts is set at 5% on net accounts receivables. Depreciation for furniture at a rate of 10% on cost. You are required to prepare the following accounts and close the accounts for the year ended 31 December 2017. (a) (b) (c) @d) (e) () Rental Income accou (1.5%) Stationery account; (1.5%) Allowance For Doubtful Debts account; (1.5%) Fumiture account; (2.5%) Accumulated Depreciation Of Furniture account; (2%) Disposal Of Furniture account. (2%) (Total: 20%) Scanned with CamScannerAttempt any one of the three questions in this section 4. MPH Ltd runs a departmental store consisted of two departments: Books and Stationery. The following were the account balances extracted from her books as at 31 December 2017: Books Stationery Total Department Department RM RM RM Sales 240,000 Inventory. 1 January 2017 3,750 6.350 19,190 Inventory. 31 December 2017 1,930 4,230 6.160 Purchases 20,500 39,800 60,300 Bad Debts 3,000 1,000 4,000 Carriage on Sales 275 1,785 2,060 Advertising Expenses 13,000 Salesmen’s Salaries 16,000 Rent Expenses 12,000 Water and Electricity Charges 1.440 Account Receivables 21,000 Motor Vehicles at cost 80,500 ‘Additional Information: (i) Books Department contributed 40% of the total sales. Gi) During the financial year, stationery of cost RM 300 was transferred for use in the Books Department. Advertising expenses are to be divided in proportion to their sales figure. The number of salesmen employed by Books Department and Stationery Department was 5 and 3 respectively. Salesmen salaries were bases of number of salesmen allocate their expenses. (v) Rent expenses as well as water and electricity charges are to be apportioned according to the floor space used by each department, The floor space of Books Department was twice that of Stationery Department. (vi) The company decided to depreciate the motor vehicles on a straight line basis over a useful life of 5 years with an estimated scrap value of RM 500. (vii) Depreciation of vehicles was equally apportioned between two departments. (viii) The allowance tor doubtful debts was to be 6% of Account Receivable and allocated it beoween the departments in proportion to their bad debts. You are required to prepare Departmental Income Statement for the year ended 31 December 2017 in vertical form with two columns, namely “Books Department” and “Stationery Department” (Remark: Total column is not required) (Total: 20%) 2018 CPSS Copyright Reserved CONFIDENTIAL Scanned with CamScannerAn folowing information was exeacted from the hooks of Best Company, a company that Heese wallet. The following balances are extracted from the books of the firm as at 31 December 2017. Sales: Finished Goods Scrap Of Raw Materials Inventory I January 2017: Raw Materials Factory Loose Tools Work-in-progress, at factory cost Finished Goods s:_ Raw Materials clory Louse Tools Carriage On Raw Materials Raw Materials Retumed Royalties Direct Labour Indirect Wages Plant and Machinery, at cost (bought on 1 May 2017) Office Equipment, at cost Accumulated Depreciation Of Office Equipment, 1 January 2017 Repairs Expenses Salaries And Wages: Factory Storekeeper Office Executives Purebaa Water And Elect Rental Of Premises Insurance General Factory Expenses Additional information: (i) Inventory on 31 December 2017: Raw Materials RM 12,570 Factory Loose Tools RM 150 Work-in-progress RM 4,890 Finished Goods RM_7,700 (ii) Water and electricity and insurance are to be apportioned: Factory 1/5 and Office 4/5, (ii) Out of the repairs expenses, RM 32,000 was for the extension of building, and the balance was for the repairing of factory machinery. (iv) 20% of the rental of premises should be attributed to the factory. (v) The scrap sales were to be deducted from the cost of materials consumed, (vi) Machinery was depreciated by using straight line method of 15% per annum, and office equipment was 10% per annum on book value. (vii) The current market price of the goods manufactured was RM 120,000. You are required to prepare: (a) Manufacturing Account for the year ended 31 December 2017; (4%) (b) Trading Account for the year ended 31 December 2017. (6%) (Total: 20%) 2018 CPSS Copyright Reserved CONFIDENTIAL Scanned with CamScannerOn 1 March 2017, Chee and Lai entered into joint venture for dealing seasonal goods. Each of them contributed RM 10,000 into the business to acquire inventory for resale, The profits or losses of the joint venture were to be shared equally after charging a commission of 10% in respect of each party's sales, No separate books were opened for the venture and all payments and receipts were passed through the venturers* individual bank accounts. 2017 Mar Chee bought funiture for the business vertu Rental of the shop RM 4,000, Chee and Lai y “old goods for RM 8,000 and incurred selling expen: ed RM 3.500 to Lai by cheque. Lai sold 30 cases of goods to his customers Derrick on credit at RM 200 each and paid selling expenses RM 40 on the same day. Derrick accepted bils for the amount due 10 Lai bought additional goods RM 3,000 and forward 1/3 of the goods to Chee. Lai paid freight and insurance charges of RM 280 on the same day. 15. Chee made sales for RM 22,000 and paid selling expenses for RM 180. 17 Lai sold goods costing RM 10,500 and the unsold inventory costing RM 6,000 were transferred to Chee. 19 Chee took goods worth RM 140 for his personal use. 28 Derrick’s bill was met on due date, 29 Chee’s warehouse suffered a serious fire, as a result of the entire remaining inventory was completely destroyed, Chee and Lai decided to end the joint venture 30. Chee agreed to took over the furniture which was depreciated by 20% on cost. 31 Commission and profits or losses were to be calculated and divided as agreed. A final settlement was made between the venturers and the venture was closed. « by cheque RM 2,590, saying half each, kw You are required to prepare (a) Joint Venture with Lai account in Chee’s boo (5.5%) (b) Joint Venture with Chee account in Lai's book; ay c) Memorandum Joint Venture account. ° (Total: 20%) Scanned with CamScannerChong Hwa 2018 Final Exam Question 1 (2) pres oe . re mnie, a sole trader, maintains a Petty Cash Book on the imprest system. the imprest being RM 200. The Petty Cash Book is balanced on the Friday of each week and the imprest is restored on the Monday of the following week. ‘On Monday 3 September 2018 the balance of petty cash in hand was RM 36. The following payments were made: Date Descriptions. Voucher No. Amount RM Sep 3 Taxi fare to meet customer us 4 Courier charges 16 8 4° Petrol and parking fee ny 20 Envelopes 18 6 35. Ad papers and files 19 9 Office cleaning 120 50 6 Registered mail charges. 121 12 7. Repair office's lock 122 i Son’s tuition fees 123 35 Winnie maintains five expenditure analysis columns for her Petty Cash Book: Stationery. Postage, Travelling, General Expenses and Sundries REQUIRED: Prepare the Petty Cash Book (Answer Sheet provided) for the week ended 7 September 2018 and restored the imprest on Monday 10 September 2018. (10%) Question 1 (b) The Statement Of Financial Pos jon as at 31 December 2016 of Macy Trading shown below: RM RM Accounts Receivable 24,000 Less: Allowance For Doubtful debts 720. 23,280 ‘Additional information for the year ended 31 December 2017: * During the year, payment received from Accounts Receivable is RM 33,000 and credit sales to Accounts Receivable are RM 40,000. © Debts amounting RM 1,000 were prove to be bad in year 2017. © Norman, whose debts of RM 400 was written off in year 2010 turn up and settled his account in full on 20 October 2017. © Macy Trading decided to maintain Allowance for Doubtful Debts at the same percentage as for year 2016. REQUIRED: (a) Calculate the percentage of Allowance for doubtful debts for year 2016; %) (b) Draw up the following accounts for the year ended 31 December 201 ‘Accounts Receivable; (4%) Bad Debts; (1%) Bad Debts Recovered: (0%) Allowance for Doubtful Debts. 3%) (Total: 20%) Scanned with CamScanner‘Chong Hwa 2018 Final Exam Question 2 (a) BB, a sole trader, does not keep a full set of accounts. An analysis of his Cash Book reveals the following information: Summary of Bank Account RM RM Shop Takings 5.600 | Insurance 6.000 Commission Received 3,000 | Accounts Payable 15,000 Accounts Receivable 14,400 | Personal Expenses 900 Furniture 1.500 Rem 2.060 Additional information: a ‘The following balances were extracted frum the books of BB: 2M August 2018 RM Furniture 18,000, Account Payable 7,800 Tnventory 8,800 Account Rec able 3,900 Accrued Commission Received 180 Prepaid Rent 220 Bank 5.000 Credit note received from supplier amounted to RM 1,350. During the year, customers returned damaged goods amounting to RM 250. (iv) Debts of RM 160 had been written off during the year. An allowance for doubtful debts 5% is to be provided on Accounts Receivable. (v)__ RM 1,200 cash sales had not been banked. It had been used for the following expenses: Custom Duties RM 100: Advertising RM 1,100 (vi) BB drew out RM 800 goods for private use during the year. You are required to prepare: (a) Sales Ledger Control; (b) Purchases Ledger Control; (©) Trading Account for the year ended 31 August 2018: (@) Explain two purpose of preparing a Control Account, Question 2 (b) Chang is a sole trader whose financial year ends on 30 June, his inventory was fully insured. A fire broke out on 16 July 2018, all the inventory was damaged except those were salvaged. Inventory per inventory taking on 30 June 2018 was RM 40,000 at cost. Some information regarding, to the period of I July 2018 to 16 July 2018: RM Sales 36,360 Purchases 8,000 Returns Outwards 700 Sales Returns 360 The selling price was obtained by adding 20% mark-up to cost. Inventory salvaged valued RM 900 (at selling price) You are required to calculate the amount of the insurance claim for the loss of inventory. (7%) 2 Scanned with CamScannerChong Hwa 2018 Final Exam Question 3 Happy Co. was a limited company with an authorized capital of RM 700,000 consisting of 200,000 6% Preferred Shares of RM 2 cach and 600,000 Ordinary Shares of RM 0.50 each. The following information is extracted from the company's book on 31 December 2017: RM RM Issued and fully paid-up Capital = 6% Preferred Shares 200.000 = Ordinary Shares 200.000 Gross Profit 36,200 Retained Profit 1 January 2017 198.000, Frechold Premises 350,000 Equipment (at cost RM 92,000) 84,000 Investment (Quoted) at cost (market value RM 150,000) 140,000 Investment Income 9,000 Accounts Receivable and Payable 26,200 BS 600 Inventory 31 December 2017 8.160 General Reserve 18,600 8% Loan Notes 20,000 Loan Notes interest 1.000 Interim Dividend: Preferred Shares 5,000 Ordinary Shares 6,000 Goodwill 30,000 Directors’ remuneration 15,000 Bank 8,500 Administrative Expenses 4,540 Staff Salary 729,900 729.900 Additional information: Annual income from investment amounted RM 13,000; Depreciation of Equipment at 10% per annum on book value; Provision for audit fees amounted to RM 3,600; Loan Note interest is still owing: The directors of the company declared: + To pay final Preferred Shares dividend; - A final Ordinary Shares dividend of RM 0,15 per share, + increase general reserve to RM 25,000; + create staff welfare fund by RM 10,000. REQUIRED: (a) Caleulate the proposed final dividend; 2%) (b) Prepare the following financial statements: " @) Incom ement for the year ended 31 December 2017; (5%) ii) Statement of Changes in Equity for the year ended 31 December 2017; (6%) Gii) Statement of Financial Position as at 31 December 2017. , (8%) (Total: 20%), Scanned with CamScanner