Methodist Pilley Institute

Computerised Accounting Practices

Assignment (Jan Sem 2020)

The Case

Garland Berhad (925320-T) is an importer and exporter of air-conditioners. The company

launched its Initial Public Offering (IPO) on 1 May 2019. A total of 1,500,000 ordinary shares
were offered to the public.

The company only transacts in the local currency (RM) and CAD Dollars (CAD). The CAD
exchange rates table is found in Appendix A.

The company adopts the standard 12 months financial period, commencing from 1 May 2019.

You are required to use the system to record the transactions below:-

Question 1
Create the company data file by selecting the Industry classification: “Other” and Type of
business “Wholesale Business” from sample account list provided by the software, with the
following address:-

<Your name>
106 Waterloo Street (1
Mark)
Question 2
(i) On 1 May 2019, the company directors injected RM250,000 to start-up the company.
Record the monies received and charge to the 3-1000 Share Capital Account. Delete the
accounts of 3-1000, 3-1100 and 3-1200 from the Accounts List. (1
mark)

(ii) On 3 May 2019, the company paid Goh’s Consultants RM72,000 being pre-listing
consultancy fees. Create the 6-1900 Pre-Listing Expenses account to record this. (1
mark)

(iii) On 4 May 2019, the company also paid RM67,000 to its marketing consultants, Soon Lee
Marketing, for marketing and public relations fees relating to the IPO launch activities.
Record this amount (charge to the 6-1900 Pre-Listing Expenses account). (1 mark)

(iv) The company received RM15,000,000 from Public Commercial Bank being funds
received from the IPO exercise less the underwriting fees. Record the funds received above
on 6 May 2019. (2
marks)

(v) At the conclusion of the IPO exercise, transfer the balances of 6-1900 Pre-Listing
Expenses account to the Share Capital account on 6 May 2019. Record this transaction.
(2 marks)
1
 (7 Marks)

Question 3
The company purchases air-conditioners in CAD Dollars (CAD) and sells them in both CAD and
the local currency (RM).
a) Update the exchange rates table for the CAD rate on 1 May 2019. Generate the Currency
List report. (1 mark)

b) Create the following accounts: 1-2111 Cheque Account – CAD, 1-2201 Trade Debtors -
CAD and 2-2201 Trade Creditors - CAD. Link these accounts to the CAD currency.
(3 marks)

c) Create a new account 6-2100 Currency Gain Loss account and set this account as the
linked account for any realized currency gains and losses. After linking, you may delete the
4-9999 Currency Gain Loss account from the Accounts List. (1
mark)
(5
Marks)

Question 4
The supplier, Hitachi Berhad, delivered the following items on 10 May 2019.
Quantity Unit Cost
HIT A100 250 units CAD750
(Item No. A100)
HIT C500 180 units CAD870
(Item No. C500)
HIT D200 60 units CAD560
(Item No. D200)

Create the items above and link them to the following accounts:
 Asset Account is “1-2300 Inventory”
 Income Account is “4-1000 Sales ”
 Cost of Sales Account is “5-1000 Purchases”

Generate the Supplier Bill based on the information provided above. The supplier required two
equal payments. The first payment need to be paid upon the delivery and the balance should be
paid within 30 days. (10 Marks)

Question 5
The following sales transactions were made.

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a) 12 May 2019 - Sold 20 units of A100 and 15 units of C500 at RM1,500 and RM1,800 per unit
respectively to customer New World Trading. There was a freight charge of RM600 to be
billed in this invoice. A 15 days credit term is offered. Generate the sales invoice. (4 marks)

b) 18 May 2019 - Cash sales of 5 units of A100 and 8 units of D200 was made to customer,
Gforce Sdn Bhd, at CAD950 and CAD670 per unit respectively. Generate the sales invoice.
(4
marks)

c) 27 May 2019 - Full payment was made to Hitachi Ltd to settle the outstanding bill. Record
this payment. (1
mark)
(9 Marks)

Question 6
On 21 May 2019, the company sold 12 units of C500 at RM1,850 per unit and 7 units of D200 at
RM900 per unit to customer Mr John Lee, and it has been agreed with the customer that this
will be traded in with 3 units of used C500 and 1 unit of used D200 valued at a total of RM1,200
and RM300 respectively. The outstanding balance was settled by the customer on delivery.
Generate the sales invoices.

Use the 1-9999 Contra Cheque Account and inventory items “Used C500 (Item no.
UHC500)”, “Used D200 (Item no UHD200)” and “Traded-in Item”, to record this transaction.
(11 Marks)

Question 7
On 22 May 2019, the company consigned 15 units each of A100 and C500 to SMT Appliance
Berhad. These items will be held by the customer on consignment basis until they are sold at the
usual price of RM1,450 per unit and RM1,900 per unit respectively. In addition, additional units
will be consigned to SMT Appliance Berhad to replenish the consigned stocks to 15 units at the
end of the month.
 Create new inventory items A100-C and C500-C to track the corresponding items issued on
consignment.
 Create a new asset account “1-2399 Consignment Stock”.
 Transfer the appropriate quantities and cost of the items on consignment from the trading
stock to the consignment stock.

The following units are sold by SMT Appliance Berhad as of 31 May 2019:
 9 units of A100
 12 units of C500
(i) Generate the invoice to SMT Appliance Berhad on 14 days credit terms. (7 marks)
(ii) Perform the stock transfer for the additional units consigned to the customer. (2
marks) (9
Marks)

3
Question 8
a) On 25 May 2019, the company entered into a lucrative contract to supply 10 units each of
A100 and D200 to the Aussino Trading at RM1,600 and RM1,750 per unit respectively.
Record this sale on a 30 days credit term, create a new job code “AUC” to track all income
and expenses relating to this account. (2
marks)
b) Record the following payments from the Cheque Account pertaining to this job:
(i) Paid RM2,500 for advertisement to Star Newspaper on 15 May 2019. (2
marks)
(ii) Paid RM6,000 for the wages and salaries of workers on 29 May 2019, but only 60% was
to be allocated to this job. (2
marks)
c) Generate a Job income statement for this job only as at 31 May 2019. (1
mark)
(7 Marks)

Question 9
On 24 May 2019, the company sold 2 units of C500 to customer, Nelly Company at RM1,800
per unit. At the same time, Nelly Company also billed the company for RM750. This payment
consists of 1 unit table and printing fee of RM150. It was agreed that Nelly Company would pay
the difference in 30 days. Record this contra entry accordingly. (Note: Please use the Cash
Received method to handle this transaction). (8 Marks)

Question 10
On 26 May 2019, the management decided to factor its invoice of Aussino Trading to Orix
Factoring Company to improve cashflow. The factoring charge levied was equivalent to 11% of
the invoiced amount, and the company received the balance in two equal payments in cash on 29
May 2019 and 31 May 2019. You should create the new accounts 1-2150 Factoring Account
and 6-1250 Factoring Charges for this transaction. Record this transaction accordingly.
(7 Marks)

Question 11
There is a bad debt arising from the amount owing by Nelly Company. The customer has
become insolvent on 31 May 2019, and the company has managed to collect RM1,000 from the
customer, and the balance was to be written-off as bad debts. Record this and charge the bad
debts to 6-1220 Bad Debts. (5 Marks)

Question 12
a) The company analyses its debtors within the following date range: 10 days, 20 days and over
30 days. Generate the Receivables Reconciliation Detail report that shows the aging of
debtors as at 31 May 2019 in the local currency. (2
marks)
4
b) Update the exchange rates table for CAD as of 31 May 2019.
(i) Generate the Unrealised Currency Gain/Loss report as of 31 May 2019. (1 mark)
(ii) Determine the journal entry required to the Trade Debtors and creditors Revaluation
accounts.
CR Cheque Account – CAD Exchange
DR Currency Gain Loss (2marks)
(5
Marks)

Question 13
On 1 May 2019, the company entered into an office rental agreement with Ken Building
Management. The agreed rental fee was RM2,500 per month commencing on 1 May 2019.
However, the supplier’s bill was not received until 3 June 2019.
(i) Record this transaction as an accrued expense in May 2019 and payment to the firm on 10
June 2009 (charge to “2-3000 Accrued Expense” account). (2
marks)

(ii) Generate the Cash Disbursement Journal from 1 to 30 June 2019. (2

marks)
(4 Marks)

Question 14
On 1 May 2019, the company purchased a delivery truck for RM30,000 and motor vehicle
insurance for RM1,000 from Hong Lee Motors by cheque.
(i) Record this transaction (create a new “6-1660 Motor Vehicle Insurance” expense account).
(2 marks)
(ii) It is the company’s accounting policy to depreciate assets over 5 years on a straight line
basis. Compute the depreciation charge for May 2019 and record this entry. (2 marks)
(4 Marks)

Question 15
Generate the following reports:
(a) Account List Detail, showing balances (including accounts with zero balances) as at 31 May
2019. (1 mark)

(b) Profit & Loss Multi-Period Spreadsheet for the Quarter from 1 May 2019 to 31 July 2019,
excluding accounts with zero balances. (1 mark)

(c) Balance Sheet Multi- Period Spreadsheet for the Quarter from 1 May 2019 to 31 July 2019,
excluding accounts with zero balances. (1 mark)

(d) The following reports from 1 to 31 May 2019:

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  General Journal
 Sales & Receivables Journal
 Purchases & Payables Journal
 Item Register (Detail)
 Cash Disbursements Journal
 Cash Receipts Journal (3
marks)
(6 Marks)

Question 16
Assuming that it is now 30 April 2020, and the company declared a dividend of RM0.05 per
share. Record this transaction on 30 April 2020, and generate the Cash Disbursement report on
30 April 2020. (3 Marks)

Appendix A
CAD Exchange Rates (local currency (RM) to 1 unit of CAD)

2.600
1 May 2019 0
2.450
10 May 2019 0
2.550
18 May 2019 0
2.500
20 May 2019 0
2.600
22 May 2019 0
2.650
27 May 2019 0
2.700
31 May 2019 0