FINAL EXAMINATION

Faculty of Business and Management

Course :
DBCA1113
Fundamental of Accounting

Date : 5 December 2022

Time : 2.30 pm – 5.30 pm

Duration : 3 hours

Lecturer : Nurul Atiqah Binti Mohd Rahim

Total marks : 100 marks (worth 50%)

Instructions to candidates:

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

2. Answer questions according to the instruction for each section.

3. Do not detach any part of the examination paper.

4. You may answer these questions either using words format or by scanning your
handwritten answer (in one compilation) and submit it in LMS.

Materials allowed for this examination:

1. Non-Programmable Calculator.

Student Name : ___________________________________________________

Student ID : ___________________________________________________

NIRC/Passport No : ___________________________________________________

Program : ___________________________________________________

Page 1 of 7
Date : 5 December 2022 Course: DBCA1113 Fundamental of Accounting

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

Answer ALL questions

1. Trade discount received should be _______.

A. debited to purchased account

B. debited to discount received account
C. debited to creditors account
D. none of the above

2. What is the meaning of accrued expenses?

A. Debt that is unable to be collected from the customers.

B. Money received in advanced for services to be provided to the customers at a later
date.
C. Expenses that are not yet paid even though the good were received or services were
used.
D. Expenses that were paid for in the current accounting period but the good or services
will only be used in the following accounting period.

3. The allowance for doubtful debts is provided ___________.

A. when an accounts receivable terminates their business

B. when accounts receivable is declared bankrupt
C. to write-off bad debts
D. to provide for the possibility of bad debt

4. Depreciation of non-currents assets are due to

I. Wear and tear when the asset are used

II. Physical deterioration of the assets
III. Low market value after being used for several years
IV. Judgemental by the owner

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

5. The formula for gross profit is __________.

A. income after tax.

B. income less discount.
C. revenue less cost of goods sold.
D. revenue less total expenses

Page 2 of 7
Date : 5 December 2022 Course: DBCA1113 Fundamental of Accounting

6. Rita Repulsa Sdn Bhd has a gross profit of RM9,000. The closing stock and opening
stock are valued at RM6,000 and RM8,000 respectively. Total purchases are RM250,000.
What are total sales for Rita Repulsa Sdn Bhd?

A. RM261,000.
B. RM257,000.
C. RM243,000.
D. RM232,000.

Question 6 and question 7 are based on the following information

7. A machine was installed at a cost of RM4,000. Its useful life was estimated at 5 years
and it has scrap value of RM800.

Determine the machine’s depreciation expense charged per year.

A. RM640.
B. RM800.
C. RM1,600.
D. RM1,920.

8. Determine the asset’s carrying value at the end of second year.

A. RM1,280.
B. RM2,720.
C. RM2,080.
D. RM3,360.

9. For accounting purposes, the proprietor of an enterprise has always been considered to
be separate and distinct from the business which he controls or owns, in accounting term
tis is referred to as _______.

A. cost concept
B. accrual concept
C. economic entity concept
D. going concern concept

10. Which of the following is true regarding the going concern concept?

A. Any foreseeable losses should be recorded in the current year, whereas profit will be
recorded when it is realised.
B. A business will continue to operate in a foreseeable future
C. Every transaction has two aspects of accounting
D. Expenses incurred during the accounting period will be matched against revenue
earned during the same accounting period.

Page 3 of 7
Date : 5 December 2022 Course: DBCA1113 Fundamental of Accounting

SECTION B - STRUCTURED QUESTIONS [TOTAL = 80 MARKS]

Answer ALL questions

QUESTION 1 (20 MARKS)

Mr Abdullah is the owner of Three Castle Sdn. Bhd. The transactions for the month of March
2021 are follow:

March Transaction
1 Mr Abdullah invest in his business with RM200,000 by cash and bank in 60% of it
into the business bank account.
3 Purchased second hand lorry costing RM50,000 from Dechaton Sdn Bhd. He paid
10% deposit by cheque and the balance paid by next month.
5 Bought goods RM60,000 from Jaya Maju Sdn Bhd on credit.
8 Sold goods RM25,400 to Andaman Trading on credit.
10 Paid utility bill RM300 and insurance premium RM550 by cash.
13 Andaman Trading returned goods to the business RM3,200.
19 Received dividend from Fintech Bank RM3,450 by cheque.
21 Paid half of debt to Jaya Maju Sdn Bhd by cash and received 2% discount.
25 Mr Abdullah took RM400 from business bank account and donate to Yayasan
Cancer Malaysia.

REQUIRED:

Journalise the above transactions.

(20 marks)

Page 4 of 7
Date : 5 December 2022 Course: DBCA1113 Fundamental of Accounting

QUESTION 2 (20 MARKS)

(a) Discuss THREE (3) factors of depreciation.

(6 marks)

(b) Mr Addin is the owner of AZ Transport Sdn Bhd in Petaling Jaya. His company owns
various types of vehicles, including one 3-ton box truck worth RM38,000 and a car-
carrier lorry worth RM70,000. Both were bought on 1 January 2017. Mr Addin plans to
use the truck for five years and then sell it for RM10,000. He is also going to depreciate
the lorry at 20% per annum.

He agreed to depreciate the truck by using the straight-line method and lorry by using
the reducing balance method.

REQUIRED:

Show the following calculation from 2018 to 2021 with the relevant table for both asset:

i. The cost
(2 marks)

ii. Depreciation charged

(4 marks)

iii. Accumulated depreciation

(4 marks)

iv. Net book value for the asset

(4 marks)

Page 5 of 7
Date : 5 December 2022 Course: DBCA1113 Fundamental of Accounting

QUESTION 3 (20 MARKS)

(a) Following are the accounts of Idea Bookstore Sdn Bhd as at 31 December 2021.

Item RM
Capital 150,000
Purchases 40,000
Cash in hand 7,000
Cash in bank 7,500
Office equipment 2,000
Account receivable 8,000
Opening inventory 3,000
Closing inventory 2,500
Machinery 160,000
Salaries 11,400
Sales 89,100
Account payable 5,000
Rent expenses 2,000
Furniture 16,000
Long term loan 13,000
Commission received 1,200
Advertising expenses 1,400

REQUIRED:

Prepare the trial balance as at 31 December 2021.

(16 marks)

(b) Explain TWO (2) types of error affecting the trial balance.
(4 marks)

Page 6 of 7
Date : 5 December 2022 Course: DBCA1113 Fundamental of Accounting

QUESTION 4 (20 MARKS)

Following is the trial balance of Seri Nilam Sdn Bhd as at 31 December 2021.

Particulars Debit (RM) Credit (RM)

Inventory (1 January 2019) 5,000
Purchases and sales 40,000 150,000
Carriage Outwards 2,000
Return 200 400
Wages and Salaries 2,200
Rent expenses 1,600
Delivery expenses 300
Discount allowed and discount received 700 600
Insurance 1,400
General expenses 600
Building 80,000
Account receivable and account payable 40,000 11,000
Furniture and fittings 8,000
Cash in bank 15,000
Cash in hand 2,500
Drawing 500
Capital 38,000
200,000 200,000

The closing inventory was RM12,000

REQUIRED:

i. Prepare Statement of Comprehensive Income for the year ended 31 December 2021.
(10 marks)

ii. Prepare Statement of Financial Position as at ended 31 December 2021.

(10 marks)

-END OF QUESTIONS-

Page 7 of 7