TUNKU PUTERI INTAN SAFINAZ SCHOOL OF ACCOUNTANCY

BKAS2013 ACCOUNTING INFORMATION SYSTEMS A221 (C & G)

ASSOC. PROF. DR. AKILAH ABDULLAH

EXERCISE IN CLASS FOR TOPIC 4: GLFRS

QUESTION 1

(a) Describe TWO (2) common uses of coding in Accounting Information Systems.

(b) MF Sdn. Bhd, is a merchandising company. The following is the extracted accounts
maintained by the company.

Cash
Accounts Receivable
Vehicle
Accounts Payable
Capital
Sales
Cost of Goods Sold
Rent Expense

REQUIRED:

Create a coding scheme using Block code for each account (use maximum of five
characters).

QUESTION 2

Alvatar Sdn. Bhd. is a trading company. The following is the extracted chart of accounts
maintained by Alvatar:

Account Code Account Description

CAP Capital
VEH Vehicle
APL Accounts Payable
INV Inventory
OET Office Equipment
STL Short term loan
CAS Cash
ARL Accounts Receivable
REQUIRED:

(i) What type of coding is used in the above chart of account?

(ii) Recode the above accounts by using Block Code (use maximum of five characters).

QUESTION 3

Fantastic Boutique is a distributor of various batik products such as baju kurung, caftan, pario, and
scarf. Each product is available in different sizes and different materials such as silk, fuji and
chiffon. The business has just been started few days ago. Fatimah, the owner of the company has
no accounting background and, thus, having a problem in designing a good data coding scheme
for its inventory. She wants the codes to reflect the product itself, so that she does not have to
memorize the code. After doing some reading, she decided that mnemonic code could be her best
choice.

REQUIRED:

(a) Code the following items (i-xvi) using mnemonic code.

Products/size Silk Fuji Chiffon

S M L S
Caftan (i) (ii) (iii) (iv)
Bajukurung (v) (vi) (vii) (viii)
Scarf (ix) (x) (xi) (xii)
Pario (xiii) (xiv) (xv) (xvi)

(b) Explain ONE (1) disadvantage of using the above coding scheme

QUESTION 4

Ali and Mohamed Enterprise (AME) is a store that sells variety of entertainment media such as
CDs and VCDs. Adam, a staff in AME was asked by the manager to design a proper coding for
their stocks, so that it will be easy for them to record sales and monitor the stocks movement. He
is quite confused in choosing a method of coding which is best suited the business. In planning for
the coding, Adam takes note of the following:

 AME has three major product lines: VCDs, DVDs and CDs.
 There are sub categories within each of this product lines: VCD (movie, children
and fiction); DVD (movie, children and education), CD (movie, songs and games)
 Stocks Sequential Mnemonic Block Group
CD -movie 1001 CDM 1001 10M
CD-song 1002 CDS 10S
CD-games 1003 CDG 1010
VCD- movie
VCD -children VCDC 20C
VCD-fiction 1006 VCDF
DVD - movie 1007
DVD - children 1008 5050
DVD - education 1009 DVDE 30E

REQUIRED:

(a) State TWO (2) reasons of using coding system in Accounting Information Systems.

(b) Fill in the missing code in the given above table. Use maximum of four characters.

(c) State ONE (1) advantage and ONE (1) disadvantage for each of the above coding method.

(d) Help Adam to decide the best coding method to be chosen. Justify the choice.

QUESTION 5

(a) Explain ONE (1) advantage and ONE (1) disadvantage of the following coding scheme in
General Ledger and Reporting Systems. Provide ONE (1) example for each coding
scheme.

(i) Sequential
(ii) Block
(iii) Mnemonic

(b) FRS includes all activities related to processing of economic transaction so as to prepare
financial and other reports. List any FIVE (5) of these activities.

QUESTION 6

State and briefly explain 3 types of files available in the General Ledger System database.

QUESTION 7

What information is contained in a journal voucher? How journal vouchers are used as a control
mechanism?