ACC1201 FINANCIAL ACCOUNTING 1

JANUARY 2023 ASSIGNMENT – 20%

Question 1
The following table shows the cumulative effets of a succession of separate transactions on the
assets and liabilitites of a business. The first colum of data gives the opening position.

Required:
Identify clearly and as fully as you can what transaction has taken place in each case. Give two
possible explanations for transaction I. Do not copy out the table but use the reference letter for
each transaction.
(11 marks)

Question 2

a) If a trial balance fails to agree, what steps would you take in order to find the cause of the
difference?
(4 marks)
 Check the journal account
 Check the debit and credit of the ledger and make sure that the transaction is balanced.
 Check the closing balance in the ledger
 Check the position of the closing balance in debit and credit.

b) Discuss the advantages of preparing a trial balance when you are about to prepare a profit
and loss account and balance sheet.
(5 marks)
Question 3

a)
Commissions Account Subscriptions Account Rent Account
Bank Interest Account Motor Expenses Account Postages Account
Royalties Receivable Account Telephone Account Stationery Account
Rent Receivable Account General Expenses Account Wages Account
Overdraft Interest Account Audit Fees Account Insurance Account

Identify which of the accounts listed above are expense accounts and which ones are
revenue accounts.
(5 marks)

b) Assume in each case that the business has assets of RM200, liabilities of RM80 and capital
of RM120 before the transaction.

Case 1: if a business spends RM30 in cash hiring a van for a day and
Case 2: if a business hires a van for a day at a cost of RM30 and is given 1 month to pay
the bill.

What happens to capital in each case?

(5 marks)