CONFIDENTIAL AC/JULY2022/ACC117

UNIVERSITI TEKNOLOGI MARA

TEST 2

COURSE : INTRODUCTION TO FINANCIAL ACCOUNTING /

INTRODUCTION TO FINANCIAL ACCOUNTING
AND REPORTING
COURSE CODE : ACC117 / 106
EXAMINATION : JULY 2022
TIME : 1 HOUR 30 MINUTES

INSTRUCTIONS TO CANDIDATES
1. This question paper consists of three (3) questions: Question 1 (10 marks)
Question 2 (25 marks)
Question 3 (15 marks)
2. Answer ALL questions in English.

3 READ:
i. I declare on my honour that I answer all questions on my own without copying
and/or cheating.
ii. I also declare that I do not communicate with the other students throughout the
test period.
iii.I agree to be given 0 mark if I was found guilty for any of these.

4 For submission:
i. Upload your answer scripts in the Google Classroom provided by respective
teaching lecturers
ii. Save as single PDF file and name as NAME_GROUP_ACC117_TEST 2

DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO

This examination paper consists of 6 pages

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QUESTION 1

Alyaa Enterprise is a newly incorporated business supplying ingredient for baking cakes and
cookies in Kuching. Below are the business transactions of Alyaa Enterprise during the
month of June 2022.

Date Transactions

June 2022

3 Owner brought in additional cash of RM50,000 into the business.

6 Purchased display racks valued at RM5,700 from Popular Furniture and paid
RM2,000 cash and the remaining are paid on 2 months credit.
7 Goods amounted to RM4,600 was purchased on credit from Baker’s
Wholesale.

8 The business returned defective goods to Baker’s Wholesale amounting to

RM600.

12 Sold goods on credit to Alisha Trading worth RM3,300.

13 Alisha Trading returned damaged goods worth RM300 to the business.

18 Received RM800 cash for goods sold to Aiman.

22 Alyaa took inventory worth RM500 for personal use.

25 Paid rental expenses amounting to RM5,000 by cash.

Required:
Identify the appropriate book of prime entry to each of the above transactions.
(Total: 10 marks)

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QUESTION 2

Sweet Flower Enterprise is a fresh flower supplier from Cameron highlands. Below are the
balances from books of Sweet Flower Enterprise as at 31 December 2021.

Sweet Flower Enterprise

Trial Balance as at 31 December 2021
RM RM
Sales 128,000
Purchases 79,200
Return inwards 250
Return outwards 450
Opening Stock as at 1st January 2021 12,700
Rental expenses 1,000
Utilities expenses 400
Salaries expenses 3,200
Insurance expenses 800
Repair and Maintenance 750
Interest expense 350
Discount allowed 400
Rental income 2,100
Interest income 1,800
Land and building 120,000
Motor vehicles 90,000
Furnitures 56,000
Investment 18,000
Long-term loan 70,000
Accumulated depreciation – Motor vehicles 22,500
Accumulated depreciation – Furnitures 5,600
Account receivables 6,800
Account payables 2,340
Allowance for doubtful debt as at 1st January 2021 550
Drawings 760
Capital 157,270
390,610 390,610

Additional information:

1. Stock as at 31 December 2021 is RM 14,200

2. Accruals and prepayments during the period:

Accruals:
Interest income 900
Insurance expenses 400

Prepayments:
Utilities expenses 80
Rental income 100
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3. One of the account receivables worth RM120 was declared bankrupt. The allowance
for doubtful debt is to be increased to RM950 for year ended 31 December 2021.

4. Annual depreciation is to be provided as follows:

a) Motor Vehicle 5% on cost, yearly basis
b) Furnitures 5% on net book value, yearly basis

Required:

a. Prepare the Statement of Profit or Loss for the year ended 31 December 2021
b. Prepare the Statement of Financial Position as at 31 December 2021
(Total: 25 marks)

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QUESTION 3

The following are the Cash Book and the Bank Statement of Mesra Trading for the month of
June 2022:
BAGUS BANK
Bank statement for the month of June 2022
Client : Mesra Trading
Account no: 111222456
Type of account: Current Account
State date: 30 June 2022
Date Particulars Debit Credit Balance
June Balance b/d 10,700
1
3 Cash 2,500 13,200
4 Direct Order_Aman 1,100 12,100
5 Cheque issued: 6005 1,470 10,630
7 Cheque deposit: ABC Trading 1,500 12,130
9 Cheque Issued:6006 700 11,430
11 Cheque Issued:6007 1,800 9,630
12 Cheque deposit: ZEE Trading 2,500 12,130
18 Azam Trading_Credit Transfer 2,000 14,130
19 Cheque Deposit: Sue 1,800 15,930
22 Standing Order: Aliza 2,600 13,330
27 Dividend 150 13,480
28 Cheque Returned 1,100 12,380
30 Bank Charges 60 12,320

CASH BOOK

Date Details RM Date Details RM

1/6 Balance b/d 10,700 4/6 Purchases: 1,470
Cheque no 6005:
3/6 Cash 2,500 9/6 Purchases: 700
Cheque no:6006
7/6 ABC Trading 1,500 11/6 Purchases: 1,200
Cheque no: 6008
12/6 Zee Trading 2,500

19/6 Aris Trading 1,010

19/6 Suzy 1,890 30/6 Balance c/d 16,730
20,100 20,100

Additional information:
1. A cheque no. 6007, paid to a creditor has been not recorded in the cash book.

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2. The actual amount received on 19 June 2022 from Sue was RM1,800 but recorded
in the Cash Book as RM1890.

Required:
a. Prepare adjusted Cash Book for the month of June 2022
b. Prepare a Bank Reconciliation Statement for the month of June 2022.
(Total:15 marks)
(TOTAL: 50 MARKS)

END OF QUESTIONS