2020 X#Wut crl

Section A : Compulsory Question (60%)

Attempt ALL tlhe quesfions in thil secfion.

1. Foilowing were information adopted from Ai Kennot Trading that running business
of shirt printing as at 31 December 2019:

RM
Non-Current Assets 45,000
Net Profit 1,700
10% Bank Loan 12,000
Accounts Receivable 16,724
Accounts Payable 14880
Allowance for Doubtful Debts , 31 December 2019 1,672
,Bank Overdraft 300
Capital 35,888
Loan to YES 1,800
Closing Inventory, at cost 4,100
Drawings 500

Below were some errors that revealed after preparation of lncome Statement:

i) Drawings of goods cost RM 351 was credited to Bank Account.

ii) Market value of inventory as at 31 December 2019 was RM 3,750.
iii) Full year interest of loan was accrued. However, the double entry was made
based on 1o/o annual interest rate.
iv) RM 120 duty was paid for machine bought from oversea. The amount whs
recorded in credit side of both accounts concerned.
v) Bad debts of RM 800 was recorded in Accounts Receivable only. The amount
was entered as R MBO.
Note: Allowance for Doubfful Debts was 1 0o/o of the accounts receivable.

REQUIRED:
a) Make necessary correction journal entries for the above errors ; (13%)
(narrations are not required)

b) Prepare Statement of Financial Position as at 31 December 2019 (6%)

c) Briefly explain when Suspense Account would be created. (1Yo)

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2. Bintulu Bhd has an authorised capital of RM 2,500,000 ordinary shares of RM 2 each. The
(issued sharre capiial\at 31 December 2019 wa{ RM 1 ,000,000)which was fully paid and had
'been issued at par. Th{bank balancQ as at 31 December 2019 wa{nU 1,000,000 )

On 1 Janu ary 2020, the directors decided to[incrgase the share capital)by offering the
balance of ordinary shares at a price o[nU 2.50 per share, payable as follow:

2A2A
Jan 15 RM 0.90 per share on application (including premium);
30 RM 0.60 per share on allotment;
Apr 1 RM 0.40 per share on first call;
Jun 1 Balance on second and final call.
Applications were received for RItl i|r530,O00'shares, and they were dealt with as follows:

Arrolications (shares) Allotments

100,000 Full allotment
450.000 To allot 1 share fro every 3 shares applied for
1,000,000 To allot 1 share fro every 2 shares applied for
2 No allotment and returned to applicants

The excess application monies were offset against the amount due on allotment. Any balance
remaining was then refunded on 1 February 2A20. The amount due on allotment were received
on 10 February 2420.

The monies due on the first call and the second and final callwere received on 7 April 2020
and 7 June 2020 respectively.

You are required to:

(a) calculate and fill in the table as given; (answer in the answer sheet provided) (7.5o/o)

Application mon Application and Alloment Application

Shares alloted received allotment monies monies monies
required receivable refunded
shares RM RM RM RM

{b) show the Journal entries( including cash items) to record the above transactions in the
books of Bintulu Bhd.( Narrations are not required.) (e.5%)

(c) show the appropriate seotions of Bintulu Bhd's Statement Of Financial Statement on
30 June 2020. (3%)

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 profits and losses in the ratio of 3:1:1'
3. Anna, Aslrely anct Apple were partners, sharing
position of the partnership as at 31 July 2a2o:
The forowing is the siatement of financiar

TriPIe A
Statement Of Financial Position
As at 31 JulY 2020
RM RM RM
Aceumulated Carrying
Cost Amount
Depreciation

100,000 100,000
64,000 (38,000) 26,000
30,000
141,000

10,000
151,000

Current Assets
8,600
lnventory
Accounts Receivable
15,600
Less: Allowance For Doubtful Debts
Cash 176,400

Non^current Liabilities
10,000
Loan from RaYmond
25,000
Banl< Loan

21,000
Accounts PaYable
8,200
Banl< Overdnaft
200
Accrued lnterest On Bank Loan 112.000
Net Assets

45,000
30,000
30,000

12,44O
(16,000)
10,600

+
On 1 August 2020, the partners agreed to selltheir business to Winner Partnership for
RM 45,C)00 by cheque.

The following was the Statement Of Financial Position of Winner Partnership:

RM RM
Machinery 100,000 Capital
Motor Vehlcles 50,000 -Willian 75,000
Fixtures,And Fittings 26,000 -Winne 85,000
lnv,entory 21,800 Accounts Payable 19,600
Accounts Fteceivable 20,244 Bank Loan 100,000
Bank 61.600
279,600 279.600

(i) Machinery were sold at 70a/o of net book value by cheque.

(iii) Half of otfice equipment was taken over by Apple at RM 5,000,
(iii) Accounts Fleceivable was taken over by Ashely RM 14,000, but a debtor
who owed RM 600 was unabte to paid his debt.
(iv) Anna paid bank loan RM 25,000 and accrued interest on bank loan RM 200 for
partnership and took over all inventory at RM 7,560.
(v) Buyer took over:
RM
Accounts Payable 9,800
Office Equipment 10,000
Premises 90,000
Loan fnom Raymond carrying value
(vi) Dissolution cost amounted RM 500 paid by cheque.
(vii) Final balances of the partners' capital accounts are settled by payment of
cheque, but Ashely could only clear 50% of his debit balance.
(viii) The remaining accounts payable were settled by the Triple A partnership at
RM 11,000.

You are required to prepare:

(a) Realisation Account and partners' capital account (columnar form) in the books of
Triple A; (15%)
(b) Journal entries of Winner Partnership to record the above business purchase .
(Narrations are not required) (5%)

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Section B : Elective Question (20%l
Attempt any ONE af the three questions in this section.

4. JackSon and Alvin entered into a joint venture to buy and sell vehicles- lt was agreed
th"t6;i; r."ir*rs should receive a commission ofi0%!n sales rn(b*arall
t losses
irort oro ctebts. j \

/ , ..\
Subject to this arrangement,[profits or losses were to b,e share eeuallV.J

Below was relevant joint venture transactions incurred in the month of December
2019:

Dec 1 Jackson purchased RM25,000 goods and delivered goods worth

RM18,000 to Alvin.
2 Alvin paid advertising fee amounted RM800-
I Jackson Alvin
- Cash sales : RM 8,500 - Cash Sales : RM 8,000
- Credit sales : RM 7,300 - Credit Sales : RM 8,000

14 Jackson collected RM 7,000 from the debtors while Alvin collected

FIM 7,500 for the debtors.
20 l-he remaining debtors owed to Alvin declared bankruptry, thus the debts
considered as bad.
2T Goods cost RM 3,000 stored at Jackson's warehouse was stolen. This
loss would be borne bY Jackson.
30 Both venturers decided to @ase the business. Remaining goods that cost
RM 5,000 stored at Alvin's warehouse were taken over by him. RM 3,000
of it was for business used, RM 500 of it was for personal used and the
remaining was for resale Purpose.
Cheque settlement was made between Jackson and Alvin.

REQUIRED:
a) Joint Venture accounts in both venfurers respective books ; (14o/o)

b) Memorandum Joint Venture Account (6%)

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5. Skylight Trading Company from Pasir Gudang dispatched 500 cases of goods, having a
total cost of RM 200,000 to their agent, Syarikat Ming in Penang, at a pro forma invoice
price of FIM 220,000 on 1 January 2A2A. They had paid Freight and lnsurance Expenses
amountinrg to RM 3,200 and 1% Export Duties on the same day.

On 7 January 202A the goods arrived at Penang, Syarikat Ming made the necessary
arrangements to clear the goods and paid for the fotlowing charges:
RM
Landing Charges 500
TransportationExpenses 1,000 bAA, {&i;*;irr!:ji-1,i i

Warehouse and lnsurance 1,800 E.pr" t s;1*ro5 JX }i\ i,* {lr, *,"a_
,"),." f;,
L)r'l{:t114
Syarikat Ming was entitled to deduct any expenses incurred and a commission of 5% on
the gross sales.

An Account Sales was rendered by Syarikat Ming as at 30 June 2A20 showing that 250
. of goods was sold at RM 850 per case on credit and a further 100 cases was sold out at
RM 1,000 per case on credit. Syarikat Ming had incurred a total amount of Carriage
Outwards RM 600 and Advertising Expenses RM 1,200.

S.yari(at Ming reported that 5 cases of goods had been stolen and the insurance company
egreeii to pay the total cost to Syarikat Ming in compensation.
\-- --

Up to 30 June 2A2O Syarikat Ming received all the amount due from consignment debtors
with the exception of a debt of RM2,000 which had been written off as bad.

On 30 June 2020, Syarikat Ming sent out a sight draft for the amount due to Skylight
Trading Company at that date.

You are nequired to write up the following accounts:

(a) In the books of Skylight Trading Company:

(i) Consignment; (7.5%)
(ii) Bank; (1.5%)
(iii) Consignee; (5.5%)

(b) Consignor account in the books of Syarikat Ming, (5.5%)

1
 The following inforrnation was taken
from the trial balance of Yoyo company'
6.
manufetcturer of toy on 30 June2A?A:
Dr.^- cr.
RM RM

lnventory, 1 January 2024:

20,600
- Raw Materia.[s
13,600
- UnfinishedGoods
28,560
- Finished Goods
Purchases
36,700
- Raw Materials
1,000
- Factory Lclose Tools '
29,560
- Finished Goods
Salaris
36,000
- Factory Manager
20,000
- Administration Staff
1,000
Bad Debts 6,000
Audit Fee
Returns 250
- Raw Materials 130
- Factory Loose Tools
330
- Finished Goods 189,000
Sales
lnsurance 1,900
- Plant And Machinery
Carriage lnwards 500
- Raw Materials 600
- Finished Goods 45,500
Production Wages 9,600
Rent 6,600
Water And EtectricitY 33,000
Plant A,nd Machinery
11,000
Office EquiPment 99,000 65,000
Accounts Receivable And Accounts Payable 8,600
Bank 2,000
Cash 500
Allowance For Doubtful Debts 6,700
Subcontract Cost 127,O7Q
CaPital, 1 Jantrary 2O2O 400.150 400,150

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Add itiorral I nformation :
(i) lnventory, 30 June ZA2A
- Raw Materials , RM 20,000
- Unfinished Goods RM 10,500
- Factory Loose Tools RM 700
- Finished Goods RM 59,000
(ii) 60% of water and electricity was paid
for factory.
(iii) All non-current assets were to be depreciate
d at2a% per annum on carrying
amount.
(iv) lnsurance of Plant Ahd Machinery was to be paid
at the end of each month,
June premium was not paid yet.
(v) Rent was received for a year from 1 January 202A.
(vi) Completed goods should be transfened to Trading
Account at RM 200,000.

You are required to prepare:

(ai Manufacturing Account;
(b) lncome Statement (Trading Account Section Only). {16%)
(4Yo)

Prepared by : Mr. Wong f.S. , Mr. Gary Choo W.K.

, Ms. Tsai p.C.