Bbfa1033 CW2 - 202305

TUNKU ABDUL RAHMAN UNIVERSITY OF MANAGEMENT AND TECHNOLOGGY
FACULTY OF ACCOUNTANCY, FINANCE AND BUSINESS

ACADEMIC YEAR 2023/2024
COURSEWORK 2 (GROUP ASSIGNMENT) – 50 MARKS
BBFA1033 PRINCIPLES OF ACCOUNTING
BACHELOR OF FINANCE (Hons.)
YEAR 1 – SEMESTER 1
BBFA1033 Principles of Accounting
Coursework Assignment 2
Tutorial Group: 1 Team No.: Group 3
Name (Block Capital) Registration No. Signature Marks

(For Tutor use)
1. HOO VI YING 23WBR07484
2. CHIA SZE TIAN 23WBR07463
3. WONG CHEE CHUNG 23WBR01127
4. TRISTAN ONG YU RUI 23WBR05373
Tutor’s Name : GAN SEONG SZE
Date of Submission : 6 /9 /2023
1
Table of Contents
Declaration of plagiarism statement ............................................................................................................ 3
Marking Scheme ............................................................................................................................................ 4
Coursework Feedback Form .......................................................................................................................... 5
Plagiarism Report .......................................................................................................................................... 6
Introduction.................................................................................................................................................... 7
Content ........................................................................................................................................................... 7
Conclusion ................................................................................................................................................... 12
Appendix...................................................................................................................................................... 13
References.................................................................................................................................................... 16
2
PART D – Plagiarism
Plagiarism Statement Declaration Form
Semester: 1 Course Code & Title: BBFA1033 PRINCIPLES OF ACCOUNTING
Declaration:
We confirm that we have read and shall comply with all the terms and conditions of TARUC’s
plagiarism policy.
We declare that this assignment is free from all forms of plagiarism and for all intents and
purposes is my/our own properly derived work.
We further confirm that the same work, where appropriate, has been verified by antiplagiarism
software Turnitin ( 1%)
Names (in alphabetical order) Student ID Signature

HOO VI YING 23WBR07484
CHIA SZE TIAN 23WBR07463
WONG CHEE CHUNG 23WBR01127
TRISTAN ONG YU RUI 23WBR05373
Date: 6/9/2023
3
PART E – Marking Scheme
Description Excellent Good Average Poor Very Poor
(A) Source Documents/ (18 – 20 marks) (14 – 17 marks) (10 – 13 marks) (6 – 9 marks) (1 – 5 marks)
Information Demonstrate excellent Demonstrate good Demonstrate average collation Demonstrate poor collation of Demonstrate very poor collation
(20 marks) collation of source collation of source of source documents and source documents and of source documents and
Identify and collect documents and documents and information that is relevant and information that is relevant and information that is relevant and
appropriate source information that is information that is appropriate for the type of appropriate for the type of appropriate for the type of
documents / information relevant and appropriate relevant and appropriate business selected. Minimum business selected. Minimum business selected. Minimum
from various sources for the type of business for the type of business relevant references were 5 from relevant references were 3 from relevant reference were less than
including text, journals, selected. Minimum selected. Minimum text, journals, websites etc. text, journals, websites etc. 3 from text, journals, websites
websites etc. where relevant references were relevant references were etc.
appropriate. 10 from text, journals, 7 from text, journals,
websites etc. websites etc.
(B) Report, (25 – 30 marks) (19 – 24 marks) (13 – 18 marks) (7 – 12 marks) (1 – 6 marks)
presentation & Demonstrate excellent Demonstrate good Demonstrate average report Demonstrate poor report writing Demonstrate very poor report
referencing report writing skills that report writing skills that writing skills that is somewhat skills that is not concise, simple, writing skills with lots of
(30 marks) is concise simple, is quite concise simple, concise, simple, with some with some inaccurate and grammatical error and inaccurate
Adequate research done accurate and complete. accurate and complete. inaccurate and incomplete incomplete passages. information. Most of the
to support the report. Researches were Researches were passages. Researches were not Researches were not that passages were incomplete.
References were clearly thorough and complete thorough and complete that thorough and complete and thorough and complete and fail Researches do not care about the
labelled and listed in the that answer ALL that answer ALL fail to answer some to answer more than half of the coursework and was not that
table of contents, with requirements stated on requirements stated on requirements (at least one) requirements stated on the thorough. They fail to answer
the page numbers easy the coursework. There the coursework. There stated on the coursework. There coursework. There were not so almost 75% of the requirements
to follow through by the were thorough write ups were thorough write ups were not so thorough write ups thorough write ups of relevant stated on the coursework. There
tutor. of relevant and complete of relevant and of relevant and complete and complete definition where were no write ups of relevant and
definition where complete definition definition where appropriate. appropriate. References were complete definition where
appropriate. References where appropriate. References were sometimes not sometimes not written or in appropriate. References were
were clearly labelled and References were clearly completely written or in accordance to Harvard mostly written and not in
in accordance to Harvard labelled and in accordance to Harvard referencing standard. There accordance to Harvard
referencing standard. accordance to Harvard referencing standard. There were at least 5 mistakes from referencing standard. There were
Table of contents, with referencing standard. were at least 2 mistakes from the table of contents, with the more than 5 mistakes from the
the page numbers were Table of contents, with the table of contents, with the page numbers and difficult for table of contents, with the page
easy to follow through by the page numbers were page numbers and difficult for tutor to follow through. Format numbers and difficult for tutor to
tutor. Format was easy to follow through tutor to follow through. Format was similar to samples and not follow through. Format was
original and creative. by tutor. Format was was similar to samples and not that creative. similar to samples and not that
original and creative. that creative. creative.
4
PART F – Coursework Feedback Form
COURSE CODE/ COURSE TITLE: BBFA1033 PRINCIPLES OF ACCOUNTING
NAME OF STUDENT(s): ID NUMBER:

1) HOO VI YING 23WBR07484
2) CHIA SZE TIAN 23WBR07463
3) WONG CHEE CHUNG 23WBR01127
4) TRISTAN ONG YU RUI 23WBR05373
PROGRAMME: BACHELOR OF FINANCE
YEAR: 1 SEMESTER: 1 ACADEMIC YEAR: 2023/2024

GROUP NO: GROUP 3
COURSEWORK NO: 2 NATURE OF MARKS ALLOCATED:
COURSEWORK:
/100
Group Research Assignment
OVERALL COMMENTS :
Student Acknowledgement: Date: Lecturer/Tutor’s Signature: Date:

6/9/2023
5
Plagiarism Report
6
Introduction
Bilabila Mart is a local brand convenience store co-founded by Lee Hui Jing and two others. Their team
managed to expand their business by launching a number of stores including one in TARUMT. Bilabila
Mart in TARUMT is a sole proprietorship company. It sells various types of goods including fresh produce
and dry groceries, such as instant foods, snacks, beverages, sandwiches and fresh fruits and vegetables.
(Gopinath, 2022)
Content
1. Describe how the convenient store makes profit from its operation. (10 marks)
The Bilabila Mart uses trading accounts to determine the gross profit or gross loss which is mostly related to
the buying and selling activities involved in the business. (Anon., 2021) The main way the convenience store
makes profit is product sales. The Bilabila Mart sells a diverse range of products such as instant foods,
snacks, ice cream, vegetables, fruits and so on. The mart also prepared microwaves and hot water dispensers
for customers to cook instant foods. The Bilabila Mart purchases those products with lower cost from the
supplier and sells them to customers at market price which is higher than the cost of the product itself.
Therefore, the Bilabila Mart can earn profit on each sale. (Anon., 2022)
Second, the Bilabila Mart makes a profit by promoting their products through social media. For example, the
Bilabila Mart advertise their shop and products through posts on Instagram. Instagram is a popular
application, and one million people use this application in the world. Many people will know about the
Bilabila Mart through the advertisement and be attracted to visit the mart. Hence, with increasing number of
customers, will also increase the sale and get more profit.
Third, the Bilabila Mart has an efficient strategy to plan the mart. For instance, from the location strategy, the
Bilabila Mart located in the canteen of TARUMT, has a high visitor flow rate. Many students will visit when
they walk by the mart or during break time. Besides that, the Bilabila Mart uses eye level strategy to place
their product, they place the high-profitable products at the eye-level. (Anon., 2022) Hence, customers will
concern those products first. Moreover, the Bilabila Mart makes a lot of profit from impulse sales strategy.
They placed the most frequently used products at the serving counter such as candy, gums, and tissue paper.
7
2. Identify 5 major expenses in the store, illustrate how these expenses are required for the operation.
(10 marks)
The first expense in the store is rent expenses. Rent expenses are the cost of occupying a property for a
reporting period. (Anon., 2023) It is important in operating a store as it will contribute to the store’s
accessibility and visibility. Bilabila Mart in TARUMT is well located in The Red Bricks Cafeteria with a
good foot traffic. Therefore, this will attract more students to visit the store during break time or when they
walk by the store which will generate higher sales.
Next, the second expense is utility expenses. Utility expenses is the cost incurred when using utilities such as
water, electricity, sewage, and heating. The operation of Bilabila Mart requires services such as electricity
and water. Utility expenses are necessary to keep their products fresh such as storing vegetables and fruits in
a refrigerator. In addition, air conditioning and lightning are also vital to ensure that they will be able to
provide a comfortable environment and pleasant shopping experience to their customers.
Furthermore, Bilabila Mart also used employee salaries and wages as one of the major expenses. Employee
salaries and wages refer to the compensation paid to employees. Employees in Bilabila Mart will be
responsible for operating the cash register, assisting customers, stocking shelves, and maintaining store
cleanliness. Friendly employees will enhance customer shopping experience, encouraging repeat business.
Besides that, is inventory expenses. It is the cost incurred from purchasing, storing, transporting, and
managing inventory. (Tuovila, 2023) Inventory expenses in Bilabila Mart will be used to stock their products
including instant foods. beverages, snacks and more. By maintaining a well-stocked inventory, they can
ensure their store is able to meet customer demands and preference when they visit the store.
Lastly are advertising expenses. Advertising expenses is a cost incurred in business promotional activities in
newspaper, television, social media and more. (Anon., 2022) Bilabila Mart mainly promotes their store in
social media such as TikTok and Instagram in order to attract customers and inform them about their store’s
products and offers. Therefore, they will be able to build brand recognition and increase their competitiveness
in the market.
8
3. Define and explain how the three (3) accounting concepts: Business entity, matching/accrual, and
prudence are applied to this convenience store; (9 marks)
The fundamental accounting concept known as ‘‘Business entity’’ concept states that the financial
activities must be treated as a separate legal entity with the business’s owner especially from the owner’s
personal financial affairs or any other business entity. Which means that the business daily transactions and
reports should remain separate and independently with the owner’s finances. In simple words, drawing for
personal uses is not recorded in the financial statements.
All the revenue, expenses, purchases and sales for Bilabila Mart are recorded separately from the owner’s
personal financial activities in the financial statements. The financial records of the Bilabila Mart are
separate from the owner's personal expenses, such as insurance, mortgage, and other personal expenses. If
this concept is obeyed by the owner, then Bilabila Mart can gain an accurate financial position and
performance independently from the owner’s own financial circumstances.
As a result, this separation promotes precise business performances and honesty, improving stakeholder
comprehension of the Bilabila Mart's performance and tax-related compliance.
The Matching/Accrual concept, which is a basic accounting concept, determines when revenues and
expenses should be recorded in the financial statements. Its primary purpose is to accurately represent the
financial performance of a business through integrating the recording of revenue and related expenses
through one single accounting period. This is to say, the amount of expenses should be matched with the
amount of revenue when calculating at the end of an accounting period.
In accordance with the matching/accrual concept, irrespective of when the cash is received, the Bilabila
Mart should record money when it has been received. This implies that even if the consumer pays later (on
credit), sales revenue will still get recorded once the goods are sold to the consumer. For instance,
regardless of whether the cash is received instantly or not, if clients purchase food and beverages at the end
of January, the revenue is accounted for in January.
In conclusion, the matching/accrual concept ensures that the financial statements of the Bilabila Mart
accurately represent the exact moment of the revenue generation and the expenses related to it. The
concept provides a more precise and important illustration of the business's financial position as well
as helps investors in understanding the real profitability of the business by matching revenues and expenses
in a single accounting period.
9
Prudence is an accounting principle that enhances that when a business is faced with uncertainty or doubts,
accountants should use prudence concept and decide an option to take out and carry a greater probability of
understate expenses and liability than the overstating of assets and revenue. Intended to ensure that
financial statements reflect a more accurate picture of the financial condition and performance of a
business, this principle works to avoid the overly optimistic appearance of financial information.
The Bilabila Mart can set up an allowance for provision of bad debts by applying prudence. The Bilabila
Mart may set aside money for bad debts if there is any doubt about some customers' ability to make
payment for their credit purchases. This would include embracing the chance of not getting paid in
completely on the accounts receivable even though it is still uncertain whose particular customers will fail
to succeed.
In conclusion, the Prudence concept proposes the Bilabila Mart to employ a prudent and careful attitude in
its financial decisions. The Bilabila Mart ensures that its financial statements provide a more accurate and
realistic picture of its financial situation as well as performance through considering the potential risks and
uncertainties and mistaken on the side of inaccurate rather than overstating financial outcomes.
4. Research the usefulness and limitations of the Three (3) accounting concepts above. (9 marks)
The usefulness of the business entity concept can ensure that the money of the firm cannot simply be taken
by the owner. Therefore, we can get an accurate financial report, legal compliance, and investor
confidence. However, the limitations are when dealing with complex business ownership, valuing
intangible assets, and non-financial factors such as human capital.
Matching or accrual concept. The usefulness of this concept is as accurate profit measurement for a given
accounting period. It shows true profit reflection that ensures that all relevant expenses are matched with
the revenues they helped generate. The limitation of this concept is complexity. It can be difficult to
accurately match expenses with revenue in certain situations. For example, some indirect overhead or
where multiple revenue streams are involved. (Anon., 2022)
The usefulness of the prudence concept is to minimize the risk of losses for a business as they can recognize
expenses and liabilities earlier. Therefore, necessary preparation can be made for unpleasant events and
allocate resources accordingly. On the other hand, the limitation of this concept is inconsistency. Accountants
might have different perspectives on when to apply prudence and how much caution should be used. As a
result, this may lead to inconsistency in financial reporting and make it difficult to compare financial
statements across different companies or periods. (Garg, 2023) (Anon., 2019)
10
5. Explain three (3) internal users and three (3) external user of the financial report of this convenience
store; (12 marks)
Accounting information can be considered as an indispensable part in a convenience store, as it is used by

the external users and internal users of convenience stores for different purposes based on their roles and
interests. Moreover, accounting information also provides a clear picture of a store’s financial health and
performance, which is valuable for decision making purposes. Therefore, in a convenience store we can
divide the users of accounting information into internal and external users
Internal Users
Owners
● The owner of the Bilabila Mart uses the accounting information to assess the financial performance of
their store. They usually use the accounting information to track the expenses that the business has
incurred over time and also the profit they have earned from the business. Moreover, this helps them in
understanding how well the store is performing in terms of financially and profitability. However,
owners will inject more capital or even shut down Bilabila Mart if they have detected the business is
suffering losses over a period of time.
Operational Managers
● As an operational manager of the Bilabila Mart, they use the accounting information to measure
whether a business is operating at an efficient or profitable level. For example, accounting information
allows operational managers to have an insight on the inventory storage, allowing them to investigate
whether the storage amount of inventory is maintained at an optimal stock level. Nevertheless, such
benefits ensure Bilabila Mart can minimize its wastage, because adjustments will be made if
operational managers found out that there are excessive inventories in the business. This situation also
can help Bilabila Mart to avoid overstock which can lead to losses. (Munro, 2023)
Employees
● As an employee of the Bilabila Mart they use the accounting information to get a better
understanding of the flow of the business. This helps them in providing the insight for which
product is the most popular, so that they could recommend the product to the customers and
increase the sales volume. Nevertheless, employees also use the accounting information to monitor
the business’ financial stability, and growth, and this helps the employees in deciding whether they
should stay or leave the business. For example, if Bilabila Mart has a strong financial stability
then, there is a big chance that the employees will stay with the business.
11
External Users
Investors
● Investors can be considered as a person or an entity who uses capital to invest in other companies or
businesses, with the expectation of receiving a higher return from it. For example, investors use
Bilabila Mart’s accounting information to evaluate the future prospect of the business in terms of
profitability, as well as stability. If the result is considered as positive, the investors will then invest
their capital in Bilabila Mart. Therefore, accounting information is extremely important to the investors
in deciding whether they should invest in a business or not. (Hussain, 2023)
Finance Providers
● Financial providers such as banks, financial institutions, and other creditors use the accounting
information of Bilabila Mart to evaluate their financial position, and the ability of the business to repay
the amount they borrowed plus the interest. For instance, if the financial report of Bilabila Mart shows
consistent or increasing losses, the financial providers will stop lending money to Bilabila Mart, as the
risk of not getting back the money is too high.
Government
● Government uses Bilabila Mart’s accounting information to assess the amount of tax that is payable by
gathering the revenue, and the government will make sure that the amount of tax paid by Bilabila Mart
is in compliance with the regulation. Furthermore, the government also uses the accounting
information in detecting if there is any illegal activities or corruption in the business.
Conclusion
In conclusion, throughout the research, we have obtained a detailed understanding of Bilabila Mart located in
TARUMT. First, we have learned that the store earns profit by product sales, promoting products through
social media and applying efficient strategies on operating the store. Next, we also noted that Bilabila Mart
mainly used five expenses when operating its business which is rent expenses, utility expenses, employee
salaries and wages, inventory expenses and advertising expenses. Furthermore, we also define and explain
how the business entity, matching or accrual and prudence concept is applied to the business and what are
these concepts usefulness and limitations. For instance, the usefulness of matching or accrual concept is to
ensure accurate profit measurement while the limitation of this concept is complexity. Lastly, there were three
internal users which are owners, operational managers and employees and three external users which are
investors, financial providers and government of the financial report of Bilabila Mart.
12
Appendix
Appendix 1- One of the founders of Bilabila Mart- Lee Hui Jing
Appendix 2- Dairy products and fresh vegetables sold in the Bilabila Mart
Appendix 3- Ice-cream sold in the Bilabila Mart
13
Appendix 4- Cookies and instant noodles sold in the Bilabila Mart
Appendix 5- The Bilabila Mart located at Redbrick canteen of TARUMT
14
Appendix 5- Bilabila Mart advertises through Instagram
15
References
Anon., 2019. Accounting Information System: Users of Accounting Information. [Online]
Available at: http://www.toppr.com/guides/accounting-and-auditing/theoretical-framework-of-
accounting/accounting-as-an-information-
system/#:~:text=Various%20Government%20agencies%20and%20departments,operating%20under%20law
%20related%20requirements
[Accessed 27 August 2023].
Anon., 2021. Trading And Profit And Loss Account: Definition, Types, Example. [Online]
Available at: https://byjus.com/commerce/trading-and-profit-and-loss-
account/#:~:text=Trading%20account%20is%20used%20to,dealing%20in%20the%20trading%20business
Anon., 2022. Advertising Expense: Definition and Example. [Online]

Available at: https://tallysolutions.com/accounting/advertising-expense/#gref
Anon., 2022. How to Make a Convenience Store Profitable. [Online]

Available at: https://sprockets.ai/how-to-make-a-convenience-store-profitable/
Anon., 2022. Increase Convenience Store Profits By Following 8 Useful Tips To Evergreen Revenue &
Higher Business Value. [Online]
Available at: https://missionpeakbrokers.com/increase-convenience-store-
profits/#:~:text=A%20large%20stock%20of%20products,supplies%20for%20your%20convenience%20store.
Anon., 2022. Matching Principle in Accounting - Example - Importance. [Online]

Available at: https://studenttube.info/matching-principle/
Anon., 2023. Rent expense definition. [Online]

Available at: https://www.accountingtools.com/articles/rent-expense
Garg, K., 2023. Prudence Concept: Ensuring Conservatism in Accounting. [Online]

Available at: https://caclub.in/prudence-concept-ensuring-conservatism-in-accounting/
Gopinath, A., 2022. BilaBila Mart reimagines and refreshes the humble kedai runcit experience. [Online]
Available at: https://www.optionstheedge.com/topic/people/bilabila-mart-reimagines-and-refreshes-humble-
kedai-runcit-experience
Hussain, A., 2023. What Does an Investor Do? What Are the Different Types?. [Online]
Available at: https://www.investopedia.com/terms/i/investor.asp
Munro, O., 2023. Why Too Much Inventory is Bad for Your Business. [Online]
Available at: https://www.unleashedsoftware.com/blog/why-too-much-inventory-is-
bad#:~:text=Too%20much%20inventory%20is%20bad%20for%20any%20business%20holding%20physical,
better%20utilised%20by%20saleable%20stock
16
Tuovila, A., 2023. Inventory Carrying Cost Formula, Examples, Tips to Lower It. [Online]
Available at:
https://www.investopedia.com/terms/c/carryingcostofinventory.asp#:~:text=Inventory%20carrying%20costs
%20include%20expenses,%2C%20depreciation%2C%20and%20opportunity%20costs
17

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TUNKU ABDUL RAHMAN UNIVERSITY OF MANAGEMENT AND TECHNOLOGGY

FACULTY OF ACCOUNTANCY, FINANCE AND BUSINESS

BBFA1033 Principles of Accounting

Tutorial Group: 1 Team No.: Group 3

Name (Block Capital) Registration No. Signature Marks

1. HOO VI YING 23WBR07484

2. CHIA SZE TIAN 23WBR07463

3. WONG CHEE CHUNG 23WBR01127

4. TRISTAN ONG YU RUI 23WBR05373

Tutor’s Name : GAN SEONG SZE

Date of Submission : 6 /9 /2023

Marking Scheme ............................................................................................................................................ 4

Coursework Feedback Form .......................................................................................................................... 5

Plagiarism Report .......................................................................................................................................... 6

Plagiarism Statement Declaration Form

Semester: 1 Course Code & Title: BBFA1033 PRINCIPLES OF ACCOUNTING

Names (in alphabetical order) Student ID Signature

WONG CHEE CHUNG 23WBR01127

TRISTAN ONG YU RUI 23WBR05373

PART F – Coursework Feedback Form

COURSE CODE/ COURSE TITLE: BBFA1033 PRINCIPLES OF ACCOUNTING

NAME OF STUDENT(s): ID NUMBER:

YEAR: 1 SEMESTER: 1 ACADEMIC YEAR: 2023/2024

Student Acknowledgement: Date: Lecturer/Tutor’s Signature: Date:

Accounting information can be considered as an indispensable part in a convenience store, as it is used by

Appendix 1- One of the founders of Bilabila Mart- Lee Hui Jing

Appendix 3- Ice-cream sold in the Bilabila Mart

Appendix 4- Cookies and instant noodles sold in the Bilabila Mart

Appendix 5- The Bilabila Mart located at Redbrick canteen of TARUMT

Appendix 5- Bilabila Mart advertises through Instagram

Anon., 2022. Advertising Expense: Definition and Example. [Online]

Anon., 2022. How to Make a Convenience Store Profitable. [Online]

Anon., 2022. Matching Principle in Accounting - Example - Importance. [Online]

Anon., 2023. Rent expense definition. [Online]

Garg, K., 2023. Prudence Concept: Ensuring Conservatism in Accounting. [Online]

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