CONFIDENTIAL 1 AC/SEP 2017/ACC406

UNIVERSITI TEKNOLOGI MARA

COMMON TEST

COURSE : INTERMEDIATE FINANCIAL ACCOUNTING

COURSE CODE : ACC 406
DATE : 9 NOVEMBER 2017
TIME : 1 HOUR 30 MINUTES

INSTRUCTIONS TO CANDIDATES

1. This question paper consists of THREE (3) questions.

2. Answer ALL questions.

3. Do not bring any material into the examination room unless permission is given by the
invigilator.

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

This examination paper consists of 5 printed pages
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CONFIDENTIAL 2 AC/SEP 2017/ACC406

QUESTION 1

Maggie, Benny and Aizat are the business partners of MBA Design. The enterprise’s
business has been growing steadily since its establishment in 2013. The following
information is the extraction of account balances provided as at 31 December 2016:

Details Amount
(RM)
Turnover 550,000
Commission received 35,000
Interest received 2,500
Rental received 3,000
Bank balance 250,000
Office premise 550,000
Motor vehicle 133,000
Office equipment 25,000
Office furniture 11,000
Operating expenses 35,000
Administration expenses 70,000
Commission paid 55,000
Finance expenses 9,000
Receivables 35,000
Payables 5,300
Bank loan 200,000
Other income 2,300

Required:

a. Classify the above items into non-current assets, current assets, non-current
liabilities and current liabilities.
(10 marks)

b. Calculate the profitability of MBA Design for the year ended 31 December 2016.
(5 marks)

c. Identify the form of business that might be applicable to the entity.

(1 mark)

d. Explain any TWO (2) disadvantages of this business entity form.

(4 marks)
(TOTAL: 20 marks)

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CONFIDENTIAL 3 AC/SEP 2017/ACC406

QUESTION 2

A. Mikaela a sole trader, started her business Mikaela Trading on September 2017. The
following transactions for the month of September 2017 are narrated as per below:

September Details
2017
1 A van valued at RM80,000 was purchased on credit from Tic Enterprise for
business use.
2 Purchased goods worth RM12,400 on credit from Faith Supplies Sdn Bhd
3 Sold goods worth RM2,000 on credit to JeyJey Enterprise
6 Returned faulty goods worth RM400 to Faith Supplies Sdn Bhd
9 Sold goods worth RM800 on cash to Anisah Catering Enterprise
11 Paid Faith Supplies Sdn Bhd by cheque for the amount owing
15 The owner took goods worth RM370 for personal use
17 The business paid utilities bills amounting RM500 by cheque

Required:

Show the accounts to be debited and credited (with the amount in RM) from the
transactions above.
(16 marks)

B. Given below are transactions for the month of August 2017 for Delicious Cupcakes, a
business which sells cupcakes at Petra Jaya.

Required:
Show the effects upon asset, expense, capital, revenue and liability for the following
transactions using the example below:

August Transactions
2016
6 Purchased goods worth RM7,300 on credit from Zulina Enterprise
8 Owner brought in motor vehicle amounting RM55,000 into the business
11 Sold goods to Zakiah for RM3,800. She paid cash RM2,000 and the
balance being paid by cheque
12 Faulty goods amounting RM200 were returned to Zulina Enterprise
18 Paid Zulina Enterprise RM7,000 by cheque
20 Sold goods to Ahlin for RM7,000 on credit
22 Ahlin returned damaged goods of RM500

Example:
Paid cash RM300 for electricity expense.

ASSET EXPENSE CAPITAL REVENUE LIABILITY

Decrease Increase
(cash) (electricity expense)
(14 marks)
(TOTAL: 30 marks)

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CONFIDENTIAL 4 AC/SEP 2017/ACC406

QUESTION 3

Sunshine Trading is a bookshop business, owned by Mr Adeeb. The trial balance below was
extracted from the books as at 30 September 2017.

Sunshine Trading
Trial Balance as at 30 September 2017
Particulars Debit Credit
(RM) (RM)
Purchases & Sales 66,000 145,000
Return inwards 300
Return outwards 400
Opening inventory 4,800
Discount allowed & Discount Received 280 330
Commission received 400
Printing and stationery 500
Rent received 1,500
Salaries and wages 2,300
Carriage outwards 600
Utilities expenses 1,300
Duty on purchase 350
Insurance on purchases 400
Account receivable 6,400
Account payable 3,200
Long term loan 20,000
Motor vehicle 45,000
Repair on motor vehicle 500
Furniture and fittings 35,000
Bank 18,000
Cash 2,900
Capital 15,000
Drawings 1,200
185,830 185,830
Inventory as at 30 September 2017 is RM1,500

Required:

a) Prepare Statement of Profit or Loss for the year ended 30 September 2017
(9.5 Marks)

b) Prepare Statement of Financial Position as at 30 September 2017

(5.5 Marks)
Note: Use vertical format presentation
(TOTAL: 15 marks)
(GRAND TOTAL: 65 marks)

END OF QUESTION

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