BBFA1103

BACHELOR OF ACCOUNTING WITH HONOURS

SEPT 2019

BBFA 1103

INTRODUCTORY ACCOUNTING

NO. MATRIKULASI : 890124075328001

NO. KAD PENGNEALAN : 890124-07-5328
NO. TELEFON : 012-4210124
E-MEL : huini24@oum.edu.my

PUSAT PEMBELAJARAN : SEBERANG JAYA LEARNING CENTRE

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Pages
 Table of Contents 2

 Assignment
1. Question 1 Accounting Information 3

2. Question 2 Accounting Principle 4

3. Question 3 Accounting Equation 5

 Assignment 2

1. Statement of Comprehensive Income For The Year End 31 December 2018 6

2. Statement of Financial Position as at 31 December 20187

 Rujukan 8

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Assigment 1

Question 1-Accounting Information

Two Internal users as below:

-Company owners/Partners. The owner is a lawful holder in the business legislation and has the
power to sign important documents. The owner need to know how the business performing from a
month to a month. They need to use it for tracking their investment and monitoring their return on
investment. For the example, the owner needs to refer to the bank reconciliation report to ensure
the company cash flow. They also using the financial position report to make sure the business are
earning or losses. [ CITATION Who19 \l 1033 ]

-Management as manager. The organizations of company management include the senior and
junior. Manager need to plan for budgeting, forecasting, analysis & take important financial
decisions or compliance with all statutory, regulatory and any other external body. The
management will use accounting information to monitor business performance against past
performance, competitor analysis, key performance indicators and industry benchmarks. For the
example, manager will refer to the return of investment calculation of a purpose for the project
which supported by reliable estimates of the costs and revenues. The manager will refer to the
statement of comprehensive income to saving the cost expenses of the company. [ CITATION
Who19 \l 1033 ][ CITATION 11U17 \l 1033 ]

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Question 2-Account Principles

a) Matching
All the expenses need to matched and records with revenue in the same period with
accrual basis of accounting in a company. As long as the revenue is earned and expenses
are incurred during the month, it must be taken into account.
For example, sales commission expenses need to taken into account on the period when
the sales were made and not taken it when the commission were paid. Wages employees
should be taken into account as expenses in a month when the employees worked and not
in the month when the employees are paid.[ CITATION Acc19 \l 1033 ]

b) Full disclosure
The basic accounting principle that numerous pages of “footnotes” are often attached to
financial statements. The certain information is important to an investor using the financial
statements, so the information should be disclosed within the statement.
For example, a company names in a lawsuit that demands a significant amount of the
money. The company will cannot be able to defend itself or whether it might lose the
lawsuit when the financial statements are prepared it is not clear. All the expenses of the
company also needs to attach with receipt or invoices with company details. The company
cannot take the personal expenses into company account. [ CITATION Acc19 \l 1033 ]

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Question 3
Accounting Equation

Liabilitie
Date Assets = s + Owner's Equity
Furniture
and Account
  Cash Fitting Supplier   Payable   Capital Profit
20,000.0 20,000.0
Sep-01 0           0  
Balanc 20,000.0 20,000.0
e 0           0  
2,500.0 2,500.0
Sep-03   0         0  
Balanc 20,000.0 2,500.0 22,500.0
e 0 0         0  
350.0
Sep-05     0   350.00      
Balanc 20,000.0 2,500.0 350.0 22,500.0
e 0 0 0   350.00   0  
475.0 - 125.0
Sep-11 0   350.00         0
Balanc 20,475.0 2,500.0 22,500.0 125.0
e 0 0 -   350.00   0 0
Sep-17 -100.00           -100.00  
Balanc 20,375.0 2,500.0 22,400.0 125.0
e 0 0 -   350.00   0 0
22,875.0 22,875.0
      0         0

 Sept Asset = Liability + Owner’s Equity 5 0 +350 -350 11 +475 0 +475

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Assignment 2

A) Comprehensive Income of Jumbo Trading as at 31 December 2018

RM RM RM
Net Sales 66,045.00
Sales 66,276.00
(-) Sales Returns and Allowance - 231.00

(-)Cost Of Good Sold

Opening Stock 7,171.00
Net Purchases 27,505.00
Purchases 27,300.00
(+) Carriage Inwards 441.00
(-) Purchases Return and - 236.00  
Allowance
Cost of Goods Available For Sales 34,676.00
(-) Closing Stock - 5,460.00 29,216.00
Gross Profit 36,829.00

(-) Operating Expenses

(-) Maintenance and Petrol - 2,436.00
Expenses
(-) Advertising Expenses - 8,925.00
(-) Salaries and Wages - 8,410.00
Expenses
(-) Bad Debts Expenses - 300.30
(-) Utilities Expenses - 1,879.00
(-) Rent Expenses - 1,890.00
(-) Insurance Expenses - 1,575.00
(-) Carriage Outwards - 525.00
(-) Depreciation Of Office - 5,250.00 -31,190.30
Equipment
Net Profit 5,638.70

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B) Financial Position for Jumbo Trading Year Ended 31 December 2018

RM RM RM
Assets
Current Asset
Stock 5,460.00
Cash 11,750.00
Bank 14,553.00
Prepayment Rent 630.00
Prepayment Insurance 525.00
Debtors 14,406.00
(-) Provision for Doubtful Debt - 720.30 13,685.70
Total Current Asset
46,603.70

Non Current Asset

Office 52,500.00
Equipment
(-) Accumulated Depreciation of Office - 15,750.00 36,750.00
Equipment
Total Non Current Asset
36,750.00
Total Asset
83,353.70

Liabilities
Current Liabilities
Creditors 7,628.00
Utilites Payable 393.00
Total Current Liabilities
8,021.00
Net Asset 75,332.70

Owner’s Equity
Opening Capital 73,684.00
(+) Net Profit 5,638.70
79,322.70
(-) Drawings - 3,990.00  
Closing Capital on 31 December 2018
75,332.70

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Rujukan
11 Users of Accounting Information. (2010-2017). Retrieved November 16, 2019,
from https://accounting-simplified.com: https://accounting-
simplified.com/financial/introduction/users-of-accounting-information.html

Accounting Principles. (2019). Retrieved November 16, 2019,

from www.myaccountingcourse.com: https://www.myaccountingcourse.com/accounting-
principles
Who are the Users of Accounting Information. (2014-2019). Retrieved November 16, 2019,
from https://www.accountingcapital.com/: https://www.accountingcapital.com/basic-
accounting/who-are-the-users-of-accounting-information/