CONFIDENTIAL JULY2021/TEST/ACC106

UNIVERSITI TEKNOLOGI MARA

TEST ACC106

COURSE : INTRODUCTION TO FINANCIAL ACCOUNTING

AND REPORTING
COURSE CODE : ACC106
DATE : 2 JULY 2021
TIME : 9.00 AM – 10.30 AM

INSTRUCTIONS TO CANDIDATES

1. This question paper consists of two questions : QUESTION 1 (10 marks)

QUESTION 2 (30 marks)

2. Answer ALL questions in your answer sheet. Start each answer on a new page. 15 MINUTES
BEFORE THE TIME EXPIRE, PLEASE SCAN ALL YOUR WORK AND SAVE IT IN ONLY
ONE PDF FILE AND UPLOAD IT TO THE SYSTEM (GOOGLE CLASSROOM).

3. You may refer to books. However, YOU ARE NOT ALLOWED TO COMMUNICATE IN
WHATEVER MANNER. Please use your time wisely.

4. Answer the questions in only 1 HOUR AND 30 MINUTES. The next 15 minutes is for you to
get attachment ready for submission. LATE SUBMISSION WILL BE PENALIZED
ACCORDINGLY.

5. Answer ALL questions in English.

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QUESTION 1

The following transactions were extracted from the book of Iqlas Trading for the month of June
2021.

June Transaction Type of Book of Prime Entry

1 Owner injected cash into the business

bank account amounting RM250,000.

3 Purchased goods worth RM10,000 on

credit from Faliq Hypermart.

5 Owner brought in a Motor Vehicle

amounting RM40,000 for business use.

7 Received credit notes from Faliq Hypermart

on good returned.

Credit sales to Juwairah Enterprise

9
RM3,100.

15 Owner took cash RM1,200 for his pocket

money.

19 Bank in cash RM4,800.

Juwairah Enterprise return faulty goods

20
RM900.

Owner took goods amounted RM500 for

25
his personal use.

Required:

Identify the appropriate book of prime entry to record the above transactions.

(Total: 10 marks)

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QUESTION 2

The following is the Trial Balance was extracted from the books of Vaccine Enterprise as at 31
December 2020.

List of Accounts Debit (RM) Credit (RM)

Capital 300,000

Inventory as at 1 January 2020 55,000

Freehold Premises 250,000

Motor Vehicles 60,000

Furniture and Fittings 50,000

5% Fixed Deposit 20,000

Accumulated depreciation as at 1 January 2020

Motor vehicles 18,000

Furniture and Fittings 24,400

Purchases and Sales 150,000 230,000

Discount 2,200 1,100

Returns 1,500 750

Carriage expenses 5,400

Duty on purchases 3,300

Salaries and wages 13,250

Utilities 1,800

Printing 500

General expenses 650

Rental expenses 7,700

Rental income 5,500

Insurance expenses 5,000

Drawing 2,000

Cash 5,000

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Bank 38,000

Accounts Receivable and Accounts Payable 25,000 36,200

Bad Debt 700

10% Loan from Maybank 80,000

Allowance for doubtful debt as at 1 January 2020 1,050

687,000 687,000

Additional information:

1. Inventory as at 31 December 2020 is RM56,500.

2. The insurance expense is for one year period, started on 1 July 2020.

3. Allowance for doubtful debts is to be increased to RM1,350.

4. The loan from Maybank was taken on 1st April 2020. No interest has been paid on this
loan at the end of the accounting period.

5. Fixed deposit was made on 1st October 2020. No interest has been received.

6. Depreciations for the year are to be provided as follows:

Motor vehicle 10% on cost
Furniture and Fittings 20% on carrying value

7. The owner withdrew cash RM500 and goods worth RM1,000 for personal use.

8. 30% of carriage expenses were carriage inwards and the remainder were carriage
outwards.

9. The following adjustments are to be considered for the period:

Accruals RM Prepayments RM
Salaries and wages 1,750 Rental expenses 700
Rental income 500

Required:

a. Prepare a Statement of Profit or Loss for the year ended 31 December 2020.
(18 marks)
b. Prepare a Statement of Financial Position as at 31 December 2020.
(12 marks)
Note: Use vertical format presentation (Total: 30 marks)

END OF QUESTION PAPER