Final Exam Answer sheet FA36013 Principles of Accounting

Academic session: August 2021 – December 2021

Intake: FIA2183
Student ID: FIA2108072
Date: 25th November 2021

Question 1 (40 marks)

Part a

INCOME STATEMENT OF THE YEAR 31 MAY 2021

RM RM RM
Sales 25347
Less: Return Inward (1352)
Net Sales 23995
Cost of goods sold
Opening inventory 540
Add: Purchase 10676
Less: Return outward (523)
Net Purchase 10153
Carriage inward 1400
Cost of goods available for sales 11553
Less: Closing Inventory (3298) (8255)
Gross Profit 15740
Less: Operation expenses
Carriage outwards 500
Motor Expenses 6217
Rent ( 320+4576) 4896
Telephone charges ( 211+220) 431
Wages and salaries ( 1322+2150) 3472
Insurance 342
Office expenses 543
Sundry expenses 981
Depreciation of motor van 237
Depreciation of office equipment 64 (17683)
Net Loss (1943)

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Part b

STATEMENT OF FINANCIAL POSITION 21 MAY 2021.

RM RM RM
Non-current assets
Motor van 2437
Less: Accumulated depreciation (237) 2200
Office Equipment 564
Less: Accumulated depreciation (64) 500
2700
Current assets
Inventory ( closing ) 3298
Account receivable 234
Cash in hand 226
Cash at bank 2311
6069
Less: Current liabilities
Account payable 355
Wages and salaries outstanding 1322
Rent owing 320
Telephone bills yet to be paid 211 (2208)
Working Capital 3861
6561
Financed by:
Opening capital 11600
Less: Net loss (1943)
9657
Less: Drawing (2556)
7101

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Question 2 (20 marks)
Straight line method
Year ended Working Depreciation Carrying/book value
31 August charge
2020 RM 88000 x 30% x 7/12 15400 88000-15400=72600
2021 RM 88000 x 30% x 12/12 26400 72600-26400=46200
2022 RM 88000 x 30% x 12/12 26400 46200-26400=19800
2023 RM 88000 x 30% x 4/12 8800 19800-8800=11000

Reducing balance method

Year ended Working Depreciation Carrying/book value
31 Aug charge
2020 RM 80000 x 28% x 7/12 13066 80000-13066=66934
2021 RM 66934 x 28% x 12/12 18741 66934-18741=48193
2022 RM 48193 x 28% x 12/12 13494 48193-13494=34699
2023 RM 34699 x 28% x 4/12 3238 34699-3238=31461

Question 3 (20 marks)

Bad debt
2017 RM 2017
31 Dec Account receivable 280000 31 Dec Profit or loss 280000
2018 2018
31 Dec Account receivable 390000 31 Dec Profit or loss 390000
2019 2019
31 Dec Account receivable 350000 31 Dec Profit or loss 350000
Provision for doubtful debt
2017 RM 2017 RM
31 Dec Balance c/d 159 31 Dec Profit or Loss 159
2018 2018
31 Dec Profit or loss 71 1 Jan Balance b/d 159
Balance c/d 88
159 159

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2019 2019
31 Dec Balance c/d 152 1 Jan Balance b/d 88
Profit or Loss 64
152 152

Statement of Profit or loss for the year ended 31 December

2017 2018 2019
RM RM RM
Operating expenses (Dr)
Bad debt 5300 4400 3800
Provision for doubtful debt 159 64
Other revenue (Cr)
Provision for doubtful debt 71

Statement of financial position as at 31 December

2017 2018 2019
Current assets RM RM RM
Account receivables 280000 390000 350000
Less: provision for doubtful debt 159 88 152
279841 389912 349848

Question 4 (MCQ) (20 marks)

Q Answer Q Answer
1 B 11 B
2 D 12 B
3 C 13 D
4 D 14 A
5 A 15 D
6 B 16 C
7 C 17 D
8 B 18 D
9 A 19 B
10 A 20 C