CONFIDENTIAL

MID TERM TEST

COURSE : COMPANY ACCOUNTS AND REPORTING

COURSE CODE : PFA3163

DURATION : 1 HOUR 30 MINUTES

INSTRUCTIONS TO CANDIDATES :

1. This question paper consists of 2 (TWO) PARTS : PART A - 2 questions

PART B - 1 question

2. Answer ALL questions in your answer booklet.

3. You are given ONE (1) hour and THIRTY (30) minutes to answer this mid-term test and the
answer must be in handwriting. Please write your answer using a ball-point pen. The answer
need to be submitted to your respective lecturer either using:
i. CamScanner Apps: Scan and email the answer OR,
ii. WhatsApp: Snap/ Take picture and send your answer.

4. Plagiarism, copying and cheating will not be tolerated where no marks will be given and
disciplinary actions can be taken.

NAME : ____________________________________________________
ID. NO. : ____________________________________________________
LECTURER : ____________________________________________________
SECTION : ____________________________________________________

DO NOT OPEN THIS QUESTION PAPER UNTIL YOU ARE TOLD TO DO SO

The question paper consists of 4 printed pages

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PART A

QUESTION 1 (4 points)
State and explain TWO (2) types of equity.

QUESTION 2 (4 points)
Distinguish between issuance of share through private placement and public offering.

QUESTION 3 (2 points)
“The main purpose of issuing this share is to retain the existing shareholders”. Explain.

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PART B

QUESTION 1 (20 points)

Green Construction Bhd was incorporated on 1 March 2017. Its issued and fully paid capital as
at 31 December 2018 comprised of 10 million units ordinary share of RM12 million and 1 million
units 8% preference shares of RM1 million. To finance its construction activities for 2019 the board
of directors has endorsed the following decisions:

i. Offer 4 million units ordinary share at RM1 each, fully paid

ii. Issue 1 million units 8% preference share at RM2 each, fully paid

Applications were received for 4.5 million units of ordinary share on 1 March 2019. The
unsuccessful applicants would be refunded 3 weeks after application was received. On 1
September 2019, 870,000 applications were received for preference shares.

On 1 February 2020, the company issued another 2 million units ordinary shares at RM1.30 each.
The issuance of shares is fully subscribed and fully paid by the applicants on 15 March 2020.

Required:
a. Prepare journal entries to record all the above transactions for year 2019 and 2020.
(14 points)
b. Prepare an extract Statement of Financial Position as at 31 December 2020 showing
equity components. (6 points)

(TOTAL: 30 POINTS)

END OF QUESTIONS

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PREPARED BY: VERIFIED BY: APPROVED BY:

FA TEAM AZRINARIZAN IDARNIS BT NUR FADLIZAWATI BT ISA

ABD AZIZ
FA TEAM KETUA KURSUS PFA3153 KETUA BIDANG
FAKULTI PERAKAUNAN FINANCIAL ACCOUNTING II
FAKULTI PERAKAUNAN

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