ACD10403/MID-TERM EXAM 2021/2022

MID – SEMESTER EXAM

SEMESTER II SESSION 2021/22

FACULTY OF BUSINESS AND MANAGEMENT

COURSE NAME : FINANCIAL ACCOUNTING II (NON-DIA)

COURSE CODE : ACD10403

DURATION : 1 HOUR 30 MINUTES

INSTRUCTIONS TO CANDIDATES

1. Answer all questions.

2. Submit the scanned answer script through the link provided.

STUDENT’S NAME :...............................................................................................................

MATRIC NUMBER :...............................................................................................................

PROGRAM :...............................................................................................................

QUESTION 1
/ 25 marks

QUESTION 2
/ 25 marks

TOTAL MARKS
/ 50 marks

This Question Booklet consists of 4 printed pages.

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 ACD10403/MID-TERM EXAM 2021/2022

QUESTION 1 (25 MARKS)

Merpati Putih Sdn.Bhd. has provided the following list of balances as at 31 December 2021

DEBIT CREDIT
(RM) (RM)
Interest expenses 15,000
Sales commission 95,000
Office expenses 175,000
Selling expenses 115,800
Insurance 63,200
Rent expenses 145,000
Rent of special machine 12,500
Light and power 82,500
Factory supplies 95,000
Indirect labour 180,000
Direct labour 800,000
Purchases- Raw Materials 1,200,000
Sales 3,100,000
Loan 150,000
Account Payables 22,500
Accumulated depreciation:-
Plant and machinery 54,000
Office equipment 25,000
Cash 36,000
Account receivables 70,500
Allowance for doubtful debts 3,600
Finished goods at 1 January 2021 120,000
Raw materials at 1 January 2021 30,000
Plant and machinery (at cost) 300,000
Office equipment (at cost) 135,000
Capital 315,400
3,670,500 3,670,500

Additional information:

1. Inventory at 31 December 2021 was:

Raw materials RM25,200
Finished goods RM125,800

2. Depreciation is provided as follows:

Plant and machinery 10% on cost
Office equipment 15% on cost
3. At 31 December 2021, insurance paid in advance was RM3,200, and lighting unpaid
was RM1,200.

4. Light and power are charged to factory operations.

5. The following expenses are to be apportioned accordingly:

Factory Office
Insurance 3/4 1/4
Rent 2/3 1/3

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 ACD10403/MID-TERM EXAM 2021/2022

Required:

a) Prepare a Schedule Cost of Goods Manufactured for the year ended 31 December 2021.
(11 marks)

b) Prepare a Statement of Profit or Loss for the year ended 31 December 2021.
(10 marks)

c) Distinguish between product costs and period costs

(4 marks)

QUESTION 2 (25 marks)

Aiman, Rahimi and Iskandar are in partnership (ARI Partnership) sharing profits and losses in
the ratio 4:3:1. Rahimi retired from the partnership on 1 January 2022, and they were agreed
that Mohsin should join the partnership. From this date, profits are to be shared equally
between the three partners and Iskandar agrees to pay a further RM40,000 into the
partnership as capital. The following is the balance sheet for the current year:

ARI Partnership
Statement of Financial Position as at 31 December 2021
RM RM
Non-current assets:
Property 480,000
Motor vehicles 200,000
Fixtures 240,000 920,000

Current accounts:
Inventories 240,000
Trade receivables 120,000
Bank 40,000 400,000
1,320,000
Current liabilities:
Trade payables 80,000

Financed by:
Capital accounts:
Aiman 520,000
Rahimi 360,000
Iskandar 280,000 1,160,000

Current accounts:
Aiman 16,000
Rahimi 40,000
Iskandar 24,000 80,000
1,320,000

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 ACD10403/MID-TERM EXAM 2021/2022

Additional information:

1. Certain assets are to be valued at:

RM
Property 600,000
Motor vehicles 160,000
Fixtures 280,000

2. It was also agreed that inventory which had cost RM40,000 was now had zero value and
further inventory which originally cost RM6,000 is damaged and considered to be of no
value.

3. A provision for doubtful debts of RM9,600 is required.

4. On retirement, Rahimi is to be paid a sum of RM300,000. The balance owing to him will
be recorded in a loan account carrying interest of 8 per cent.

5. On admission as a partner, Mohsin paying a sum of RM60,000 into the firm’s bank
account.

Required:

a) Prepare journal entries to show the entries in the books of the partnership on that date.
(5 marks)
b) Prepare revaluation account.
(4 marks)
c) Prepare capital accounts for all partners including Mohsin.
(7 marks)
d) Prepare statement of financial position of the new partnership.
(9 marks)

END OF QUESTION