CONFIDENTIAL 1 AC/FEB 2022/ACC407/ACC406

UNIVERSITI TEKNOLOGI MARA

TEST 2

COURSE : FUNDAMENTAL FINANCIAL ACCOUNTING AND

REPORTING/INTERMEDIATE FINANCIAL
ACCOUNTING AND REPORTING
COURSE CODE : ACC407/ACC406
EXAMINATION : FEB 2022
TIME : 2 HOURS

INSTRUCTIONS TO CANDIDATES

1. This question paper consists of THREE (3) QUESTION 1 (7 marks)

Questions: QUESTION 2 (8 marks)
QUESTION 3 (32 marks)
QUESTION 4 (13 marks)

2. Answer ALL questions in the Answer Booklet.

4. Answer ALL questions in English.

DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO

This examination paper consists of 6 printed pages

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QUESTION 1

1) Differentiate between trade discount and cash discount

(2 marks)

2) Identify the double entry for payment of salary of RM5,00 by cheque

(2 marks)

3) Record the following transaction in the appropriate account:

Transaction
Started business with cash RM50,000
Bought goods by cheque RM10,000
Sold goods on credit to Tok Trading for RM3,000
(3 marks)
(Total: 7 marks)

QUESTION 2

This question consists of SIX (8) Multiple Choice Questions. Choose the best answer.

1. A credit note received from a supplier would be recorded in the ____________.

A. Return Inward Journal

B. Return Outward Journal
C. Sales Journal
D. Purchase Journal
(1 mark)

2. General Journal is used to ________________.

A. Opening and closing entry

B. Depreciation of non-current asset
C. Drawing of goods
D. All of the above
(1 mark)

3. Purchase of goods on credit from Amin Trading would be recorded in the __________.
A. Cash Receipt Journal
B. Cash Payment Journal
C. Sales Journal
D. Purchase Journal
(1 mark)

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4. Payment of electricity bills and water by cash would be recorded in the ______.
A. Return Inward Journal
B. Return Outward Journal
C. Cash Receipt Journal
D. Cash Payment Journal
(1 mark)

5. Sales Journal is used to record __________.

A. Return Inward Journal
B. Return Outward Journal
C. Sales Journal
D. Purchase Journal
(1 mark)

6. A return of goods from Maulana Trading would be recorded in the _________.

A. Return Inward Journal
B. Return Outward Journal
C. Sales Journal
D. Purchase Journal
(1 mark)

7. Which of the following is NOT related to the legal status of a partnership business
entity?

A. It is not a separate legal entity from the business owners

B. The partners are personally liable for all the business debts.
C. The partners are not liable for the business profit and losses.
D. It can sue or be sued in the partners’ names
(1 mark)

8. The maximum number of general partnerships business entity is ____________.

A. 2 partners

B. 20 partners
C. 25 partners
D. 50 partners
(1 mark)

(Total: 8 marks)

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QUESTION 3

The following was the trial balance for MajuTrading as at 31 December 2021.

List of Accounts Debit (RM) Credit (RM)

Accounts receivable 38,000
Accounts payable 23,600
Capital 215,450
Motor Van 145,000
Furniture 46,000
Accumulated depreciation:
Motor van 25,650
Furniture 4,600
Water and electricity 5,800
Salaries 11,650
Interest on loan 9,000
Loan from bank 230,000
8% Fixed Deposit 80,000
Rental received 7,500
Bank 157,000
Cash 35,050
Discount received 2,500
Discount allowed 2,300
Allowance for doubtful debts 700
Sales 150,000
Purchases 88,700
Sales return 3,000
Purchase return 2,800
Drawings 1,500
Inventory on 1 January 2021 35,000
Carriage expenses 4,800
TOTAL 662,800 662,800

Additional information:

1. Inventory at year end was valued at RM45,000.

2. Depreciation for fixed assets was calculated using the following basis:

Motor van -10% using reducing balance method

Furniture - 10% using straight line method

3. The interest on loan available in the trial balance was for the period of 12 months
starting 1 May 2021.

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

Accruals RM Prepayments RM
Rental received 1,500 Water and electricity 500

5. During the year, RM1,500 was written off as bad debt as the debtor was
nowhere to be found. In addition, the allowance for doubtful debt needs to be
increased by RM2,200.

6. 65% from the total carriage expenses was the cost to transport the goods sold to
the customers' premises.

7. The 8% fixed deposit was invested by the business starting on 1 January 2021.
The interest was still accrued and year end.

8. The owner took goods worth RM1,000 from the business for his own personal
use.

Required:

a) Prepare Statement of Profit or Loss for the year ended 31 December 2021 for Maju
Trading.

b) Prepare Statement of Financial Position as at 31 December 2021 for Maju Trading.

Note: Use vertical format presentation

(32 marks)

QUESTION 4

ZZ, SB and KAY are brothers who formed a partnership business named as ZSK which
ventures in fast food industry. Their production facility is in Bangi, Selangor and has been
established for more than a year. Below are the terms agreed by the brothers prior to the
commencement of their partnership business:

i. Interest on closing capital is to be allowed at 10% per annum.

ii. ZZ and SB are entitled to receive a monthly salary of RM3,000.
iii. Profits or losses are to be shared between ZZ, SB and KAY in the ratio of 3:2:1
respectively.
iv. Interest of 5% per annum is to charge on drawings.
v. The partners are entitled to 8% interest per annum on any advance provided to the
partnership.

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Additional information:

1. The partners’ capital accounts as at 1 January 2021:

ZZ RM80,000
SB RM60,000
KAY RM70,000

On 1 August 2021, SB contributed an additional capital of RM20,000 to the

partnership.

2. The partners’ current accounts as at 1 January 2021:

ZZ RM20,000
SB RM10,000
KAY RM11,000

3. ZZ withdrew RM6,000 cash on 1 November 2021 for his personal consumption.

4. On 1 July 2021, ZSK received an advance from ZZ amounted to RM10,000.

5. The business reported a net profit of RM220,000 for the year ended 31 December
2021.

6. Depreciation on office equipment amounted to RM40,000 is yet to be considered in

the computation of the above net profit.

Required:

a) The Appropriation Statement for the year ended 31 December 2021.

(8 marks)

b) Partners’ current account for the year ended 31 December 2021.

(5 marks)

Note 1: Calculate to the nearest RM.

(Total: 13 marks)

(Total marks: 60 marks)

END OF QUESTION PAPER

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