BAAB1014 BUSINESS ACCOUNTING

Assignment Guidelines and Rubrics

TEST – 20%

Learning outcomes

1. Explain the basic concepts of accounting, bookkeeping and cost accounting terminology.
2. Systematically recording business transactions in appropriate accounting records.
3. Prepare basic financial statements, management reports and various alternative cost
management system.

Instructions: Answer all questions.

(TOTAL: 50 MARKS)

STUDENT NAME: SURESH LEONG KIM SENG

MATRIC NUM: MC230522768

1
QUESTION 1

Multi Cakes Sdn Bhd is involved in selling cakes. You are required to classify the following costs according to
their behavior.

No. Cost items Fixed cost Variable Semi-variable costs

costs
1. Flour 
2. Electricity expenses 
3. Sugar 
4. Salary of baker 
5. Salary of cashier 
6. Depreciation of machine 
7. Insurance 
8. Telephone expenses 
9. Directors’ salary 
10. Baking powder 

(Total: 5 Marks)

Question 2

a) Fill the missing amount in each of the following accounting equations.

Assets Liabilities Expenses Capital Revenue

RM RM RM RM RM

550,000 150,000 (i) 250,000 250,000 575,000

650,000 115,000 255,000 (ii) 380,000 600,000

855,000 (iii) 290,000 345,000 200,000 685,000

(iv) 510,500 220,000 365,500 280,000 750,000

750,000 120,000 540,000 500,000 (v) 420,000

230,750 (vi) 55,750 175,000 50,000 250,000

(vii) 504,500 90,000 275,000 200,000 319,500

88,000 25,000 92,000 50,000 (viii) 15,000

(8 marks)

2
b) Below is the transaction in relation to Cempaka Rias Enterprise (CRE) for January 2021

Transactions Effects Double entry

Eg: Paid stationeries by cheque Increase expenses Dr Stationery
Decrease asset Cr Bank
1. Owner brought in cash into the business
2. Owner brought in furniture into the business
3. Purchased goods on credit from Sweety Enterprise
4. Received a loan from ABC Bank
5. Paid employees’ wages by cheque

Required:

a) Identify the effects (increase/decrease) of the above transactions on assets, liabilities, owner’s equity,
revenues and expenses.

No Transactions Effects on Effects on Effects on Effects on Effects on

Assets Liabilities owner’s Revenues Expenses
equity

1 Owner brought in Increase - Increase - -

cash into the
business

2 Owner brought in Increase - Increase - -

furniture into the
business

3 Purchased goods Increase Increase - - -

on credit from
Sweety Enterprise

4 Received a loan Increase Increase - - -

from ABC Bank

5 Paid employees’ Decrease - - - Increase

wages by cheque

(5 marks)

b) Identify the double entry for the above transactions

No Transactions Double Entry

1 Owner brought in cash into the business Dr Cash, Cr Owner's Equity

2 Owner brought in furniture into the business Dr Furniture, Cr Owner's

Equity

3 Purchased goods on credit from Sweety Enterprise Dr Purchases, Cr Accounts

3
 Payable

4 Received a loan from ABC Bank Dr Cash, Cr Loan Payable

5 Paid employees’ wages by cheque Dr Wages Expense, Cr Cash

(5 marks)
(Total: 18 marks)

4
Question 3

Walla manufactured Sdn Bhd is a car manufacturer that produce side mirror with a sales price of RM350 and a
variable cost of RM150. Fixed costs are RM250,000 per annum with total unit sold was 1,400 units. You are
required to calculate the following:

A. Contribution / Sales ratio.

(2 marks)

B. Number of units to break-even.

(2 marks)

C. Sales (RM) at break-even point.

(2 marks)

5
D. Number of units to be sold to achieve a profit of RM150,000 per annum

(4 marks)

E. Based on B above, find the margin of safety in units.

(2 marks)

(Total: 12 marks)

6
Question 4

Rahul Sign, the owner of Wood Factory Expert (WFE) has the following accounts balance on 31 December
2021.

RM
Capital 600,000
Drawings 22,500
Sales 2,000,000
Purchases 1,040,000
Return inwards 20,000
Return outwards 10,000
Inventory, as at 1 January 2021 300,000
Delivery van 60,000
Office equipment 120,000
Accounts receivable 376,500
Accounts payable 80,000
General expenses 3,000
Insurance 10,000
Cash in hand 15,000
Cash in bank 40,000
Commission received 5,000
Wages and salaries 100,000
Long term investments 600,000
Rent received 12,000

Additional information:

1. The closing inventory was valued at RM240,000

Required:

a. Prepare a Statement of Profit and Loss for the year ended 31 December 2021

7
 (10 marks)

b. Prepare a Statement of Financial Position as at 31 December 2021

8
 (5 marks)

(Total: 15 marks)