CONFIDENTIAL 1 AC/JANUARY 2024/ACC106/117

UNIVERSITI TEKNOLOGI MARA

TEST 2

COURSE : INTRODUCTION TO FINANCIAL ACCOUNTING

AND REPORTING
COURSE CODE : ACC106/117
EXAMINATION : JANUARY 2024
TIME : 2 HOURS

INSTRUCTIONS TO CANDIDATES

1. This question paper consists of THREE (3) Questions: Answer ALL questions

2. Answer ALL questions in the Answer Booklet.

i. Show your workings (If any) for each of the questions
ii. Start each answer on a new page

3. Do not bring any material into the examination room unless permission is given by
invigilator.

4. Please check to make sure that this examination pack consists of:
i. The Question Paper.
ii. The Answer Booklet – Provided by the Faculty.

5 Answer ALL questions in English

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

This examination paper consists of 5 printed pages

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Question 1

Afrina Enterprise owns by Lia Afrina is a fruit distributor in Bertam, selling imported and local
fresh fruits. The following are transactions of Afrina Enterprise for the month of October 2023.

Date Transactions
2 The owner brought fruits display shelves valued at RM5,000 into the
business.
4 Received an invoice for fruits purchased worth RM7,000 from FreshFruits
Enterprise.
6 The owner took a box of fruits amounting to RM200 to be given to his friend
as a gift.
7 Issued an invoice to PureJus Trading worth RM3,300
9 Paid electricity amounted to RM400 by cash.
13 Received a debit note RM200 from PureJus Trading due to goods returned.
16 Bought a motor vehicle on credit from Arau Auto Sdn Bhd for RM47,000
20 Received interest on investment RM800 by direct fund transfer
24 Paid RM600 cash for 10 boxes of melons purchased from Miyami Trading.
27 Received a cheque from PureJus Trading for the amount due after
deducting a cash discount of RM200

Required:

Identify the appropriate books of prime entry for the business transactions.

(Total: 10 marks)

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Question 2

The following trial balance was extracted from the books of Hanna’s Trading as at 31
December 2023.

Particulars Debit (RM) Credit (RM)

Sales 350,000
Purchases 255,000
Return outwards 16,500
Return inwards 11,000
Discounts 4,550 2,500
Carriage expenses 9,000
Duty on purchases 2,300
Inventory as at 1 January 2023 36,000
Salary expenses 20,500
Advertisement expenses 5,600
General expenses 1,000
Stationaries 300
Utilities expenses 11,700
Interest on loan 800
Rental received 3,000
Commission received 4,000
Allowance for doubtful debt 1 January 2023 1,500
3% loan from Bank Rahmah 50,000
Accounts payable 32,500
Accounts receivable 22,500
Land and building 120,000
Motor vehicles 135,000
Machinery 90,000
Investment 83,000
Accumulated depreciation as at 1 January 2020:
Motor vehicles 27,000
Machinery 9,000
Cash in hand 10,950
Cash at bank 32,800
Drawings 5,000
Capital 368,000
Insurance expenses 2,500
Repairs and maintenance 4,500

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Additional information:

1. Inventory as at 31 December 2023 was valued at RM22,000.

2. The bank loan was approved on January 2023 and part of the interest on loan was
still outstanding as at 31 December 2023.

3. One of the credit customers owing RM900 was declared bankrupt and the debt needs
to be written off. Allowance for doubtful debt is to be adjusted to 3% on the remaining
accounts receivable.

4. Depreciations for the year are to be provided as follows:

a. Motor vehicles -20% per annum on cost, yearly basis
b. Machinery -10% per annum on net book value, yearly basis

5. Utilities bill for the month of December 2023 of RM450 was still outstanding.

Required:

a. The Statement of Profit or Loss for the year ended 31 December 2023.
(15 marks)

b. The Statement of Financial Position as at 31 December 2023.

(10 marks)
(Total: 25 marks)

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Question 3

In December 2023, the cash book (bank column) of Qiu Enterprise shows the following:
Cash Book (Bank Columns)
Dec RM Dec RM
2023 1 Bal b/d 31,530 2023 2 Purchases-MND Ent 010 10,800
12 Sales-Amran 18,000 4 Purchases -Lee Ent 011 18,940
19 Commission 17,964 6 Stationery 012 1,800
Sales-Ah Seng Purchases-Glory Sdn
23 72,000 10 013 18,720
Ent Bhd
20 rent 014 1,512
25 Purchases-DD Ent 015 7,000
27 Salaries 016 40,988
31 Bal c/d 39,734
139,494 139,494

The following is the bank statement received by Qiu Enterprise:

Bank Statement for the month of December 2023

Date Description Debit Credit Balance
Dec-23 RM RM RM
1 Bal b/d 31,530
6 Cheque-Lee Ent 011 14,940 16,590
7 Cheque-MND Ent 010 10,800 5,790
10 Cheque 012 1,800 3,990
11 Transfer credit 4,320 8,310
15 Standing order 3,600 4,710
18 Dividend 36,000 40,710
23 Cheque 014 15,120 25,590
24 deposit -Amran 18,000 57,198
26 cheque returned 18,000 39,198
27 Cheque 700 38,498
29 Deposit 17,964 56,462
30 service charge 180 56,282
30 Cheque 016 40,988 15,294

Additional Information:

1. The clerk of Qiu Enterprise has made mistakes in recording the cheque number 011.
2. The bank has wrongly debited Qiu Enterprise’s account instead of Che Enterprise’s
account for RM700 on 27 December 2023.

Required:

a) The adjusted Cash Book.

b) Bank Reconciliation Statement as at 31 December 2023.
(Total: 15 marks)
(Total: 50 marks)
END OF QUESTION PAPER

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