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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 CONFIDENTIAL 2 AC/JANUARY 2024/ACC106/117

QUESTION 1

Ummi Enterprise owns by Ummi is in a business of selling furniture. The following are
transactions of Ummi Enterprise for the month of December 2023.

2023 Transactions
December
3 Issued invoice valued RM2,300 to Mr Amin for furniture sold on credit.
7 Purchased furniture on cash valued RM3,400 from Xoxo Enterprise.
10 Ummi brought into business her personal motor van worth RM55,000.
13 Paid utilities RM1,200 through online transfer.
14 Received invoice valued RM7,800 from Wewe Trading for furniture
purchased on credit.
18 Received invoice valued RM10,000 for purchased of computer and
computer accessories on credit.
22 Issued debit note worth for the returned of damaged furniture to Wewe
Trading
23 Received RM3,700 in the business bank account being the payment of
dividend on investment
26 Sold furniture on cash worth RM3,300 to Miss Zety.
29 Business refunded Miss Zety RM1,000 cash through online transfer for
the returned of damaged furniture.

Required:

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

(Total: 10 marks)

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QUESTION 2

Gwencana Enterprise closes its accounts on 31 December annually. The following Trial
balance was extracted from the book of Gwencana Enterprise as at 31 December 2023.

Gwencana Enterprise
Trial Balance as at 31 December 2023
Debit (RM) Credit (RM)
Purchases & Sales 105,000 240,000
Return inwards & Return outwards 3,600 4,100
Account Receivables & Account Payables 13,000 17,300
Inventory as at 1 January 2023 27,000
Allowance for Doubtful Debts as at 1 January
3,400
2023
Motor Vehicles 250,000
Office equipment 87,000
Accumulated Depreciation as at 1 January
33,300
2023 – Motor Vehicle
Accumulated Depreciation as at 1 January
21,200
2023 – Office equipment
Advertising 20,100
Capital 440,000
Cash at Bank 155,000
Cash in hand 9,500
Discounts allowed & received 3,000 5,500
Drawings 6,800
Fixed deposit 200,000
Mortgage loan 250,000
Carriage inwards 4,800
Carriage outwards 5,200
Insurance on Purchases 4,200
Interest on fixed deposit 2,300
Interest on mortgage loan 7,000
Commission 30,400
Rent and rates 24,000
Repair and maintenance 26,700
Salaries 34,800
Total 1,017,100 1,017,100

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 CONFIDENTIAL 4 AC/JANUARY 2024/ACC106/117

Additional information:

1. Closing inventory as at 31 December 2023 is RM20,000.

2. Depreciation is to be provided on non-current assets held at the financial year end as

follows:

Non-current assets Depreciation method Scrap value

Motor vehicle 10% on carrying value RM4,000
Office equipment 5% on cost RM100

3. During the year ended 31 December 2023, one of the account receivables owing
RM2,500 was declared bankrupt and unable to settle the debts. Business decides to write
off the amount as bad debts. Annual allowance for doubtful debts is to be provided at
5% on net account receivable.

4. Repair and maintenance of RM1,700 and commission of RM500 are for the month of
January 2024.

5. As at 31 December 2023, rent and rate of RM2,000 and interest on mortgage loan of
RM3,000 are still not yet paid.

Required:

a) Statement of Profit or Loss for the year ended 31 December 2023

(15 marks)
b) Statement of Financial Position as at 31 December 2023
(10 marks)
(Total: 25 marks)

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 CONFIDENTIAL 5 AC/JANUARY 2024/ACC106/117

QUESTION 3

On 1 January 2024, Saranghae Enterprise received the monthly Bank Statement for the month
of December 2023. The Bank Statement showed the following information:

2023 Description Debit Credit Balance

December (RM) (RM) (RM)
1 Balance b/d 54,000
3 Cash deposited – 312122 5,700 59,700
5 Credit transfer 2,100 61,800
6 Cheque cleared – 411211 6,300 55,500
8 Standing order 300 55,200
10 Cheque deposited – 112361 11,200 66,400
11 Bank charges 550 65,850
15 Credit transfer 5,700 71,550
17 Cheque deposited – 712712 4,300 75,850
19 Cheque cleared – 411212 3,500 72,350
22 Cheque deposited – 111211 8,400 80,750
24 Direct debit 2,700 78,050
27 Cheque deposited – 891222 5,000 83,050
28 Cheque cleared – 411214 6,800 76,250
30 Cheque cleared - 411215 1,600 74,650
31 Cheque deposited – 813434 4,000 78,650

The Cash Book (Bank column) of Saranghae Enterprise showed the following:

Cash Book (Bank Column)

2023 Particulars RM 2023 Particulars RM
Dec Dec
1 Bal b/d 54,000 3 Qiqi Trading – 411211 6,300
1 Cash 5,700 16 Sempoi Ent – 411212 3,500
7 Abu Trading – 112361 11,000 18 Jelita S/B – 411213 4,900
14 Mimi Ent – 712712 4,100 25 Comei Ent – 411214 6,800
19 Yoyo Trading – 111211 8,400 27 Didi Ent – 411215 1,600
24 Zaza Ent – 891222 5,000 Bal c/d (102,100 – 79,000
26 Salman Ent – 333222 6,700 23,100)
28 Lim S/B – 813434 4,000
30 Shey Trading – 444222 3,200
102,100 102,100

Notes:
1. The account clerk of Saranghea Enterprise has wrongly recorded the cheque number
112361.

2. The account clerk of the bank has wrongly recorded the cheque number 712712.

Required:

a. Prepare the Adjusted Cash Book for month of December 2023

b. Prepare Bank Reconciliation Statement for month of December 2023
(Total: 15 marks)
(Total:50 marks)

END OF QUESTION PAPER

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