CONFIDENTIAL 1 ACC117/ACC106/TEST2/JULY2023

UNIVERSITI TEKNOLOGI MARA

TEST 2

INTRODUCTION TO FINANCIAL ACCOUNTING/

COURSE : INTRODUCTION TO FINANCIAL ACCOUNTING AND
REPORTING
COURSE CODE : ACC117/ ACC106
EXAMINATION : 7 JULY 2023
TIME : 2 HOURS

INSTRUCTIONS TO CANDIDATES

1. This question paper consists of three (3) questions.

2. Answer ALL questions in the Answer Booklet. Start each answer on a new page.

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

4. 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 ACC117/ACC106/TEST2/JULY2023

QUESTION 1

Pn Neefa has just started its business, Neefa Fabrics on 1 May 2023. In the month of May,
the following transactions took place:

MAY 2023 TRANSACTION

1 Pn Neefa brought in cheque worth RM50,000 to Neefa Fabrics’ bank account
as capital.
2 Purchased office furniture worth RM5,200 by cheque.
5 Purchased fabrics from supplier Halina RM23,400. Halina gave 30 days credit
for the purchase.
8 Sold RM12,500 to Reka Acara Enterprise on credit.
9 Returned defected fabrics to Halina. The purchase price for the item was
RM2,800.
12 Made a cash sale to walk-in customer worth RM5,300.
20 Pn Neefa took RM2,500 worth of fabrics as gift for her family.
23 Paid RM500 commission to salesman for sales made on 8 May by cheque.
25 Cash out RM1,500 from bank account for petty cash.
30 Paid RM250 electricity bill by cash.

Required:

Give the appropriate book of prime entry for each of the transactions above.

(Total: 10 marks)

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CONFIDENTIAL 3 ACC117/ACC106/TEST2/JULY2023

QUESTION 2

The following accounts were extracted from the Trial Balance of Ukhwah Trading owned by
Encik Uthman as at 31 December 2022.

Ukhwah Trading
Trial Balance as at 31 December 2022
RM RM
Land 400,000
Motor vehicles 250,000
Office equipment 80,000
Accumulated depreciation – Motor vehicle 50,000
Accumulated depreciation – office equipment 28,000
Cash in hand 33,000
Cash at bank 95,300
Accounts receivable 55,200
Accounts payable 65,000
Allowance for doubtful debts as at 1 January 2022 3,700
3% Bank loan 150,000
5% Fixed Deposit 100,000
Drawings 5,450
Capital 453,800
Purchases 350,450
Sales 734,000
Inventories as at 1 January 2022 22,000
Sales returns 15,000
Purchase returns 20,500
Sales discounts 9,300
Purchase discounts 7,400
Carriage inwards 3,400
Duty on purchases 14,000
Interest income 2,500
Selling and distribution expenses 15,200
General expenses 12,000
Salaries 36,000
Rental 14,000
Utilities 4,600
1,514,900 1,514,900

Additional information:

1. Inventory as at 31 December 2022 is RM37,400.

2. Annual depreciation is to be provided as follows:

a. Motor vehicle – 10% per annum on carrying value.
b. Office equipment – 5% per annum on cost.

3. Part of the interest income of RM2,500 and utilities of RM400 are still accrued at the end
of the year.
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CONFIDENTIAL 4 ACC117/ACC106/TEST2/JULY2023

4. There is prepaid rent expense at the end of 31 December 2022 is RM2,000.

5. The bank loan was obtained from UMRO Bank on 1 March 2022. No interest has been
paid during the year.

6. The allowance for doubtful debts is to be increased to RM4,200 at the end of the year.

7. Encik Uthman took goods worth RM450 and cash of RM3,000 for his personal purposes.

Required:

a. Prepare the Statement of Profit or Loss for the year ended 31 December 2022

b. Prepare the Statement of Financial Position as at 31 December 2022

(Total: 25 marks)

QUESTION 3

Encik Amin has received the following bank statement for his business, Amin Enterprise for
the month of May 2023.

June Bank

Bank Statement for the month of May 2023

Client Name: Amin Enterprise
Account Number: 0111022556352
Type of Account: Current
Statement Date: 31 May 2023

Date Particulars Debit Credit Balance

RM RM RM

1/5/2023 Opening Balance 59,233

2/5/2023 Cheque Issued 110203 3,500 55,733
4/5/2023 ABC Insurance – Standing 1,250 54,483
Instruction
5/5/2023 Cheque Issued 110204 2,650 51,833
5/5/2023 Cheque Deposit 210521 5,620 57,453
6/5/2023 Bank Charges 120 57,333
7/5/2023 Alif Bata Properties – Direct Debit 950 56,383
10/5/2023 Cash Deposit 580 56,963
12/5/2023 Cheque Deposit - 101235 3,530 60,493
14/5/2023 Cheque Issued 110205 2,890 57,603
18/5/2023 Kamal Ent – Credit Transfer 2,360 59,963
20/5/2023 Cheque Deposit 255012 1,560 61,523
23/5/2023 Cheque Issued 110206 1,350 60,173
25/5/2023 Cheque Deposit 252110 1,250 61,423
29/5/2023 Dividend 45 61,468

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CONFIDENTIAL 5 ACC117/ACC106/TEST2/JULY2023

Cash Book (Bank Column)

Date Particulars RM Date Particulars RM
1/5/23 Balance b/d 55,733 3/5/23 Purchase - 110204 2,650
4/5/23 Sales - 210521 5,260 13/5/23 Salary - 110205 2,890
10/5/23 Sales 580 21/5/23 Ameng - 110206 135
11/5/23 Sales - 101235 3,530 30/5/23 Purchase - 110207 2,350
19/5/23 Sales - 255012 1,650 31/5/23 Salary - 110208 2,500
24/5/23 Sales - 252110 1,250
27/5/23 Habib - 512241 3,500
29/5/23 Sales - 315220 2,550 31/5/23 Balance c/d 63,528
74,053 74,053

Additional information:

1. Cheque number 110203 was for purchases in April 2023.

2. Cheque received number 210521 and cheque paid to Ameng on 21 May 2023 were
wrongly recorded by Encik Amin

3. It was found that the cheque received (no: 255012) was wrongly recorded by the bank.

Required:

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

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

END OF QUESTIONS

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