CONFIDENTIAL 1 TEST2/JAN2024/ACC117

UNIVERSITI TEKNOLOGI MARA

TEST 2

COURSE : ACCOUNTING / INTRODUCTION TO FINANCIAL

ACCOUNTING AND REPORTING / INTRODUCTION
TO FINANCIAL ACCOUNTING
COURSE CODE : ACC106/117
EXAMINATION : JANUARY 2024
TIME : 2 HOURS

INSTRUCTIONS TO CANDIDATES

1. This question paper consists of 3 questions. Answer ALL questions.

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

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

4. Please check to make sure that this examination pack consists of:

i) the Question Paper

ii) an 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 TEST2/JAN2024/ACC117

QUESTION 1

Below are the business transactions of AYRA Enterprise, a business selling cakes and cookies,
for the month of December 2023.

December Business Transactions

2023
1 The owner, Ayra contributed RM50,000 cash into the business.
2 Ayra also brought into the business a mixer and an oven worth RM17,000.
5 Goods worth RM4,300 were purchased on credit from a supplier Bake with
Yan.
6 Ayra discovered that some of the supplies worth RM250 purchased from
Bake with Yan were damaged, and she immediately returned them.
9 Sold goods on credit to Toko Taka Trading worth RM5,000. Some of the
goods worth RM500 were returned due to misunderstanding in the order
made.
11 Made cash sales worth RM1,500 to Alisha.
18 The business bought a second-hand van costing RM40,000 from a used car
dealer Rejang Motor Sdn Bhd, and paid RM5,000 cash. The remaining
balance was paid on credit.
26 Ayra took some of the cakes and cookies from the shop worth RM1,000 and
gifted it to her regular customers.
28 Transfer through direct debit payment for shop rental amounting to RM3,500
and staff salaries of RM2,000.

Required:

Identify the appropriate book of prime entry for the business transactions from 2 December
to 28 December 2023 as given above.

Example of answer:

Date Books of prime entry

Dec 1 Cash receipt journal

(Total: 10 marks)

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 CONFIDENTIAL 3 TEST2/JAN2024/ACC117

QUESTION 2

The trial balance below shows the accounts’ balances of Orange Enterprise which is wholly
owned by Encik Michael as at 31 December 2023.

Particulars Debit (RM) Credit (RM)

Purchases and sales 180,000 220,000
Discount allowed 2,550
Return 9,000 13,500
Carriage inwards 600
Opening stock at 1 January 2023 36,000
Advertisement 4,900
Dividend received 1,900
Electricity 2,550
Commissions 2,100 9,700
Interest on loan 3,700
Rent expense 11,750
Salaries 20,500
Loan from OCBD Bank 165,000
Allowance for doubtful debt as at 1 January 2023 300
Motor vehicles 75,000
Machinery 6,000
Land and building 240,000
Investment 9,000
Accumulated depreciation:
Motor Vehicles 25,500
Machinery 1,500
Account receivable and account payable 121,000 134,000
Drawings 3,000
Cash 750
Bank 10,200
Capital 167,200

Additional information:

1. Stock as at 31 December 2023 is RM105,000.

2. Encik Michael withdrew RM1,200 worth of goods for his family use.

3. The loan from OCBD Bank was obtained on May 1, 2023, with an annual interest rate of
5%.

4. One of the customers, Mudah Trading was declared bankrupt during the year and unable
to settle their debt of RM200. The allowance for doubtful debts is to be increased by
RM560.

5. RM600 dividend was received in advance, while rent expenses RM750 was owing at the
end of the year.

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 CONFIDENTIAL 4 TEST2/JAN2024/ACC117

6. Depreciation for the year were provided as follows:

Motor Vehicles 10% per annum on reducing balance method
Machinery 10% per annum on straight line method

Required:

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

b) Prepare a Statement of Financial Position as at 31st December 2023.

(Total: 25 marks)

QUESTION 3

The following is a summary form the Cash Book (Bank account) and the Bank Statement of
Bright Mirae Enterprise for the month of November 2023.

Cash Book (Bank account)

Date Particulars RM Date Particulars Cheque No RM
Nov 1 Bal b/d 3,350 Nov 4 Sulaiman Bhd 202284 550
3 Cash 300 10 Richie Bhd 202285 1,850
6 BCL Bhd 3,400 12 Sulaiman Bhd 202286 350
13 Cash 2,100 20 Purchases 202287 3,500
18 Sales 980 22 Bestari Trading 250
21 BCL Bhd 150 25 Telephone and 202288 1,500
Internet
27 Sales 2,800 28 Salaries 202289 4,500
30 Bal c/d 580
13,080 13,080

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 CONFIDENTIAL 5 TEST2/JAN2024/ACC117

CitiBank Malaysia Bhd

Bank Statement as at 30 November 2023
Date Particulars Cheque No. Payment Receipt Balance
Nov 1 Bal b/d 3,350
4 Deposit 300 3,650
6 Cheque 202284 550 3,100
8 Deposit 3,400 6,500
12 Cheque 202285 1,580 4,920
13 Cheque 202286 350 4,570
14 Deposit 2,100 6,670
23 Cheque 202287 3,500 3,170
24 Credit Transfer 450 3,620
25 Deposit 250 3,870
25 Dividend 200 4,070
26 Deposit 980 5,050
27 Cheque 202288 1,500 3,550
28 Dishonoured 500 3,050
Cheque
28 Standing Order 430 2,620
29 Charges and 150 2,470
Interest
30 Direct Debit 250 2,220

Additional information:

1. A cheque no 202285 paid to Richie Bhd was wrongly recorded by the bank as RM1,580.

2. The amount of RM250 received from Bestari Trading was wrongly recorded as payment
in the Cash Book.

Required:
a. Prepare Adjusted Cash Book for the month of 30 November 2023.

b. Prepare Bank Reconciliation Statement as at 30 November 2023.

(Total: 15 marks)

END OF QUESTION PAPER

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