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pAC/JAN 201 2/ACCI 06/100/105/107/

w i g ^
111/114/115/150
UNIVERSITI TEKNOLOGI MARA
FINAL EXAMINATION
COURSE : INTRODUCTION TO FINANCIAL ACCOUNTING
AND REPORTING / ACCOUNTING / FINANCIAL
ACCOUNTING I I ACCOUNTING I /
INTRODUCTION TO ACCOUNTING I I FINANCIAL
ACCOUNTING I PRINCIPLES OF ACCOUNTING I
COURSE CODE

ACCI 06/100/105/107/111/114/115/150
EXAMINATION

JANUARY 2012
TIME

3 HOURS
INSTRUCTIONS TO CANDIDATES
This question paper consists of two (2) parts

PART A (10 Questions)

PART B (4 Questions)
2.

Answer ALL questions from all two (2) parts

i) Answer PART A in the Objective Answer Sheet.
ii) Answer PART B 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
iii) an Objective Answer Sheet - provided by the Faculty
DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO
This examination paper consists of 9 printed pages
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PART A
This part consists of 10 multiple-choice questions. Choose the most suitable answer
and shade the corresponding alphabet representing the answer in the multiple choice
answer sheet provided.
1.Which of the following entries is correct?
a. Increase in assetsCredit assets account
b. Decrease in liabilityCredit liability account
C.Decrease in capitalDebit capital account
d.Increase in drawingsCredit drawings account
(1 mark)
2.Which of the following is not considered as drawings?
a. Withdrew cash for personal use
b. Withdrew goods for personal use
C.Withdrew cash from the bank for business use
d.Withdrew asset from the business for personal use
(1 mark)
3

Mat Shah is a sole trader who sells electrical goods. The following purchases will be
classified as inventories except the purchase of:
a. Motor vehicle
b. Washing machine
C.Refrigerator
d.Oven
(1 mark)
4

Which of the following accounting equation is correct?

CapitalAssetsLiabilities
a. 5,00010,0005,000
b. 10,0005,0005,000
C.5,0005,00010,000
d.none of the above
(2 marks)
5

Rental income received in advance would be recorded in the balance sheet as:
a. Current liability
b. Current asset
C.Non current liability
d.Non current asset
(1 mark)
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6.
Which of the following non current assets does not require depreciation?
a.Building
b.Motor Vehicle
C.Land
d.Machinery
(1 mark)

7.Bad debt recovered is classified as

a.a revenue
b.an expense
C.an asset
d.a liability
(1 mark)

8.
A bank reconciliation statement is a statement that is
a.
drawn up by the business to check the cash book balance with the bank
statement balance.
b.
drawn up by the bank to check the cash book.
C.
sent by the bank when we have made an error.
d.
sent by the bank when the account is overdrawn.
(1 mark)

9.The current ratio shows the

a.
amount that the current liabilities exceed the current assets.
b.profitability of the business.
C.cash position of the business.
d.
relationship between the current assets and current liabilities.
(1 mark)

10.
Accounting requires the transactions to be recorded twice in the books of accounts
and this is related to the
a.Duality concept
b.Historical cost concept
C.Accounting entity concept
d.Going concern concept
(1 mark)
(Total: 11 marks)
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C O N F I D E N T I A L

4 A C /JA N 2012/ACCI06/100/1051107/
1 1 1 /1 1 4 /1 1 5 /1 5 0
PA RT B
QUE ST I O N I
A.
Below are the transactions of Kedai Elektrik Abu for the month of September 2011.
D ate
1 Sept.
3 Sept.
4 Sept.
10 Sept.
12 Sept.
T ransactions
The owner brought in cash RM100,000 into the business.
The business purchased goods from Seng Heng Sdn Bhd on credit
amounting RM5,500.
Sold goods on credit to Sufian worth RM1 ,500.
Bought a furniture on credit from UMC Sdn Bhd worth RM12,000.
Paid general expenses RM300 by cash.
14 Sept.
The owner brought in his car valued at RM30,000 into the business.
16 Sept. A debtor, Sufian returned goods worth RM500 due to wrong
specifications.
17 Sept. The business bought goods for RM5,000 by cheque from S&L
Enterprise.
18 Sept.
Received a discount RM250 from Seng Heng Sdn Bhd for early
settlement.
19 Sept. The owner took a microwave oven worth RM200 for his personal use.
20 Sept.
Paid electricity bill RM225 by cheque to Tenaga Nasional Berhad.
22 Sept.
Purchased a motor van worth RM50,000 on credit from HSL Finance.
25 Sept.
Paid RM550 by cheque for repairing machine.
27 Sept.
Received commissions amounting to RM3,000 by cheque.
28 Sept.
The owner's wife took cash RM1 000 for paying her credit card.
30 Sept.
Banked in all cash in hand amounting to RM8,800.
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Required:
State the
account to be debited and the account to be credited for the
above transactions.
State the book of prime entry used for each transaction above using the
format given below:
DateDebitCredit
Book of prime entry
1 Sept Cash RM100,000 Capital RM100,000
I Cash receipt journal
(Total: 23 marks)
QUESTION 2
The following is the trial balance extracted from the books of Perniagaan Kembangan as at
31 December 2011.
a)
b)
Returns Inward and Outward
Carriage outward
Drawings
Allowance for doubtful debts (1 January 2011)
Bad debts
Insurance
Carriage inward
Commission received
Discounts allowed and received
Motor expenses
Salaries
Advertising
Utilities
Duty on purchases
Accounts receivable
Accounts payable
Bank balance
8% Loan from Bank Rakyat
Inventories (1 January 2011)
Purchases
Sales
Machinery
Motor vehicles
Accumulated depreciation:
Machinery
Motor vehicles
Capital
Debit (RM) Credit (RM)
660800
2,500
4,400
1,700
2,300
1,720
1,500
2,400

1,480

1,200
1,160
11,000
1,200
3,180
1,600
23,000
22,500
28,000
30,000
8,250
59,000
124,260
65,000
48,000
19,200
9,600
52,290
63,950

263.950
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Additional information:
1. Depreciation is to be provided based on the following policies
MachineryRM4,580
Motor vehiclesRM4,800
2. Allowance for doubtful debts was to be adjusted to 5% of accounts receivable and
allowance for discounts allowable was to be adjusted to RM437.
3. Insurance amounting to RM220 has been paid in advance.
4. The business has the following outstanding expenses at the end of the year:
Carriage inwardsRM560
SalariesRM700
5. The loan from Bank Rakyat was obtained on 1 January 2011. Interest on loan was
still accrued at the year end.
6. The owner took goods amounting to RM600 for personal use.
7. The inventories as at 31 December 2011 was valued at RM1 1,200
Required:
a) Prepare the Income statement for the year ended 31 December 2011.
(14.5 marks)
b) Prepare the Balance sheet as at 31 December 2011.
(9.5 marks)
Note: Use vertical format presentation.
Calculate to the nearest RM.
(Total: 24 marks)
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AC/JAN 20121ACC106/100/105/107/
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QUESTION 3
The following is the bank statement received by Hairunie Trading for the month of December
2011:
RHB Bank
Bank Statement an it %1flrmhr 9flhl
Date DescriptionCheque No - Payment --
ReceiptBalance
RMRMRM
Dec 1 Opening Balance
3,032 CR
8 Cheque
144700450
2,582 CR
9Deposit
3002,882 CR
10 Cheque
144701
220___________ 2,662 CR
12 Deposit
1,2203,882 CR
13 Deposit
2254,107 CR
15 Cheque
144703870
3,237 CR
15 Credit Transfer
1503,387 CR
16 Cheque
144704
450___________ 2,937 CR
22 Deposit
1,6104,547 CR
23 Dividend
1004,647 CR
24 Dishonoured Cheque______
350
4,297 CR
25 Standing Order
206___________
4,091 CR
30 Charges
10 __________ 4,081 CR
30 Interest
24
4,057
fJ
31 1Direct Debit
200 ________

3,857 CR
The following cash book (bank column) was also extracted from the books of Hairunie
Trading for the month of December 2011.
Cash Book
Date
Dec 1
7
10
12
13
15
17
Particulars
Balance b/d
Zain
Aiman Bhd
Nabila Trading
Ilani
Oumi
Sales
RM
3,032
300
1,220
225
1,600
1,300
350
Date
Dec 1
3
5
14
15
20
29
31
bank column)
Particulars
Green Sage Bhd
Telecommunications
Purchases
Utilities
Rent
Sales
Salary
Balance c/d
Cheque No
144700
144701
144702
144703
144704
573200
144705
RNI
450
220
1,530
780
450
1,610
2,500
487
8,027
Additional information:
Hairunie Trading had wrongly recorded RM870 paid for utilities (cheque number
144703) as RM780 in the cash book.
ii.

On 20 December 2011, RM1 610 worth of sales was wrongly recorded in the credit
side of cash book.
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Required:
Prepare:
a) Adjusted cash book.
b) Bank reconciliation statement as at 31 December 2011.
(12 marks)
(8 marks)
(Total: 20 marks)
QUESTION 4
The following are the final accounts of Myra Trading for the year ended 31 December 2011.
Myra Trading
Income statement for the year ended 31 December 2011
RMRM
Sales

100,000
Less: Returns inward

(3,200)
Net sales

96,800
Less:
Opening inventories

25,200
Add: Purchases

34,800
60,000
Less: Closing inventories

(12,000)
Cost of goods sold

48,000
Gross profit

48,800
Add: Revenue

6,000
Less: Expenses

34,200
Net profit

20,600
Myra Trading
Balance sheet as at 31 December 2011

RMRM
Non-current assets

169,000
Current assets
Inventories

12,000
Accounts receivable

11,400
Bank

6,000
29,400
Current liabilities

(11,400)18,000
187,000
Financed by:
Capital

166,400
Add: Net profit

20.600
187,000
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AC/JAN 2012/ACCI06/1001105/107/
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Required:
A.
Compute the following ratios and provide brief interpretations of the ratios.
a) Gross profit margin
b) Net profit margin
C)Inventories turnover ratio
d) Current ratio
e) Acid test ratio/Quick ratio
f) Account receivable collection period
(20 marks)
B .
State any two (2) users of the financial statement and the related accounting ratios.
(2 marks)
(Total: 22 marks)
END OF QUESTION PAPER
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