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Semester 1 2015/2016

the following trial balance has been prepared from the books and records of sinar suria company as at 30sep2014. we are also

sinar suria company


trial balance at 30 sep 2014

capital
drawing
vechicles
trade payables
trade receivables
inventories(1 october 2013)
rent
telephone
postage
electricity
bank
return inwards
return outwards
provision for doubtful debts
purchases
sales revenue
plant and equipment
discount received
bank charges

Additional information:
1. A bad debt of RM2000 has yet to be written of
2. The provision for doubtful debts is to be 3 per cent of trade receivables
3. There are unpaid bills for electricity RM200 and telephone RM300
4. Rent is payable at RM3300 per quarter, and has been paid until the end of november 2013
5. The value of inventories at 30 september 2013 is RM16500
6. Depreciation is to be provided on plant and equipment (25 per cent reducing balance method)
a) Prepare a statement of profit and loss for Sinar Suria Company for the period ending 30 september 2013, and
b) a statement of finacial position at that date
(note: An adjusted trial balance is not required. Show all the adjusments to the ledger accounts)

Question 2 (15marks)
The following is a list of balances in the ledger of Sinar Harapan at 31 May 2015:
RM
Cash at bank 2368
Purchases 12389
Sales revenue 18922
Wages and salaries 3562
Rent and rates 504
Insurance 78
Motor expenses 664
Printing and stationery 216
Light and heat 166
General expenses 314
Premises 10000
Motor vehicles 3800
Fixtures and fittings 1350
Trade receivables 3896
Trade payables 1731
Cash in hand 482
Drawings 1200
Capital 12636
Bank loan 8000

Prepare a trial balance. (15marks)

Question 3 (25marks)
On March 1,2014, Eric Syuqran and Abigail Zamri form a partnership. Syuqran agrees to invest RM21100 in cash
and merchandise inventory valued at RM55900. Zamri invest certain business assets at valuations agreed upon,
transfer business liability, and contributes sufficent cash to bring his total capital to RM60000. Details regarding
the book values of the business assets and liabilities, and the agreed valuation are as follow:

ZAMRI's Ledgr Balance Agreed Upon Valuation


Accounts Receivable 18900 18000
Allwance for Doubtful Accounts 1200 1500
Equipment 83500
54900
Accumulated Depreciation - Equipment 29800
Accounts payable 15000 15000
Notes Payable (current) 36000 36000

The partnership agreement includes the following provisions regarding the division of net income: interest on original
investments at 10%, salary allowances of RM22500 (Syuqran) and RM30400 (Zamri), and the remainder equally.

a) Journalize the entries to record the investments of Syuqran and Zamri in the partnership accounts.
(5marks)
b) Prepare a balance sheet as of March 1, 2014, the date of formation of the partnership of Syuqran and Zamri.
(10marks)
c) After adjustments and the closing of revenue and expense accounts at February 28,2015, the end of the first full year
of operations, the income summary account has a credit balance of RM90000 and the drawing accounts have debit
balance of RM28000 (Syuqran) and RM30400 (Zamri). Journalize the entries to close the income summary account and
thw drawing accounts at February 28, 2015. (10marks)

Question 4 (25marks)
a) Faizal Sdn. Bhd. Beginning inventory and purchases during the year ended December 31, 2014, were as follows:
Unit Units Cost(RM) Total cost(RM)
1-Jan Inventory 1000 50 50000
25-Feb Purchase 3000 52 156000
25-Jun Sold 1600 units
30-Aug Purchase 2600 55 143000
5-Oct Sold 4000 units
11-Nov Purchase 1000 57.68 57680
31-Dec Sold 800 units
Total 7600 406680

Based on the information given, calculate the following:


i) Determine the cost of inventory on December 31, 2014, using the periodic inventory system and each of the following
inventory costing method: FIFO,LIFO, and weighted average.
ii) Assume that during the fiscal year ended December 31, 2014, sales were RM530000 and the estimated gross profit rate
was 36%. Estimate the ending inventory at December 31, 2014,using the gross profit method.
ny as at 30sep2014. we are also told that the figures have to be amended to take into account further adjusment:

debit credit
99000
9000
60000
47000
37000
12000
15400
1800
300
2100
22000
4000
2500
900
213000
370000
147000
6000
1800
525400 525400

ing 30 september 2013, and (25 marks)


(10 marks)
er accounts)
RM21100 in cash
ons agreed upon,
Details regarding

pon Valuation

me: interest on original


emainder equally.

uqran and Zamri.

e end of the first full year


accounts have debit
me summary account and

14, were as follows:


and each of the following
(15marks)
e estimated gross profit rate
(10marks)
Question 1
The unadjusted trial balance of Cepat Menyesal Demolition Company as of the end of its 2018 fiscal year is presented in the fo

CEPAT MENYESAL DEMOLITION COMPANY


Unadjusted Trial Balance
as of 30 April 2017
Debit (RM) (Credit (RM)
Cash 9000
Supplies 18000
Prepaid insurance 14600
Equipment 140000
Accumulated depreciation - Equipment 10000
Accounts Payable 16000
Interest payable 0
Rent payable 0
Wages payable 0
Property taxes payable 0
Long-term notes payable 2000
Cepat Menyesal, Capital 66900
Cepat Menyesal, Withdrawals 24000
Demolition fees earned 177000
Depreciation expenses - Equipment 0
Wages expense 51400
Interest expense 2200
Insurance expense 0
Rent expense 8800
Supplies expense 0
Property taxes expense 8400
Repairs expense 6700
Utilities expense 6800
Totals 289900 289900

The April 30, 2016, credit balance of the owner's capital account was RM36900, and the owner invested RM30000 cash in the

Additional information:
a. The supplies available at the end of fiscal year 2017 had a cost of RM8100.
b. The cost of expired insurance for the year is RM11500
c. Annual depreciation on equipment is RM18000
d. The April utilities expense of RM700 is not included in the unadjusted trial balance because the bill arrived after the trial bal
e. The company's employees have earned RM2200 of accrued wages at fiscal year-end.
f. The rent expense incurred and not yet paid or recorded at fiscal year-end is RM5360.
g. Additional property taxes of RM450 have been assesed for this fiscal year but have not been paid or recorded in the account
h. The long-term note payable bears interest at 12% per year. The unadjusted interest expense account equals the amount paid

You are required to:


1) Journalize the above additional information. (12m)
2) Prepare the income statement, the statement of changes in equity, and the classified balance sheet for the year ended April
3) Journalize the closing entries. (10m)

Question 2
Asyraf Sdn. Bhd. Beginning inventory and purchases during the year ended December 31, 2016, were as follows:

Unit Unit Cost Total Cost


1-Jan Inventory 1000 $50.00 $50,000
25-Feb Purchase 3000 $52.00 $156,000
25-Jun Sold 1600 units
30-Aug Purchase 2600 $55.00 $143,000
5-Oct Sold 4000 units
11-Nov Purchase 1000 $57.68 $57,680
31-Dec Sold 800 units
Total 7600 $406,680

Based on the information given, calculate the following:


1) Determine the cost of inventory on December 31, 2016, using the priodic inventory ystem and each of the following invento
2) Assume that during the fiscal year ended December 31, 2016, sales were $530000 and the estimated gross profit rate was 3

Question 3
On March 1, 2017, Eric Syuqran and Abigail Zamri form a partnership. Syuqran agrees to invest RM21100 in cash and merchand

ZAMRI's Ledger Balance (RM) Agreed Upon Valuation (RM)


Accoutns Receivable 18900 18000
Allowance for Doubtful Accounts 1200 1500
Equipment 83500 >54900
Accumulated Depreciation - Equipment 29800 >54900
Accounts payable 15000 15000
Notes Payable ( Current) 36000 36000

The partnership agreement includes the following provisions regarding the division of net income: interest on original investme
a) Journalize the entries to record the investments of Syuqran and Zamri in the partnership accounts. (5m)
b) Prepare a balance sheet as of March 1, 2017, the date of formation of the partnership of Syuqran and Zamri. (10m)
c) After adjustments and the closing of revenue and expense accounts at February 28, 2018, the end of the first full year of ope

Question 4
Fauzan & Syaqir Company's bank statement for the month of May showed a balance per bank worth RM3025. The company's c
1) Cash receipts or deposit in transit for the last week of May recorded on the company's books were RM2200 but this amount
2) Check No. 189 payable to Bataras Sdn. Bhd. Was written for RM230, but wrongly recorded as RM320.
3) The total amount of checks still outstanding on May 31 amounted RM2610.
4) The bank imposed check printing charges for RM40 and a safety deposit box charge of RM60.
5) The bank returned an NSF/ dishonored check from a customer for RM685
6) The bank included a credit memorandum for RM1090 that represents collection of a customer's note by the bank for the co

Required:
a) Prepare a bank reconciliation for Fauzan & Syaqir Company as at May 31. (10m)
b) Prepare any adjusting entries necessary as a result of the bank reconciliation. (5m)
c) Explain 5 elements of internal controls. (10m)
fiscal year is presented in the folloiwning figure:

r invested RM30000 cash in the company during the 2017 fiscal year.

the bill arrived after the trial balance was prepared. The RM700 amount owed needs to be recorded.

paid or recorded in the accounts.


account equals the amount paid for the first 11 months of the 2017 fiscal year. The RM200 accrued interest for April has not yet been paid

e sheet for the year ended April 30, 2017. (28m)


6, were as follows:

nd each of the following inventory costing methods: FIFO, LIFO, and weighted average. (15m)
estimated gross profit rate was 36%. Estimate the ending inventory at December 31, 2016, using the gross profit method. (10m)

RM21100 in cash and merchandise inventory valued at RM55900. Zamri invests certain business assets at valuations agreed upon, transfe

pon Valuation (RM)

me: interest on original investments at 10%, salary allowances of RM22500 (Syuqran) and RM30400 (Zamri), and the remainder equally.
counts. (5m)
uqran and Zamri. (10m)
he end of the first full year of operations, the income summary account has a credit balance of RM90000, and the drawing accounts have d

worth RM3025. The company's cash account in the general ledger had a balance worth RM2220 on May 31. Other information is as follow
s were RM2200 but this amount does not appear on the bank statement.

mer's note by the bank for the company; principal amount of the note was RM1000 and interest was RM90.
st for April has not yet been paid or record. ( The company is required to make a RM4000 payment toward the note payable during the 201
profit method. (10m)

valuations agreed upon, transfer business liabilities, and contributes sufficient cash to bring his total capital to RM 60000. Details regarding

i), and the remainder equally.

nd the drawing accounts have debit balances of RM28000 (syuqran) and RM30400 (Zamri). Journalize the entries to close the income sum

1. Other information is as follows:


the note payable during the 2018 fiscal year.)
al to RM 60000. Details regarding the book values of the business assets and liabilities, and the agreed valuations are as follow:

entries to close the income summary account and the drawing accounts at February 28, 2018. (10m)
ations are as follow:
Question 1 (50m)
The unadjusted trial balance of Recessive Interiors at January 31, 2014, the end of the current year, is shown below:

Recessive Interiors
Unadjusted Trial Balance
January 31,2014

Debit(RM)Credit(RM)
Cash 13100
Supplies 8000
Prepaid rent 1200
Prepaid insurance 7500
Equipment 113000
Accumulated depreciation - Equipment 12000
Trucks 90000
Accumulated depreciation - Trucks 27100
Accounts Payable 4500
Jeanne McQuay, Capital 126400
Jeanne McQuay, Drawing 3000
Service Revenue 155000
Rent expense 7600
Wages expense 72000
Trucks expense 5350
Miscellaneous expense 5450
Totals 325000 325000

The data needed to determine year-end adjustments are as follows:


a) Supplies on hand at January 31 are RM2850.
b) Insurance premiums expired during the year are RM3150.
c) Depreciation of equipment during the year is RM5250
d) Deopreciation of trucks during the year is RM4000
e) Wages accrued but not paid at January 31 are RM900

1) Prepare the ncessary adjusting journal entries on January 31,2014. (5m)


2) Prepare also an adjusted trial balance dated January 31, 2014. (10m)
3) Prepare an income statement, a statement of owner's equity, and a balance sheet for the year ended January 31, 2014. (30m
4) Prepare an after-closing trial balance. (5m)

Question 2 (25m)
The following trial balance has been prepared on 31 December 2016, from the books of Sony & ericson:

Sony & Ericson


Trial Balance as at 31 Dec 2016

Debit(RM)Credit(RM)
Capital Accounts:
Sony 5000
Ericson 3000
Drawings in cash:
Sony 600
Ericson 400
Short term loan 4000
Purchases and sales 10450 25600
Return inwards and outwards 320 510
Inventory, 1 Jan 2016 2000
Salaries 4550
Interest on short term loan 400
Office expenses 1240
Accounts Reivable and Payable 5250 1100
Equipment 13900
Cash 100
39210 39210

Additional information:
a. The closing inventory is valued at RM2200.
b. Equipment is to be depreciatioed at 10% per annum on cost.
c. Salaries outstanding at the end of the year is RM100.
d. Profits and losses are to shared equally.
e. 5% interest is allowed on partners' capital and the same percentage is also charged on partners' drawing.

1) Prepare the Income Statement (including appropriation) for the year ended 31 December 2016. (20m)
2) A partnership is an association of two or more persons who own and manage a business for profit. Briefly explain the charac

Question 3 (25m)
Lambat Menyesal Company sold 5500 units of its product at RM45 per unit in year 2016 and incurred operating expenses of RM

1-Jan Beginning inventory 600 units RM18 per unit


20-Feb Purchase 1500 unitsRM18 per unit
16-May Purchase 700 units RM20 per unit
3-Oct Purchase 400 units RM21 per unit
1-Dec Purchase 3300 unitsRM22 per unit
Total 6500 units

Required:
a. Prepare comparative income statements for the three inventory costing methods of LIFO, FIFO, and weighted average. Roun
b. How would the financial results from using the three alternative inventory costing methods change, if the company had bee
c. What advantages and disadvantages are ofered by using LIFO and FIFO? Assume the continuing trend of increasing costs. (5

Question 4 (25m)
a. Explain each of the following accounting terms: (2m)
1. Revenue expenditure
2. Capital expenditure

b. Classify whether each of the following transactions is a revenue expenditure or capital expenditure
Buying a van
Petrol costs for van
Repairs the van
Putting extra headlights on van
Buying machinery
Electricity costs of using machinery
Tami Spent RM1500 on machinery and RM1000 was for an item (improvement) added to the machinel and RM500 was for rep
Painting outside of new building
Three years later- repainting outside of the building
Built an extension to existing property
(10m)

c. A machine costing RM185000 with a five-year life and RM20000 residual value was purchased January 2. Compute depreciati
d. Computer equipment (office equipment) purchase 6 and half years ago for RM170000 , with an estimated life of eight years
1) Record the depreciation for the one-half prior to the sale, using the straight-line method.
2) Record the sale of the equipment.
3) Assuming that the equipment had been sold for RM25000 cash, prepare the entry to record the sale. (5m)
year, is shown below:

ar ended January 31, 2014. (30m)


ers' drawing.

profit. Briefly explain the characteistics of a partnership. (5m)

ncurred operating expenses of RM6 per unit in selling the units. It began the year with 600 units in inventory and made successive purchase

FO, and weighted average. Round per unit costs to three decimals, but inventory balances to the ringgit malaysia (RM). Include a detailed c
change, if the company had been experiencing declining costs in its purchases of inventory? (3m)
uing trend of increasing costs. (5m)
machinel and RM500 was for repairs

ed January 2. Compute depreciation for each of the five years, using the double-declining-balance method. (8m)
h an estimated life of eight years anda residual value of RM10000 , is now sold for RM60000 cash. (Appropriate entries for depreciation had

the sale. (5m)


y and made successive purchases of its product as follows:

laysia (RM). Include a detailed cost of goods sold section as part of each statement. The company uses a periodic inventory system, and its
iate entries for depreciation had been made for the first six years of use.)
eriodic inventory system, and its income tax rate is 30% (17m)
Question 1 (50m)
The unadjusted trial balance of An-Noura Construction & Co. as of the end of its 2015 fiscal year is presented in the folloiwning

AN-NOURA CONSTRUCTION & CO.


Unadjusted Trial Balance
as of 30 June 2015

Debit(RM)Credit(RM)
Cash 17500
Supplies 8900
Prepaid insurance 6200
Equipment 131000
Accumulated depreciation - Equipment 25250
Accounts Payable 5800
Interest payable 0
Rent payable 0
Wages payable 0
Property taxes payable 0
Long-term notes payable 24000
An-Noura, Capital 77660
An-Noura, Withdrawals 30000
Construction fees earned 134000
Depreciation expense - Equipment 0
Wages expense 45860
Interest expense 2640
Insurance expense 0
Rent expense 13200
Supplies expense 0
Property taxes expense 4600
Repairs expense 2810
Utilities expense 4000
Totals 266710 266710

The June 30, 2014, credit balance of the owner's capital account was RM52660, and the owner invested RM25000 cash in the

Additional information:
a. The supplies available at the end of fiscal year 2015 had a cost of RM3200.
b. The cost of expired insurance for the year is RM3900.
c. Annual depreciation on equipment is RM8500.
d. The June utilities expense of RM550 is not included in the unadjusted trial balance because the bill arrived after the trial ba
e. The company's employees have earned RM1600 of accrued wages at fiscal year-end.
f. The rent expense incurred and not yet paid or recorded at fiscal year-end is RM200.
g. Additional property taxes of RM900 have been assessed for this fiscal year but have not been paid or recorded in the accoun
h. The long-term note payable bears interest at 12% per year. The unadjusted interest expense account equals the amount paid

You are reuiqred to:


1) Journalize the above additional information. (12m)
2) Prepare the income statement, the statement of changes in equity and the classified balance sheet for the year ended June
3) Journalize the closing entries. (10m)

Question 2(25m)
Naseer & Erwin Company's bank statement for the month of May showed a balance per bank worth RM3025. The company's c

1) Cash receipts or deposit in transit for the last week of May recorded on the company's books were RM2200 but this amount
2) Check No. 189 payable to Sinar Trading Company was written for RM230, but wrongly recorded as RM320
3) The total amount of checks still outstanding on May 31 amounted RM2610
4) The bank imposed check printing charges for RM40 and a safety deposit box charge of RM60.
5) The bank returned an NSF/ dishonored check from a customer for RM685
6) The bank included a credit memorandum for RM1090 that represents collection of a customer's note by the bank for the co

Required:
a) Prepare a bank reconciliation for Naseer & Erwin Company as at May 31. (10m)
b) Prepare any adjusting entries necessary as a result of the bank reconciliation.( 5m)
c) Describe at least 5 principles of internal controls. (10m)

Question 3(25m)
On March 1,2014, Eric Syuqran and Abigail Zamri form a partnership
ar is presented in the folloiwning figure:

r invested RM25000 cash in the company during the 2015 fiscal year.

the bill arrived after the trial balance was prepared. The RM550 amount owed needs to be recorded.

n paid or recorded in the accounts.


account equals the amount paid for the first 11 months of the 2015 fiscal year. The RM240 accrued interest for June has not yet been paid
e sheet for the year ended June 30,2015. (28m)

worth RM3025. The company's cash account in the general ledger had a balance worth RM2220 on May 31. Other information is as follows

s were RM2200 but this amount does not appear on the bank statement.
ded as RM320

mer's note by the bank for the company; principal amount of the note was RM1000 and interest was RM90.
st for June has not yet been paid or recorded. (The company is required to make a RM5000 payment toward the note payable during the 2
1. Other information is as follows:
rd the note payable during the 2016 fiscal year.)