This Study Resource Was: Universiti Teknologi Mara Final Examination

CONFIDENTIAL AC/DEC 2019/ACC106/100/105/107/
111/114/115/150
UNIVERSITI TEKNOLOGI MARA

FINAL EXAMINATION
COURSE • INTRODUCTION TO FINANCIAL ACCOUNTING

AND REPORTING /ACCOUNTING / FINANCIAL
ACCOUNTING I / ACCOUNTING I / INTRODUCTION
TO ACCOUNTING I / FINANCIAL ACCOUNTING /
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PRINCIPLES OF ACCOUNTING I
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COURSE CODE ACC 106/100/105/107/111/114/115/150
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EXAMINATION DECEMBER 2019
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TIME 3 HOURS
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INSTRUCTIONS TO CANDIDATES
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1. This question paper consists of two (2) parts: PART A (10 Questions)
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PART B (4 Questions)
2. Answer ALL questions from all two (2) parts:

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i) Answer PART A in the Objective Answer Sheet.

ii) Answer PART B in the Answer Booklet. Start each answer on a new page.
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3. Do not bring any material into the examination room unless permission is given by the
invigilator.
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4. Please check to make sure that this examination pack consists of:
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i) the Question Paper

ii) an Answer Booklet - provided by the Faculty
iii) an Objective Answer Sheet - provided by the Faculty
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Answer ALL questions in English.
DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO

This examination paper consists of 8 printedpages
This study source was downloaded by 100000815192799 from CourseHero.com on 06-23-2021 01:43:52 GMT -05:00
© Hak Cipta Universiti Teknologi MARA CONFIDENTIAL
https://www.coursehero.com/file/74385062/PYQ-DEC-2019pdf/
CONFIDENTIAL 2 AC/DEC 2019/ACC106/100/105/107/
111/114/115/150
PART A
This part consists of TEN (10) multiple-choice questions. Choose the most suitable
answer.
1. Which of the following is an internal user?
A. Finance executive
B. Inland revenue executive
C. Debtor
D. Bank officer
(1 mark)
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2. The first step in accounting cycle is
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A. preparing journal entries
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B. posting to ledgers
C. preparing source documents
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D. preparing the trial balance
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3. The concept which is associated with the assumption that the business will continue in
the future with no intention to liquidate is
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A. Materiality concept
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B. Going concern concept

C. Consistency concept
D. Business entity concept
(1 mark)
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4. One of the following business organizations has the word "Sendirian Berhad" at the
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end of its name. This business is known as .
A. partnership
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B. private company
C. public company
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D. sole proprietorship
(1 mark)
5. The following statements describe the characteristic of a sole trader EXCEPT

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A. the liability is unlimited

B. it is owned by one person
C. the capital is contributed by the owner
D. the financial statements need to be audited
(1 mark)
©Hak Cipta Universiti Teknologi MARA CONFIDENTIAL
CONFIDENTIAL 3 AC/DEC 2019/ACC106/100/105/107/
111/114/115/150
6. Which of the following is a tangible asset?
A. Copyright
B. Warehouse
C. Patent
D. Goodwill
(1 mark)
7. Which of the following is NOT considered as purchases?
A. Cash purchase
B. Purchased a furniture
C. Credit purchase from supplier
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D. Purchased an inventory
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(1 mark)
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8. A purchase journal is used to record .
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A. credit purchase
B. cash purchasers e
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C. purchase return
D. cash and credit purchase
(1 mark)
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9. All of the following items appear in a Statement of Financial Position EXCEPT

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A. Accumulated depreciation
B. Fixed deposit
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C. Interest on loan
D. Accrued expenses
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(1 mark)
10. Lina Enterprise bought a lorry on credit from Edaran Sdn Bhd. The effects of this
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transaction are:
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A. Increase in both asset and capital

B. Decrease in both asset and liability
C. Increase in both asset and liability
D. Increase in asset and decreased in liability
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(1 mark)
(Total: 10 marks)
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PARTB
QUESTION 1
On the 1st January 2018, Datuk Sapan started a business and deposited RM 100,000 into a
business bank account. Before commencing the business operation, a sufficient fund must
be raised to support the planned level of activity. Datuk Sapan estimated that a total of
RM 105,000 initial investment is required. He managed to get a bank loan amounting to
RM5.000 as at 15 January 2018.
The following are the assets and liabilities for the year ended 31 December 2018.
Particulars RM
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Premises (carrying amount) 70,000
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Fixtures and fittings (carrying amount) 20,000
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Inventories 4,500
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Accounts receivable 3,500
Accounts payable 1,500
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Motor vehicle 15,000
20,500
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Bank
Office equipment (carrying amount) 10,000
Additional bank loan 10,000
Cash 1,000
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Required:
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a. Briefly explain any TWO (2) accounting concepts that Datuk Sapan was supposed to
follow when dealing with his business.
(5 marks)
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b.
i. Classify the assets of Datuk Sapan's business into Non-Current Assets and
Current Assets.
(4 marks)
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ii. Identify the amount of Non-Current Assets and Current Assets as at 31

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December 2018.
(8 marks)
(Total: 17 marks)
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QUESTION 2
Azri Trading is a stationery store and owned by Azrin. Below are the transactions of Azri
Trading for the month of November 2019.
November 2019 Transactions
1 Started the business with RM20,000 cash.

3 Purchased Fujixerox printer RM700 by cheque for office use.
13 Sold goods on credit to Rachel RM500.
14 Banked in cash RM3,000.
17 Paid rental of premises amounting to RM400 by cash.
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21 Azrin took RM800 from the bank and RM200 goods for personal use.
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Sales returned by Rachel amounted to RM200.
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26 The business bought a motor vehicle for RM4.500 cash.
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28
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Paid utility bills and wages of RM100 and RM500 cash respectively.
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Required:
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Identify the effects (increase or decrease) on assets, liabilities, owner's equity,

revenues or expenses for the transactions dated from 1 November 2019 to 24
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November 2019 and show the accounts to be debited and credited for each of the
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transactions given below.
(Use the format given below to answer the above questions)

Example: November 30 Paid RM2.000 for driver's salary by cash.
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Effects Journal entry

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Date
Increase Decrease Debit Credit
Nov 30 Expenses Asset Salary Cash

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(15 marks)
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State the appropriate book of prime entry for every transaction in November 2019.
(Use the format given below to answer the above questions)

Example: November 30 Paid RM2.000 for driver's salary by cash.
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Date Book of Prime Entry

Nov 30 Cash Payment Journal
(10 marks)
(Total: 25 marks)
) Hak Cipta Universiti Teknologi MARA CONFIDENTIAL
111/114/115/150
QUESTION 3
The following is the Trial Balance extracted from the books of Four Sons Enterprise as at 31
December 2018.
LIST OF ACCOUNTS Debit (RM) Credit (RM)

Capital 292,350
Purchases and sales 95,000 160,000
Sales return 3,800
Purchase return 4,400
Motor van (cost) 75,000
Building (cost) 160,000
Furniture and fittings (cost) 40,000
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Accumulated depreciation as at 1 January 2018:
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Motor van 15,000
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Building 16,000
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Furniture and fittings 14,400
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10% Long-term investment 160,000
5% Fixed deposit
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Rental received 6,000
Commission received 2,000
Repairs and maintenance 2,000
Carriage inwards 1,500
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Carriage outwards 1,000

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Discount allowed 1,600

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Discount received 900

Water and electricity 10,800
Salaries 45,000
Insurance expense 8,500
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Advertising 4,000
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Bad debt recovered 1,500

Stationeries 1,800
Interest on bank loan 7,500
200,000
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5% Bank loan
Allowances for doubtful debt as at 1 January 2018 2,500
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Bank 28,000
Cash 8,750
Accounts receivable and accounts payable 25,000 26,200
Inventory as at 1 January 2018 30,000
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Drawings 2,000
741,250 741,250
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Additional information:
1. Inventory as at 31 December 2018 is RM 26,500.
2. The insurance expense is for a one-year period, started on 1 July 2018.
3. Allowance for doubtful debts is to be increased by RM1,000.
4. Interest on loan was still accrued for 3 months on 31 December 2018.
5. Fixed deposit was made on 1 October 2018. No interest has been received.
6. Depreciations for the year are to be provided as follows:
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10% oncost
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Motor van
Building 10% oncost
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Furniture and fittings 20% on carrying value
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7.
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The owner has taken goods worth RM700 for personal use and no record has been
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made in any books.
8. The information relating to the prepayments and accruals of the business are as
follows:
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Prepayment RM Accruals RM
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Salaries 2,400 Advertising 1,500
Water and electricity 600 Rental income 1,200
Required:
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a. Statement of Profit or Loss for the year ended 31 December 2018.

(20 marks)
b. Statement of Financial Position as at 31 December 2018.

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(13 marks)
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Note: Use vertical format presentation

(Total: 33 marks)
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QUESTION 4
Lynn Herbs Enterprise sells various types of traditional herbs since December 1999. The
following information had been extracted from the financial statements of Lynn Herbs
Enterprise for the year ended 31 December 2018.
RM
Owner's equity 301,500
Current liabilities 42,500
Non-current assets 218,250
Prepaid expenses 750
Account receivable 50,750
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Bank 25,000
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Inventory as at 31 December 2018 50,000
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Net profit 96,500
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Net purchases 117,250
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Total Sales 300,000
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Additional information:
1. 30% of the sales are cash sales.

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2. Average inventory for the year is RM 53,750.

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3. Cost of goods sold for the year is RM 124,750
Required:
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a. Calculate the following ratio for Lynn Herbs Enterprise for the year ended 31
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December 2018.
Net profit margin

i. Current ratio
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ii. Quick ratio

v. Inventory turnover
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v. Average collection period (use 365 days in a year)

(8 marks)
Comment on the net profit ratio, current ratio, quick ratio and average collection period
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for Lynn Herbs for the year ended 31 December 2018.

(4 marks)
List three (3) objectives of ratio analysis for the business.

(3 marks)
(Total: 15 marks)
END OF QUESTION PAPER
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CONFIDENTIAL AC/DEC 2019/ACC106/100/105/107/

UNIVERSITI TEKNOLOGI MARA

COURSE • INTRODUCTION TO FINANCIAL ACCOUNTING

2. Answer ALL questions from all two (2) parts:

i) Answer PART A in the Objective Answer Sheet.

i) the Question Paper

Answer ALL questions in English.

DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO

1. Which of the following is an internal user?

B. Going concern concept

end of its name. This business is known as .

5. The following statements describe the characteristic of a sole trader EXCEPT

A. the liability is unlimited

6. Which of the following is a tangible asset?

7. Which of the following is NOT considered as purchases?

9. All of the following items appear in a Statement of Financial Position EXCEPT

A. Increase in both asset and capital

ii. Identify the amount of Non-Current Assets and Current Assets as at 31

November 2019 Transactions

1 Started the business with RM20,000 cash.

26 The business bought a motor vehicle for RM4.500 cash.

Identify the effects (increase or decrease) on assets, liabilities, owner's equity,

transactions given below.

(Use the format given below to answer the above questions)

Effects Journal entry

Nov 30 Expenses Asset Salary Cash

(Use the format given below to answer the above questions)

Date Book of Prime Entry

LIST OF ACCOUNTS Debit (RM) Credit (RM)

Carriage outwards 1,000

Discount allowed 1,600

Discount received 900

Bad debt recovered 1,500

1. Inventory as at 31 December 2018 is RM 26,500.

2. The insurance expense is for a one-year period, started on 1 July 2018.

3. Allowance for doubtful debts is to be increased by RM1,000.

4. Interest on loan was still accrued for 3 months on 31 December 2018.

6. Depreciations for the year are to be provided as follows:

Building 10% oncost

Salaries 2,400 Advertising 1,500

Water and electricity 600 Rental income 1,200

a. Statement of Profit or Loss for the year ended 31 December 2018.

b. Statement of Financial Position as at 31 December 2018.

Note: Use vertical format presentation

1. 30% of the sales are cash sales.

2. Average inventory for the year is RM 53,750.

3. Cost of goods sold for the year is RM 124,750

Net profit margin

ii. Quick ratio

v. Average collection period (use 365 days in a year)

for Lynn Herbs for the year ended 31 December 2018.

List three (3) objectives of ratio analysis for the business.

END OF QUESTION PAPER

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