Open Book Examination Course: Principles of Financial Accounting I Course Code: PAC1103 Duration: 2 Hours

CONFIDENTIAL
OPEN BOOK EXAMINATION
COURSE : PRINCIPLES OF FINANCIAL ACCOUNTING I
COURSE CODE : PAC1103
DURATION : 2 HOURS
INSTRUCTIONS TO CANDIDATES:
1. This question paper consists of TWO (2) parts : PART A (10 questions)
: PART B ( 3 questions)
2. Answer ALL questions in your answer booklet.
3. You are given TWO (2) hours to answer this open book examination and the answer must
be in handwriting. Please write your answer using a ball-point pen. The answer need to
be submitted to your respective lecturer either using:
i. CamScanner Apps: Scan and email the answer OR,
ii. WhatsApp: Snap/ Take picture and send your answer.
4. Plagiarism, copying and cheating will not be tolerated where no marks will be given and
disciplinary actions can be taken.
MYKAD NO : ____________________________________________________
ID. NO. : ____________________________________________________
LECTURER : ____________________________________________________
SECTION : ____________________________________________________
DO NOT OPEN THIS QUESTION PAPER UNTIL YOU ARE TOLD TO DO SO
The question paper consists of 7 printed pages
MAC2020/OBA/PAC1103
CONFIDENTIAL
PART A: MULTIPLE CHOICES

Identify the choice that best completes the statement or answers the questions.
1. (1 point)
The event where the paid amount is less than the incurred amount during a period is
classified as ____________.
A. prepaid expense
B. accrued expense
C. accrued revenue
D. unearned revenue
2. (1 point)
Which of the following statements is CORRECT about Depreciation Expense?
A. Depreciation expense is credited under adjustment column in worksheet.

B. Depreciation can be classified as liabilities in the Statement of Financial Position.
C. Depreciation is the term used for the process of allocating the cost of an asset.
D. Depreciation is classified as revenue in Statement of Comprehensive Income.
3. (1 point)
Estimation of 1% of sales as bad debt would increase _____.
A. revenues
B. expenses
C. assets
D. liabilities
4. (1 point)
Which of the following statement refers to Prepaid Expenses?
A. Expenses paid in cash and recorded as liabilities.

B. Expenses paid in advance and recorded as assets.
C. Expenses paid in cash and recorded as an expense.
D. Expense not yet paid and recorded as liabilities.
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5. (1 point)
Which of the following transactions refer to Unearned Revenue?
A. Cash received for next month sales.
B. Cash received for last month sales.
C. Cash paid for next month purchases.
D. Cash paid for last month purchases.
6. (1 point)
10% discount is given to encourage customer to make a(an) __________.
A. trade, early payment

B. trade, prompt payment
C. cash, early payment
D. cash, prompt payment
7. (1 point)
Freight or transportation charge of FOB ________ will be paid by the ____________.
A. destination, buyer
B. shipping point, buyer
C. shipping point, seller
D. destination, seller
8. (1 point)
Which of the following statement BEST describe the cost of goods sold?
A. Detailed record of each inventory purchased in the company.

B. Total purchased cost of inventory sold during the period.
C. Any payment incurred in the process of earning revenue.
D. Source of revenue recorded from goods sold.
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9. (1 point)
The following statement is true about Perpetual Inventory System EXCEPT:
A. A detailed record on the cost of inventory purchased and sold is kept.

B. The cost of goods sold will be determined each time sales occured.
C. The quantity of inventory will be determined only at the end of accounting period.
D. All the inventory purchased and sold are recorded immediately after it occured.
10. (1 point)
All of the following items are found in the Statement of Comprehensive Income
EXCEPT:
A. Net Loss
B. Maintenances expense
C. Duty Import on inventory
D. Accumulated depreciation
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CONFIDENTIAL
PART B: ESSAY
1. (20 points)
The following is the Trial Balance of Kelana Highway Enterprise as at 31 March 2020.
Kelana Highway Enterprise

Trial balance as at 31 March 2020
Name of account Debit Credit

(RM) (RM)
Cash 17,400
Capital 22,000
Account Receivables 4,500
Supplies 1,800
Furniture 8,000
Accumulated Depreciation – Furniture 1,600
Prepaid Insurance 2,300
Account Payables 2,200
Unearned Service Revenue 3,500
Salaries Expense 1,800
Drawings 500
Service Revenue 10,200
Insurance Expense 2,000
Utilities Expense 1,200
TOTAL 39,500 39,500
Additional information:
a. Supplies on hand as at 31 March 2020 is RM1,000.
b. The balance of unearned service revenue on 31 March is RM2,900.
c. Insurance expired during the year is RM300.
d. Depreciation expense for furniture is RM1,600.
e. Salaries amounting to RM1,000 is not yet paid.
Required:
Complete the worksheet for Kelana Highway Enterprise for the year ended 31 March
2020 in Appendix 1 provided.
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CONFIDENTIAL
2. (10 points)
The following are the transactions of Khaela Boutique for the month of January 2020.
Date Transactions
Jan 3 Purchased merchandise worth RM30,000 from Moontailor Sdn. Bhd. with term
2/10, n/30. Paid half of the amount by cheque and the balance was on account.
5 Sold merchandise to Azada Lace Ent. on account amounted to RM4,000, term

5/5, n/30. The cost of merchandise was RM3,000.
8 Azada Lace Ent. returned a wrong description item worth RM400. The cost
associated with the item was RM300.
12 Paid all balance due to Moontailer Sdn Bhd by cheque.
15 Received cheque from Azada Lace Ent.
Required:
Journalize the above transactions using Perpetual Inventory System. (answer should be
rounded up to the nearest RM)
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CONFIDENTIAL
3. (20 points)
The following is the trial balance of Sulamemas Trading as at 29 February 2020.
Sulamemas Trading
Trial Balance as at 29 February 2020
Name of account Debit Credit

(RM) (RM)
Inventory as at 29 February 2020 4,100
Cost of Goods Sold 18,300
Account Receivables 8,000
Account Payables 3,400
Capital 55,200
Accumulated Depreciation - Machinery 1,900
Depreciation Expense 600
Cash at Bank 41,700
Sales 47,000
Investment 20,000
Commission Income 3,900
Prepaid Rental 4,000
Salary Expense 6,600
Sales Return 1,100
Machinery 7,000
TOTAL 111,400 111,400
Required:
a. Prepare the Statement of Comprehensive Income Statement for the year ended
29 February 2020. (9 points)
b. Prepare the Statement of Financial Position as at 29 February 2020. (11 points)
END OF QUESTION PAPER
MAC2020/OBA/PAC1103

Open Book Examination Course: Principles of Financial Accounting I Course Code: PAC1103 Duration: 2 Hours

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CONFIDENTIAL

OPEN BOOK EXAMINATION

COURSE : PRINCIPLES OF FINANCIAL ACCOUNTING I

COURSE CODE : PAC1103

2. Answer ALL questions in your answer booklet.

DO NOT OPEN THIS QUESTION PAPER UNTIL YOU ARE TOLD TO DO SO

The question paper consists of 7 printed pages

PART A: MULTIPLE CHOICES

A. Depreciation expense is credited under adjustment column in worksheet.

A. Expenses paid in cash and recorded as liabilities.

A. trade, early payment

A. Detailed record of each inventory purchased in the company.

A. A detailed record on the cost of inventory purchased and sold is kept.

Kelana Highway Enterprise

Name of account Debit Credit

5 Sold merchandise to Azada Lace Ent. on account amounted to RM4,000, term

The following is the trial balance of Sulamemas Trading as at 29 February 2020.

Name of account Debit Credit

b. Prepare the Statement of Financial Position as at 29 February 2020. (11 points)

END OF QUESTION PAPER

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