Final Exam Oct 2021
Final Exam Oct 2021
Final Exam Oct 2021
KOLEJ MUTIARA
FINAL EXAMINATION
TIME : 3 HOURS
INSTRUCTIONS TO CANDIDATES
1. This question paper consists of two (2) sections : SECTION A (15 Questions)
SECTION B (2 Questions)
SECTION C (2 Questions)
2. Do not bring any material into the examination room unless permission is given by the
invigilator.
3. Please check to make sure that this examination pack consists of:-
i. the Question Paper
ii. an Answer Booklet – provided by Kolej Mutiara
iii. an Objective Answer Sheet – provided by Kolej Mutiara
A. i and ii
B. ii and iii
C. iii and iv
D. i and iv
i) Commission received
ii) Rental paid
iii) Depreciation
iv) Return
A. i and ii.
B. ii and iii
C. iii and iv
D. i and iv
A. a business plan.
B. a method of recording business transactions.
C. a document that reports on an organisations’s financial position.
D. a system that measures business activities, processes financial information into reports
and communicates the findings.
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5. On 1 August 20X9, Hairi decided to start a sole proprietorship business with the following
items: Buildings RM400, 000; Motor vehicles RM160, 000; Fixtures and fittings RM120, 000;
Loan from bank RM100, 000; Cash at Bank RM30,000. What was the amount of capital that
Hairi contributed into the business?
A. RM 710,000
B. RM 810,000
C. RM 610,000
D. RM 580,000
6. Before recording the adjusting entries, revenues exceed expenses by RM 35,000. The
adjusting entries are accrued salaries of RM 1,000 and depreciation of motor vehicles of RM
2,500. How much is the net income for the year?
A. RM 31,500
B. RM 38,500
C. RM 34,000
D. RM 33,500
7. A company began the accounting period with RM50,000 in owner’s capital, ended with
RM75,000 in owner’s capital and the owner withdrew RM30,000 during the period for
personal use. What was the company’s net income or loss for the period?
8. Which of the following items will not be recorded in costs of goods sold?
i. Carriage inwards
ii. Carriage outwards
iii. Commission on sales
iv. Duty on purchases
A. i and ii only
B. i and iii only
C. ii and iii only
D. iii and iv only
9. A machinery was purchased for RM 10,000. The transportation cost incurred was RM400 and
an additional RM1,200 was paid to have it installed, ready for its intended use. After being
used for three months, it broke down and had to be repaired at a cost of RM200. In the
statement of financial position at the end of the period, the cost of the machinery would be
shown as:
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A. RM 10,400
B. RM 10,200
C. RM 11,400
D. RM 11,600
10. Which of the following can be considered as accounts that have balance brought forward in
the credit side?
i. Purchase
ii. Sales
iii. Bank overdraft
iv. Loan from Bank CIMB
11. Deciding whether to record a sale when the order for services is received or when the services
are performed is an example of a
A. classification issue.
B. valuation issue.
C. recognition issue.
D. communication issue.
12. An asset was purchased on 1 January 2014 for cash price of RM 104,000. It is policy of the
business to depreciate its asset using the straight line method at the rate of 15 % per annum
on a yearly basis. Calculate the asset’s net book value on 31 December 2017, assuming that
the business closes its account on that date.
A. RM 88,400
B. RM 49,400
C. RM 41,600
D. RM 63,889
13. External users are people outside the business entity (organization) who use accounting
information for the various reasons. Below are the example of external users, except:
A. Tax authorities
B. Potential customer
C. Potential supplier
D. Internal auditor
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14. JD Sdn.Bhd had a beginning balance at 1/1/2016 in Account Receivable of RM200,000 and a
beginning credit balance in the provision for doubtful debt accounts of RM4,000. During 2016
he sold RM660,000 of goods on credit and collected RM640,000. If JD estimates that 2% of his
ending accounts receivable will eventually not be collected, his adjusting journal entry for the
bad debt expenses will include a credit to provision for doubtful debt accounts of :
A. RM4,400
B. RM4,000
C. RM400
d. RM5,300
15. Still JD Sdn. Bhd – The ending balance in the provision for doubtful debt accounts at 31
December 2016 would be:
A. RM4,400
B. RM4,000
C. RM400
D. None of the above
There are four general assumptions : going concern, accrual (matching) concept, consistency and
prudence principle that specifically underlie the preparation of the financial (final) accounts of an
incorporated business.
b) Describe and assess the importance of each of those concepts with regards to the
interpretation of prepared financial statements. (8 marks)
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a) A friend approached you and asked about the definition of accounting. From his reading,
accounting consist of THREE (3) basic activities namely identification, recording and
communicating economic events of an organization to the
interested users.
Required:
i) Define the THREE (3) basic activities of accounting. ( 3 marks)
ii) Define the term non-current assets with TWO (2) examples of the assets.
( 4 marks)
b) Asia Trading need your advice on how to calculate and record the depreciation on motor
vehicle.The information given are as follow:
i. The motor vehicles cost is RM135,000, and was bought on 1 January 2018.
ii. Depreciation will calculate based on reducing balance method, at 10% per
annum
iii. You have to show the depreciation calculation for 5 years, starts from 2018
until 2022.
iv. You need to use the table below to show the calculation to Asia Trading.
Required:
You need to show the jurnal entry and ledger of the motor vehicles depreciation for
the year 2021 and 2022 only.
( 16 marks)
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Advance Phone Techno sells hand phone and accessories . The owner, Mr Arrian recorded the
transactions happened in the first and second week of August into his notebook.
1. The owner starts his business with RM5,000 in cash and RM5,000 in bank account. He also
brought a display shelves value RM8,000 to the business.
2. Received RM2,500 cash for sold screen protector to the customers.
3. Purchase goods on credit from House of Phone Accessories worth RM25,500 .
4. Paid salary to Abdul by cash RM1,000.
5. Paid weekly wages to Julia of RM1,050 by cheque.
6. Sold goods on credit to Kamal RM3,800.
7. Raised a short term loan of RM13,000 from Setia Bank. The Bank transfer via cheque.
8. Mr.Arrian returns goods to House Of Phone, worth RM450 because of defect.
9. Mr. Arrian withdrew RM250 cash to pay his son tuition.
10. Bought a new display shelve cost RM1,200 , paying RM1,150 by cheque and manage to get
discount by RM50.
11. The debtor – Kamal paid the amount owing by cheque.
12. Halim bought 1 set of new Apple 12 hand phone on credit. The credit sales is value at
RM4,000.
13. Paid RM15,000 by cheque to House of Phone Accessories to settle part of our debt.
14. Paid a shop rental RM2000, Utility bills RM700 and insurans RM1500. All payment made via
cheque.
15. Mr.Arrian received a report, the debtor – Halim was declared bankrupt. Mr. Arrian decide ti
write off his debt as a bad debt.
REQUIRED:
a) Prepare the ledger accounts to record the above transactions and balance off the account
(show the journal entries).
(18 marks)
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QUESTION 2 ( 27 MARKS)
You are provided with the following information that has been derived from the Trial Balance of Unni
Trading Owned by Puan Hamimah as at 31 December 2017.
Ummi Trading
Trial Balance As At 31 December 2017
Debit Credit
(RM) (RM)
Inventories as at 1 January 2017 25,000
Carriage inwards 3,000
Return sales 12,000
Return Purchase 11,800
Purchase and Sales 150,000 254,000
Motor Vehicles at cost 40,000
Equipment at cost 120,000
Discount paid 5,700
Discount received 9,200
Import duties on purchase of inventories 4,400
Interest on 10% fixed deposit 4,583
Commissions 4,100 6,300
Electricity expenses 15,100
Advertising expenses 18,700
Drawings 6,550
Interest on loan – Islamic Bank 2,800
Accounts receivable and Accounts payable 46,000 27,017
10% fixed Deposit 50,000
Cash in hand 2,050
Cash at bank 36,000
Capital 138,500
Loan from Islamic Bank 80,000
Accumulated depreciation as at 1 January 2017:
Motor vehicles 8,000
Equipment 2,000
541,400 541,400
The following adjustments are to be considered before the financial statement are prepared on 31
December 2017:
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Required:
a. Prepared the Statement of Profit or Loss and the Statement of Financial Position of the
business as at 31 December 2017.
(Note: Round up all figures to the nearest RM) (25 marks)
b. Referring to the adjustment no. (2) above, explain the relevant accounting concept of
recording the transaction in the business’ accounting book. (2 marks)
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