CONFIDENTIAL AC/JAN2023/ACC407
UNIVERSITI TEKNOLOGI MARA
TEST 2
COURSE : FUNDAMENTAL FINANCIAL ACCOUNTING AND
REPORTING
COURSE CODE : ACC407
EXAMINATION : JANUARY 2023
TIME : 2 HOURS
INSTRUCTIONS TO CANDIDATES
1. This question paper consists of 2 Parts: Part A and Part B
Part A (10 Multiple Choice Questions - 10 marks)
Part B (Structured Questions)
Question 1 (7 Marks)
Question 2 (30 Marks)
Question 3 (13 marks)
2. Answer ALL questions.
DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO
This examination paper consists of 6 printed page
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CONFIDENTIAL 2 AC/JAN2023/ACC407
PART A
This parts consists of 10 multiple choice questions. Choose the most suitable answer.
1) Sales journal is used to record ______________________.
A. sales on credit
B. cash sales
C. return good to supplier
D. all cash and credit sales
2) Paid salary by cheque will be recorded in ______________________.
A. sales journal
B. purchase journal
C. general journal
D. cash payment journal
3) Purchased motor vehicles on credit for business use will be recorded in
________________.
A. purchased journal
B. sales journal
C. general journal
D. cash receipt journal
4) At the end of accounting period, accrued electricity expenses will be recorded in
Statement of Financial position as:
A. current asset
B. current liability
C. owner equity
D. non- current liability
5) Rental income not yet received will be recorded in the Statement of Financial Position
as:
A. Accrued rent revenue
B. Prepaid rent revenue
C. Accrued rent expenses
D. Prepaid rent expenses
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6) Bad debts recovered is classified as _________________ in the Statement of Profit
and Loss.
A. expenses
B. revenue
C. accrued revenue
D. accrued expenses
7) When an account receivable is being declared bankrupt, the amount will be written off
as ____________________.
A. bad debts recovered
B. bad debts
C. doubtful debts
D. debts
8) The carrying value of depreciable asset is the ________________________.
A. difference between cost and depreciation
B. total of cost and depreciation
C. difference between cost and accumulated depreciation
D. total of cost and accumulated depreciation
9) In the absence of a partnership agreement, the interest on drawing shall be charged
based on __________________________.
A. 8%
B. 0%
C. 6%
D. 10%
10) Factors that might contribute to goodwill are as follow, EXCEPT for ____________.
A. the quality of the product been produce by the business.
B. the ability of the business to pay debts on time.
C. the number of legal actions charged on the business by the customer or supplier.
D. the ability of the business to monopoly in the market.
(Total : 10 marks)
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CONFIDENTIAL 4 AC/JAN2023/ACC407
PART B
QUESTION 1
Given below are the extract of business transactions of Magika Enterprise, during the month
of December 2022:
2022 Transactions
December 5 Purchased goods worth RM10,500 from Misha Enterprise on
credit.
8 Credit sales to Anika worth RM8,100.
9 Purchased furniture worth RM12,400 from Unk Furniture on credit.
10 Received commission worth RM6,500 by cheque.
11 Mimiey, the owner took out RM1,500 worth of goods for her
personal use.
12 Anika returned goods worth RM2,000 due to damaged goods.
15 Returned damaged goods worth RM2,100 to Misha Enterprise.
Required:
Identify the appropriate books of prime entry for each of the transactions above.
(7 marks)
(Total : 7 marks)
QUESTION 2
The following trial balance was extracted from the book of Rayyan Trading as at 31 December
2022.
Rayyan Trading
Trial Balance as at 31 December 2022
Debit Credit
(RM) (RM)
Purchases and Sales 464,000 756,000
Return inwards and outwards 39,000 28,000
Capital 350,000
Drawings 400
Building 600,000
Furniture at cost 18,000
Motor van at cost 160,000
Accumulated depreciation as at 1 January 2022:
Furniture 3,600
Motor van 57,600
Opening inventories 100,000
Bank 45,200
Accounts receivable and accounts payable 163,200 216,000
Investments 40,000
8% Loan from Maybank 240,000
Dividend on investment 10,200
Carriage expenses 8,000
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CONFIDENTIAL 5 AC/JAN2023/ACC407
Rental received 28,000
Discounts 1,800 3,000
Insurance 6,000
General expenses 6,000
Allowance for doubtful debts as at 1 January 2022 2,000
Utilities 4,800
Salaries 30,000
Stationery 2,000
Maintenance 6,000
1,694,400 1,694,400
Additional information:
1. Inventories as at 31 December 2022 were valued at RM126,000.
2. Depreciation is to be provided as follows:
Method of depreciation Depreciation rate
Furniture Straight line 10% per annum
Motor van Reducing balance 20% per annum
3. Interest on loan is at 8% per annum and the loan was taken on 1 July 2022.
4. The accruals and prepayments for the period were as follows:
Accruals RM Prepayments RM
Stationery 1,000 Utilities 800
Maintenance 1,400 Salaries 2,400
Rental received 4,000
5. The owner took goods worth RM4,000 from the business for personal use.
6. Allowance for doubtful debts was to be adjusted at 5% of net accounts receivable and
additional bad debts of RM3,000 were to be written off during the year.
7. Included in the carriage expenses is RM3,900 of carriage outwards.
Required:
a. Prepare a Statement of Profit or Loss for the year ended 31 December 20 22.
(18 marks)
b. Prepare a Statement of Financial Position as at 31 December 2022.
(12 marks)
(Total: 30 marks)
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QUESTION 3
John, Seri and Fina are partners of Olive Green Partnership. They share profits and losses
in the ratio of 5:3:2 respectively. The partnership charge interest on drawing at 10% per
annum, interest on opening capital at 5% per annum and only John and Seri are entitled to
salaries of RM1,000 per month respectively.
The following information was extracted from the partnership’s book beginning of the year:
Capital account (RM) Current account (RM)
John 150,000 30,000
Seri 120,000 20,000
Fina 100,000 (10,000)
Drawings made by the partners during the year were:
John RM10,000
Seri RM7,000
Fina RM12,000
A loan advanced by John amounted RM8,000 and company decided to pay 5% interest on
loan per annum. Net profit for the year ended 31 December 2022 was RM60,000.
Required:
a. Prepare the Profit and Loss Appropriation Statement for the year ended 31 December
2022.
b. The partners’ current account.
c. The partners’ capital account.
(Total: 13 marks)
(Total : 60 marks)
END OF QUESTION PAPER
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