COURSE COURSE CODE TIME DEPARTMENT LECTURER Student's ID Batch No. Notes to candidates: KOLEJ SELATAN Final Examination Semester | / Year 2012 : FINANCIAL ACCOUNTING I : ACCTIO03 21/2 HOURS ACCOUNTING AND FINANCE MANAGEMENT NG TOO KOON 15 MAR 2012 1) The question paper consists of 5 pages and 6 questions. 2) Answer all questions. 3) Return the question paper with your answer booklet.FINANCIAL ACCOUNTING I Question 1 ‘The following is the trial balance of Perniagaan Jasa on 31 December 201 | ‘Trial Balance as at 31 December 2011 RM RM Rental 3,200 Salary 6,000 Drawings 380 Insurance 1,200 Buildings 50,000 Inventory 17,000 Returns, 400 Bank 1,980 Capital 58,370 Assessment Rate 3,000 Debtors and Creditors 9,250 7.020 Sales and Purchases 56,000 75,000 Provision for Doubtful Debts 80 Stationeries 420 Advertising Additional information: i. Closing inventory is RM 5,000. ji, Provision for doubtful debt is 2% on debiors ii, Accrued assessment rate is RMG0O. iv. Rental received each month is RM300 per month. Required, a, Trading and Profit and Loss Account for the year ended 31 December 201 (14 marks) b. Balance Sheet as at 31 December 2011 (6 marks) (Total 20 marks) Page | of 5FINANCIAL ACCOUNTING I Question 2 Kitty keeps control accounts for her Purchases and Sales Ledgers, She extracted the following balances from his books of aecounts for the month of January 2006: RM I Jan Purchases Ledger balances Dr. 186 cr. 17,960 Sales Ledger balances Dr. 28,240 cr 235 31 Jan Purchase on eredit 49,216 Cash purchases 4,820 Sales on credit 63,140 Cash sales, 280 Bad debts written off 190 Returns outwards 1,024 Returns inwards 1,642 Cash received from eredit customers, 67,930 Discount received 1,045 Dishonoured cheque recharged to credit customer 31S Legal fees charged to customers 150 Payment to suppliers 47,310 Discount allowed 1,820 Sales Ledger debit balances transferred to Purchases Ledger per contra saa. Purchases Ledger debit balances at 31 January 212 Sales Ledger credit balances at 31 January 287 Provision for bad and doubtful debts 320 Required: ‘a. Open the Purchases Ledger and Sales Ledger Control Accounts and post the entries for the month of January 2006, balancing at 31 January. (16 marks) b. Show how the Debtors and Creditors should appear in the Balance Sheet as at 31 January 2006. marks) (Total 20 marks) Page 2 of §FINANCIAL ACCOUNTING I Question 3 Journalise the following transactions in the general journal: 2011 Dec 1 Put RM9,000 of the eash into a bank account. 3 Bought goods for cash RM550. 9 Bought goods on eredit from Dorothy RM800. 11 Bought stationery on credit from Booktalks Trading RM89, 13 Sold goods on credit to Terry RM170. 19 Paid rent by cheque RM220. 21 Returned goods to Francis RM3O. 23 Received loan from Ben by cheque RM2,000, 29 Goods returned to us by Tan RMIS. 31 Withdrew goods RM 100 for personal use. (20 marks) Question 4 Lee Trading had always made a provision for doubtful debts at the rate of 4% of debtors. On 1 February 2011 the provision for this, brought forward from the previous year, was RM320. During the year to 31 January 2012 the bad debts written off amounted to RM900, On 31 January 2012 the remaining debtors totalled RM16,800 and the usual provision for doubtful debts is to be made. Required: a. The Bad Debis Account for the year ended 31 January 2012. (2 marks) b, The Provision for Doubtful Debts Account for the year (4 marks) c. Extract from the Profit and Loss Aecount for the year. (2 marks) 4, ‘The relevant extract from the Balance Sheet as at 31 January 2012. (2 marks) (Total 10 marks) Page 3 of 5FINANCIAL ACCOUNTING I Question 5 a. What is double-entry accounting? (S marks) bb. What isthe purpose of balance day adjustments? (S marks) (Total 10 marks) Question 6 8. Which of the following is incorrect? Assets (RM) Liabilities (RM) Capital (RM) A 6,540 1,120 5,420 B. 7,850 1,250 6,600 ic 8,200 2,800 5,400 D. 9,550 1,150 8,200 (2 marks) b. The costs of putting goods into a saleable condition should be charged to A. Profit and Loss Account B. Balance Sheet C.— Trading Account D. None of these (2 marks) © Suppliers’ personal accounts are found in A. Nominal Ledger B. Sales Ledger C.— Purehases Ledger D. General Ledger (2 marks) 4d. Which of the Following is not an asset? Cash balance Debtors Buildings Loan from Pul pop> je Bank Berhad (2 marks) ¢. sit true thatthe tral balance totals should agree? Yes, always No, because itis not a balance sheet No, there ae sometimes good reasons why they differ Yes, except where the trial balance is extracted at the year end (2 marks) pop> Page 4 of 5FINANCIAL ACCOUNTING I Question 6 (continued) £ High Net Sales but low Gross Profit, this means AL high Cost of Goods Sold B. high Operating Expenses Cow Cost of Goods Sold D. ow Operating Expenses (2 marks) a. Enterprise is financed by AL Assets B. Assets, Liabilities and Owner's Equity C. Assets and Li D. Liabilities and Owner’s Equity (2 marks) h, The heading of Balance Sheet includes enterprise's name, reports ttle and A. date of preparing report B, date of year-end C. specified date D. specified period i tion is A. away of setting aside money to provide for the eventual replacement of fixed assets B. _ away of writing off the cost of fixed assets over their estimated revenue- rating period. C. the writing off ofthe cost of fixed assets evenly over their estimated useful economic lives. D. the writing off of the cost of fixed assets over their estimated useful economic lives in ever decreasing amounts, (2 marks) js ARM200 credit balance brought down in the eash eolumns ofa firms cash book means that A. the firm has spent RM200 more cash than it has received. B. the firm has RM200 in ash in hand C.amistake lias been made in the recording of eash D. someone has stolen RM200 cash (2 marks) (Total 20 marks) 000 _ Paye 5 ofS