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Full name and IC No: NUR HIDAYAH BT MOHD ABU BAKAR (940424075170)
Date: 2/07/2021

Assignment (Asgmt) Declaration Form

Semester/Year JAN 2021

Student’s Name NUR HIDAYAH BT MOHD ABU BAKAR

Student’s ID No: 041170619

Course Code BBM206/03

Course Title ACCOUNTING AND COSTING

Class Code 4-ANC1

Assignment No: 1

No. of pages of this 12

Assignment (including
this page)

Tutor BARATHY A/P DORAISAMY

Course Coordinator LIM PENG KEAT

QUESTION 1

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 Machinery Account
Date Details RM Date Details RM
2017 2017
Jan-01 Purchase 37000 Dec-31 Depreciation@ 10% SLM 4000
Overhauling 3000 (40 000*10%)

Balance c/d 36000

40000 40000
2018 2018
Jan-01 Balance b/d 36000 Dec-31 Deprecation (36000*15%) 2000
Jul-01 Purchase 10000 (36000 *15%) 5400
(10000*15%) 150

37850

46000 46000
2019 2019
Jan-01 Balance b/d 37850 Dec-31 Depreciation 37850
Purchase 25000 (25000*15%) 3750

closing balance 21250

62850 62850

 Depreciation is charge as per asset was consumed during the year.

 When asset is sold, cost is to reduce from asset account. Corresponding profit or loss
on sale will be adjusted in profit and loss account.

QUESTION 2

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1. Break Even Point = Fixed Cost / Contribution Per Unit
Contribution Per unit = Selling Price per Unit – Variable Cost per Unit
= (4 900 000 / 70 000) – 20
= RM 50
52 000 units = Fixed Cost / RM 50
Fixed Cost = 52 000*50
= 26 00 000

2. I) for maintaining the same Break Even Point when all remains constant. (we have to
maintain same Contribution per Unit

Contribution per Unit = Selling price per unit – Variable cost per unit
RM 50 = X – RM 22
Selling price per Unit = RM 72

ii) Calculation of current Break Even Point = 2800 000 / 50

= 56 000 units
Contribution per unit after increase in variable cost
= (4 900 000 / 70 000) – 20
= RM 48

56 000 units = Fixed Cost / RM 48

Fixed Cost = 56 000*48
= 26 88 000

QUESTION 3

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  Statement of Comprehensive Income (Profit and Loss Statement)
RM RM
Net sales (135486 - 1390) 134096
Less : Cost of good sold 61930
Gross profit 72166
Less:
Operating Expenses :
Salaries 18310
Rates and Occupancy expense 4515
Office expense 3212
Sundry expense 1896
Depreciation expense - building 5000
Depreciation expense - equipment 9000
Directors remuneration 9500
Total Operating expense 51433
Net Income 20733

Appropriation of Net income :

Net income 20733
Dividend proposed (100000 *10%) 10000
Transferred to general reserve 1000
Transferred to foreign exchange reserve 800
Accumulated profit 8993
Total 20733

Statement of Financial Position (Balance Sheet of Amelina SDN. BHD. as on

31/12/2020)

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 ASSETS

Current Assets :
Bank 6723
Trade receivable 18910
Inventory 52360
Total current assets 77993

Fixed assets
Building net of accumulated depreciation 63000
Equipment net of acculumated depreciation 20000
Total fixed assets 83000

Total assets 160993

Liabilities and shareholders equity

Current liabilities :
Trade payable 12304
Accrued expenses payable 470
Dividend payable 10000
Total current liabilities 22774

Shareholders equity
Authorised and issued share capital 100000
General reserve (8000 + 1000) 9000
Foreign exchange reserve (4200 + 800) 5000
Accumulated profit (15286 + 8993) 24219
Total shareholders equity 138219

Total Liabilities and shareholders equity 160993

Working Notes:

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Calculation of cost of goods sold
RM RM
Beginning inventory (31 Dec 40360
2019)
Purchases 72360
Carriage inwards 1570
Closing inventory 31 Dec 2020 52360
Cost of goods sold 61930
Total 114290 114290

Trial balance after adjusting the adjustment given in the question

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 PARTICULAR DEBIT CREDIT
Bank 6723
Trade receivable 18910
Trade payable 12304
Inventory at 31 December 2019 40360
Building at cost 10000
Equipment at cost 45000
Accumulated profit at Dec 2019 15286
General reserve 8000
Foreign exchange reserve 4200
Authorised and issued share capital 100000
Purchases 72360
Sales 135486
Carriage inwards 1570
Carriage outwards 1390
Salaries 18310
Rates and occupancy expense (4235+280) 4515
Office expense (3022 + 190) 3212
Sundry expense 1896
Accumulated depreciation Dec 2020
Buildings (32000 + 5000) 37000
Equipment (16000 + 9000) 25000
Directors remuneration 9500
Closing inventory 31 Dec 2020 52360
Cost of goods sold 61930
Accrued expenses payable (280 + 190) 470
Depreciation expense – building (100000*5%) 5000
Depreciation expense – equipment (45000*20%) 9000

QUESTION 4
LIQUIDITY RATIOS 2019 2020
Current ratio = current assets/current liabilities 1.35 1.43
Current assets 700 1230

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Current liabilities 518 860
Quick ratio = Quick assets/current liabilities 0.97 1.01
Quick assets = current assets – inventory 500 870
Current liabilities 518 860

PROFITABILITY RATIOS
Gross profit ratio = (gross profit / sales revenue)*100 40.00% 37.93%
Gross profit 800 1100
Sales revenue 2000 2900

Net profit ratio = (net profit / sales revenue)*100 17.30% 19.10%

Net profit 346 554
Sales revenue 2000 2900

Operating profit ratio = (Operating profit / sales revenue)*100 22.00% 22.41%

Operating profit 440 650
Sales revenue 2000 2900

Return on assets = (net profit / average total assets)*100 13.38% 18.26%

Net profit 346 554
Average total assets = (operating balance + closing balance / 2 2586 3034
(2586 +
3482) /2

Return on equity = cost of sales/average total equity)*100 22.07% 30.03%

Net profit 346 554
Average total equity 1568 1845
(1568+2122
)/2
EFFICIENCY RATIOS
Inventory turnover ratio = cost of sales/average inventory 6.32 6.43
Cost of sales 1200 1800
Average inventory = (operating inventory + closing inventory)/2 190 280

Receivables turnover ratio = net credit sales/average trade 4.00 4.03

receivables
Net credit sales = 80% total sales revenue 1600 2320
(2000*80%) (2900*80%)
Average trade receivables = (opening balance + closing 400 575
balance)/2
(400+750)/2

Payable turnover ratio = net credit purchases/average trade 5.23 5.98

payables
Net credit purchases = 90% of total purchases 1098 1764
(1220*90%) (1960*90%)
Average trade payables = (opening balance + closing balance)/2 210 295
(210+380)/2

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 Asset turnover ratio = sales revenue/average total assets 0.78 0.96

b) The liquidity position of the company is good due to the good amount current and quick
ratio. This shows that the company has sufficient current assets to pay off its short-term
obligations within a period of 1 year. As far as the profitability is concerned, the company
had better ROE, ROA, net profit, operating profits in 2020 as compared to 2019. This shows
that the company is generating increasing profits from its business operations in 2020 than
2019. The efficiency ratios have also been good in 2020 compared to 2019. This is a good
sign that the company is utilising its assets and managing its liabilities more effectively in
generating its revenues in 2020 in comparison to 2019.

QUESTION 5

 Statement of Comprehensive Income (Profit and Loss Statement)

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 DESCRIPTION RM RM
Profit for the year 16850
Interest on drawings Partner A (0.08*10000) 800
Partner B (0.08*10000) 800 1600
18450
Interest on capital Partner A (0.06*60000) 3600
Partner B (0.06*60000) 3600
7200

Partnership salary Tim (partner a) 24000

31200
Residual profit 49650
Share of profit Partner A 24825
Partner B 24825 24825

Current Account
Partner A Partner B Partner A Partner B
2015 RM RM 2015 RM RM
Jan-31 Drawings 10000 10000 Jan-31 Interest on capital 3600 3600
Interest of drawing 800 800
Salary 24000
Profit share 24825 24825
Balance c/d 41625 17625

52425 28425 52425 28425

Statement of Financial Position as on 31/12/2020)

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 RM RM RM
Assets
Motor vehicles 80500

Current asset
Inventory 26000
Trade receivable 25860
Bank 7460
Cash 3250 62570

143070

Capital and liabilities Partner A Partner B

Capital accounts 60000 60000 120000

Current account 41625 17625

Interest on capital 3600 3600
Salary 24000
Profit share 24825 24825
94050 46050

Drawings 10000 10000

Interest on drawings 800 800
10800 10800

Closing balance 83250 35250 118500

238500

REFERENCE

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1. WAWASAN OPEN UNIVERSITY ACCOUNTING AND COSTING COURSE
MATERIAL
2. https://www.igcseaccounts.com/uploads/2/6/7/8/26787454/igcse_accounting_partn
erships_questions___answers.pdf
3. https://www.investopedia.com/terms/p/plstatement.asp

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