TUTORIAL CHAPTER 1 : INTRODUCTION TO ACCOUNTING

a. Based on the below table, list the users of accounting information or financial statements
in the right group.
Shareholders Employees Bankers Creditors Manager
Owner Government Staffs Tax regulation Customer

The type of user

Internal External
- Employees - Shareholder
- Manager - Bankers
- Owner - Creditors
- Staff - Government
- Tax regulation
The group that works together in the - Customer
company which directly involve in company
activities and always ensures the company’s The group of third party do not have any
goals could be achieve (maximize the profit) relationship with business or involve in
business activity directly and only
interested toward company capability.

b. Identify the differences of business characteristic between these three types of business
based on those particulars.
Based on the situation, identify the type of business and its characteristic.

Situation 1: Sole Proprietorship

Alisa has registered under business registration Act 1957 to open her small
business. She has generated high revenue by selling cookies especially, during Hari
Raya Haji. All the profit and loss has being enjoy by herself since she is the only one
who own the business.
This is sole proprietorship. The business registered under Business Registration Act.
She is the only one who manage and control the business, hence she can make
decision by herself without offend anyone. She may enjoy all the privileges including
the profit. However, the loss will be bear by herself. The ideas to pursue business
growth will be slow due to limited ideas and strategic thinking.

Situation 2: Partnership
Rosie and Faris just got married in January 2023. They agree to open the small mart
together by make a black and white document as separate legal entity. Hence, the
agreement state that they will be sharing the profit and loss.
This is a partnership type of business. Eventhough, both are spouses and have close
relationship but they entered into the agreement separately. Therefore, both can
control and manage the business. However, there might some conflict arise between
them due to different opinions. But it could overcome by black and white documents
Situation 3: The company
Stryxx Ent is one of the biggest technology company in Malaysia. The company has
valuable employees which expert in IT. The already operate the business more than
decade and have share in the market. The business performance has attracted more
potential shareholder to invest in their company. Therefore they obligate to disclose
the financial information in the related financial statements according to the
standards of Bursa Malaysia.

This is a public company. It has share in the market and obligate to prepare financial
statements.

G&D Ltd is a known well company in logistic industry. However, its did not
registered the company to Bursa and did not willing to sell the share to the market.
The CEO of the company also being very selective to find the potential holders to
invest in the company.

This is a private company since they did not open to sell the shares to the market
TUTORIAL CHAPTER 2: INTRODUCTION TO CONCEPTUAL FRAMEWORK FOR FINANCIAL REPORTING

a. Fill in the blank.

Qualitative Characteristic

Fundamental Enhancing Could identify the current

performance by making
comparison of information
disclose in other
a)Comparibility
documents

a)Relevant
The words use must be
b)Understandability easy and simple
Information should be significant to
the present situation
c)Verifiability
FS must be authorized or
approval by high authority
b)Faithful
Representation d)Timeliness

Free from fraud. The

Business transaction being recording by
record must be
phases and dateline
transparent.
 b. Match the right term based on the definition.

Accounting assumption and concept

a)Business entity •Business and owner are two seperate legal entity
________________ •Only record financial transaction perform by business.

•Value being consider at past cost even the current market

b)Historical cost value has being changed
________________
•Measured on cash or cash equivalent

c)Going concern •Business continue operate in forseeable future and

________________ indefinitely.

d)Moneytary value •The framework must be record in specific currency or

________________ measurement unit as appropriate basis for accouting analysis
CHAPTER 3: ACCOUNTING EQUATION

Basic equation: Assets (A) = Equity (E) + Liability (L)

Expanded equation: Assets (A) + Expenses (E) = Equity (E) + Liability (L) + Revenue

Debit transaction Amount increase in asset and

expenses
Why debited:
- debit indicates money coming into an account (Cash inflow) Amount decrease in equity,
liability and revenue
- expenses is debited cause in the end of the year it make owner
equity which is credited at first to be decrease.

Credit transaction Amount increase in equity,

liability and revenue
Why credited:
- money going out from the account Amount decrease in asset
and expenses
- pay obligation money to the owner and third party (Loan,
creditor)

- Revenue is credited since at the end of the year it make owner

equity being increase
Types of Revenue

- Sales (Sold goods to customerby cash/or by credit to account receiveable )

- Other income (Receive other income instead of sold good to customer)

Types of expenses

- Purchase (Buy goods from supplier by cash/buy on credit from Account payable)
- Other expense (Paid another cost did not relate to purchase)

Another example:

FORMAT OF STATEMENT OF PROFIT OR LOSS

Name of Business
Statement of Profit or Loss for the year ended ………………………………………… (e.g., 31 December
20XX)
RM RM RM
Sales XX
Less: Sales returns/Return inwards (XX)
Sales discount/Discount allowed (XX)
Net Sales XXX

Less: Cost of Goods Sold

Opening inventory XX
Purchases XX
Less: Purchase returns/ Return outwards (XX)
Purchase discounts/Discount received (XX)
Net Purchases XXX
Add: Expenses on purchases
Carriage inwards XX
Duty on purchases XX
Insurance on purchase XX
Cost of goods purchased XX
Cost of goods available for sale XX
Less: Closing inventory (XX)
Cost of goods sold (XXX)
Gross Profit or (Loss) XXX

Add: Revenues (Other revenue)

Rent received XX
Commission received XX
Interest received XX
XXX
Less: Expenses (Other expenses)
Salary and wages XX
Insurance XX
Rent expenses XX
Interest expenses XX
Carriage outwards XX
(XXX)
Net Profit or (Loss) XXX

FORMAT OF STATEMENT OF FINANCIAL POSITION

Name of Business
Statement of Financial Position as at ………………………………………. (e.g., 31 December 20XX)
RM RM RM
Non-Current Assets (Contoh NCA) Cost Accumulated Carrying
depreciation value
Land and Building XX (XX) XX
Motor Vehicles XX (XX) XX
Office Equipment XX (XX) XX
Machinery XX (XX) XX
Fixtures and Fittings XX (XX) XX
XXX
Intangible Assets
Patent XX
Trademark XX
Franchise XX

Investment / Fixed deposit XX

XXX
Current Assets (Contoh CA)
Closing inventory XX
Accounts Receivable / Debtors XX
Less: Allowance for doubtful debt (XX) XX
Cash at Bank / Bank A/C XX
Cash in Hand / Cash A/C XX
Prepaid expenses XX
Accrued revenues XX
XXX
XXXX (*)
Owner’s Equity
Capital beginning/Capital as at…… (e.g., 1 January 2015) XX
Add: Net Profit (Loss) XX
Less: Drawings (XX)
Capital ending/Capital as at …… (e.g., 31 December 2015) XX

Non-Current Liabilities
Long Term Loan XX
Mortgage on Premises XX
XX
Current Liabilities
Bank overdraft XX
Accounts Payable / Creditors XX
Accrued expenses XX
Prepaid revenues XX
XX
XXXX (*)
- Note: (*) Must be the same