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    BAAB

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    The document provides information on key accounting concepts and terms including assets, liabilities, expenses, revenue, and capital. It also discusses books of prime entry such as sales journals, purchase journals, and cash journals. Several journal entries are presented with explanations of how they affect the accounting equation and which book of prime entry they would be recorded in. Finally, the document contains sample accounting documents including a trading account, profit and loss statement, balance sheet, and income statement for a company.

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    BAAB

    Uploaded by

    aqilah
    15 views8 pages
    The document provides information on key accounting concepts and terms including assets, liabilities, expenses, revenue, and capital. It also discusses books of prime entry such as sales journals, purchase journals, and cash journals. Several journal entries are presented with explanations of how they affect the accounting equation and which book of prime entry they would be recorded in. Finally, the document contains sample accounting documents including a trading account, profit and loss statement, balance sheet, and income statement for a company.

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    The document provides information on key accounting concepts and terms including assets, liabilities, expenses, revenue, and capital. It also discusses books of prime entry such as sales journals, purchase journals, and cash journals. Several journal entries are presented with explanations of how they affect the accounting equation and which book of prime entry they would be recorded in. Finally, the document contains sample accounting documents including a trading account, profit and loss statement, balance sheet, and income statement for a company.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    15 views8 pages

    BAAB

    Uploaded by

    aqilah
    The document provides information on key accounting concepts and terms including assets, liabilities, expenses, revenue, and capital. It also discusses books of prime entry such as sales journals, purchase journals, and cash journals. Several journal entries are presented with explanations of how they affect the accounting equation and which book of prime entry they would be recorded in. Finally, the document contains sample accounting documents including a trading account, profit and loss statement, balance sheet, and income statement for a company.

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    BAAB1014

    BUSINESS ACCOUNTING

    MUHAMMAD SYAHMI BIN ANUA


    mc230521983
    QUESTION 1

     Assets :Assets are the properties possessed by a business


    and the amount due to it from others.
     Liability :The financial obligation of an enterprise other
    than owners’ funds.
     Expense :A cost relating to the operations of an accounting
    period.
     Revenue :Total amount received from sales of
    goods/services.
     Capital : Generally refers to the amount invested in an
    enterprise by its owner.

    Book of prime entry :


    All transactions are first recorded in book of prime entry and
    then transferred to the ledgers

    Book of prime entry Transaction Type


    Sales Journal Credit Sales
    Purchases Journal Credit Purchases
    Sales Return Journal Return of goods sold on credit
    Purchase Return Return of goods purchased on
    journal credit
    Cash Journal All bank transactions
    All transactions not recorded else
    The Journal
    where'

    Statement Showing effects upon assets , liabilities ,


    expenses , revenue and owners capital along with journal
    entries and appropriate book of prime entry :

    Book of prime
    2019 Effects Account to be debited Account to be credited
    entry
    1-Jan Increase asset Bank RM 60,000 General Journal
    Increase
    Capital RM 60,000
    Capital

    2-Jan Increase asset Purchases RM 8,000 Purchase Journal


    Increase Salleh (Accounts Payable)
    liability RM 8,000

    10-
    Increase asset Office Equipment RM 10,000 Cash Journal
    Jan
    Decrease asset Bank RM 10,000
    11- Account Receivable RM
    Increase asset Sales Journal
    Jan 5,000
    Increase
    Sales RM 5,000
    Revenue

    12-
    Increase asset Bank RM 5,000 Cash Journal
    Jan
    Account Receivable RM
    Decrease asset
    5,000

    14- Decrease Salleh (Accounts Payable)


    Cash Journal
    Jan Liability RM 8,000
    Decrease asset Bank RM 8,000

    25- Increase
    Profit & Loss RM 400 Cash Journal
    Jan expense
    Decrease asset Bank RM 400

    27-
    Increase Asset Bank RM 30,000 Cash Journal
    Jan
    Increase Long Term Borrowings RM
    liability 30,000

    30-
    Increase Asset Bank RM 5,000 Cash Journal
    Jan
    Increase
    Dividend Income RM 5,000
    Revenue

    QUESTION 2

    Trading Account
    Particulars RM RM Particulars RM RM
    Opening Stock 13000
    Sales 152000
    Purchase 87250 - Return Inwards 3000 149000
    - Return Outward 2250 85000
    Closing Inventory 19050
    Carriage Inward 3150

    Balance Transfer to
    Profit and loss 66900
    Account

    16805
    Total 168050
    0
    A)Profit and Loss Account
    Particulars RM RM Particulars RM RM
    Depreciation on From Trading
    4430 66900
    motor Vehicle Account
    Depreciation on
    2425
    Furniture

    Salaries 17000 Discount received 100


    Interest on Loan 750 Rent Revenue 4250
    +Add 240 990 -Advance Rent 750 3500
    Commission
    Carriage Outward 4300 250
    Revenue
    Water and
    3640 +Receivable 500 750
    electricity
    Insurance 2160
    -Less 360 1800
    Discount Allowed 150
    Provision for
    500
    Doubtful debt
    +Add 750 1250
    Rates 3000
    Add 50 3050

    Net Profit 32215

    Total 71250 71250

    B)
    Balance Sheet
    Particulars RM RM Particulars RM RM
    building 79750
    Capital 109900
    -Drawings 4750 Motor Vehicle 22150
    -Drawings 1000 -Depreciation 4430 17720
    + Net Profit 32215 136365 Furniture 19350
    Loan From Bank 24750 -Depreciation 2425 16925
    + Interest on loan 240 24990

    Account
    Account Payable 14750 29750
    Receivable
    + Add 87250 + Add 152000
    - Return Outward 2250 99750 - Return Inwards 3000
    -Allowance for
    1250 177500
    Doubtful debt
    Advance Received
    750
    Rent
    Accrued Rates 50 Cash at bank 15600
    -Withdraw for
    1000 14600
    Personal use
    Capital Infuse by
    64500 Insurance 360
    the Owner
    Commission 500
    Inventory 19050
    Total 326405 326405

    QUESTION 3
    C)
    Bonika Sdn.Bhd Income Statement for the year ended
    31st December 2021

    RM RM

    Sales (2700 X 150) 405,000

    Less: Cost of goods sold


    Opening Finished good inv, 01/05/2021 2100
    (+) COST OF GOODS MANUFACTURED 43,350
    (-) Closing finished good inv, 31/05/2021 (800)

    GROSS PROFIT (44,650)

    LESS: EXPENSES
    Administration salaries 15,000
    Advertising 20,000
    Utilities (2500 x 30%) 750
    Insurance expenses (4500 x 20%) 900
    Sales commission 12,000
    TOTAL EXPENSES (48,650)

    NET PROFIT 311,700

    QUESTION 4

    Contribution margin per unit =sales per unit − variable


    cost per unit
    =250−120

    =130

    a. Break even units

    Break even units =Fixed cost / Cm per unit


    =52,000/130
    =400

    Break even in RM = Break even units x sales per unit


    = 400 x RM 250
    = 100 000

    b.The number of participants


    Desired Units = (Fixed cost + desired income) / CM per unit
    = 52 000 + 80 000
    130
    = 1 015.38

    c. Total Contribution margin

    Total CM =units sold x CM per unit


    =900×RM130
    =117,000

    Profit = Total CM - Fixed cost


    = 117 000 - 52 000
    = 65 000

    d.CM per unit

    CM per unit =(Fixed Cost + desired profit) / units sold


    =52,000+80,000900
    =146.67

    sales per unit


    Sales pe unit = CM per unit + Variables cost per unit
    = 146.67 +120
    = 266.67

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