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Exercise For Topic 4 GLFRS

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12 views4 pages

Exercise For Topic 4 GLFRS

Uploaded by

afrnafrhahworkspace
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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TUNKU PUTERI INTAN SAFINAZ SCHOOL OF ACCOUNTANCY

BKAS2013 ACCOUNTING INFORMATION SYSTEMS A232 (A & B)


ASSOC. PROF. DR. AKILAH ABDULLAH
EXERCISE FOR TOPIC 4: GLFRS

QUESTION 1

A. Describe TWO (2) common uses of coding in Accounting Information Systems.

B. Identify the type of data coding scheme for each of the statements given below:

No. Activity Description Type of data


coding scheme
(a) This coding scheme is used to represent complex items or
events involving two or more pieces of related data in a
single code.
(b) A coding scheme that assigns ranges of values to represent a
specific attribute.
(c) A coding scheme to represent items in some sequential order
(ascending or descending).
(d) This coding scheme uses alphabetic characters that are
assigned sequentially.
(e) A coding scheme that applies alphabetic characters in the
form of acronyms and other combinations that convey
meaning.

QUESTION 2

A. BB Berhad is a merchandising company that sells fabric textile products in Alor Setar,
Kedah. Below is the list of several accounts used by the company:
Cash
Accounts receivable
Inventory
Prepaid expenses
Vehicles
Accumulated Depreciation – Vehicles
Accounts payable
Notes payable
Wages payable
Common stock
Retained earnings
Sales
Cost of Sales
Wages expense
Advertising expense
Utilities expense

REQUIRED:
Create a chart of account for BB Berhad by using Block code coding scheme (use of three
digit).

B. Explain TWO (2) activities performed by financial reporting system.

QUESTION 3

DG Sdn Bhd has just bought a new accounting software and wanted to start recording its business
transactions using the software. You as an account executive in the company are given the task to
create a new standardised documentation coding to organise and record its source documents such
as sales orders, purchase orders, bill of lading, receipts, sales invoices and personnel action forms.
You are also required to create new codes for all its products, suppliers, customers and its five
departments namely accounting, human resource, sales, purchasing and marketing departments. In
addition, the company requests you to create the accounts coding to classify its financial
transactions in this new general ledger and financial reporting system.

REQUIRED:

(a) Name THREE (3) types of coding scheme that you would use to record data in the new
general ledger and financial reporting systems of DG Sdn Bhd.

(b) Explain ONE (1) advantage for each coding scheme identified in (a).

(c) Provide ONE (1) example for each coding scheme that you would use in (a).

Use the following format to answer questions (a), (b) and (c):

(a) Coding Scheme (b) Advantage (c) Example


(i)
(ii)
(iii)
QUESTION 4

Ali and Mohamed Enterprise (AME) is a store that sells variety of entertainment media such as
CDs and VCDs. Adam, a staff in AME was asked by the manager to design a proper coding for
their stocks, so that it will be easy for them to record sales and monitor the stocks movement. He
is quite confused in choosing a method of coding which is best suited the business. In planning for
the coding, Adam takes note of the following:

 AME has three major product lines: VCDs, DVDs and CDs.
 There are sub categories within each of this product lines: VCD (movie, children
and fiction); DVD (movie, children and education), CD (movie, songs and games)

Stocks Sequential Mnemonic Block Group


CD -movie 1001 CDM 1001 10M
CD-song 1002 CDS 10S
CD-games 1003 CDG 1010
VCD- movie
VCD -children VCDC 20C
VCD-fiction 1006 VCDF
DVD - movie 1007
DVD - children 1008 5050
DVD - education 1009 DVDE 30E

REQUIRED:

(a) Fill in the missing code in the given above table. Use maximum of four characters.

(b) State ONE (1) advantage and ONE (1) disadvantage for each of the above coding method.

(c) Help Adam to decide the best coding method to be chosen. Justify the choice.

QUESTION 5

A. Explain THREE (3) relationships between the General Ledger System (GLS) and other
Accounting Information Subsystems.

B. FRS includes all activities related to processing of economic transaction so as to prepare


financial and other reports. List any FIVE (5) of these activities.
QUESTION 6

State and briefly explain 3 types of files available in the General Ledger System database.

QUESTION 7

What information is contained in a journal voucher? How journal vouchers are used as a control
mechanism?

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