Mid-Term_BUS13013FinancialAccounting_May2021_Q.pdf

MID-TERM EXAMINATION

SEMESTER MAY

YEAR 2021

PROGRAM : BACHELOR OF BUSINESS (ACCOUNTANCY)

BACHELOR OF BUSINESS ADMINISTRATION

BACHELOR OF SUPPLY CHAIN MANAGEMENT

MODULE : FINANCIAL ACCOUNTING

MODULE CODE : BUS 13013

DURATION : 1 HOUR 30 MINUTES

LECTURER : MS LOW SEE MEI

DATE : 22 JUNE 2021

Name of Student :

Student ID :

Notes to candidates:

1) The question paper consists of FOUR questions. Answer ALL.
2) Submit your answer in Excel or Word to the RU LMS.

BUS 13013 FINANCIAL ACCOUNTING

1

Answer ALL questions. [Total: 50 marks]

Question 1

Explain, in your own words, how investors could make use of financial information for

decision making purpose. [5 marks]

Question 2

Zaida started his business on 1 January 2019. On the same day, he purchased two motor

vehicles for RM25,000 each by cheque. On 1 May 2020, he bought another motor vehicle on

credit from JMW Sdn Bhd for RM64,500.

He has decided to depreciate the motor vehicles at the rate of 20% per annum on reducing

balance basis.

Required:

Prepare for Zaida:

a) Motor vehicle account for 2019 and 2020; (2 marks)

b) Accumulated depreciation account for 2019 and 2020; (4 marks)

c) An extract of statement of profit or loss for the years ended 31 December 2019 and

2020; and (1 mark)

d) An extract of statement of financial position as at 31 December 2019 and 2020.

(3 marks)

[Total: 10 marks]

Question 3

The following information relates to the trade receivables of Mag for the accounting years

ended 31 December 2019 and 2020:

Gross trade receivables

2019 RM140,000

2020 RM135,000

During the year ended 31 December 2020, an examination of these debts revealed bad debts of

RM18,000 and the company had decided to write off this amount. One of Mag’s customers

whose debt of RM1,500 was written off in 2019, came to settle fully his old debts by cash.

An allowance of 2% of the net trade receivables is to be maintained.

Required:

Prepare the following for 2020:

a) Doubtful debts account (3 marks)

b) Statement of profit or loss (extract) (4 marks)

c) Statement of financial position (extract) (2 marks)

[Total: 10 marks]

BUS 13013 FINANCIAL ACCOUNTING

2

Question 4

Tata opens a bookstore as a sole proprietor. The following trial balances were extracted from

the accounting records of Tata’s bookstore as at 31 May 2021:

Dr Cr

RM RM

Sales and purchases 63,317 188,545

Returns 786 687

Commission 150

Discount 1,050 2,472

Salaries 62,530

Trade receivables 3,265

Trade payables 2,876

Bank 1,536

Cash in hand 8,510

Advertising 1,346

Sundry expenses 2,000

Insurance 3,300

Rental of premises 30,000

Loan repayable in 2024 60,000

Utilities 2,583

Drawings 1,800

Allowance for doubtful debts 350

Bad debts 109

Carriage inwards 665

Carriage outwards 756

Motor vehicles 78,648

Office equipment 54,245

Accumulated depreciation – motor vehicles 7,864

Accumulated depreciation – office equipment 15,246

Inventory, 1 June 2020 4,816

Capital 40,000

319,726 319,726

The following additional information was available at 31 May 2021:

1. Inventories at 31 May 2021 were RM5,630. The net realisable value of the inventories

was RM6,850.

2. Half of the sundry expenses incurred during the year was for Tata’s personal expenses.

3. Insurance accrued was RM300 while rental paid in advance was RM2,500.

4. An additional bad debt of RM314 is to be written off.

5. The allowance for doubtful debts should be adjusted to RM500.

7. Depreciation charges are to be provided for motor vehicles at 20% at cost and office

equipment at 10% on net book value.

Required:

a) Prepare a statement of profit or loss for the year ended 31 May 2021. (15 marks)

b) Prepare a statement of financial position as at 31 May 2021. (10 marks)

[Total: 25 marks]