SEMESTER FINAL EXAMINATION JULY NOVEMBER 2014

ANSWER SCHEME
COURSE: FINANCIAL ACCOUNTING 1 (ACC 1013)
SET A
QUESTION 1 [15 MARKS]
(a)

i.

Characteristics of sole proprietorship:

1.
A sole proprietorship is a profit oriented and owned by one
entrepreneur.
2.
The owner runs the business alone.
3.
The owner is fully responsible for the daily financial operation s of
the business.
[3 marks]
ii.
3 advantages of company.
1.
Unlimited Liabilities status.
2.
More capital to start up the business.
3.
Going concern.
[3 marks]

(b)

i.
Non current liabilities Debts that must be paid off after one accounting
period.
Example: Bank loan, mortgage
[3 marks]

(c)

i.

Historical Cost Concept

All business resources acquired should be valued and recorded based on
the actual cash equivalent or original cost of acquisition, not the prevailing
market value or future value.
[2 marks]

ii.

Accounting Period
This principles entails a business to complete the whole accounting
process of business over a specific time period, it may be monthly,
quarterly or annually.
[2 marks]

iii.

Monetary Unit
All transaction is recorded in the countrys monetary unit. The monetary
value is assume to be stable.
[2 marks]

ACC1013/FINAL/NOV14

QUESTION 2 (15 MARKS)

(a

i.

1/1/2013
31/12/201
3
31/12/201
3

Prepaid b/d

Salary Expense Account

RM
31/12/201
1800
3
SOCI

Cash

8100

Accrued c/d

900

RM
10800

[RM 900 x 12]

10800

10800

[4/4 x 3 = 3 marks]
ii)

1/1/2013
31/12/210
3

Accrued b/d
SOCI

Rental Income Account

RM
31/12/201
2600

3 Cash
31/12/201
12000
3
Accrued c/d
14600

RM
12000
2600
14600

[4/4 x 3 = 3 marks]
iii)

31/12/201
3

SOCI

Commission Income Account

RM
1/1/2013
Prepaid b/d
31/12/201
1800
3
Cash
31/12/201
3
Prepaid c/d
1800

RM
1200
500
100
1800

[4/4 x 3= 3 marks]

iv)

Utilities Expense Account

RM
31/12/201
3

Cash

1700

1700

1/1/2013
31/12/201
3
31/12/201
3

RM
Accrued b/d

800

SOCI

800

Prepaid c/d

100
1700

[4/4 x 3= 3 marks]
2

ACC1013/FINAL/NOV14

v)

Kenchana Deva Trading

Statement of Comprehensive Income (extract) for the Year Ended 31 December
2013
RM
RM
Revenues :
Rental Income
12000
Commission Income
1800

Less: Expenses
Salary Expenses

10800

Utilities Expenses

800

Kenchana Deva Trading

Statement of Financial Position (extract) as at 31 December 2013
RM
Current Assets :
Prepaid Utilities Expenses

100

Accrued Rental Received

2600

900

100

Current Liabilities :
Accrued Salary Expense
Prepaid Commission
Income

[8/8 x3 = 3 marks]

ACC1013/FINAL/NOV14

QUESTION 3 (25 MARKS)

(a)
2012
Jan 1
2012
Nov 14
Nov 14

Balance b/d

Office Equipment Account

2012
60 000
Dec 31
Balance c/d

Bank
Maybank

5 000
35 000
100 000

2013
Jan 1
2013
Apr 7

Balance b/d

100 000

Cash

5 000
105 000

100 000

100 000
2013
Dec 31

Balance c/d

105 000

105 000
6/6 x 2 = 2m

(b)
2012
Jan 1
May 1
2013
Jan 1
Jul 26

Balance b/d
Bank

Balance b/d
Fella Fitting

Fixtures and Fitting Account

2012
50 000
Dec 31
Balance c/d
10 000
60 000
2013
60 000
Sep 30
Balance c/d
10 000
70 000

60 000
60 000
70 000
70 000
5/5 x 2 = 2m

ACC1013/FINAL/NOV14

Calculation of depreciation for Office Equipment Account:

Policy:
20%, SLM, monthly basis
Formulae:
20% x Cost x t
Accounting
Period
1/1/2012
31/12/2012
1/1/2013
31/12/2013

(c)
2012
Dec 31

Balance b/d
20% x 60,000 =
12,000

20% x 60,000 =
12,000

New 1
20% x 40,000 x
2/12 =1,333

20% x 40,000
=8,000

New 2
20% x 5,000 x
9/12 = 750

20,750

Accumulated Depreciation Office Equipment Account

2012
Balance c/d
53,333
Jan 1
Balance b/d
40 000
Dec 31

Statement of
Comprehensive
Income (SOCI)

53,333
2013
Dec 31

Total Dep.
(SOCI)
13,333

Balance c/d

74,083

2013
Jan 1
Dec 31

74,083

Balance b/d
Statement of
Comprehensive
Income (SOCI)

13,3338
53,333
53,333

20,75011
74,083
23/23 x 8 = 8m

Calculation of depreciation for Fixtures and Fittings Account:

Policy:
10%, RBM, yearly basis
5
ACC1013/FINAL/NOV14

Formulae:

10% NBV x t

Accounting
Period
1/1/2012
31/12/2012
1/1/2013
31/12/2013

(d)
2012
Dec 31

Balance b/d

New 1

10% x (30,000) =
3,000

10% x (30,0003,000) =2,700

10%x(10,000)
= 1,000

10% x (10,0001,000) = 900

New 2
10% x
(15,000) =
1,000

4,600

Accumulated Depreciation Fixtures and Fittings Account

2012
Balance c/d
24,000
Jan 1
Balance b/d
20,000
Dec 31

Statement of
Comprehensive
Income (SOCI)

24,000
2013
Dec 31

Total
Dep.
(SOCI)
4,000

Balance c/d

4,0007
24,000

2013
Jan 1

28,600

Dec 31

28,600

Balance b/d
Statement of
Comprehensive
Income (SOCI)

24,000

4,60012
28,600

23/23 x 8 = 8m

(e)

Muthu Trading
Statement of Comprehensive Income (extracted) for the year ended 31
December 2012 and 2013
6

ACC1013/FINAL/NOV14

2012

2013

Expenses:
Depreciation for Office
Equipment

13,333

Depreciation for Fixtures and

Fittings

4,000

20,750

4,600

Muthu Trading
Statement of Financial Position (extracted) as at 31 December 2012 and 2013

Non-current assets
Office Equipment
Less: Accumulated Depreciation of
Office Equipment

Fixtures and Fittings

Less: Accumulated Depreciation of
Fixtures and Fittings

2012

2013

100,000

105,000

(53,333)
46,667

(74,083)
30,917

60,000

70,000

(24,000)
36,000

(28,600)
41,400
12/12 x 3 =3m

(f)

i.

Time Factors

ii.

Physical Factors

iii.

Depletion

iv.

Economic

4/2 = 2m

QUESTION 4 [15 marks]

a)
Date
2014

Item
Credit Transfer

Adjusted Cash Book

RM
Date
Item
1000
2014
Balance b/d
7

RM
2,724

ACC1013/FINAL/NOV14

July 31

Credit Transfer
Dividend
Error by the firm
Sales
Balance c/d

150
100
90
242
1,687

July 31

Returned
Cheque
Standing Order
Charges
&Interest
Direct Debit

200
210
35
100

3,269

3,269

[12/12X9=9 marks]
b)

Bank Reconciliation Statement as at 31 July 2014

RM
RM

Balance as per updated Cash Book

Add: Unpresented cheques
Purchases
Wages

(1,687)

1,320
2500
3,820

Less : Uncredited Cheques

Amri
Sales

1,200
445
(1,645)

Balance as per bank

Statement

488

[6/6X4=4 marks]
c)
Definition of :
i) Direct Debit : creditors inform the banks of the amount of bills to be paid
ii) Unpresented Cheques : Cheques that has been paid to supplier ( 3rd party). The
supplier has deposited the cheque in his bank but his bank still didnt collect the
money from the businesss bank until much later. (usually the subsequent month).
[ 1 mark each = 2 marks]
ANSWER 5 [30 marks]
WORKSHEET FOR ZIDANE TRADING FOR THE YEAR ENDING 31st DECEMBER 2013
PARTICULARS
UNADJUSTED TRIAL
ADJUSTMENTS
ADJUSTED TRIAL
BALANCE
BALANCE
Capital
111 500
111 500
Motor Vehicles
65 000
65 000
Fixtures and Fittings
43 000
43 000
Account Receivable
30 000
400
29 600
Account Payable
27 500
27 500
Purchases
35 800
2,000
33 800
Sales
53 080
53 080
8
ACC1013/FINAL/NOV14

Cash
Bank
Discount Allowed
Discount Received
Inventory (1 January
2013)
Carriage Inwards

28 000
40 000
4 200

Insurance (for
purchase of goods)
Carriage Outwards
10% loan from BCB
Fixed deposits with
MBB
Bad debts
Rates
Salaries
Water and electricity
Interest on fixed
deposit with MBB
Drawings

6 400

6 400

28 200

28 200

5 400

5 400

970

970

9 250

9 250
109 000

109 000

35 000

35 000

750
1 050
3 500

750
1 050
5 000

1
500

880

880
1 400

1 250

Accumulated
depreciation Motor
Vehicles
Accumulated
depreciation
Fixtures and Fittings
Allowance for
doubtful debt
Accumulated for
discount allowable
322 250

PARTICULARS

28 000
40 280
4 200

280

1 400
2,000

3 250

9 750

3315

13 065

12 900

4 300

17 200

450

380

830

270

30

300

322
250

UNADJUSTED TRIAL
BALANCE

Closing inventory

ADJUSTMENTS
30 200

Return inwards
Bad debt recovered
Increase in allowance
for doubtful debt
Increase in provision
for discount allowable
Interest on loan
Accrued interest on
loan
Accrued salaries
Depreciation :

30
200

400

ADJUSTED TRIAL
BALANCE
30 200
30 200
400

280
380

30

30

2 725

280

380

2 725
2 725

2 725

1 500

1 500
ACC1013/FINAL/NOV14

Motor Vehicles
Fixtures and fittings

3 315
4 300
10

3 315
4 300
10

25
14
( 58/58 x 10 = 10 marks)

ZIDANE TRADING
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31st DECEMBER
2013
Sales
53 080
Return inwards
(400)
52 680
Less: Cost of goods sold
Opening inventory
Purchases
Carriage Inwards
Insurance

28 200
33 800
5 400
970

Closing inventory

40 170
68 370
(30 200)

Gross profits

(38 170)
14 510

Add: Revenue
Discount received
Interest on fixed deposit
Bad debt recovered

6 400
1 400
280

10

8 080
22 590

ACC1013/FINAL/NOV14

Less: Expenses
Discount allowed
Carriage outwards
Bad debts
Rates
Salaries
Water and electricity
Increase in allowance for doubtful
debt
Increase in provision for discount
allowable
Interest on loan
Depreciation:
Motor Vehicles
Fixtures and fittings

4 200
9 250
750
1 050
5 000
880
380
30
2 725
3 315
4 300

Net loss

(31 880)
(9 290)

( 24/2= 12 marks)

ZIDANE TRADING
STATEMENT OF FINANCIAL POSITION AS on 31st DECEMBER 2013
Non current assets
Shop premises
65 000
Accumulated depreciation
(13 065)
51 935
Fixtures and fittings
Accumulated depreciation

43 000
(17 200)

Fixed deposit in MBB

25 800
35 000
112 735

Current assets
Closing inventory
Account receivable
Allowance for doubtful debt
Provision for discount allowable
Cash
Bank

30 200
29 600
(830)
(300)

28 470
28 000
40 280
126 950
239 685

Financed by:
Capital
Net loss

111 500
(9 290)
102 210
(3 250)

Drawings

98 960

Non current liabilities

11

ACC1013/FINAL/NOV14

10% loan from BCB

109 000

Current liabilities
Account payable
Accrued interest on loan
Accrued salaries

27 500
2 725
1 500

31 725
239 685

( 18/18 x 8 = 8 marks)

12

ACC1013/FINAL/NOV14