Account Answers Utar Tutorial

UKAF 1033 Business Accounting 1
Jan 2011
Tutorial 1
1.
2. Accounting equation
Assets = Capital + Liabilities
AL=C
-
depicts the relationship between assets, liabilities and owners equity.

shows the financial position of a business entity at a particular date.
can be presented in the form of balance sheet.
the total of one part is always equal to the total of the other part.
Statement of Financial Position as at XXX
Assets
Liabilities
Capital
3.
4.Fatimah
Jan 2011
5. Johari
6.Kok Heng
Tutorial 2
Q.1
Debited
Credited
Debited
Credited
(a) Lorry
(c) Loan from
(e) Machinery
(g) Bank
(i) Cash
Cash
Cash
Amal
Siva
Bala
(b) Siti
(d) Cash
(f) Cash
(h) Bank
(j) Lam
Bank
Van
Ho
Capital
Cash

Q.2
Date
Mar 1
Mar 2
Mar 3
Mar 5
Mar 8
Mar 15
Mar 17
Mar 24
Mar 31
Q.3
Jan 2011
Particulars
Dr Cash
Dr Bank
Cr Capital
Dr
750
9,000
Dr Bank
Cr Dala (Loan creditor)
2,000
Dr Equipment (Computer)
Cr Cash
600
Dr Equipment (display equipment)

Cr Chin Enterprise
420
Dr Cash
Cr Bank
200
Dr Dala
Cr Bank
500
Dr Chin Enterprise
Cr Bank
420
Dr Dala
Cr Cash
250
Dr Equipment (Printer)
Cr Lim
200
Cr
9,750
2,000
600
420
200
500
420
250
200
Fendy
1
24
28
Capital
Wong
Biz rates
28
bank
28
bank
10
28
returns out
bank
11000
250
45
830
6100
195
415
Bank
5 Stationery
16 biz rates
19 rent
28 ben
28 mardi
28 betty
62
970
75
830
415
6100
Ben
2 Purchases
830
betty
20 motor vehi
6100
mardi
2 purchases
610
capital
1600
Cash
3 purchases
4 rent
7 wages
11 rent
18 insurance
21 motor exp
23 wages
370
75
160
75
280
24
170
Sales
6 tam
6 husin
6 wong
15 lee
15 sharee
15 rashid
370
290
410
205
280
426
lam
2 purchases
Jan 2011
13
husin
590
Returns outwards
10 mardi
tam
6
Sales
Returns Inwards
35
195
370
rent
sales
290
husin
13 returns in
4
11
19
cash
cash
cash
Sales
410
wong
24 bank
16
Bank
biz rates
970 28 bank
sharee
7
23
cash
cash
wages
160
170
rashid
Bank
stationery
62
18
cash
insurance
280
21
cash
motor exp
24
20
betty
35
250
75
75
75
45
lee
15
15
15
sales
Sales
sales
205
280
426
Capital
1 Bank
1 cash
2
2
2
3
ben
mardi
lam
cash
purchases
830
610
590
370
11000
1600
motor vehicle
6100
Tutorial 3
1. Joe Trading
Jan 2011
2. Kim
3. Gary
Jan 2011
4.
5. (a) Purpose of day books

- segregation of duties different bookeepers
- provides a means of internal control to prevent fraud
- facilitates the location of errors and ensuring accuracy of ledgers
(b) Sales day book: Invoice
Purchases day book: Suppliers Invoice
Sales return day book: Credit note
Purchases return day book: Debit note
Contents:- Date on which each transaction took place
- Name and contact information of the addressee
- Details or description relating to the sales/purchases/returns
transaction (e.g: name of the goods, no. of items).
- Folio column entry for cross referencing back to the original source
documents
- Monetary amounts of the goods
Tutorial 4
1.
Jan 2011
2. Kedai Runcit Shaari
3. Purpose of trial balance

(a) to ascertain whether the total of the accounts with debit balances equals the
total of the accounts with credit balances (matching credit entry for every debit
entry).
(b) to prove arithmetic accuracy of the ledger accounts.
(c) to assist in the preparation of financial statements.
Jan 2011
4.
Jan 2011
Tutorial 5
1.
Trial Balance as at 31 Dec 2007

RM
Capital
Drawings
Loan- Public Bank
Leasehold premises
Motor vehicles
Investment
Trade debtors
Trade creditors
Cash
Bank overdraft
Sales
Purchases
Returns outwards
Returns inwards
Carriage
Wages and salaries
Rent and rates
Light and heat
Telephone and postage
Printing and stationery
Bank interest
Interest received
RM
39,980
14,760
20,000
52,500
13,650
4,980
2,630
1,910
460
3,620
81,640
49,870
960
840
390
5,610
1,420
710
540
230
140
148,730
620
148,730
Jan 2011
2
.
10
Jan 2011
Tutorial 6
1.
Balance b/d
Beh
2,740
201
Cash Book
Bank charges
Gina
Balance c/d
2,941
Bank Reconciliation statement as on 31 March 2008

Balance as per cash book
Add: Unpresented cheque
Less: Lodgements not yet credited
Balance as per bank statement
32
93
2816
2,941
2816
131
2947
410
2537
2.Hogan
11
Jan 2011
3. Thomas Lee
4. King
12

5. Han Chung Trading
(a)
Balance b/f
Receipts (15,073-47-18)
(b)
Jan 2011
Cash Book
RM
1,470 Payments (15,520+47)
15,008 Bank charges
Balance c/f
16,478
RM
15,567
35
876
16,478
Bank Reconciliation Statement as on 31 Oct 2007

RM
Balance as per cash book
Add
Unpresented cheques (214+370+30)
614
Less
Uncredited lodgements
Bank error in debiting account
Balance as per bank statement
1,542
72
RM
876
614
1,490
1,614
(124)
6. Factors causing the differences:(a) Timing differences

Uncredited lodgements and unpresented cheques
(b) Omissions and errors
Omissions of transactions such as bank charges, standing order, direct debit,
credit transfer, dishonoured cheque of third parties; and errors in cash book.
13
Jan 2011
Tutorial 7
1.
2.
14
Jan 2011
3.
15
Jan 2011
4.
16
Jan 2011
Tutorial 8
1.
2.
17
Jan 2011
3.Didi
4.
(a)
Journal
Bank
Thong
(Being receipt of RM500 towards debt previously written off)
Thong
Bad debts recovered account
(Being reversal of debt previously written off)
Debit Credit
RM
RM
500
500
500
500
18

(b)
(c)
Provision for doubtful debts

RM
Balance c/d
1,045
Balance b/d
(22,000-800-300)*5%
P+L
1,045
Jan 2011
RM
900
145
1,045
Balance Sheet as at 30 Nov 2007

RM
Current Asset
Trade Debtors (22,000-1,100)
Less: Provision for doubtful debts
20,900
1,045
19,855
5.
19
Jan 2011
Tutorial 9
1. Hikmat Trading
20
Jan 2011
2. Bakti Enterprise
3. Ori Sdn Bhd

2006
1-Jun
1-Jul
30-Sep
1-Oct
2007
1-Jan
1-Apr
1-Jun
Prepaid rent b/d

Bank- Q3
Bank- Rates
Bank- Q4
Bank- Q1
Bank- Q2
Accrual rates c/d
Prepaid b/d
Rent and Rates

RM
2006
200
1-Jun
600
2,040
600
750
750
380
5,320
250
Accrual rates b/d
31-May
31-May
31-May
P+L (Rates)
P+L (Rent)
Prepaid rent c/d
1-Jun
Accrual rates b/d
RM
340
2,080
2,650
250
5,320
380
Workings: P+L (Rent) = 7*200 (Jun-Dec'06) +

5*250 (Jan-May'07)
= 2,650
P+L (Rates) = 10*170 (Jun'06-Mar'07) +
2*190 (Apr'07-May'07)
= 2,080
b) Matching principles refers to the assumption that in the measurement of profit,
costs should be set against the revenue which they generate at the point in time
when this arises.
In this case, the rent and rates expenses are matched according to the
accounting period. Expenses give rise to certain effects which take the form of
revenue. Matching is thus the determination of profit by attributing specific
causes to particular effects at the point in time at which the effects occur.
21
Jan 2011
Tutorial 10
1. Soon
Statement of Comprehensive Income for the year ended 31 Dec 2008
RM
Sales (1000+250+8+3-200)
Less: Cost of sales
Opening stock
Purchases (700+160-180)
200
680
880
230
less: Closing stock

Gross profit
Less: Expenditure
Rent (8+30-10)
Insurance (12+20+6)
Electricity (25+7-9)
Telephone (10-2-1)
Wages
Discounts allowed
Bad debts written off
Depreciation
28
38
23
7
100
8
3
50
Statement of Financial Position as at 31 Dec 2008

RM
RM
Fixed assets (350-50)
Current Assets
Trade debtors
Stock
Bank (20+1000-700-185-50)
Prepayments (10+2)
Less: Current Liabilities

Accruals (7+6)
Trade creditors
Net current assets
Capital
Balance as at 1 Jan 2008
Add: Net profit
Less: Drawings
RM
1,061
650
411
257
154
RM
300
250
230
85
12
577
13
160
173
404
704
600
154
754
50
704
22
Jan 2011
2.
23
Jan 2011
Tutorial 11
1.
2.
3.
24
Jan 2011
4. Types of error that do not affect the trial balance agreement

(a) Error of omission
A transaction is completely omitted from the books.
(b) Error of principle
An entry is made in the wrong class of account.
(c) Error of commission
An entry is posted to the wrong persons account.
(d) Error of original entry
The double entry principle is correct but error occurs in the original documents
where the figure is incorrect.
(e) Complete reversal of entry
An account that should be credited is debited and vice versa.
(f) Compensating error
Errors occur and cancel each other out.
Tutorial 12
1. Regent Sdn Bhd
a)
i) Bank Charges
Cash
RM
56
56
ii) Creditors control

Purchases
400
iii) Debtors control

Sales
100
400
100
iv) Creditors control/ Amin Trading

Purchases
90
v) Bad debts
Debtors control/ Shanie
88
vi) Motor expenses

Motor Vehicle
vii) Accumulated Depreciation
Depreciation
RM
90
88
550
550
55
55
25

b)
Jan 2011
Statement of Corrected Net Profit for the year ended 31 May 2008
RM
Net profit as per draft final account
305,660
Add: Purchases overcast
400
Sales undercast
100
Error in purchases journal
90
Wrongly accounted depreciation
55
645
Less: Bank charges
Bad debts
Repair and maintenance
56
88
550
694
305,611
2.
3. Gail Dawson
26
Jan 2011
Tutorial 13
1.
2.
27
Jan 2011
3.
4.
Balance b/d
Sales
Cash
Interest on overdue account
Balance c/d
Balance b/d
Debtors' Ledger Control

RM
7,182 Cash
69,104 Discounts allowed
66 Returns inwards
10 Bills receivable
42 Bad debts
Creditors ledger control
Balance c/d
76,404
RM
59,129
1,846
983
3,243
593
303
10,307
76,404
10,307
5. Purpose of Control Accounts

- to provide a check on the accuracy of the ledger
- to facilitate the location of erros higlighted in the trial balance by pinpointing
the personal ledger
- deter fraud and ensure proper segregation of duties
- facilitate the extraction of balances on creditors and debtors, whereby
information is obtained immediately from control accounts
28
Jan 2011
Tutorial 14
1. Balan
2. Othman
29
Jan 2011
3. Amal
Sales
Statement of Comprehensive Income for the year ended 31 May 2008

RM
RM
405,000
Less: Cost of sales

Opening stock
Purchases (259,600-1,040)
less: Closing stock
Gross profit
Add: Discounts received
Reduction in provision of doubtful debts ([0.5%*46,200]-280)
Less: Expenditure
Discounts allowed
Wages and salaries (52,360+140)
Bad debts
Loan interest
Carriage outwards
Other operating expenses (38,800-500+200)
Depreciation on property (90,000*1%)
Depreciation on equipment (57,500*15%)
27,400
258,560
285,960
25,900
260,060
144,940
4,420
49
149,409
3,370
52,500
1,720
1,560
5,310
38,500
900
8,625
112,485
36,924
Net profit
Statement of Financial Position as at 31 May 2008

RM
RM
Cost
Acc. Depn
Fixed Assets
Property
Equipment
90,000
57,500
Current Assets
Stock
Trade debtors
Less: Provision of bad debts
Cash on hand
Prepayment
46,200
231

Bank overdraft
Accruals (140+200)
Trade creditors
Net current assets
14,500
340
33,600
13,400
41,125
RM
NBV
76,600
16,375
92,975
25,900
45,969
151
500
72,520
48,440
24,080
117,055
30
Jan 2011
Less: Long term liability

13% loan
Net assets
12,000
105,055
Capital
Balance at 1 June 2007
Add: Net profit
98,101
36,924
135,025
29,970
105,055
Less: Drawings (28,930+1,040)
4. Tim
Sales
Statement of Comprehensive Income for the year ended 30 Sep 2007

RM
RM
203,845
Less: Cost of sales

Opening stock
Purchases (167,760-112)
less: Closing stock
Gross profit
Add: Discounts received
Less: Expenditure
Rent (1,350+450)
Light and heat (475+136)
Insurance
Salaries
Stationery and printing
Telephone and postage
General Expenses (2,044+252)
Travellers commission and expenses (9,925+806)
Discounts allowed
Bad debts written off
Provision for doubtful debts
Depreciation on office furniture and equipment (1,440*10%)
Net profit
14,972
167,648
182,620
12,972
169,648
34,197
955
35,152
1,800
611
304
6,352
737
517
2,296
10,731
517
331
430
144
24,770
10,382
31
Jan 2011
Statement of Financial Position as at 30 Sep 2007

RM
RM
Fixed Assets
Office furniture and equipment (1,440-144)
Current Assets
Stock
Debtors
Bank
Petty cash in hand
Accruals (450+136+806+252)
Trade creditors
Net current assets
RM
1,296
12,972
19,100
573
1,644
8,162
18,527
6,603
29
38,131
9,806
28,325
29,621
Capital
Add: Net profit
24,239
10,382
34,621
5,000
29,621
Less: Drawings (4,888+112)
5.
Statement of Comprehensive Income for the year ended 31 Jan 2006
RM
RM
Sales (50,240-300)
Less: Return inwards
Less: Cost of sales
Opening stock
Purchases
less: Return outwards
13,630
42,400
348
less: Closing stock (15,450+240)

Gross profit
Add: Gain on sales of motor vehicle
Less: Expenditure
Salaries and wages
Rent, rates and insurance (860+36-60-10)
Sundry expenses (750+90)
Provision for doubtful debts (340-280)
Bad debts
Depreciation on fixtures and fittings (1400*10%+240*4/12*10%)
Depreciation on motor vehicles ([920-80]*25%)
Net profit
RM
49,940
136
49,804
42,052
55,682
15,690
39,992
9,812
40
9,852
4,100
826
840
60
134
148
210
6,318
3,534
32
Jan 2011
Statement of Financial Position as at 31 Jan 2006

RM
Fixed Assets
Fixture and fittings
Motor Vehicle
1,640
840
Current Assets
Stock
Sundry debtors (4,610-300)
Prepayments (60+10)
Cash at bank and in hand
4,310
340

Accruals (36+90)
Sundry creditors
Net current assets
126
3,852
Capital
Add: Net profit
Less: Drawings
RM
148
210
RM
1,492
630
2,122
15,690
3,970
70
3,820
23,550
3,978
19,572
21,694
20,760
3,534
24,294
2,600
21,694
Workings: Profit of 20% on sales price

x
100
=
240
80
x
=
RM300
33

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UKAF 1033 Business Accounting 1

depicts the relationship between assets, liabilities and owners equity.

UKAF 1033 Business Accounting 1

UKAF 1033 Business Accounting 1

Dr Equipment (display equipment)

UKAF 1033 Business Accounting 1

UKAF 1033 Business Accounting 1

UKAF 1033 Business Accounting 1

5. (a) Purpose of day books

UKAF 1033 Business Accounting 1

2. Kedai Runcit Shaari

3. Purpose of trial balance

UKAF 1033 Business Accounting 1

UKAF 1033 Business Accounting 1

Trial Balance as at 31 Dec 2007

UKAF 1033 Business Accounting 1

UKAF 1033 Business Accounting 1

Bank Reconciliation statement as on 31 March 2008

UKAF 1033 Business Accounting 1

UKAF 1033 Business Accounting 1

Bank Reconciliation Statement as on 31 Oct 2007

6. Factors causing the differences:(a) Timing differences

UKAF 1033 Business Accounting 1

UKAF 1033 Business Accounting 1

UKAF 1033 Business Accounting 1

UKAF 1033 Business Accounting 1

UKAF 1033 Business Accounting 1

UKAF 1033 Business Accounting 1

Provision for doubtful debts

Balance Sheet as at 30 Nov 2007

UKAF 1033 Business Accounting 1

UKAF 1033 Business Accounting 1

3. Ori Sdn Bhd

Prepaid rent b/d

Rent and Rates

Accrual rates b/d

Accrual rates b/d

Workings: P+L (Rent) = 7*200 (Jun-Dec'06) +

UKAF 1033 Business Accounting 1

less: Closing stock

Statement of Financial Position as at 31 Dec 2008

Less: Current Liabilities

UKAF 1033 Business Accounting 1

UKAF 1033 Business Accounting 1

UKAF 1033 Business Accounting 1

4. Types of error that do not affect the trial balance agreement

ii) Creditors control

iii) Debtors control

iv) Creditors control/ Amin Trading

vi) Motor expenses

UKAF 1033 Business Accounting 1

UKAF 1033 Business Accounting 1

UKAF 1033 Business Accounting 1

Debtors' Ledger Control

5. Purpose of Control Accounts

UKAF 1033 Business Accounting 1

UKAF 1033 Business Accounting 1

Statement of Comprehensive Income for the year ended 31 May 2008

Less: Cost of sales

Statement of Financial Position as at 31 May 2008

Less: Current Liabilities

UKAF 1033 Business Accounting 1

Less: Long term liability