Sunday, August 23, 2015

Types of Business Ownership Q1

Q.
(a) Differentiate between Liabilities and Equities. (5 marks)

(b) Discuss three (3) types of business ownership. (15 marks)

(20 marks, 2015 Q1)

A.

Ref:

Income Statement and Balance Sheet of Mama Mia S/B Q4

Q.
The following trial balance was extracted from the account books of Mama Mia Sdn Bhd as the close business ended on 31 December 2014.


Inventory at 31 December 2014 was valued at RM12,800 (market price) and RM15,100 (cost price) respectively.

Prepare:

(i) Trading, Profit and Loss Account (Income Statement) for the year ended 31 December 2014. (10 marks)

(ii) Balance Sheet as at 31 December 2014. (10 marks)

(20 marks, 2015 Q4)

A.

Ref:

Depreciation Machinery and Office Furniture Q3

Q.
Axisrata Sdn Bhd maintains its fixed asset at cost. Depreciation provision accounts, one for each type of asset, are in use. At 31 December 2013, the position was as follows:-


The following additions were made during the financial year ended 31 December 2014:
  • Machine RM16,000; office furniture RM460
  • A machine bought in 2010 for RM1,600 was sold for RM360 during that year
  • The rates of depreciation are: Machine 20 per cent, office furniture 10 per cent, using the straight line basis, calculated on the assets in existence at the end of each financial year irrespective of date of purchase.
Show:

(i) Machinery Account

(ii) Office Furniture Account

(iii) Depreciation accounts for Machinery

(iv) Depreciation accounts for Office Furniture

(v) Machinery Disposal Account

(vi) Balance Sheet (Extract) at that date

(20 marks, 2015 Q3)

A.

Ref:

Duality, Going Concern, Historical Cost Conservatism Q2

Q.
Using appropriate examples, explain the following accounting concepts:

(i) Duality Concepts

(ii) Going Concern Concept

(iii) Historical Cost Concept

(iv) Conservatism

(20 marks, 2015 Q2)

A.

Ref:

2-Column Cash Book Q7

Q.
Record the following transactions in 2-column Cash Book.


(20 marks, 2015 Q7)

A.

Ref:

Cash Book Adjustments Q6

Q.
Peter, the owner of Setia Enterprise found discrepancies between his Cash Book and Bank Statement for the Month of July 2014. The following discrepancies were identified.

Bank Statement RM2,215 (debit)
Cash Book ---------------RM9,900

The following discrepancies have also been found:

i. Standing instruction for insurance premises payment RM2,280 has not been recorded in the Cash Book.

ii. Dividend RM2,100 received from QMR Berhad has not been recorded in the Cash Book.

iii. A cheque of RM2,550 received from Sean has been returned by the bank indicating 'refer to drawer' but has not been recorded in the Cash Book.

iv. Cheques of RM3,600 for salary and payment of RM1,950 to Yuvadran have not been presented to the bank.

v. Cheque of RM1,560 for Abby has been debited by the bank but incorrectly recorded on the debit side of the cash book.

vi. Payment of RM25 has been debited by the bank for cheque book charges.

vii. A cheque of RM12,750 from Perniagaan Edalan has been deposited on 29 July but has not been credited by the bank.

Instructions:

1. Show the adjustment in the cash book on 31 July 2014.

2. Prepare a bank reconciliation statement on 31 July 2014.

(20 marks, 2015 Q6)

A.

Ref:

Bookkeeping Credit and Debit Q5

Q.
Complete the following table by entering the transaction into the appropriate account.


(20 marks, 2015 Q5)

A.

Ref: