Q.
a) There are many users which have an interest in the financial statements of a business. List 4 of these users of accounting information and explain their reasons for using the accounting information. (8 marks)
b) Explain briefly the four stages of accounting. (12 marks)
(20 marks, 2011)
Showing posts with label 2011 D01 Acc. Show all posts
Showing posts with label 2011 D01 Acc. Show all posts
Monday, February 2, 2015
Accounting Equation Q2
Q.
a) You are required to complete the columns in the following table:-
No. -----------Assets(RM) --------Liabilities (RM) --------Capital (RM)
1. -----------------8,000 -------------------3,000 --------------------
2. -----------------7,500 ------------------- -------------------5,000
3. ----------------15,000 -------------------9,000 --------------------
4. ---------------- -------------------1,500 --------------------5,800
5. ---------------115,000 ------------------60,500 -------------------
(10 marks, 2011 2a)
b) distinguish liabilities from assets of the following.
I) Loan to Shirley
II) Fixture and fittings
III) Loan from Jonesat
IV) Owing to bank
V) Stock of goods
VI) Owe a supplier for goods
VII) Warehouse we own
VIII) bank overdraft
IX) Creditors for goods
X). Computer in office
(10 marks, 2011 2b)
a) You are required to complete the columns in the following table:-
No. -----------Assets(RM) --------Liabilities (RM) --------Capital (RM)
1. -----------------8,000 -------------------3,000 --------------------
2. -----------------7,500 ------------------- -------------------5,000
3. ----------------15,000 -------------------9,000 --------------------
4. ---------------- -------------------1,500 --------------------5,800
5. ---------------115,000 ------------------60,500 -------------------
(10 marks, 2011 2a)
b) distinguish liabilities from assets of the following.
I) Loan to Shirley
II) Fixture and fittings
III) Loan from Jonesat
IV) Owing to bank
V) Stock of goods
VI) Owe a supplier for goods
VII) Warehouse we own
VIII) bank overdraft
IX) Creditors for goods
X). Computer in office
(10 marks, 2011 2b)
Debit and Credit Q3
Q.
Complete the following table showing which items are to be credited and which are to be debited.
Complete the following table showing which items are to be credited and which are to be debited.
- Goods bought, cash being paid immediately.
- Goods sold on credit to Jamie.
- Goods bought on credit from Hanle.
- Goods were returned to Hanle.
- Jamie returned goods to us.
- Old machinery sold for cash.
- Motor van bought on credit from King Spring.
- Paid creditor, Hanle by cheque.
- Paid telephone bill by cash.
- Bought office equipment on credit from IKEA Sdn Bhd.
(20 marks, 2011 Q3)
Petty Cash Book and Ledger Q4
Q.
Mr. Juwara a petty cash officer, maintains a petty cash book based on the imprest system. The cash float is RM200.
During the month of March 2010, the following transactions took place:-
March 1. A cheque for RM200 was cashed to provide the petty cash float.
March 3. Bought pen and pencil RM16.
March 4. Bought stamps RM12.
March 5. Bought paper clips RM2.
March 10. Bought envelopes and receipt books RM20.
March 14. Paid taxi fare RM6.
March 17. Refreshments RM10.
March 20. Paid bus fare RM3.
March 23. Paid for tea and cakes RM12.
March 27. Bought stamps RM9.
March 28. Bought envelopes RM5.
March 29. Postage RM8.
March 30. Purchased stationery RM8.
March 31. Received reimbursement from the cashier.
The analysis columns in the petty cash book are:-
Stationery
Postage
Traveling
Miscellaneous
You are required to record the above transactions in the petty cash book and show how these accounts are posted to the general ledger.
(20 marks, 2011 Q4)
Mr. Juwara a petty cash officer, maintains a petty cash book based on the imprest system. The cash float is RM200.
During the month of March 2010, the following transactions took place:-
March 1. A cheque for RM200 was cashed to provide the petty cash float.
March 3. Bought pen and pencil RM16.
March 4. Bought stamps RM12.
March 5. Bought paper clips RM2.
March 10. Bought envelopes and receipt books RM20.
March 14. Paid taxi fare RM6.
March 17. Refreshments RM10.
March 20. Paid bus fare RM3.
March 23. Paid for tea and cakes RM12.
March 27. Bought stamps RM9.
March 28. Bought envelopes RM5.
March 29. Postage RM8.
March 30. Purchased stationery RM8.
March 31. Received reimbursement from the cashier.
The analysis columns in the petty cash book are:-
Stationery
Postage
Traveling
Miscellaneous
You are required to record the above transactions in the petty cash book and show how these accounts are posted to the general ledger.
(20 marks, 2011 Q4)
Accounting terms Q5
Q.
a) Differentiate between:
b) Indicate which of the following would be revenue items and which would be capital items.
a) Differentiate between:
- Capital expenditure and revenue expenditure.
- Fixed assets and current assets.
b) Indicate which of the following would be revenue items and which would be capital items.
- The purchase of machinery for use in the business.
- Complete redecoration of the premises at a cost of RM1,500.
- The cost of installing a new machine.
- A motor vehicle bought for resale by a motor dealer.
- Cost of building extension to factory.
(10 marks, 2011 Q5b)
Bad Debt Q6
Q.
A business started trading on 01 January, 2009. During the two years ended 31 December 2009 and 2010, the following debts were written off to the Bad Debts Account on the dates stated:-
Date ----------- Debtor -------------RM
31 May 2009 --Alisya --------------175
31 Oct 2009 ---Lisa ----------------230
31 Jan 2010 ---Raymond ----------190
30 Jun 2010 ----Edward ------------75
31 Oct 2010 ----Amri --------------339
On 31 December 2009 there had been a total of debtors remaining of RM52,400. It was decided to make a provision for doubtful debts of RM640.
On 31 December 2010, there had been a total of debts remaining at RM58,600. It was decided to make a provision for doubtful debts of RM710.
Prepare:
a) Prepare the Bad Debts Accounts and the Provision for Doubtful Debts Account for each of the two years (2009 and 2010).
b) The Balance Sheet as at 31 December 2009 and 2010 (extract).
(20 marks, 2011 Q6)
A business started trading on 01 January, 2009. During the two years ended 31 December 2009 and 2010, the following debts were written off to the Bad Debts Account on the dates stated:-
Date ----------- Debtor -------------RM
31 May 2009 --Alisya --------------175
31 Oct 2009 ---Lisa ----------------230
31 Jan 2010 ---Raymond ----------190
30 Jun 2010 ----Edward ------------75
31 Oct 2010 ----Amri --------------339
On 31 December 2009 there had been a total of debtors remaining of RM52,400. It was decided to make a provision for doubtful debts of RM640.
On 31 December 2010, there had been a total of debts remaining at RM58,600. It was decided to make a provision for doubtful debts of RM710.
Prepare:
a) Prepare the Bad Debts Accounts and the Provision for Doubtful Debts Account for each of the two years (2009 and 2010).
b) The Balance Sheet as at 31 December 2009 and 2010 (extract).
(20 marks, 2011 Q6)
Depreciation Q7
Q.
a) A machine costs RM8,000. It was kept for five years, then sold for RM2,400. Show the calculations of the figures for depreciation for each year for five years using:-
i) The Straight Line Method
ii) The Reducing Balance Method at 20% of depreciation rate.
(10 marks, 2011 7a)
b) A motor vehicle which cost RM12,000 was bought on credit from Blue Sdn Bhd on 01 Jan 2009. Financial statements are prepared annually to 31 December and depreciation of vehicles is provided at 25% per annum under the Reducing Balance Method.
Prepare the Journal Entries, the Motor Vehicle Account, and the Accumulated Provision for depreciation on Motor Vehicle Account for the first two (2) years of the Motor Vehicle's working life.
(10 marks, 2011 7b)
a) A machine costs RM8,000. It was kept for five years, then sold for RM2,400. Show the calculations of the figures for depreciation for each year for five years using:-
i) The Straight Line Method
ii) The Reducing Balance Method at 20% of depreciation rate.
(10 marks, 2011 7a)
b) A motor vehicle which cost RM12,000 was bought on credit from Blue Sdn Bhd on 01 Jan 2009. Financial statements are prepared annually to 31 December and depreciation of vehicles is provided at 25% per annum under the Reducing Balance Method.
Prepare the Journal Entries, the Motor Vehicle Account, and the Accumulated Provision for depreciation on Motor Vehicle Account for the first two (2) years of the Motor Vehicle's working life.
(10 marks, 2011 7b)
P & L and BS Account Q8
Q.
Alex, a sole trader, extracted the following trial balance from his books of account at the close of business on 31 March 2010.
Particulars -------------------- Debit (Dr) (RM) --------Credit (Cr) (RM)
Purchases and Sales --------------- 61,420 ------------------- 127,245
Inventory as at 01 April 2009 ------ 7,940
Capital 01 April 2009 ------------------------------------------- 25,200
Bank Overdraft ------------------------------------------------- 2,490
Cash ----------------------------------140
Discounts ----------------------------- 2,480 ----------------------62
Return Inwards ----------------------- 3,486
Return Outwards ------------------------------------------------- 1,356
Carriage Outwards ----------------- 3,210
Rent and Insurance ------------------8,870
Provision for doubtful debts -------------------------------------- 630
Fixtures and Fittings ------------------- 1,900
Van ---------------------------------------5,600
Debtors and Creditors ----------------12,418 --------------------11,400
Drawings -------------------------------- 21,400
Wages and Salaries ------------------- 39,200
General Office Expenses -------------- 319
--------------------------------------- 168,383 ------------------168,383
Additional information:-
i) Inventory 31 March 2010 is RM6,805.
ii) Wages and salaries accrued at 31 March 2010 RM3,500, office expenses owing RM16.
iii) Rent prepaid 31 March 2010 is RM600.
iv) Increase the provision for doubtful debts by RM110 to RM740.
v) Provide for depreciation as follows:-
Fixture and Fittings RM190
Van RM1,400
Prepare the Trading, Profit and Loss Account for the year ended 31 March, 2010 and the Balance Sheet (extract) as that date.
(20 marks, 2011 Q8)
Alex, a sole trader, extracted the following trial balance from his books of account at the close of business on 31 March 2010.
Particulars -------------------- Debit (Dr) (RM) --------Credit (Cr) (RM)
Purchases and Sales --------------- 61,420 ------------------- 127,245
Inventory as at 01 April 2009 ------ 7,940
Capital 01 April 2009 ------------------------------------------- 25,200
Bank Overdraft ------------------------------------------------- 2,490
Cash ----------------------------------140
Discounts ----------------------------- 2,480 ----------------------62
Return Inwards ----------------------- 3,486
Return Outwards ------------------------------------------------- 1,356
Carriage Outwards ----------------- 3,210
Rent and Insurance ------------------8,870
Provision for doubtful debts -------------------------------------- 630
Fixtures and Fittings ------------------- 1,900
Van ---------------------------------------5,600
Debtors and Creditors ----------------12,418 --------------------11,400
Drawings -------------------------------- 21,400
Wages and Salaries ------------------- 39,200
General Office Expenses -------------- 319
--------------------------------------- 168,383 ------------------168,383
Additional information:-
i) Inventory 31 March 2010 is RM6,805.
ii) Wages and salaries accrued at 31 March 2010 RM3,500, office expenses owing RM16.
iii) Rent prepaid 31 March 2010 is RM600.
iv) Increase the provision for doubtful debts by RM110 to RM740.
v) Provide for depreciation as follows:-
Fixture and Fittings RM190
Van RM1,400
Prepare the Trading, Profit and Loss Account for the year ended 31 March, 2010 and the Balance Sheet (extract) as that date.
(20 marks, 2011 Q8)
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