Homework answers / question archive / Only question 1 , 3 and 5 solutions needed from this Academic Session 2020 July 2020 Semester    ASSIGNMENT   BBM205/05 Business Accounting I       INSTRUCTIONS TO CANDIDATES:   This assignment is the alternative assessment to replace the proctored examination

Only question 1 , 3 and 5 solutions needed from this Academic Session 2020 July 2020 Semester    ASSIGNMENT   BBM205/05 Business Accounting I       INSTRUCTIONS TO CANDIDATES:   This assignment is the alternative assessment to replace the proctored examination

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Only question 1 , 3 and 5 solutions needed from this

Academic Session 2020

July 2020 Semester 

 

ASSIGNMENT

 

BBM205/05 Business Accounting I

 

 

 

INSTRUCTIONS TO CANDIDATES:

 

1. This assignment is the alternative assessment to replace the proctored examination.

 

2. You are required to answer All questions in this assignment. 

 

3. You are allowed a maximum of one (1) attempt to submit your assignment.

 

4. The assignment will be made available from 2^nd November 2020, Monday (00:00) until 3^rd December 2020, Thursday (23:59). 

 

5. Completed assignment must be submitted by 3^rd December 2020, Thursday (23:59). 

 

 

 

 

 

 

 

 

Copyright © 2020 WOU

 

 

…2/-

 

 

Answer ALL questions below.

 

Question 1

 

The figures in the table below relate to HM Sdn Bhd which is seeking your advice on its financial position.

 

	2020		2021
	Expected Results		Budgets
	November (RM)	December (RM)	January (RM)	February (RM)	March (RM)	April (RM)
Sales	60,000	70,000	72,000	66,000	60,000	68,000
Materials	30,000	35,000	36,000	33,000	30,000	34,000
Direct Labour	12,000	14,000	14,400	13,200	12,000	13,600
Overheads	12,600	14,700	15,200	13,800	12,700	14,300
TOTAL COSTS	54,600	63,700	65,600	60,000	54,700	61,900
NET PROFITS	5,400	6,300	6,400	6,000	5,300	6,100

 

You are provided with the following additional information:

 

• • Each month consists of four weeks.
  • 20% of sales are for cash, and 80% on credit.  Half the credit customers pay in the month following the month of the sale and the balance two months later.
  • All purchases are on credit and are paid for in the month following the month of the purchase after first deducting a 5% cash discount.
  • Wages are paid one week in arrears.
  • Overheads which include RM2,500 for depreciation each month are otherwise paid in the following month.
  • In January 2021, the company will purchase a new delivery van for RM42,000 less RM6,000 trade in on the old van. Payment will be made 50% in the month of purchase and the balance 50% in March.
  • The bank balance at start of January, 2021 is expected to be RM 2,800. ? No stock of raw materials or finished goods is held.

 

…3/-

 

 

 

Required:

 

1. 1. Prepare the 4 months Cash Budget from January to April 2021.             (14 marks)

 

1. 2. Advise the management concerning the financial position of the company.  

                                                                                                                                          (6 marks)

 

 

Question 2 

 

Below is the Trial Balance of L&G Trading as at 31 December 2019:

 

	RM	RM
Capital		300,000
Computer & Software	30,000
Office Equipment	12,500
Motor Vehicles	285,000
Sales		885,500
Purchases	525,000
Sales Returns	3,150
Purchases Returns		1,550
Carriage Inwards	1,450
Fire Insurance	2,640
Rental	72,000
Water & Electricity	24,650
Salaries	108,000
Sundry Expenses	750
Printing & Stationery	880
Telephone Charges	3,430
Opening Stocks	42,350
Incentive	5,700
Discount Received		650
Cash in Hand	2,550
Cash at Bank	19,620
Trade Receivables	74,500
Trade Payables		26,470
	1,214,170	1,214,170

          

 

 

         …4/- Additional information :

i. Stocks on 31 December 2019 was RM45,360.     ii.     Fixed assets are to be depreciated at 20% on cost.       iii. Electricity charges payable as at 31 December 2019 was RM1,250.     iv. Provision for doubtful debts is set at 2%.                     

 

Required: 

 

1. 1. Prepare the Statement of Comprehensive Income for the year ended 31

December 2019.                                                                                    (12 marks)

1. 2. Prepare the Statement of Financial Position as at 31 December 2019.

                                                                                                                (8 marks)                 

 

 

Question 3 

 

Wendy opened a hair care products shop in Georgetown in September 2020. During the first month of operations, the business completed the following transactions. 

 

Sep 1	Wendy  invested RM80,000 cash into the business.
Sep 2	She obtained a bank loan of RM80,000 for the business
Sep 8	Bought goods on credit for RM75,000 from Century Saloon Supply
Sep 10	Distributed free sample worth RM1,000 from her stocks
Sep 12	Shampoo costing RM180 was taken from business stock as a personal gift to her friend
Sep 16	Purchased a cash register worth RM2,500 on credit from Smart Solution
Sep 17	Brought in his personal computer worth RM3,800 for business use
Sep 19	Installed a security system for his office, total bill received from his supplier, Secure System was RM9,600
Sep 24	Withdrawn goods bought for resale for her personal use, value of the goods was RM680
Sep 28	Withdrew RM800 from business bank account for her personal use

 

Required: 

 

Record the above transactions in the GENERAL JOURNAL. Narratives are not required.       

                                                                                                                      (20 marks)

 

 

 

…5/-

 

Question 4

 

1. 1. Ahmad bought a new equipment at RM120,000 on 1 July 2017.  He was undecided whether to depreciate the equipment using straight line method or reducing method at 20% per annum.

 

The equipment is expected to have no residual value.

 

You are required to calculate the amount of depreciation to be charged against each financial year ending 31 December 2017, 31 December 2018 and 31 December 2019 using the straight line method and reducing balance method.

 

Show your answer in the following format :

 

Financial Year ending :	Straight Line Method	Reducing Balance Method
	RM	RM
31 December 2017
31 December 2018
31 December 2019

(9 marks)

 

1. 2. The following are balances brought forward from 31 December 2018 for KC Deco Center :

RM  RM 

Motor Vehicles    100,000         

Less : Provision for                        

(20,000)

depreciation 80,000 

 

The motor vehicles were depreciated at 15% per annum using reducing balance method. KC bought a new vehicle on 1 October 2019, cost of the new vehicle was RM120,000. You are required to prepare the following accounts for financial year ending 31 December 2019 :

 

1. 1. 1. The Motor Vehicle Account
      2. The Provision for Depreciation Account

(11 marks)

 

  

 

 

 

…6/-

 

 

 

 

Question 5

 

The Trial Balance of Deco Enterprise as at 31 December 2019 shows the following:

 

	RM	RM
Incentive Received		25,600
Interest Paid	12,100
Rental Received		91,000
Insurance	2,400

 

The financial year for Deco Enterprise ends on 31 December every year.

 

Below is the additional information as at 31 December 2019:

 

1. Incentive receivable is RM7,560
2. Interest incurred for the financial year is RM13,450 i          Rental received per annum should be RM84,000

iv.       Insurance was paid for the period from October 2019 to September 2020

           

Required :

1. Adjusting journal entries to account for the additional information above. (8 marks)

           

2. Update the above accounts accordingly.                                                  (12 marks)    

END OF QUESTION PAPER