9 QUESTION 3 PART A Donna records her bank and cash transactions in a 3-column Cash Book. On 1 August 2021, she had a cash balance of RM800 and a bank overdraft of RM600. The following transactions took place during August 2021: Date Transaction RM 1 Received cheque from Jim in full settlement of his balance after 2,000 deducting 2% cash discount (All amounts are pre-discount). 2 Donna withdrew cash for personal use. 500 3 Sold goods for cash RM1,100. 1,100 8 Paid cash into bank for business use. 800 Paid office rental by cheque for month of August 2021. 600 13 Paid by cheque to Elisa in full settlement of a debt after deducting 2% 1,950 cash discount (All amounts are pre-discount). 20 Received a cheque from Gilbert, one of the employees who borrowed the 2,000 money last month for his mother's medical expenses. 21 Made cash sales which was paid straight into the bank 500 22 Received a cheque from Tom in full settlement of his balance after 1,100 deducting cash discount of 2% (All amounts are pre-discount). 25 Purchased stationery by cash. 40 28 Issued cheque to Christine in full settlement of her balance after 100 deducting cash discount of 3% (All amounts are pre-discount). 30 Paid salaries by cheque. 12,000 30 Issued cheque to Johnny in full settlement of his balance after deducting 1,500 cash discount of 3% (All amounts are pre-discount). Donna has successfully arranged additional overdraft facility of RM20,000 with the bank for the working capital. Page 4 of 7 Required Write up the three-column cash book of Donna for the month of August 2021. (15 marks) Basis PART B Andrew Enterprise has the following details of machinery: Date of Cost (RM) Depreciation purchase 1 January 2018 95,000 Reducing balance method Rate 20% p.a. Month to month During the year of 2020, Andrew Enterpise purchased a higher capacity machine as the existing one has much lower capacity: Cost (RM) Installation cost Date of purchase (RM) 85,300 14,700 8 July On 31 December 2020, the machinery which was purchase in 2018 is disposed for RM42,000 for cash. Required Prepare the following accounts for the financial period ended 31 December 2020: a) Machinery accounts (2 marks) b) Accumulated depreciation accounts (2 marks) c) Disposal of motor vehicle accounts (3 marks) d) List TWO (2) reasons why depreciation is provided to assets. (3 marks) (Total Part B 10 marks) QUESTION 4 Syed Sdn Bhd uses material AB for production of the finished goods. The following information on material AB is available as follows: Opening stock as at 1 March is at 300 kgs at RM 12.50 per kg. Date Purchases Issues March 4 400 kgs at RM 13.50 per kg March 5 100 kgs March 6 240 kgs March 11 150 kgs @ RM 14.00 per kg March 18 130 kgs March 20 120 kgs March 25 150 kgs @RM 15.50 per kg March 29 150 kgs Page 5 of 7 Required a) Calculate the cost of goods sold and the closing balance for the month of March by using the following methods: (i) First in first out (ii) Last in first out (iii) Weighted average (17 marks) b) Given the selling price at RM30.00 per kg, calculate the gross profit under the three methods. Indicate which method will produce the lowest gross profit if there is a rising purchase price