Q1). Steven and Raju decided to set up their company to sell computer and computer peripherals. They went to Registrar of Company to register their company name. They decided to put their name as the company name. Steven decided that he will own 70% of the company shares while Raju will own the rest. In the company Memorandum of Associations the Authorized Capital of the Company is 2,000,000 Ordinary Shares of RM1.00 each. They decided to issue 500,000 shares. As at 31 December 2020, the issued shares were fully paid.

a). What is their company name?

b). Give one reason Steven and Raju decided to set up a company instead of Sole Proprietor or Partnership?

c). How much is their paid-up capital as at 31 December 2020?

(2 marks)

Q2). Fill up the blanks.

Accountants need to record the Business Transactions according to__________

______________________guidelines in which the guidelines are consistent with

______________________________________. The guidelines will promote Objectivity concepts.

(4 marks)

Q3) Mak Munah sells nasi lemak everyday. She allows only cash sales. Her suppliers also demanded her to pay in cash. What concept does not suite her?

________________________________________________________________

(2 marks)

Q4). As at 31 December 2020, ABC Sdn Bhd total sales for the year are RM300 million. Alex, the CEO of ABC Sdn Bhd, instructed the Company accountant to declare / record the Company sales at RM250 million only. The undeclared sales of RM50 million will be recorded next year. However, the accountant accidentally record the expenses associated with the undeclared sales.

What are two (2) Accounting Principles that ABC Sdn Bhd did not follow?

(4 marks)

Q5) Maria owns a company which sells computer. At the end of the month she managed to sell 10 computers totaling RM30,000, in which 90% of the total sales represent her expenses. She received cash for the sales. These transactions will _____________ Equities and ___________ the Company bank accounts.

(4 marks)

Q6) David, the ABC Sdn Bhd accountant, accidentally records the Company sales as RM100,000 instead of RM10,000. The ____________ side of the Company trial balance would be unbalance by RM_______________.

(4 marks)

Q7). Matrix Sdn Bhd (MSB) decided to buy an office building where the market value is RM300,000. MSB managed to get a RM5,000 discount of the market value from the owner. MSB pay the owner cash. Record the entries in MSBs General Journal.

General Journal

Account Titles and Explanation	Ref.	Debit	Credit

(4 marks)

Q8) As at 30 June 2020, Interest expenses of RM5,000 were not recorded by XYZ Sdn Bhd accounts clerk. These transactions would ______________XYZ Sdn Bhds net profit and ______________ liabilities by RM5,000.

Q9)

Adik Sdn Bhd

Trial Balance as at 31 December 2020

Descriptions	Debit RM	Credit RM
Bank Accounts	30,000
Computer Accounts		10,000
Capital Accounts		30,000
Creditors Accounts	10,000
	40,000	40,000

Spot the errors in Adik Sdn Bhd trial balance:

1). _____________account____________side by RM___________________

2. _____________account ____________side by RM__________________

Question 1 (10 marks)

The record of FFSB as 31 December 2020 showed a balance in the bank account of RM15,000 (Debit). As at 31 December 2020, the bank statement for FFSB showed a credit balance of RM14,700. An examination between the two records revealed below-mentioned discrepancies:

(1) Interests received of RM1,000 on fixed deposit placed with the bank were not recorded in the bank account.

(2) Interest expenses of RM500 were not recorded in the bank account.

(3) Bank charges of RM200 were not recorded in the bank account as well.

(4) Stamp duties for the companys new cheques requisition from the bank of RM100 were not recorded in the bank account.

(5) Cheque received of RM1,000 from Amirah Enterprise Sdn Bhd was not credited by the bank.

(6) Amirul Catering Sdn Bhd paid RM2,500 to FFSB in which the bank has not credited the payment into FFSB bank account

(7) Payment of RM1,500 received from Eirfan Fitri Sdn Bhd was not presented by the bank.

(8) Payment of RM1,500 made to Zafri Engineering Sdn Bhd was not presented by the bank.

(9) Cheque paid to Mesra Ayu Sdn Bhd of RM1,000 was not debited by the bank.

(10) Payment made to Peter Pan Sdn Bhd of RM2,000 did not appear in the bank statement.

You are required to:

(a) Prepare an adjusted bank account as at 31 December 2020.

(b) Prepare a bank reconciliation statement as at 31 December 2020.

Question 2 (10 marks)

Erika Sdn Bhd (ESB) produces small electric engines. Identify the following costs as direct materials (DM), direct labor (DL), manufacturing overhead (MOH), or a period cost (PC). Also indicate whether the cost is variable (V) or fixed (F) with respect to behavior.

1. Commissions paid to salespeople.
2. Straight-line depreciation on the factory building.
3. Salary of the plant supervisor.
4. Wages of the assembly-line workers.
5. Machine lubricant used in production activities.
6. Engine casings used in production activities.
7. Advertising placed in trade journals.
8. Lease payments for the president's automobile.
9. Property taxes paid on the factory facilities

Question 3 (20 marks)

Bolo Company manufactures fishing rods. At the beginning of July, the following information was supplied by its accountant:

RM

Raw material inventory 40,000

Work in process inventory 21,000

Finished goods inventory 23,200

During July, the direct labour cost was RM43,500, raw material purchases were RM64,000 and total overhead cost was RM100,000. Bolo Company also incurred direct expenses of RM 20,000. The inventories at the end of July were:

RM

Raw materials inventory 19,800

Work in process inventory 32,500

Finished goods inventory 22,100

For the month of July, 3,500 units of fishing rods was sold for RM150 each. Bolo Company also incurred selling cost of RM80,000 and administration costs of RM 100,000.

Required:

1. What is the cost of the direct materials used and prime costs for July?
2. What is the cost of goods manufactured for july?
3. What is the cost of goods sold for July?
4. Prepare Income statement for July.