Question 1 Bunmei Enterprise has been in business for several years selling gad get spare parts. It is owned by KC Bunmei. Besides sales, it also does service after sales. Bunmei's assets and liabilities at respective year end ( 31 October) were as follows: Bunmei's cash summary for the year ended 31 October 2022, is as follows: Bunmei also provided the following additional information: 1. Five cheques totalling RM34,000 received from two credit customers were deposited int the business bank account on 31 October 2022 but did not appear on the bank statement for October 2022. 2. One cheque amolinting to RM5,500 was returned by the bank stating, 'Refer to the Drawer'. 3. A cheque for RNi, 100 issued in September 2022 and 3 more cheques issued in Oetober 2022 for a total of RM8,900 was not paid by the bank. 4. The bank statement had the following which are not in the cash summary above. 9 i. Received a credit transfer of RM6,543 for service after sales to be provided in November 2022 ii. Bank charges amounted to RM222 iii. Dividend income on the investment RM 1,000 iv. Standing instruction for insurance RM24,000 5. The bank statement also showed a RM6,000 deposited made by Boon Mei, another client of the bank. Bunmei has notified the bank of this entry. 6. The bank loan was taken on 1 August 2022 at an interest rate of 4% per annum. Interest is payable half yearly beginning 1 February 2023. Also, 10% of the loan is repayable at the end of every anniversary of the loan. 7. For the year ended 31 October 2022 , the following summary were also provided: i. Total value of goods returned by credit customers was RM5,000 ii. Total value of goods returned to credit suppliers was RM1,000 iii. Total value of cash discount from credit suppliers as shown on the receipts received RM4,230 Total value of cash discount claimed by credit customers as shown on the receipts iv. Total value of cash discount claimed by credit customers as shown on the recei v. 5% from the 'receipts from credit customers' were received from the services provided after the sales. vi. Quantity discount received from credit suppliers were RM11,000 and quantity discount allowed to credit customers were RM22,000. 8. Savee-Thiri is a credit supplier as well as a credit customer of Bunmei. During the year, a memo was prepared to indicate that both Savee-Thiri and Bunmei agreed to offset/ contra their owing. Bunmei owed Savee-Thiri RM10,000 while Savee-Thiri owed Bunmei RM12,345. 9. Chella-Meh and Chella-Moh are Bunmei's credit customers, owing RM6,000 and RM8,000 respectively. Both became insolvent. On 31 Oetober 2022,40% of the debt owed by ChellaMeh and 70% of the debt owed by Chella-Moh were collected. The cash was received was not banked in. The remaining debt was written off. 11. The allowance for doubtful debts for 2022 is estimated to be 2.5% on the accounts receivable balance at year end. 12. An extension (renovation) was done to the existing building. It was completed on 30 September 2022 . The extension cost will be repaid on 30 November 2022. 13. The depreciation is 4% per annum and (on cost) of building and 15% per annum (on carrying amount) of office equipment. 14. Goods in hand at 31 October 2022 , included goods costing RM10,000; but the net realisable value of that goods was RM9,000. Note: In answering the following questions, students must use the appropriate terms for the items to e presented on the financial statements. (a) Accounts receivable control account for the year ended 31 October 2022; (b) Accounts payable control account for the year ended 31 October 2022; (c) Updated cash at bank summary for the year ended 31 October 2022; (d) Bank reconciliation as at 31 October 2022; (e) The Income statement for Bunmei for the year ended 31 October 2022; (f) The Statement of changes in equity for the year ended 31 October 2022 ; (g) The Balance Sheet as at 31 October 2022; (h) For the year ended 31 October 2022 , calculate all the (20) ratios as in the list on next page; (i) Taking into consideration all the available information (including the ratios of 2020, 2021 and those calculated in (h), comment on the financial performance and financial position of the business for 2022 . (j) Refer to Appendix on next page: [20] Veh-Tree Traders and Nan-Dree Traders are in a similar business with Bunmei Enterprise. Advise which of the two should Bunmei consider to collaborate in order to expand its business. (Justify with reasons.) (Word limit: Max 500 words) [10] 'Employing artificial intelligence (AI) into accounting is not popular among small enterprises.' Discuss using specific industries/enterprises/business activities/ AI itself. (Word limit: Max 500 words) [20] Question 3 Each student is required to submit an individual reflection report based on your involvement, learning, challenges and other relevant matters while doing this assignment. (Word limit per reflection: Max 500 words) Appendix: Question 1 Bunmei Enterprise has been in business for several years selling gad get spare parts. It is owned by KC Bunmei. Besides sales, it also does service after sales. Bunmei's assets and liabilities at respective year end ( 31 October) were as follows: Bunmei's cash summary for the year ended 31 October 2022, is as follows: Bunmei also provided the following additional information: 1. Five cheques totalling RM34,000 received from two credit customers were deposited int the business bank account on 31 October 2022 but did not appear on the bank statement for October 2022. 2. One cheque amolinting to RM5,500 was returned by the bank stating, 'Refer to the Drawer'. 3. A cheque for RNi, 100 issued in September 2022 and 3 more cheques issued in Oetober 2022 for a total of RM8,900 was not paid by the bank. 4. The bank statement had the following which are not in the cash summary above. 9 i. Received a credit transfer of RM6,543 for service after sales to be provided in November 2022 ii. Bank charges amounted to RM222 iii. Dividend income on the investment RM 1,000 iv. Standing instruction for insurance RM24,000 5. The bank statement also showed a RM6,000 deposited made by Boon Mei, another client of the bank. Bunmei has notified the bank of this entry. 6. The bank loan was taken on 1 August 2022 at an interest rate of 4% per annum. Interest is payable half yearly beginning 1 February 2023. Also, 10% of the loan is repayable at the end of every anniversary of the loan. 7. For the year ended 31 October 2022 , the following summary were also provided: i. Total value of goods returned by credit customers was RM5,000 ii. Total value of goods returned to credit suppliers was RM1,000 iii. Total value of cash discount from credit suppliers as shown on the receipts received RM4,230 Total value of cash discount claimed by credit customers as shown on the receipts iv. Total value of cash discount claimed by credit customers as shown on the recei v. 5% from the 'receipts from credit customers' were received from the services provided after the sales. vi. Quantity discount received from credit suppliers were RM11,000 and quantity discount allowed to credit customers were RM22,000. 8. Savee-Thiri is a credit supplier as well as a credit customer of Bunmei. During the year, a memo was prepared to indicate that both Savee-Thiri and Bunmei agreed to offset/ contra their owing. Bunmei owed Savee-Thiri RM10,000 while Savee-Thiri owed Bunmei RM12,345. 9. Chella-Meh and Chella-Moh are Bunmei's credit customers, owing RM6,000 and RM8,000 respectively. Both became insolvent. On 31 Oetober 2022,40% of the debt owed by ChellaMeh and 70% of the debt owed by Chella-Moh were collected. The cash was received was not banked in. The remaining debt was written off. 11. The allowance for doubtful debts for 2022 is estimated to be 2.5% on the accounts receivable balance at year end. 12. An extension (renovation) was done to the existing building. It was completed on 30 September 2022 . The extension cost will be repaid on 30 November 2022. 13. The depreciation is 4% per annum and (on cost) of building and 15% per annum (on carrying amount) of office equipment. 14. Goods in hand at 31 October 2022 , included goods costing RM10,000; but the net realisable value of that goods was RM9,000. Note: In answering the following questions, students must use the appropriate terms for the items to e presented on the financial statements. (a) Accounts receivable control account for the year ended 31 October 2022; (b) Accounts payable control account for the year ended 31 October 2022; (c) Updated cash at bank summary for the year ended 31 October 2022; (d) Bank reconciliation as at 31 October 2022; (e) The Income statement for Bunmei for the year ended 31 October 2022; (f) The Statement of changes in equity for the year ended 31 October 2022 ; (g) The Balance Sheet as at 31 October 2022; (h) For the year ended 31 October 2022 , calculate all the (20) ratios as in the list on next page; (i) Taking into consideration all the available information (including the ratios of 2020, 2021 and those calculated in (h), comment on the financial performance and financial position of the business for 2022 . (j) Refer to Appendix on next page: [20] Veh-Tree Traders and Nan-Dree Traders are in a similar business with Bunmei Enterprise. Advise which of the two should Bunmei consider to collaborate in order to expand its business. (Justify with reasons.) (Word limit: Max 500 words) [10] 'Employing artificial intelligence (AI) into accounting is not popular among small enterprises.' Discuss using specific industries/enterprises/business activities/ AI itself. (Word limit: Max 500 words) [20] Question 3 Each student is required to submit an individual reflection report based on your involvement, learning, challenges and other relevant matters while doing this assignment. (Word limit per reflection: Max 500 words) Appendix