Section A

The basic objective of financial reporting is to provide information for decision-making. To make best decisions regarding business, accounting information should have qualities. Explained FOUR (4) characteristics of accounting information.

(a)Relevant(5 Marks)

(b)Reliability(5 Marks)

(c)Comparability(5 Marks)

(d) Consistency

(5 Marks)

Section B

a)Complete the gaps in the following table:

Assets

Liabilities

Capital

RM

RM

RM

(i)

26,500

3,670

?

(ii)

14,333

?

9,505

(iii)

?

4,490

12,660

(iv)

54,337

?

38,990

(v)

29,001

?

27,555

(vi)

9,560

58

?

(vii)

4,201

2,347

(viii)

73,640

35,980

(ix)

8,901

701

(x)

87,567

16,700

(10 marks)

QUESTION 2: (25 marks)

ROSZ Sdn Bhd started a retailing business on 1 January 2020. The following are part of the transactions during the first month of operation.

2020

RM

Jan

1

Started firm with cash

4,000.00

3

Deposited cash into bank account

2,000.00

6

Bought inventories on credit from Navendran

560.00

11

Bought office equipment by cheque

1,500.00

13

Returned inventories to Navendran

300.00

17

Sold goods on credit to Slyvia

400.00

22

Purchased office fixtures on credit from Lavein Supplies

500.00

28

Slyvia returned goods

200.00

31

She settled her account with Navendran by sending cheque

260.00

You are required to prepare:

(a)Show the effect of increase or decrease for each transactions.

(10 Marks)

(b)Enter ALL transactions into general journals.

(10 Marks)

Section B

Classify the following items into assets and liabilities:

i)Account receivables

ii)Trade receivables

iii)Notes payable

iv)Equipment

v)Machineries