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?

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.

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?

________________________________________________________________

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?

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.

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_______________.

Q7) 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.