SUBJECT NAME: BUSINESS ACCOUNTING

Q3. (a) (a The following situations were obtained from Winter Enterprise for the year ended 31 December 2019: The payment for commission is RM350 per month. The company paid RM1,700 on 31 January 2019 and RM2,900 on 30 June 2019. The payments are paid by cheque. Calculate the amount of prepaid commission expense. (2) The electricity bill that must be paid for the year 2019 is RM7,600. At the end of year 2019, issued cheque of RM7,000 to Tenaga National Berhad for payment of electricity bill. Calculate the amount still owed. REQUIRED: () Prepare the following accounts for the year ended 31 December 2019. (a) Commission expense. (4 marks) 03. ( ab (Continued) (b) Utility expense (3 marks) (1) Briefly explain the impact to financial statement if prepaid expenses and accrued expenses are not taken into consideration at the end of accounting period. (3 marks) (b) Briefly explain the different between Direct and Indirect methods of preparing a Statement of Cash Flow. (3 marks) [Total: 13 marks)