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CONFIDENTIAL FINALASSIGNMENT/FEB2020.DIA

DIPLOMA IN ACCOUNTING

FAC300

FINANCIAL ACCOUNTING AND REPORTING 111

1. This assignment contains FIVE (5) question/s.

2. Students are required to submit this assignment only in Microsoft Word format. Please refrain from converting text/phrases into picture format such as .gif/ .jpeg/print screen / etc.

3. Your assignment should be typed using 12-point Times New Roman font and 1.5 line spacing.

4. Your assignment must be between 1500 to 3000 words excluding references.

5. Do not copy the assignment question and instructions to your answer. Only assignment answer developed within the approximate word limit will be assessed. Please write the word count at the right end of your assignment.

6. You can submit your assignment ONCE only in a SINGLE file.

7. Please download your assignment template under Announcement from Sqayy. You must submit using the template prepared.

8. Your assignment must be submitted between 9th April 2020 until 13th April 2020. Submission after 13th April 2020 will NOT be accepted.

9. Your assignment should be prepared individually. You should not copy another person’s assignment. You should also not plagiarise another person’s work as your own.

10. Any actions shown that you are not following instructions, marks deduction will be applied.

FINAL ASSIGNMENT: FEBRUARY 2020

INSTRUCTION: Answer ALL of the following questions in the answer sheet provided.

QUESTION 1

The wood-based industry in Malaysia comprises four major sectors which are sawn timber, veneer and panel products that include plywood and other reconstituted panel products such as particleboard, chipboard, fireboard, mouldings and builders’ joinery and carpentry (BJC). The industry is predominantly owned by Malaysian and it is estimated that 80 to 90% of the companies comprise small and medium size establishments.

Syarikat Kayu Kayan Sdn Bhd is one of small and medium size company that operates a wood based business located in Raub, Pahang. The company was founded by En Ali and En Ahmad and the company main activity is the manufacturing of wood based product and produce a wide range of furniture from offices, kitchen, bedroom, dining room, occasional, living room, upholstered furniture or sofa, outdoor and garden furniture.

You are currently on an internship training programme for six (6) months in the above company and as an accounting student you have been placed in the Accounting & Finance Department to provide experiential knowledge and exposure in manufacturing company. The Department’s Manager has requested you to prepare the Manufacturing account, Statement of Profit and Loss and wish to know the factory profit for the year ended 30 June 2019

You have been provided with the following Company’s Trial balance for year ended 30 June 2019:

In addition, you are also being supply with the additional information pertaining to stock account and relevant accounts that requires you to further review the accounts as follows:

1. 1. Stocks as at 30 June 2019:

Note: Raw materials are valued at cost, Incomplete Production and Finished Goods are valued at factory cost.

1. 1. The Raw Materials purchases figure for the year includes a charge for carriage inwards. On 30 June 2019, a credit notes of RM3,100 was received in respect of a carriage inwards overcharged. No adjustment has been made for this amount.

1. 1. An allowance for doubtful debts is to be adjusted to 2.5% per annum of the outstanding debtors balance.

1. 1. Accrued expenses at 30 June 2019 are:

1. 1. One quarter of the administration expenses are to be allocated to the factory.

1. 1. The company depreciates its plant and machinery and delivery vehicles at 10% per annum on net book value and 20% per annum on cost respectively.

1. 1. An analysis of the sales of finished goods revealed the following:

Required:

1. Prepare the Manufacturing Account and Statement Profit and Loss Account for the year ended 30 June 2019.

1. marks)

1. Based on the result in (i) above, show the factory profit and the provision for unrealized profit account based on the assumption that all finished goods manufactured are transferred to trading account at cost of production plus 10%.

(3 marks)

(Total: 20 Marks)

QUESTION 2

You are working as a Hire Purchase loan executive in HP Department of EON Finance. Your main task is to process HP loans application for customer and to obtain the necessary approval for HP loan. You have process a HP loan application by BABA Enterprise. On 1 April 2017, the HP loans applied by BABA Enterprise who bought a car from EON finance on hire purchase agreement was approved with the following terms:

a) Cash Price of the car was RM30,000 (Cost price to EON finance was RM26,000)

b) BABA was required to pay a deposit of RM7,000 and the balance will be settled by 28 equal quarterly instalments of RM1,161 each.

c) First instalment was due on 30 June 2017.

d) Interest charged was at 5.9% per annum, flat rate.

Upon review of the HP loan ledger indicates that all payments were made on due dates.

On 3 March 2019, the car involved in an accident and BABA Enterprise decided to terminate the hire purchase agreement. EON finance agreed to give a rebate of 30% on total finance charge.

EON finance closes its books on 31 March each year and spread the gross profit made on motor car sold to customers over the agreement period.

As the HP Manager wish to know the status of the above account, you are required to provide the following information to the HP Manager;

Required:

1. You are to calculate the final payment BABA Enterprise had to pay for early settlement of the hire purchase agreement.

1. marks)

1. You are to prepare the following ledger accounts in the books of EON Finance for the year ended 31 March 2018 and 31 March 2019 with detail transactions for each ledger.

1. Hire Purchase Debtors account - BABA Enterprise account.

(4.5 marks)

1. Hire Purchase Interest Received Account.

(3 marks)

1. The Allowance for Unrealized Profit Account.

(3 marks)

1. Hire Purchase Statement of Profit and Loss account (Extract).

(3.5 marks)

(Show all workings and calculate to the nearest RM).

1. If the sum-of- digits method is to be used, calculate hire purchase interest revenue for the year ended 30 March 2018.

(3 marks)

(Total: 20 Marks)

QUESTION 3

Techno Enterprise was recently formed on 1 Jan 2019. The sole proprietor, Ms Mawar has seek your assistance to prepare the relevant financial statement for the year ended 2019 based on the available records. Ms Mawar did not have any accounting knowledge and did not know how to prepare a complete financial statement. The company also did not maintain proper accounts and some of the records are incomplete.

Your lecturer has just completed delivered a topic on ‘Incomplete records’ in your class for an accounting subject. In order to practice of what has been taught in class, you have undertaken the assigned task by Ms Mawar to prepare the relevant financial statement based on incomplete records.

You have discussed the above matter with Ms Mawar and she was able to provide the following information for the year ended 2019.

Bank Account

In addition, from the available records you are able to obtain the following information:

Note:

1. A uniform gross profit was determined at 30% on cost of goods sold

2. All calculations are to be rounded off to the nearest RM

In order to prepare the relevant financial statement for Ms Mawar, you are required to perform the following tasks:

Required:

1. Calculate the total sales for the year ended 31 December 2019. Show all workings.

(3 marks)

1. Calculate total purchases for the year ended 31 December 2019. Show all workings.

(3 marks)

1. Prepare the Statement of Profit and Loss for the year ended 31 December 2019.

(8 marks)

1. Prepare the Statement of Financial Position as at 31 December 2019.

(6 marks)

(Total: 20 Marks)

QUESTION 4

New Bridge Alumni Club was form by student of New Bridge College for the purpose to support a network of former graduates who will, in turn, help to raise the profile of the university. Besides, the alumni club exist is to support the College’s goals, and to strengthen the ties between alumni, the community, and the College.

You have just recently appointed as the Treasurer for New Bridge Alumni Club to replace the existing Treasurer who has left the Club after graduating from the College.

Your main task after taking over the Club treasurer is to prepare the complete sets of accounts for the coming Annual General Meeting of the Club to be held in October 2019.

In order to prepare the Club’s accounts, he has to understand the Club rules & regulations set forth in the By-Laws. New Bridge Alumni Club financial year ended 30 September every year. From the review of available records, the following information were obtained that relates to New Bridge Alumni Club for the year ended 30 September 2019.

1. The Club charges an annual ordinary subscription of RM400 per annum to its members. Currently, there are fifty (50) members. Besides annual ordinary subscription, the club also allows its members to pay a life membership fees of RM2,500.

1. As at 1st October 2018, five (5) members did not pay their annual ordinary subscription for the year ended 30 September 2018. Two (2) members paid in advance annual ordinary subscription fees for the year ended 30 September 2019.

1. As at 30 September 2019, four (4) members have not paid their annual ordinary subscription for the year ended 30 September 2019.

1. Ordinary subscription received during the year included subscription paid in advance by 3 members for the year ended 30 September 2020.

1. The bank statement of New Bridge Alumni Club’s current account as at 30 September 2019 were as follows:

1. On 1 Aug 2019, New Bridge Alumni Club traded in its sport equipment with a new sport equipment valued at RM25,000. The old sport equipment which was purchased on 1 April 2014 had a net book value of RM15,400. Its trade in value is RM10,000. The Club paid the remaining balance immediately. It is the New Bridge Alumni Club’s policy to depreciate its sport equipment at a rate of 10% per annum on cost, yearly basis.

1. Other balances:

Required:

1. You are to prepare the ordinary subscription account and Life Membership account of New Bridge Alumni Club.

(5 marks)

1. For the year ended 30 September 2019, you are to prepare the following accounts

1. Income and Expenditure

(6 marks)

1. Statement of Affairs as at 30 September 2018.

(4 marks)

1. Statement of Financial Position as at 30 September 2019.

(5 marks)

(Total: 20 Marks)

QUESTION 5

FELLA Design has been known in Malaysia for its custom made sofas for over 30 years and has a wide range of unmatched variety of sofa designs, sofa slipcovers and sofa cushions with unlimited fabric. You have been promoted to an Accounts executive position after graduating with a Diploma in Accounting from NB College. FELLA Design’s Head Office was located in Kuala Lumpur and a branch in Melaka.

You have been requested by your Account Manager to prepare the various financial statement for the year ended 31 May 2019 to be table to the Management Board with regards to the financial position of Kuala Lumpur and Melaka offices.

You have obtained the company’s Trial Balance as at 31 May 2019 that shows the following information.

From the other accounts records you have obtained the additional Information:

1. The branch purchased all goods from Head Office at cost plus 20%.

1. On 31 May 2019, the Head Office sent some goods amounting to RM4,000 (invoiced price) which did not reach Melaka until 10 June 2019.

1. At 31 May 2019, there was cash in transit amounting to RM2,000 from Branch to Head Office.

1. The branch paid RM1,500 as general expenses for Head Office. This transaction was not recorded in both books of accounts.

1. The branch manager is entitled for annual bonus of 10% on gross profit of Melaka Branch and will be paid on 1 July every year.

1. Inventory losses at Head Office and Branch amounted to RM1,500 and RM600 respectively.

1. The inventories as at 31 May 2019 were as follows:

1. It is the company’s policy to depreciates its assets as follows:

Premises 5% per annum on costs

Motor vehicles 10% per annum on net book value

Required:

1. You are to prepare the income statement for the Head Office, Branch and the Company as a whole for the year ended 31 May 2019.

1. marks)

ii) You are to reconcile the current account in the book of the Head Office with the current account in the book of the Branch to determine the transactions that affect the current account.

(5 marks)

1. You are to prepare the combine Statement of Financial Position as at 31 May 2019.

(5 marks)

(Total: 20 Marks)

(TOTAL MARKS: 100)

----END OF QUESTIONS----

FAC300/FA/AZS/FEB2020