Business Accounting | My Assignment Tutor

BBM205/05 Business Accounting 1 Question 1 Lion Sdn Bhd is a manufacturer of garden furniture. The company has consistently used weightage average cost in valuing inventory, but it is interested to know the effect on   its inventory valuation of using First-In First-Out method (FIFO). At 28 February 2019 the company had inventory of 4,000 standard p lastic tables, and has computed its value on each side of the two bases as: BasisUnit Cost (RM)Total Value (RM)FIFO1664,000Weighted average1352,000 During March 2019 the movements on the inventory of tables were as follows: DateNumber of unitProduction Cost per unitProduction:8 March3,8001522 March6,00018Revenue:Sellin price perunit12 March5,00015.4018 March2,00013.0024 March3,00016.5028 March2,00018.00 Required: Using FIFO,  compute  cost   of   closing   inventory,   sales   and   gross profit/ loss as at 31 March 2019.Using Weight age Average Cost method, compute cost of closing inventory, sales and gross profit/ loss as at 31 March 2019. Show relevant workings. In arriving at the total inventory values you should make calculations to t wo decimal places (where necessary) and deal with each inventory movement in date order. [20 marks] Question 2 From the following particulars, you are required to find out the errors in cash book and bank statement by using missing method and prepare Bank Reconciliation Statement as on 31 December 2019, for Selena Enterprise: No.TransactionsAmount (RM)1.Bank Overdraft as per Bank Statement17,0002.Cheque issued but not encashed during the December2,2003.Dividends on shares collected by banker2,3004.Interest charged by the bank recorded twice in the Cash Book5005.Cheque deposited as per Bank Statement not entered in Cash Book3,4006.Credit side of the Bank column in Cash Book cast short1,0007.Interest dues paid by bank as per standing instruction not recorded in Cash Book1,2008.Uncredited cheque due to outstation3,900 Question 3 Below is the information extracted from the book of ABC Sdn Bhd: AccountsAmount (RM)Land500,000Building200,000Motor vehicles120,000Plant and machinery70,000Retained profit as at 01.01.2019312,1508% debenture150,000Ordinary share200,000Accumulated depreciation as at 31.12.2019: Building60,000Motor vehicles69,250Plant & machinery40,000Sales returns3,600Purchase returns4,100Sales700,000Purchases400,000Sales discounts5,000Purchase discounts3,500Opening inventory52,0007% Preference shares50,000 Provision for bad debts2,000Trade receivables26,700Trade payable43,200Administrative expenses18,000Staff training cost4,000Bad debts12,500Motor expenses27,000Rental90,000Bank overdraft15,400Wages and salaries115,000Debenture interest6,000Suspense account200 Required: Prepare the trial balance as at 31 December 2019. [15 marks] Question 4 After you have prepared the trial balance for Question 3, you notice the trial balance cannot be balance due to following errors: Cash payment of RM500 for stationery was completely omitted from the books.Discount received of RM2,000 was debited to discount allowed account.Sales of RM3,800 to Molly was not recorded in her account.RM1,000 for upkeep of motor vehicle was debited to motor vehicle account. No depreciation has yet to be provided. Required: Prepare the Suspense Account.                                    [5 marks]Prepare the adjusted Trial Balance.                            [5 marks] Question 5 Using the trial balance prepared in Question 4, prepare the Statement of Comprehensive Income as at 31 December 2019 for ABC Sdn Bhd. The following information is relevant: The closing inventory was RM47,000.                                                                            [20 marks] Question 6 Using the trial balance prepared in Question 4 and Statement of Comprehensive Income prepared in Question 5, prepare the Statement of Financial Position as at 31 December 2019 for ABC Sdn Bhd. [20 marks]

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