Assignment BAAD2033

February 2017

Question 1

a) What is meant by the term prime cost?

(3 Marks)
b) Explain the purpose of a manufacturing accounts.
(2 Marks)

c) The following trial balance of Kilang Bunga Kemboja as at 31 December 2015.

Debit(RM) Credit(RM)
Interest 15,000
Sales commission 95,000
Office expenses 175,000
Selling expenses 115,800
Insurance 63,200
Factory rent 145,000
Hire of special machine 12,500
Light and power 82,500
Factory supplies 95,000
Indirect labour 180,000
Direct labour 800,000
Purchases-raw materials 1,200,000
Sales 3,100,000
10% loan 150,000
Account payables 22,500
Accumulated depreciation:
Plant and machinery 54,000
Office equipment 25,000
Cash at bank 36,000
Account receivables 70,500
Allowance for doubtful debts 3,600
Beginning inventory of finished goods 120,000
Beginning inventory of raw materials 30,000
Plant and machinery 300,000
Office equipment 135,000
Capital 315,400
3,670,500 3,670,500
Additional information:

(1) All insurance, light and power are charged to factory operations.
(2) At 31 December 2015 insurance paid in advance was RM3,200.
(3) At 31 December 2015 lighting unpaid was RM1,200.
(4) Inventory as at 31 December 2015 :
Raw materials RM25,200
Finished goods RM125,800
(5) Depreciation on plant and machinery is to be provided at 10% on cost.
(6) Depreciation on office equipment is to be provided at 15% on cost.

REQUIRED:

a) Prepare the Manufacturing Account for the year ended 31 December 2015.
(10 Marks)
b) Prepare a Statement of Profit and Loss for the year ended 31 December 2015.
(8 Marks)
c) Prepare Statement of Financial Position (Balance Sheet) as at 31 December 2015.
(12 Marks)

(Total: 35 Marks)

Question 2
Panjang and Pendek, whose year end is 30 June , are involved in business as food
wholesalers. Their partnership deed states that:

i) Profits and losses are to be shared equally.

ii) Salaries are: Panjang RM20,000 per annum; Pendek RM18,000 per annum.
iii) Interest on capital of 10% is allowed.
iv) Interest on drawings: Panjang RM100; Pendek RM300.
v) Interest on loan from partner (Panjang) is RM600.
The trial balance as at 30 June 2013 is as follows:
Debit Credit
RM RM

Capital - Panjang 100,000

- Pendek 80,000
Current accounts - Panjang 804
- Pendek 21,080
Loan at 1 July 2012 - Panjang 12,000
Freehold premises at cost 115,000
Plant and machinery at cost 77,000
Provision for depreciation on plant 22,800
Motor vehicles at cost 36,500
Provision for depreciation on vehicles 12,480
Computer at cost 1,253
Inventories 6,734
Trade receivables 4,478
Trade payables 3,954
Bank 7,697
Electricity accrued at 1 July 2012 58
Paid for electricity 3,428
Purchases 19,868
Sales revenue 56,332
Warehouse wages 23,500
Rates 5,169
Postage and telephone 4,257
Printing and stationery 2,134
Provision for bad debts 216
Selling expenses 1,098
308,920 308,920

You also ascertained the following:

i) Inventory at 30 June 2013 is RM8,264.

ii) Depreciation by the straight line method is 10% per annum on plant and machinery and
20% per annum on motor vehicles. The amount of depreciation for computer is RM326.

iii) Included in warehouse wages are drawings of RM6,000 by Panjang and RM8,000 by
Pendek on 30 June 2013.
 iv) The provision for doubtful debts as at 30 June 2013 is to be RM180.

v) Trade receivables included bad debts of RM240.

vi) Sales revenue included goods that were returned at a price of RM200.

vii) Rates prepaid and electricity accrued as at 30 June 2013 amounted to RM34 and RM82
respectively.

Required:

a) Prepare a statement of profit and loss and appropriation accounts for the year
ended 30 June 2013.
(30 marks)
b) Prepare a statement of financial position as at 30 June 2013.
(10 marks)

(Total: 40 Marks)

Question 3
The following is a summary of Dorinas bank accounts for the year ended 31 December 2013:

RM RM

Cash sales 48,000 Payment to trade payables 19,800

Receipts from trade receivables 22,400 Cash purchases 34,800
Sundry expenses 1,800
Drawings 2,500
Wages 11,400
Insurance 6,600

Dorinas assets and liabilities at the beginning and at the end of the year are shown as below:
 1/1/2013 31/12/2013
RM RM

Delivery van 38,000 35,000

Inventory 7,200 8,400
Trade receivables 9,700 15,000
Bank 11,000 ?
Trade payables 10,000 8,000
Prepaid insurance - 600
Accrued wages 1,500 3,200

Required:

a) Prepare an opening statement of financial position for Dorina as at 1 January 2013.

(3 marks)
b) Prepare a statement of profit and loss for the year ended 31 December 2013.
(14 marks)
c) Prepare a statement of financial position at 31 December 2013.
(8 marks)
Please show all your workings.
(Total: 25 Marks)