DIPLOMA IN BUSINESS ADMINISTRATION

QUIZ (MAY 2017) DBA3402: BUSINESS ACCOUNTING I

This quiz consists of TWO (2) calculation questions which carry 50%. Answer ALL questions.

QUESTION 1

Madam Arina is a sole trader of Arina Enterprise who operates the business at Bandar Puteri
Jaya, Sungai Petani, Kedah. Following is the trial balance of her business on 30 June 2012.

TRIAL BALANCE ON 30 JUNE 2012

Debit (RM) Credit (RM)
Purchases and sales 79 180 165 885
Returns 354 569
Rental 7 700
Capital on 1 July 2011 77 727
Borrowings 15 000
Fixed deposits 5 000
Cash 1 720
Salaries 14 400
Inventory, 1 July 2011 9 678
Carriage inwards 682
Discount 851
Bank 13 145
Premise (cost) 94 660
Utilities 1 392
Drawings 1 238
Debtors and creditors 15 200 12 873
Insurance 3 600
Interest on borrowings 400
Stationery 289
Interest on fixed deposit 250
Bad debts 874
Provision for doubtful debts 835
Carriage outwards 773
Fixtures and fittings (cost) 15 300
Motor vehicles (cost) 40 000
Accumulated depreciation: fixtures and fittings 2 295
Accumulated depreciation: motor vehicles 14 400
297 885 297 885

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DIPLOMA IN BUSINESS ADMINISTRATION
QUIZ (MAY 2017) DBA3402: BUSINESS ACCOUNTING I

Additional information:
Inventory on 30 June 2012 is valued at RM12 200 at cost price and RM10 990 at market
price.
Prepaid insurance is RM600.
Accrued rental is RM700.
The trader withdrew stationery items RM55 for personal use, but it is yet to be recorded
in any accounting books.
A debtor has been declared as bankrupt and the remaining balance of RM1 200 in his
account has been written off as bad debts.
Provision for doubtful debts is adjusted at 5% on the net debtors account.
Depreciation rate:
- Fixtures and fittings, 10% on straight line basis annually
- Motor vehicles, 20% on double reducing balance basis annually.
- Borrowings with interest rate of 4% will be matured on 30 June 2014.

Prepare:
(a) Statement of Profit or Loss for the year ending 30 June 2012. 15 marks
(b) Statement of Financial Position on 30 June 2012. 15 marks
(30 marks)

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DIPLOMA IN BUSINESS ADMINISTRATION
QUIZ (MAY 2017) DBA3402: BUSINESS ACCOUNTING I

QUESTION 2

Samuel is the trader of Sam Trading, realized that the ending balance of Bank Statement for the
month of June 2012 is different with the ending balance of Cash Book. Following is the balances
obtained from both bank statement and cash book.
Bank statement balance RM2 700 (Credit)
Cash book balance RM1 345 (Credit)
The comparison was made thereafter and found the following reasons for the difference in
balance.

a) RM35 was charged by bank for cheque book.

b) The following cheques were issued but yet to be presented to bank:

Descriptions Cheque No. RM
Rental 321550 2 640
Rizal 321560 10 780
Maju Enterprise 321570 5 860

c) Dividend received from Salam Berhad RM1 800 has been recorded in Bank Statement but
not recorded in Cash Book.

d) Cheque No. 128900 RM2 430 received from debtor, Lim has been returned by bank but it is
not recorded in Cash Book.

e) The following cheques are yet to be deposited to the bank account:

Descriptions Cheque No. RM
Izzah 560009 4 500
Sedayu Trading 432220 3 200
Kencana Enterprise 888900 450
Budiman Trading 388870 1 500

f) Standing instructions to pay premise insurance totaling RM3 600 has not been recorded in
Cash Book.

g) Sam Trading has deposited the cheque received from customer, Kumar RM4 551 to bank
account but it is recorded as RM4 451 in Cash Book.

h) Cheque RM670 to Jason Trading has been recorded wrongly at the debit side of Cash Book.

i) Bank has imposed service charge RM80.

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DIPLOMA IN BUSINESS ADMINISTRATION
QUIZ (MAY 2017) DBA3402: BUSINESS ACCOUNTING I

You are required to:

(a) Update the Cash Book on 30 June 2012. 6 marks
(b) Prepare Bank Reconciliation on 30 June 2012. 12 marks
(c) State TWO (2) purposes of Bank Reconciliation preparation. 2 marks
(20 marks)

END OF QUESTION PAPER