FACULTY OF BUSINESS AND MANAGEMENT

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BBAW 2103

FINANCIAL ACCOUNTING

MAY 2017 SEMESTER

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MATRICULATION NO : 930721015079001

IDENTITIY CARD NO : 930721-01-5079

TELEPHONE NO : 016-7031180

E-MAIL : zackmj33@oum.edu.my

LEARNING CENTRE : JOHOR LEARNING CENTRE

 [FINANCIAL ACCOUNTING BBAW2103

Table of contents

No Tajuk Muka Surat

1.0 Question 1 3

2.0 Question 2 6

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Queations 1

a)

(i) A balance sheet is used to report the Ringgit amount of a company’s assets,
liabilities and owners’ equity for a required period of the year. It is the statement to tell a
company about their financial position. A balance sheet consists of Assets, Liabilities and
Equities. The accounting equation law states that Asset = Liability + Owners Equity. Thus,
the balance sheet provides a useful source of information by calculation the total asset
which should be tally with the company’s total liability and equity. It presents the
company’s resources and origin of sources.

(ii) The value for creditors shown in bracket is because it is a cash outflow from the
business as the accounting equation states- Asset = Liability + Equity. Creditors fall under
liabilities. The creditor figure of 700 instructs us to compute the figures in the column above
the line i.e. to compute the value of 67,000 and 700. The bracket around the 700 tells us to
deduct the 700 from the figure of 67,000 and not to add it. The cost of capital figure is
obtained by adding opening stock and purchases together and then deducting closing stock
to creditors.

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 [FINANCIAL ACCOUNTING BBAW2103

b)

Hairi
Trial Balance as on 30 November 2016

Unadjusted Trial Adjustments Adjusted Trial

Balance Balance
Debit Credit Debit Credit Debit Credit
Account
(RM) (RM) (RM) (RM) (RM) (RM)

Creditor 2,800 1,150 110 1,760

Equipment 6,200 110 6,310

Car 7,300 7,300

Stocks 8,100 380 8,480

640 + 90
Debtor 4,050 3,320
= 730
640 + 1,300 380 + 1,150
Bank 9,100 9,510
= 1,940 = 1,530
90 + 200
Cash 195 485
= 290

Capital 32,145 1,500 33,645

Total 34, 945 34, 945 3,870 3,870 35,405 35,405

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The cost of capital was not given for the transactions on 30 November 2016. Hence,
according to the law of accounting equation (Asset=Liability + Owners Equity), the amount
for capital is RM32, 145.00 derived from the total amount from the asset which is RM34,
945 deducted from RM2, 800 of the liabilities in the form of Creditor. The capital amount
for Bala Enterprise is RM 32, 145.00 for the unadjusted trial balance.
The adjustments until the month of 7 December 2016 is based on the transactions occurred
from the given data from (a) to (e). The transactions are highlighted in blue color.

Hairi
Balance Sheet
As at 31 December 2016

Assets Liabilities and owner's equity

Current Asset RM RM Liabilities RM

Cash 485 Account Payable 1,760
Stock 8,480
Bank 9,510
Debtors 3,320
21,795

Non-Current Assets Owner's Equity

Equipment 6,310 Capital 33,645
Car 7,300
13,610
35,405 35,405

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Queations 2

a)

General Journal
Debit Credit
Date Accounts and Description
(RM) (RM)
Sept 1 Accounts receivable 1,390
Sales 1,390
( Made sales to Johnny-520, Thomas-630, Sean-240 )
2 Purchases 1,180
Accounts payable 1,180
(Purchased from Ben-390, Raymond-510, Patrick-280 )
8 Accounts receivable 1058
Sales 1058
(Made sales to Thomas-640, Lance-418)
10 Purchases 962
Accounts p Accounts payable 962
(Purchased from Raymond-92, James-870)
12 Sales Return 215
Ac counts receivable 215
(Sales returned from Sean-25, Thomas-190)
17 Accounts payable 96
Purchases return 96
(Returned goods to Raymond-12, James-84)
20 Accounts payable 390
Bank 390
( Paid Ben by cheque)
24 Bank 400
Accounts receivable 400
( Received cheque from Johnny)
26 Accounts payable 766
Bank 766
(Paid James by cheque)

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28 Cash 80
Accounts receivable 80
(Johnny paid by cash)
30 Bank 418
Accounts receivable 418
(Received cheque from Lance)

Posting to Ledgers

Accounts Receivable Account

Debit Credit Balance
Date Description
(RM) (RM) (RM)
Sept 1 Sales 1390 1390
8 Sales 1058 2448
12 Sales return 215 2233
24 Bank 400 1833
28 Cash 80 1753
30 Bank 418 1335

The balance on the accounts receivable account which is at RM1,335.00 is the amount the
debtors owe us. The amount is after deducting the return on sale of goods, and some of the
payments received by cash and cheque on the credit column.

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Sales Account
Debit Credit Balance
Date Description
(RM) (RM) (RM)
Sept 1 Accounts receivable 1390 1390
8 Accounts receivable 1058 2448
12 Accounts receivable 215 2233

The total sales that we have made throughout the month is at RM2,233.00 after deducting
the sales returm from customers.

Purchases Account
Debit Credit Balance
Date Description
(RM) (RM) (RM)
Sept 2 Accounts payable 1180 1180
10 Accounts payable 962 2142
17 Accounts payable 96 2046

From the above purchases account, the balance of RM 2,046.00 indicates the total amount
that we have to pay to our creditors for the purchases made. The total amount is after
deducting the return on good for the purchases made.

Accounts Payable Account

Debit Credit Balance
Date Description
(RM) (RM) (RM)
Sept 2 Purchases 1180 1180
10 Purchases 962 2142
17 Purchases return 96 2046
20 Bank 390 1656
26 Bank 766 890

The accounts payable account indicates any amount that are payable to our creditors. The
total balance is at RM890.00 after deducting return of goods on purchases. Payments were
also has been made by cheque which is deducted from the credit column.

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Bank Account
Debit Credit Balance
Date Description
(RM) (RM) (RM)
Sept 20 Accounts payable 390 390
24 Accounts payable 400 790
26 Accounts payable 766 24
30 Accounts receivable 418 442

The total bank account shows the amount that we have in the bank is at RM 442.00. The
balance of bank account was not given. Thus, the payment by cheque has been made on
20th and 26th September is identified on the credit column. Also we have received payment
on the 24th and 30th September which is recorded on the debit column.

Cash Account
Debit Credit Balance
Date Description
(RM) (RM) (RM)
Sept 28 Accounts receivable 80 80

The above cash account indicates the total cash that we have for the month is at RM80.00.
The only transaction that involves cash payment only occur once.

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b)

ASSET

= LIABILITY + OWNER’S EQUITY / CAPITAL

OWNER’S EQUITY/CAPITAL

= ASSET – LIABILITY

LIABILITY

= ASSET – OWNER’S EQUITY/CAPITAL

Assets Liabilities Capital

12,500 1,800 10,700

28,000 4,900 23,100

16,800 4,300 12,500

19,600 3,150 16,450

25,500 6,300 19,200

51400 11,650 39,750

4,200 2100 2,100

3,750 2,000 1750

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