LESSON PLAN FOR BBAW2103

FINANCIAL ACCOUNTING

TUTORIAL 2
About Tutorial Lesson
Plan (for tutors)
• Purpose:
– For you to guide and facilitate learning
– For you to encourage engaged and active learning
– For you to create constructivist classroom and guide learners to
construct new knowledge from their past experience
• How to Use?
– Go through the slides and be prepared
– Complete the lesson within the time duration
– Connect the lesson with the module & assessment
– Encourage learners to participate / discuss & do the activities
– Apply scaffolding techniques to increase cognitive level
– Always provide feedback / explanation
– Never read out the slides as it is without doing the activities
Overview of the Course
Overview of Tutorial 2
In this tutorial, we will cover the following:

Discussion Topic Duration (minutes)

Topic 4: Adjusting Entries 30
Topic 5: Completing the Accounting Cycle 35
Topic 6: Financial Reporting Standards 25
Topic 7: Trading Business Environment 25
Summary 5
 TOPIC 4
Adjusting Entries

Discussions
(30 minutes)
Focus of Discussion for
Topic 4
1. Adjusting entries;
2. Adjusted trial balance.
Adjusting entries

You want to rent out your house in

Taman Desa. In March, a tenant has
agreed to move in and gave you 3
months rental in advance,
amounting to RM1,200. How do you
treat the transaction for the rental
received?
(5 minutes)
Section 4.1.1, Figure 4.1
Page 96
Adjusted trial balance
Asoka Travel and Tours prepared the following unadjusted trial balance on
31 December 2015 for its first year of operation:
Accounts Debit (RM) Credit (RM)
Cash 10,350
Account receivables 67,500
Supplies 16,200
Motor vehicles 341,100
Account payable 15,750
Unearned revenue 18,000
Capital 234,000
Drawings 13,500
Revenue earned 407,250
Salary expense 94,500
Petrol expense 8,100
Rent expense 24,000
Insurance expense 48,000
Utilities expense 51,750
675,000 675,000
Adjusted trial balance
An analysis of the accounts shows the following:
a) Unbilled revenue on 31 December was RM5,325.
b) Supplies on hand on 31 December total to RM3,600.
c) Depreciation on motor vehicles was estimated to be RM12,300 for the
year.
d) The amount of unearned revenue in the above balance represents all the
deposits from customers received during the year for booking trips. Half of
these trips have been taken by the end of the year.
e) Unpaid bills on utilities on 31 December amount to RM1,800.

Task:
i. Prepare the appropriate adjusting journal entries.
ii. Prepare an adjusted trial balance as at 31 December 2015.

(25 minutes)
Section 4.2,
Page 103 - 109
 TOPIC 5
Completing the
Accounting Cycle

Discussions
(30 minutes)
Focus of Discussion for
Topic 5
1. Financial statements;
2. Closing entries;
3. Reversing entries.
Preparation of financial
statements
Adjusted trial balance as at 31 December 2015 for Asoka Travel and Tours.
Accounts Debit (RM) Credit (RM)
Cash 10,350
Account receivables 67,500
Revenue receivable 5,325
Supplies 3,600
Motor vehicles 341,100
Accumulated depreciation 12,300
Account payable 15,750
Accrues utilities expenses 1,800
Unearned revenue 9,000
Capital 234,000
Drawings 13,500
Revenue earned 421,575
Depreciation expense 12,300
Salary expense 94,500
Supplies expense 12,600
Petrol expense 8,100
Rent expense 24,000
Insurance expense 48,000
Utilities expense 53,550
694,425 694,425
Preparation of financial
statements
Task:
i. Prepare the income statement for the year ending 31 December 2015.
ii. Prepare the balance sheet as at 31 December 2015.

(20 minutes)

Section 5.1.1 & 5.1.3

Page 115 - 131
Closing entries

At the end of the accounting

year, you need to perform
closing entries. Why is it the
closing entries only applicable
to income statement account
and not for balance sheet
account?
(10 minutes)
Section 5.2, Figure 5.8
Pages 136 - 139
Reversing entries

a) What are the 2 differences

between reversing entries and
closing entries?
b) Is it necessary that you must
perform the reversing entry in
the Financial Statement? Why?
(5 minutes)

Section 5.3,
Pages 139 - 143
 TOPIC 6
Financial Reporting
Standards
Discussions
(30 minutes)
Focus of Discussion for
Topic 6
1. Statutory requirement for annual
report;
2. Content of annual report;
3. Financial Reporting Standard 101
(FRS 101).
Financial Report

Bursa Malaysia requires all business

entities to submit audited reports within 6
months from the last financial date.

(a) What are the audited reports that are

required for submission?
(b) When an auditor states “true and fair
view opinion”, what does it mean?
(10 minutes)

Section 6.1 & 6.2, Figure 6.2,

Pages 145 - 150
Financial Report

In your opinion, why notes to the

Financial Statement in the Annual Report
is important as stated in FRS 101?
(15 minutes)
Section 6.1 & 6.2, Figure 6.2,
Pages 145 - 150
 TOPIC 7
Trading Business
Environment
Discussions
(30 minutes)
Focus of Discussion for
Topic 7
1. Differences between trading firms
and service firms;
2. Important transactions in trading
firms.
Trading firms vs service
firms (1/2)
Trading firms vs service
firms (2/2)

Refer to the 2 Income Statements:

a) Can you determine which report is
for trading firm and which report is
for service firm?
b) Discuss the differences in the
report.

(10 minutes)

Section 7.2, Figure 7.1,

Pages 159 - 162
Important transactions in
trading firms (1/2)
Important transactions in
trading firms (2/2)

Based on the invoice:

a) Can you determine the items
that indicates this invoice
belongs to a trading firm?
b) Provide justification to your
answer.
(15 minutes)
Section 7.2, Figure 6.2,
Pages 163 - 171
Summary

Topic 5 Topic 6 Topic 7

Topic 4
Completing the Financial Reporting Trading Business
Adjusting Entries
Accounting Cycle Standards Environment

Statutory
Main
Adjusting Financial requirements
characteristics
entries statements of annual
of trading firms
report

Important
Adjusted trial Content of transactions
Closing entries
balance annual report for trading
firms

Reversing
FRS 101
entries

(5 minutes)