BBAW2103

OUM BUSINESS SCHOOL

SEMESTER: SEPTEMBER 2015

BBAW2103

BBAW 2103 - FINANCIAL ACCOUNTING

MATRICULATION NO : 950205025340001
IDENTITY CARD NO. : 950205025340
TELEPHONE NO. : 0174575520
E-MAIL : [email protected]
LEARNING CENTRE : SUNGAI PETANI LEARNING

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QUESTION 1

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.

1 (a) 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 nor 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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1 (B)

HAIRI SDN BHD

BALANCE SHEET AS ON 30 NOVEMBER 2016

UNADJUSTED ADJUSTMENTS ADJUSTED

TRIAL BALANCE TRIAL BALANCE

ACCOUNT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT

(RM) (RM) (RM) (RM) (RM) (RM)

CREDITOR 2,800 1,150 110 1760
EQUIPMENT 6,200 110 6,310
CAR 7,300 7,300
STOCKS 8,100 380 8,480
DEBTOR 4,050 640+90= 3,320

730
BANK 9,100 640+130 380+1,150= 9,510

0 1,530

=1,940
CASH 195 90+200= 485

290
CAPITIAL 32,145 1500 33,645
TOTAL 34,945 34,945 3870 3870 35,405 35,405

The adjustment until the month of 31 December 2016 is based on the transactions occurred from
the given data from (a) to (e). The transactions are highlighted in blue color.

Hairi Sdn Bhd.

Balance Sheet

As at 31st Dec 2016

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Asset Liabilities and owner’s equity

Current Asset RM RM Liabilities RM
Cash 485 Creditors 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

QUESTION 2

2 (A)

General Journal
Date Accounts and Description Debit Credit

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(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 payable 962
(Purchased from Raymond-92, James-870)

12 Sales Return 215

Accounts 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)

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

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Posting to Ledgers
Accounts Receivable Account

Date Description Debit Credit Balance

(RM) (RM) (RM)
Sept 1 Sales 1,390 1,390
8 Sales 1,058 2,448
12 Sales return 215 2,233
24 Bank 400 1,833
28 Cash 80 1,753
30 Bank 418 1,335
The balance o 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.

Sales Account
Date Description Debit Credit Balance
(RM) (RM) (RM)
Sept 1 Accounts receivable 1,390 1,390
8 Accounts receivable 1,058 2,448
12 Accounts receivable 215 2233

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

Purchases Account

Date Description Debit Credit Balance

(RM) (RM (RM)
Sept 2 Accounts payable 1,180 1,180
10 Accounts payable 962 2,142
17 Accounts payable 96 2,046

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From the above purchases accounts, the balance of RM2,046.00 indicates the total amount that
we have to pay to our creditor for the purchases made. The total amount is after deducting the
return on good for the purchases made.

Accounts Payble Account

Date Description Debit Credit Balance
(RM) (RM) (RM)
Sept 2 Purchases 1,180 1,180
10 Purchases 962 2,142
17 Purchases return 96 2,046
20 Bank 390 1,656
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 credit colurm.

Bank Account
Date Description Debit Credit Balance
(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 RM442.00. 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
Date Description Debit Credit Balance
(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.

QUESTION 2 (B)

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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

(51,400) 11,650 39,750

4,200 (2,100) 2,100

3,750 2,000 (1,750)