FACULTY OF ACCOUNTANCY

DIPLOMA IN ACCOUNTANCY
AC110

FINANCIAL ACCOUNTING
FAR110

GROUP ASSIGNMENT
PROBLEM BASED LEARNING

PREPARED BY
KAMILIA ADILAH BINTI ABDUL MUTALIB (2021104197)
MUHAMMAD HIRZAN HAZIQ BIN SUHAILI (2021126365)
NURUL ANIS BINTI ABDULLAH (2021126893)

PREPARED FOR
PUAN FATIMAH BINTI ALWI

GROUP
A4AC1101A
A.
a. The owner did not want to keep proper set of accounting records because the
owner control their budget of financial business. Hiring an accountant is expensive.
Moreover, the owner is unsure to expand their business for long term. This is why
the owner did not want to keep a proper set of accounting records.
b. First disadvantage for the single entry system is unsystematic system. This is
because of its does not have any set of specific rules and guidelines for recording
and reporting the financial transactions. Second, is the lack of accuracy. This is
because of due to incomplete records a trial balance could not be prepared to check
the arithmetical accuracy of the books of accounts. Lastly, fraud an errors. This is
because of single entry system of bookkeeping is incomplete, inaccurate and
unsystematic. This does not help to check the arithmetical accuracy of the books of
accounts. Therefore, there is a possibility of committing fraud and errors in the books
of accounts.

B.
a.
Statement of Affair as at 1 June 2020
Asset RM RM
Account receivable 102 000  
Bank 50 000  
Cash in hand 500  
Inventories 23 900  
5% fixed deposit 100 000  
Investment in Tenung
Bhd 60 000  
Machineries W1 423 200  
Motor Vehicles W2 64 800  
Office equipment W3 35 200 859 600
     
Liabilities    
Account payable 87 000  
3% long-term loan 500 000 (587 000)
    272 600
b.
Bank Account for the year ended 31 May 2021
Particular Debit Credit Balance
Balance b/d     50 000
Account Receivables W4 200 000   250 000
Sales W5 15 000   265 000
Purchase W6   9 000 256 000
Account Payables W7   30 000 226 000
Utilities   12 000 214 000
Salaries   121 000 93 000
Repair and maintenance   24 100 68 900
Rental of premise   24 000 44 900
Interest on fixed deposit 2 500   47 400
Interest on loan   11 250 36 150
Drawings   10 200 25 950
c.
Statement of Profit or Loss for the year ended 31 May 2021
  RM RM RM
Sales W11     702 000
Less : Sale discount     (800)
Less : Sale return     (1200)
Net Sales     700 000
       
Less : Cost of goods sold      
Opening inventories   23 900  
Add : Purchases W12 76 000    
Less : Purchase return (2 200)    
Less : Purchase discount (1 400)    
Net Purchase   72 400  
Cost of goods available for sale   96 300  
Less : Closing inventories   (22 100)  
Cost of goods sold   74 200 (74 200)
Gross Profit     625 800
       
Add : Other income      
Interest on fixed deposit W13     5 000
       
Less : Expenses      
Interest on loan   (11 250)  
Utilities W14   (15 500)  
Depreciation - Machineries W8   (33 856)  
Depreciation - Motor vehicles W9   (6 480)  
Depreciation - Office equipment W10   (2 400)  
Salaries   (121 000)  
Repair and maintenance   (24 100)  
Rental of premise   (24 000) (238 586)
Net Profit     392 214
d.
Statement of Financial Positions as at 31 May 2021
Non-Current Assets Cost Acc.Depreciation Carrying Value
Machineries 500 000 (110 656) 389 344
Motor Vehicles 80 000 (21 680) 58 320
Office equipment 40 000 (7 200) 32 800
      480 464
Investment      
5% fixed deposit   100 000  
Investment   60 000 160 000
       
Current Assets      
Inventories   22 100  
Accounts receivable   587 000  
Cash at bank   25 950  
Cash in hand   500  
Accrued interest on fixed deposit   2 500 638 050
      1 278 514
Owner's equity      
Opening capital     272 600
add : net profit     392 214
less : drawings (10 200+3 600)     (13 800)
Closing capital     651 014
       
Non-Currents Liabilities      
3% long term loan     500 000
       
Current Liabilities      
Accounts payable   124 000  
Accrued utilities   3 500 127 500
      1 278 514
WORKING :

W1 Machineries = 500 000 - 76 800

= 423 200

W2 Motor vehicles = 80 000 – 15 200

= 64 800

W3 Office equipment = 40 000 – 4 800

= 35 200

W4 Account Receivable = 53 400 + 58 600 + 45 000 + 43 000

= 200 000

W5 Sales = 4 200 + 6 800 + 4 000 = 15 000

W6 Purchases = 2 700 + 3 800 + 2 500

= 9 000

W7 Account Payable = 9 800 + 10 300 + 6 300 + 3 600

= 30 000

W8 Depreciation Machineries = 8% × ( 500 000 – 76 800 )

= 33 856

W9 Depreciation Motor vehicles = 10 % × ( 80 000 – 15 200)

= 6 480

W10 Depreciation equipment = 6% × 40 000

= 2 400

W11
Account Receivable
Particular Debit Credit Balance
Balance b/d     102 000
Sales 687 000   789 000
Sale discount   800 788 200
Sales return   1 200 787 000
Bank   200 000 587 000

Sales = credit sales + cash sales

= 687 000 + 15 000 = 702 000
W12
Account Payable
Particular Debit Credit Balance
Balance b/d     87 000
Purchase   70 600 157 600
Purchase discount 1 400   156 200
Purchase return 2 200   154 000
Bank 30 000   124 000

Purchase = credit purchase + cash purchase – drawing

= 70 600 + 9 000 – 3 600 = 76 000

W13 Interest on fixed deposit = 5% × 100 000

= 5 000

W14 Utilities = 12 000 + 3 500

= 15 500