CONFIDENTIAL AC/JUN2022/FAR110
UNIVERSITI TEKNOLOGI MARA
COMMON TEST
COURSE : FINANCIAL ACCOUNTING 1
COURSE CODE : FAR110
EXAMINATION : JUNE 2022
TIME : 1 HOUR AND 30 MINUTES
INSTRUCTIONS TO CANDIDATES
1. This question paper consists of THREE (3) sections:
SECTION A 15 marks
SECTION B 10 marks
SECTION C - 25 marks
2. Answer ALL questions in ENGLISH.
3. Please submit your HANDWRITTEN answers in ONE (1) pdf file. Name the pdf file according
to the following format: name_group_subjectcode.
For example: rosmawatiharon_JAC1101A_FAR110
4. Please make sure EVERY page of your answer sheets contains the followings information:
i) Name
ii) Student ID
iii) Group
DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO
This examination paper consists of 6 pages
© Hak Cipta Universiti Teknologi MARA CONFIDENTIAL
CONFIDENTIAL AC/JUN2022/FAR110
SECTION A
PART 1: MULTIPLE CHOICE QUESTIONS
This part consists of TEN (10) multiple choice questions. Choose the most suitable
answer.
1. Which of the following is not the purpose of accounting?
A. To assist management in controlling the business
B. To increase wealth of the users
C. To provide financial information to the users
D. To be used as a tool for performance evaluation
(1 mark)
2. The economic resources of a business that are expected to provide future benefits to
the business are referred to as:
A. Assets
B.
C. Expenses
D. Liabilities
(1 mark)
3.
A. A branch of knowledge concerned with the recording of financial information and
transfer of wealth.
B. A method of exchanging accounting information by writing.
C. A system that measures business activities, processes financial information into
reports and communicates the results.
D. A document that reports on an organization
(1 mark)
4. Which of the following types of business organisation provides its owner with the
advantage of a limited legal liability?
A. General partnership only
B. Sole proprietorship only
C. Company only
D. All of the above
(1 mark)
5.
i. The business incurring net loss
ii. The business making net profit
iii. The owner took goods from the business for personal use
iv.
A. i and iii
B. ii and iv
CONFIDENTIAL AC/JUN2022/FAR110
C. i, iii and iv
D. ii and iii
(1 mark)
6.
education expenses. The transaction should be recorded in:
A. General journal
B. Cash receipt journal
C. Cash payment journal
D. Purchases journal
(1 mark)
7. Determine the effect when a business bought an additional machine for business use
by paying 10% of the purchase price by cheque and the balance to be paid by an
installment basis.
A. increase in asset, increase in liability, increase in equity
B. increase in asset, increase in liability, decrease in asset
C. increase in asset, increase in liability
D. increase in asset, decrease in asset, increase in equity
(1 mark)
8. DD Enterprise sold 500 items at RM105 each before 3% trade discount. If the customer
wanted to make full settlement, it will be for:
A. RM525.00
B. RM509.25
C. RM552.25
D. RM101.85
(1 mark)
9. A trial balance will not balance if
A. The purchase of a motor vehicle on credit is debited to the motor vehicle account
and credited to the cash account.
B. Purchase invoice of RM808 for credit purchase is recorded in the purchase journal
as RM880.
C. RM500 payment by cash to an account payable is debited to account payable for
RM50 and credited to cash account for RM50.
D. Goods withdrawn by the owner of RM1,750 are debited to drawings account for
RM1,750 and credited to purchases account for RM1,700.
(1 mark)
10. A credit sale of RM5,000 to Bienda Enterprise was credited to the sales account but
wrongly debited to Bynda Enterprise (a debtor). The type of error is
A. Error of original entry
B. Error of principle
C. Error of commission
D. Compensating error
CONFIDENTIAL AC/JUN2022/FAR110
(1 mark)
(Total: 10 marks)
PART 2
Mayang is the sole owner of Harum Manis Trading, a business dealing with buying and selling
Harum Manis mango from Thailand. Mayang operates the business in Perlis. All business
transactions are recorded in Ringgit Malaysia including the purchase of mangoes from
Thailand. Mayang assumes that her business is to be in operation for an indefinite life.
Mayang sold the mangoes for RM3,000 on credit to Man Trading on 20 March 2022 and
ayang
had only received the payment from Man Trading on 1 April 2022.
Mayang asked her accounts clerk for the sales record because she wanted to submit the
information to her banker. Since the information was not available, she used the figures that
were displayed in the accounting information system as it was a lot of work to get the supporting
documentation.
2022 as the payment was made in May 2022.
Required:
1. Explain the TWO (2) measurement principles that are violated by the business.
(2 marks)
2. Suggest and briefly explain THREE (3) accounting concepts or measurement principles
applied in the above scenario.
(3 marks)
(Total: 15 marks)
SECTION B
Seri Enterprise started business on 1 May 2020 and is involved in selling cookies which are
manufactured by other manufacturers. Seri Enterprise adopted the periodic inventory system
in its accounting records. Below are the transactions that took place in the month of April 2022
for Seri Enterprise:
Date Transaction
April
2 The owner brought her own van into the business worth RM158,000.
5 Purchased cookies on credit worth RM2,500 from Cookies Trading.
7 Returned some expired cookies of RM500 to Cookies Trading.
12 Paid RM600 by cash for repairing the van.
14 Made a cash sales of RM1,000 and received a cheque for this amount.
18 The owner took three boxes of cookies valued at RM500 as Hari Raya gift to her
neighbor.
CONFIDENTIAL AC/JUN2022/FAR110
20 Issued an invoice for RM3,200 to AMN Enterprise for cookies sold on credit.
25 Paid by cheque to settle the debts to Cookies Trading.
26 Received a debit note of RM900 from AMN Enterprise for the wrong type of cookies
sent to AMN Enterprise on 20 April 2022.
30 Bought an oven for RM4,000 for business use and paid by cheque.
Required:
Analyses the effects for the above business transactions on asset, liability, capital, revenue,
and expense.
(10 marks)
Note: Use the format given below to answer the above questions.
Example: On August 1, the owner invested RM10,000 by cheque into the business.
Date Effects
Aug Increase Decrease
1 Asset: Bank
Owner Equity: Capital
SECTION C
Pretty Gifts Enterprise started its business on 1 November 2021. The business adopts the
periodic inventory system in its accounting records. Below are transactions for the month of
November 2021:
Date Transaction
November 1 The owner of Pretty Gifts Enterprise, Atikah deposited RM50,000
into the business bank account as capital of the business.
November 2 Brought in her van worth RM40,000 to be used as a delivery van for
the business.
November 4 Withdrew RM2,500 as cash-in-hand.
November 6 Purchased goods worth RM4,800 and paid to the supplier, Gigi Sdn
Bhd via online banking on the same day.
November 7 Received an invoice from Shasha Sole Distributor for goods worth
RM6,000. The credit term was 3/20, net 30.
November 11 Issued an invoice to Kolej Berjaya for goods worth RM7,200 (after
trade discount). The credit term was 2/15, net 30.
November 12 Received a credit note from Shasha Sole Distributor for defect
goods returned worth RM500.
November 19 Issued a cash bill of RM300 for goods sold to Mimi. Collection of
CONFIDENTIAL AC/JUN2022/FAR110
payment was made via online banking on the same day.
November 21 Mimi returned goods worth RM50 due to defects. A refund to Mimi
was made via online banking.
November 22 Issued a cheque for advertisement and utilities bills. The amounts
were RM2,000 and RM650 respectively.
November 23 Withdrew RM30,000 from the business bank account as an
investment in a fixed deposit account.
November 24 Additional capital of RM2,000 was introduced and kept as cash-in-
hand.
November 25 Received a commission of RM870 in cash for helping a friend selling
his goods.
November 26 Made a full settlement to Shasha Sole Distributor by cheque.
November 27 Took RM1,800 from the business bank account to repair her
personal car after a minor accident.
November 30 Received a cheque from Kolej Berjaya as a full settlement for its
account.
Required:
a. Prepare the THREE (3) column ledger to record the above transactions.
b. Prepare a Trial Balance as at 30 November 2021.
(25 marks)
(TOTAL: 50 MARKS)
END OF QUESTION PAPER
