Professional Documents
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QUESTION 1 (a)
Cergas Enterprise /
Income Statement
For the year ended 31 December 2014 /
RM
RM
Revenues
Sales
Less : Return inwards
Net Sales
Less : Cost of Goods Sold
Opening inventory
Purchases
Less: Return Outwards
Net purchases
Add: Duty on purchases
Cost of goods purchased
Cost of Goods available for sale
Less : Closing Inventory
280,000/
(2,300)/
277,700/
70,000/
200,000/
(1,850)/
198,150/
2,300/
200,450/
270,450/
(60,000)/
Gross Profit /
Add : Other Revenues
Discount received
Commission received
Less: Operating expenses
Insurance
Interest
Discount allowed
Carriage outwards
Utilities
Salary and wages
General expenses
Commission expenses
Net Profit /
RM
210,450/
67,250/
5,000/
5,800/
6,000/
2,500/
2,500/
8,200/
1,500/
25,000/
3,500/
3,800/
10,800/
(53,000)/
25,050/
QUESTION 1(b)
Cergas Enterprise/
Balance sheet
As at 31 December 2014 /
RM
Current Assets
Cash
Bank
Account receivable
Inventory
Total current assets
RM
7.400/
40,000/
20,450/
60,000/
127,850/
Fixed Deposit
Property, plant and equipment
Land and building
Office equipment
Less: Accumulated depreciation
Motor vehicles
Less: Accumulated depreciation
Total Assets
10,000/
265,550/
28,000/
9,850/
140,000/
50,000/
18,150
90,000
Current Liabilities
Account Payable
373,700
511,550/
24,500/
Long-term liabilities
Long-term loan
Owners Equity
Capital
Add :Net Profit
Less : Drawing
Total owners equity
RM
250,000/
215,000/
25,050/
(3,000)/
237,050
511,550/
QUESTION 2(A)
1/8
2/8
7/8
8/8
25/8
31/8
ITEMS
Bal b/d
Anita
Sales
Q Smart
Sales
Cash
DA
Bal b/d
Bank
6,672/
250/
152/
29/
415/
500/
240/
29
1/9
Cash
200/
852/
250
4/8
10/8
14/8
18/8
20/8
27/8
31/8
31/8
ITEMS
Wages
Sundry
Purchase
J.Sandra
Drawing
Stationary
Bank
Bal c/d
7,577/
6,786
DR
Cash
49/
83/
506/
285/
16/
16
100/
130/
240/
250/
852
Cash Book
QUESTION 2(B)
i)
ii)
iii)
iv)
v)
Account
receivable
Account payable
Equipment
Dividends
Bank overdraft
Bank
Classification
Asset /
Normal Balance
Debit /
Liability /
Asset /
Stockholders equity /
Liability /
Credit /
Debit /
Credit /
Credit /
6,786/
7,577
Date
201
4
Particulars
31 Balance b/d
Credit transfer
Credit transfer
Particulars
624,370
/ 2014 31 Standing order
600/
Standing order
3,400/
Bank charges
Direct debit
Dish.Cheque
Error (4,000 x2)
Balance c/d
628,370
/
2,000/
250/
RM
1,500/
500/
60/
400/
2,240/
8,000//
615,670/
628,370/
RM
610,920/
7,000/
617,920/
(2,250)/
615,670/
QUESTION 4 (A)
No
i)
Formula
Gross profit/ Net sales
Calculation
280,000/600,000
= 0.46 /
Comment
ii)
iii)
iv)
v)
vi)
225,000/600,000
= 0.38 /
Comment
COGS/Average inventory /
320,000/22,000
= 14.55 times //
Comment
600,000/52,000
= 11.54 times /
Comment
133,000/107,000
= 1.24/
Comment
107,000/33,000
= 3.24:1 /
comment
QUESTION 4(B)
Advantages
1) Limited liability. /
2) Share transfer can be easily done. /
Disadvantages
1) Bound by government regulations. /
2) High establishment cost. /
3) Double taxation. /