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SUPPLEMENTARY EXAM TRIMESTER 2 2014-2015

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

Total liabilities and owners equity

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

QUESTION 3 (a) (b)

Date
201
4

Particulars

31 Balance b/d
Credit transfer
Credit transfer

Adjusted cash book/


RM Date

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
/

Bank Reconciliation statement as at 31 October 2014/


RM
Balance as per bank statement
Add : Deposit in transit
Fung Yeng Ent.
2,400/
Edy Services
2,600/
Sejati Boutique
2,000/
Less: Outstanding checks
Master Ent
Edy Services
Balance as per adjusted cash book

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)

Net profit/Net sales

For every RM1 of sales, the business is able to


generate RM0.46 gross profit before deducting
any operating expenses /
/

225,000/600,000
= 0.38 /

Comment

For every RM1 of sales, the business is able to


generate RM0.38 net profit after all expenses
paid /

COGS/Average inventory /

320,000/22,000
= 14.55 times //

Comment

The business replaced its inventory 14.55 times


a year /

Net credit sales/average net account


receivable
/

600,000/52,000
= 11.54 times /

Comment

The business account receivables turned over


11.54 times a year. /

Total liability/total asset

133,000/107,000
= 1.24/

Comment

124% of the businesss assets are financed by


debt. /

Current asset/current liability /

107,000/33,000
= 3.24:1 /

comment

For every RM1 of liability, the business has


RM3.24 of current asset to repay that liability./

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) More ability to expand due to extensive


capital through issuance of shares. /

3) Double taxation. /

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