FACULTY OF CHEMICAL ENGINEERING

ACC 166
FINANCIAL AND COST ACCOUTING

ASSIGNMENT
PREPARED BY :

MUHAMMAD HATIM BIN TAIB 2013815014

MUHAMAD ZULIKRAM BIN ABDUL HALIM 2013488144

MOHAMAD ROZAINI BIN ROSLI 2013233742

GROUP :

EH220 7A

DATE :

23rd DECEMBER 2016

Question 1 A.
Journal Entries (debit/credit)

Date Journal Entry Debit(RM) credit (RM)

1-Aug Miscellaneous expanses cash 100
Cash 100
2-Aug Cash 10000
Capital 10000
3-Aug Purchase 5000
AA Enterprise 5000
Stock 5000
Creditor: AA Enterprise 5000
4-Aug Jihan 1500
Sales 1500
Deptor :Jihan 1500
Stock 1500
5-Aug Office Equipment 5000
Cash 5000
6-Aug AA Enterprise 200
Purchase /goods 200
b)

Date Event Book of Prime Entry

1/8 Miscellaneous expenses cash General journal

2/8 Cash capital

3/2 Received an invoice from AA enterprise Purchases journal

for goods

4/8 Issued an invoice to Jihan Sales journal

5/8 Office's equipment cash General journal

6/8 Return outward to AA enterprise Return outward journal

Question 2
a) Prepare a statement of profit or loss for the year ended 31 Dis2014

RM RM RM
Sales 220000
Less: Return Inwards 9000
NET SALES 211000

Less: Cost of goods solds

Opening stock 36000
Purchases 180000
Less: Return Outwards 13500
NET PURCHASES 166500
(+) Carriage
inwards 600
(-) Drawings 3500
163600
Less: Closing stock 105000
Cost of good solds 94600
GROSS PROFIT 116400
ADD: Revenue
Dividend Received 1500
Commisions Received 7000
Discount Received 400
Rental Received 2160
11060

LESS: Expenses
Carriage outwards 1050
Advertisement 4900
Discount allowed 2550
Electricity 1200
Commisions allowed 2100
Insurances 4000
Rental expenses 12500
salaries 20500
Depreciation :
Machinery 600
Motor vehicle 9900
Bad dept 200
allowance for doubtful dept 500
Interest on Loan 5500
65500
NET PROFIT 61960
 b) Prepare of statement financial position as at 31 Dec 2014

RM RM
Non-Current Assets
Free hold premises 240000
Machinery 6000
Less: Accumulated depreciation 2100
3900
Motor Vehicles 75000
Less: Accumulated depreciation 35400
39600
283500
Current Assets
Account Receivable 121000
Less: Bad Dept 200
Less: Allowance For Doubtful
Dept 800
120000
Cash 750
Bank 8700
Investment 9000
Prepaid Electricity 300
Closing stock 105000
527250
Financed by:
Owner's Equity
Capital 167200
Less : Drawing 8000
Add: Net Profit 61960
221160

Non-Current Liabilities
Load from Bank 165000

Current Liabilities
Account Payable 134000
Rental Expenses Accrued 750
Insurance accrued 300
Interest on loan accrued 5500
rent received in advanced 540
141090
527250
Question 3

a)

(i) Current ratio

86,000
=
68,500

= 1.25547 : 1

(ii) Quick ratio

86,000 21,000
=
68,500

= 0.9489 : 1

(iii) Inventory Turnover ratio

Average stock = 1/2 (opening stock + closing stock)

= 1/2 (RM 12,000 + RM 21,000)

= RM 16,500

Inventory turnover ratio

171,000
=
16,500

= 10.363 : 1

(iv) Accounts receivable collection period

= x 365 days

 17,000
= x 365 days
320,000

= 19.39 20 days

(v) Net Profit Margin

= x 100%

178,500
= x 100%
320,000

= 55.78%

(b) Current ratios

- The assets exceeds the liabilities with 25% of the liabilities value. Thus,
Kamen Enterprise can proceed the business.

Quick ratios

- The liabilities of Kamen Enterprise is over the current assets (excluding stock).
Thus, current assets without stock such as bank, accounts receivable cannot
support the liabilities.

Inventory Turnover ratio

- =

= 10.4 : 1

The stock can be turnover until 10 times its value.

Question 4

a)

Overhead item Basis Cutting Shaping Survice Deparment Maintainance Total

RM RM RM RM
Allocated overhead cost 120,000 10,000 50,000 270,000

Machinery Depresiation Book value of Machinery 48,000 18,000 6,000 72,000

Indurance on Machinery Book value of Machinery 26,666.67 10,000 3,333.33 40,000

Electricity Maintenance Hours 15,157.89 11,368.42 9,473.68 36000

Factor Building Insurance Floor Hours 22153.84 114769.23 11076.923 48000

Total 231974.4 154137.65 79883.933 466000

Reapportion Maintenance Direct Labour Hourd 3853.52 41230.42

Total 270627.92 195368.07

 b)

Cutting Shaping

270627.92 19536.07
147,600 160,000
Overhead Absorption Rate
= RM 1.8335/ hour = RM 1.22/ hour

C)

Cutting department:

240416
= 1.598/
150,400

Shaping department:

183,000
= 1.33/
137,100
Question 5

A. a)

(i) Break-even Point in units and value

CM = 250 - 50

= 200

-->1000 units

Fixed cost

= 60,000 + 20,000 + 10,000

= RM 90,000

BEP (#) BEP (RM)

90,000
= = 450 x 250
200

= 450 units = RM 112,500

(ii) Margin of safety in units and value

1000 units - 450 units

(#) = 550 units

550 units x RM 250

(RM) = RM 137,500

b) FC + 10,000 VC + 10

= 90,000 + 10,000 = 50 + 10

= 100,000 = 60
(i) New Break-even Point in units and value

CM = 250 - 60

= 190

--> 1000 units

Fixed Cost (New) = RM 100,000

BEP (#) BEP (RM)

100,000
= = 527 x 250
190

= 526.3 units = RM 131,750

527 units

(ii) Number of units needed to be sold to obtain profit of RM 150,000

= + +

= 150,000 + 60 + 100,000

Sales = RM 310,000

310,000
=
250/

= 1240 units

(iii) Expected profit if;

Rental 10% = (60,000 x 0.1) + 60,000

= 66,000
Salary 15% = (20,000 x 0.15) + 20,0000

= 23,000

Variable 10 = 50 - (50 x 0.1)

Cost = 45

Units = 1200 units

Fixed Cost (New)

= 66,000 + 23,000 + 10,000

= 99,000

Contribution margin

= 250 - 45

= 205

Sales

= 1200 units x RM 250

= RM 300,000

= ( + )

= 300,000 - (45 + 99,000)

Profit = RM 200,955
B. True (T) or False (F)

i) Changes in selling prices, sales volume and variable cost will not affect the
net profit. (F)

ii) Based on the Cost Volume Profit (CVP) assumption, the total production units
are equal to total units sold. (F)

iii) Break-even point is a point where total sales are equal to total variable costs.
(F)

iv) A business with a higher margin of safety will be able to absorb bigger
reduction in sales volume as compared to firm with a lower margin. (T)

v) The business will make a profit when the sales are lower than break-even
point. (F)