ACC030 Comprehensive Project April2018 (Q)

Faculty of Business Management
COMPREHENSIVE PROJECT
INTRODUCTION TO ACCOUNTING (ACC030)
PRE-DIPLOMA (COMMERCE)
BA002/PD003
Semester March 2018 – July 2018
kam/uitmsarawak/april2018
TABLE OF CONTENT
Page
1.0 INTRODUCTION
1.1 Objective 3
1.2 Business Background 3
1.3 Business Accounting Policies 3
1.4 Business Accounting Procedures 3
2.0 ACCOUNTING CYCLE 5
3.0 INSTRUCTIONS FOR THE COMPREHENSIVE PROJECT 6
4.0 APPENDIX: BUSINESS TRANSACTIONS FOR THE

MONTH OF APRIL 2018 7
1.0 INTRODUCTION
1.1 OBJECTIVES
The objectives of this project is to expose the students to the actual

accounting cycle and business processes. It also aims to help the
students to understand and record the various types of transactions. It
enables students to maintain a complete set of accounting record into
books of accounts and finally able to prepare the financial statements of a
sole proprietorship type of business.
1.2 BUSINESS BACKGROUND
Techies Hardware is a sole proprietorship owns by Encik Arrian which is

located at No.31, Medan Ria, Setia Raja Boulevard 96400 Mukah. The
main activity is selling and trading computer hardwares. The business
opens from 8.00 am to 5.00 pm every day.
Encik Arrian started his business on 1 April 2018 with his own money of
RM100,000 cash in hand. He also brought into his business a cabinet
display valued at RM10,000.
1.3 BUSINESS ACCOUNTING POLICIES
a. All transactions are recorded according to the date of the source

documents.
b. Payments are made either by cash or cheque. The cheques must
be signed by the owner.
1.4 BUSINESS ACCOUNTING PROCEDURES
1.4.1 The business is practicing a manual accounting system and the

books are closed every month. A trial balance and financial
statements are prepared every month. It is the practice of the
business to record their business transactions in general journals
and general ledgers.
1.4.2 Other accounting procedures
(i) Sales
Sales of goods are made of cash and credit sales.
(ii) Purchases
Purchases of goods from suppliers are made on cash or
credit.
(iii) Cash Receipts

Cash Receipts are supported by incoming cheques or official
receipts.
(iv) Cash Payments

Payments by cash or cheques should be supported by
payment voucher and other relevant source documents.
(v) Returns
Any returns by the customers, the business should issue a
credit note. Goods returned to suppliers are supported by a
credit note received from the suppliers or duplicate copy of
debit note issued to the supplier.
2.0 ACCOUNTING CYCLE
3.0 INSTRUCTIONS FOR THE COMPREHENSIVE PROJECT
(i) Read and analyze the business background, accounting policy and
procedures.
(ii) Journalize all the daily transactions in chronological order into the general
journals. Note: Narrations are required for all respective transactions.
(iii) Post all business transactions from the journals to the appropriate ledgers.
(iv) Transfer the balances (debit or credit) from the ledgers accounts to the
Trial Balance as at 30 April 2018.
(v) Prepare the following financial statements for the month of June.
a. Statement of Profit or Loss for the month ended 30 April 2018.

b. Statement of Financial Position as at 30 April 2018.
NOTE: Closing inventory as at 30 April is RM11,000.
4.0 APPENDIX: BUSINESS TRANSACTIONS FOR THE MONTH OF APRIL 2018
The following are transactions of Techies Hardware for the month of April 2018:
Date Transactions
1 The owner, Encik Arrian, contributes RM100,000 cash in hand and furniture worth
RM10,000 into the business.
1 Open a bank account and transfer RM90,000 cash into bank account.
2 The business purchased an office equipment RM20,000 on credit from Magnus Sdn Bhd.
2 Bought goods on credit from Alchemist Trading RM2,400.
3 Received an invoice from Bristle Sdn Bhd costing RM10,000 for acquisition of another
cabinet display (furniture).
5 Purchased computer hardwares from Clockwerk Trading RM10,600 on credit.
5 Cash sales RM600.
6 Sold RM2,000 worth of computer hardwares for a gaming event. The payment was
received the day after.
6 Paid RM2,400 to Alchemist Trading by cheque for goods purchased on 2 April 2018.
7 Received cash RM1,000 for goods sold on 6 April 2018.
8 Paid RM5,000 to Bristle Sdn Bhd for amount owed by cheque.
8 Received an invoice costing RM6,400 for goods purchased from Dark Willow Trading.
9 Issued an invoice RM1,600 for goods sold to Enigma Trading.
9 Paid RM6,000 to Clockwerk Trading by cheque as part of settlement of business debts.
10 Returned goods to Dark Willow costing RM600 due to wrong specifications.
10 Issued an invoice RM2,160 for goods sold to Juggernaut Trading.
11 Juggernaut Trading returned wrong hardwares to the business worth RM500.
12 Issued receipt to Enigma Trading for cheque received worth RM1,600.
13 Issued a cash bill worth RM1,660 to Legion Trading for goods sold.
14 Owner took a set of computer hardware amounting RM400 for his nephew’s birthday.
23 The business paid insurance expense of RM2,000 by cheque.
24 Paid of RM1,000 for shop rental by cheque.
27 Paid utility bills of RM300 by cash.
28 Paid advertising expense RM2,000 by cash.
28 Paid stationeries of RM400 by cheque.
29 Paid transportation expense of RM300 by cash.
29 Paid general expenses for RM1,000 cash.
30 Paid wages and salaries amounting RM3,000 by cheque.
30 Owner took RM1,000 cash for personal expense.
30 Transfer half of cash in hand into bank.

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Faculty of Business Management

Semester March 2018 – July 2018

2.0 ACCOUNTING CYCLE 5

3.0 INSTRUCTIONS FOR THE COMPREHENSIVE PROJECT 6

4.0 APPENDIX: BUSINESS TRANSACTIONS FOR THE

The objectives of this project is to expose the students to the actual

1.2 BUSINESS BACKGROUND

Techies Hardware is a sole proprietorship owns by Encik Arrian which is

1.3 BUSINESS ACCOUNTING POLICIES

a. All transactions are recorded according to the date of the source

1.4 BUSINESS ACCOUNTING PROCEDURES

1.4.1 The business is practicing a manual accounting system and the

(iii) Cash Receipts

(iv) Cash Payments

3.0 INSTRUCTIONS FOR THE COMPREHENSIVE PROJECT

a. Statement of Profit or Loss for the month ended 30 April 2018.

NOTE: Closing inventory as at 30 April is RM11,000.

4.0 APPENDIX: BUSINESS TRANSACTIONS FOR THE MONTH OF APRIL 2018

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