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    Far160 (CT October 2018) Question

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    Farah Husna
    The document is a confidential exam paper for a Financial Accounting 2 course. It contains two questions assessing students' knowledge of partnership accounting and company accounting. Question 1 has multiple parts requiring students to prepare various accounting statements for a partnership, while Question 2 involves journal entries for share and debenture issuances by a company and preparing an extract of its statement of financial position.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Far160 (CT October 2018) Question

    Uploaded by

    Farah Husna
    86 views4 pages
    The document is a confidential exam paper for a Financial Accounting 2 course. It contains two questions assessing students' knowledge of partnership accounting and company accounting. Question 1 has multiple parts requiring students to prepare various accounting statements for a partnership, while Question 2 involves journal entries for share and debenture issuances by a company and preparing an extract of its statement of financial position.

    Original Title

    FAR160 (CT OCTOBER 2018) QUESTION

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    The document is a confidential exam paper for a Financial Accounting 2 course. It contains two questions assessing students' knowledge of partnership accounting and company accounting. Question 1 has multiple parts requiring students to prepare various accounting statements for a partnership, while Question 2 involves journal entries for share and debenture issuances by a company and preparing an extract of its statement of financial position.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    86 views4 pages

    Far160 (CT October 2018) Question

    Uploaded by

    Farah Husna
    The document is a confidential exam paper for a Financial Accounting 2 course. It contains two questions assessing students' knowledge of partnership accounting and company accounting. Question 1 has multiple parts requiring students to prepare various accounting statements for a partnership, while Question 2 involves journal entries for share and debenture issuances by a company and preparing an extract of its statement of financial position.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 4

    CONFIDENTIAL 1 AC/OCT 2018/FAR160

    UNIVERSITI TEKNOLOGI MARA


    COMMON TEST 1

    COURSE : FINANCIAL ACCOUNTING 2


    COURSE CODE : FAR160
    EXAMINATION : OCTOBER 2018
    TIME : 1 HOUR 30 MINUTES

    INSTRUCTIONS TO CANDIDATES

    1. This question paper consists of TWO (2) questions.

    2. Answer ALL questions in the Answer Booklet. Start each answer on a new page.

    3. Do not bring any material into the examination room unless permission is given by the invigilator.

    4. Please check to make sure that this test pack consists of :

    i) the Question Paper


    ii) an Answer Booklet – provided by the Faculty

    5. Answer ALL questions in English. (All figures must be calculated to the nearest RM)

    DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO


    This examination paper consists of 4 printed pages

    © Hak Cipta Universiti Teknologi MARA CONFIDENTIAL


    CONFIDENTIAL 2 AC/OCT 2018/FAR160

    QUESTION 1

    A. Section 26 of the Partnership Act 1961, provides the key principles to be applied in
    determining the accounting procedures relating to a partnership. This section will
    apply in the absence of any agreement either expressed or implied between the
    partners.
    State any THREE (3) items apply in section 26 Partnership Act 1961 in the absence
    of Partnership agreement.
    (3 marks)

    B. Simon, Sam and Dam were partners in Samudera Enterprise sharing profit and
    losses equally. The partnership charge interest on drawings at the rate of 6% per
    annum and no interest on capital. The capital and current statement balances for the
    partners as at 31 December 2016 were as follows:

    Capital Current
    RM RM
    Simon 20,000 (4,000)
    Sam 20,000 2,000
    Dam 20,000 3,000

    During the year 2017, the following transactions took place:

    1. Sam retired from the partnership on 1 May 2017. On that day, the assets’ value
    were as below:

    Carrying value New value


    RM RM
    Plant and Machinery 40,000 74,000
    Fixtures and fittings 8,000 2,000
    Inventories 14,000 11,800

    2. Goodwill was valued at RM30,000. The goodwill account will not be maintained
    in the partnership books.

    3. The amount due to Sam totaling RM20,000 will be considered as loan to the
    partnership. The remaining balance is paid to Sam by cash.

    4. A new partnership agreement was drawn up which stated that:

    i. No interest on drawings.
    ii. Interest on capital is allowed at the rate of 6% per annum on opening
    balance.
    iii. Profits and losses will be shared equally.
    iv. Dam was entitled to a salary of RM3,000 per annum.

    5. Net profit for the year ended 31 December 2017, is amounted to RM180,000.

    © Hak Cipta Universiti Teknologi MARA CONFIDENTIAL


    CONFIDENTIAL 3 AC/OCT 2018/FAR160

    6. Drawings made by partners were as follows:

    1 February 2017 1 October 2017


    RM RM
    Simon 10,000 12,000
    Sam 15,600 -
    Dam 14,000 10,000

    Required:

    a. Goodwill statement as at 1 May 2017.


    (3 marks)

    b. Revaluation statement as at 1 May 2017.


    (3 marks)

    c. Appropriation statement for the year ended 31 December 2017.


    (7 marks)

    d. Partner’s Capital Statement and Partner’s Current Statement for the year ended 31
    December 2017.
    (9 marks)

    (TOTAL: 25 marks)

    © Hak Cipta Universiti Teknologi MARA CONFIDENTIAL


    CONFIDENTIAL 4 AC/OCT 2018/FAR160

    QUESTION 2

    A. a. Give reasons why companies issue bonus shares.


    (1 marks)

    b. State FOUR (4) types of companies


    (2 marks)

    B. Given below is the Statement of Financial Position extract of Rosella Bhd as at 31


    December 2017.

    Issued and paid up capital RM


    12,000,000 Ordinary shares 6,000,000
    1,000,000 7% Preference shares 2,000,000

    Reserves
    Retained earnings 1,230,000

    Assets
    Bank 400,000

    During the year 2017, the directors of Rosella Bhd decided the following:

    1. On 1 July 2017, in order to support the expansion of the business, the


    company decided to issue 2,000,000 units ordinary shares at RM0.30 per
    share. The company also issued 500,000 units of preference shares at
    RM2.20. The shares issued were payable in full on application.

    2. As on 31 July 2017, the application received for the issue of preference


    shares and ordinary shares were 250,000 units and 4,000,000 units
    respectively. The money received on oversubscribed shares were refunded
    to the applicants.

    3. On 1 October 2017, the company issued RM500,000 6% debentures at 96.


    The issuance cost for the related issue was RM15,000. It is assumed that the
    effective interest rate is 10% and the debenture interest was paid at the end
    of the year on 31 December 2017.

    Required:
    i. Prepare the relevant journal entries to record all the above transactions for the year
    ended 31 December 2017. (Narration are not required)
    (15 marks)

    ii. Prepare an extract of Statement of Financial Position (extract) as at 31 December


    2017 (Equity and Liabilities sections only).
    (7 marks)
    (TOTAL: 25 marks)

    END OF QUESTION PAPER


    © Hak Cipta Universiti Teknologi MARA CONFIDENTIAL

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