Assingment Sem 1 Acc
Assingment Sem 1 Acc
Assingment Sem 1 Acc
SEM 1 / 2019
BBFA1103
INTRODUCTORY ACCOUNTING
ASSIGNMENT 1
Question 1
Internal Users of Accounting Information
1.1 Managers
1
Question 2
Example of business adheres following all the accounting principle.
2.1 Matching
Matching use to determine profit for the accounting period, the revenues
of that period must be match with the expenses for the same period. For
example, Ali’s Machining buys a new piece of equipment for RM 5,000 in
2019. This machine has a useful life of 10 years. This means that the
machine will produce products for at least 10 years for future. According
to the machine cost should be matched with revenues it creates. Thus, the
machine is depreciated over its 10 years useful life instead of being fully
expensed in 2019.
This principle state to the all relevent and materials information must be
adequately disclose either in the financial statement. For example, Piano
Emporium is a nationwide piano retailer. It reports RM 15,000 in piano
inventory last year. In the notes of its financial statements, PE should
disclose its significant accounting policies. This would include its
inventory evaluation methods. PE should disclose whether its financial
statements are prepared uses FIFO or LIFO inventory cost methods.
2
QUESTION 3
3
ASSIGNMENT 2
a) Statement of Comprehensive Income for the year ended 31 December 2018.
Jumbo Trading
Statement of comprehensive income
For the year ending December 31, 2018
Account RM RM
Sales 66,276
Cost of goods sold
(29,011)
( 7,171 + 27,300 - 5,460 )
Gross profit 37,265
Operating expenses
Salaries and wages 8,410
Maintenance and petrol 2,436
Advertising 8,925
Bad debts 210
Utilities 393
Rent 1,470
Insurance 1,575
Total expenses (23,419)
Operating income 13,846
Non-operating or other
Provision for doubtful debts 90.30
Carrige inwards 441
Carrige outwards 525
Sales return 231
Purchases return 236
Creditor 7,628
(9,151.30)
Net income 4,694.70
4
b) Statement of Financial Position as at 31 December 2018.
Jumbo Trading
Statement of comprehensive income
For the year ending December 31, 2018
RM RM
Assets
Current Assets
Bank 14,553
Cash 11,750
Stock 5,460
Non-current Assets
Office equipment 42,000
Total Assets 73,763.00
Liabilities
Current liabilities
Bad debt 90.30
Total 73,672.70
Owner equity
Capital 73,684
Plus: Net profit 4694.70
Less : Drawings 3990
74388.70