CT Far160 Dec2022 Q

CONFIDENTIAL 1 AC/DEC 2022/FAR160
UNIVERSITI TEKNOLOGI MARA

COMMON TEST
COURSE : FINANCIAL ACCOUNTING 2

COURSE CODE : FAR160
EXAMINATION : DECEMBER 2022
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 examination pack consists of:
i) the Question Paper

ii) an Answer Booklet – provided by the Faculty
5. Answer ALL questions in English.
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

QUESTION 1
A. State THREE (3) reasons why a business is conducted as a partnership rather than a
sole proprietorship.
(3 marks)
B. Asma, Balqis and Cempaka formed partnership with profit sharing 2:1:3 respectively
two years ago. The following details were information on capital and current statement
on 1 January 2021.
Partners Capital statement (RM) Current statement (RM)
Asma 200,000 25,000
Balqis 100,000 15,000
Cempaka 300,000 32,000
They also agreed on the following matters:

Interest on capital 10% per annum, based on the beginning capital balance
Interest on drawing 5% per annum
Interest on loan 8% per annum
Salary RM4,000 per month to each partner
During the year 2021, the following transactions took place:
1. Balqis wanted to further study on 1 July 2021 and decided to let go of her
share in the partnership. Partnership agreed to pay off all Balqis’s money on
the date she left by cheque.
2. On the same date, Danisha requested to become a new partner. Danisha

agreed to contribute RM140,000 by cheque which included RM30,000 as a
premium on goodwill.
3. A new partnership agreement provides that:

Profit sharing ratio Asma (2), Cempaka (2), Danisha (1)
Interest on capital 15% per annum, based on the beginning capital balance
Interest on drawing 5% per annum
Interest on loan 8% per annum
Salary RM5,000 per month to each partner
4. On 1 February 2021, Asma and Balqis made a drawing by RM5,000 and

RM6,000 respectively.
5. The partnership revalues its assets on 1 July 2021 and there was a
surplus on revaluation by RM60,000.
6. Net profit generated for the year ended 31 December 2021 was RM620,000
and this profit was accrued evenly throughout the year.
7. On 1 October 2021, Danisha transferred RM50,000 of her capital account

to the partnership’s loan account. No record has been made and the interest
on loan will be treated as item of Statement of Profit or Loss.

Required:
a. Prepare the goodwill account as at 1 July 2021.

(3 marks)
b. Prepare the revaluation account as at 1 July 2021.

(3 marks)
c. Prepare the appropriation statement showing pre and post period for the year
ended 31 December 2021.
(8 marks)
d. Prepare the Current statement for Balqis for the year ended 31 December
2021.
(4 marks)
e. Prepare the Capital statement for Balqis and Danisha for the year ended 31
December 2021.
(4 marks)
(All figures must be calculated to the nearest RM)
(Total: 25 marks)
QUESTION 2
A. Briefly explain THREE (3) main differences between ordinary share capital and
preference share capital.
(3 marks)
B. The Statement of Financial Position for Syazz Berhad as at 1 January 2021 was as
follows:
RM
Non-current assets 97,000,000
Current assets (including bank) 28,000,000
125,000,000
Issued and paid-up capital

45,000,000 Ordinary shares 90,000,000
8,000,000 7% Preference shares 16,000,000
Reserve
Retained earnings 13,000,000
Current liabilities 6,000,000

125,000,000

During the year ended 31 December 2021, the following transactions took place:
1. Due to their new expansion programs, on 1 April 2021 Syazz Bhd makes a
public issue of 4,000,000 ordinary shares at a price of RM2.00 each, payable
in full upon application. On 1 June 2021, the company received a total
application of 4,900,000 ordinary shares. Excess application money was
refunded.
2. On 1 July 2021, the company issued 2,500,000 7% preference shares at

RM1.80 per share, payable in full on application. The issue was fully
subscribed.
3. In order to generate more funds, on 1 September 2021 the company issued

RM500,000 6% Debentures at 98 with an issuance cost of RM10,000. The
effective interest rate was 8%. The interest on debentures was paid at the end
of the year.
4. On 1 December 2021, the company decided to issue bonus share at one (1)
new ordinary share for every forty-five (45) shares held by the shareholders as
at 1 January 2021 at RM2.00 each. Retained earnings reserve was used for
this purpose.
Required:
a. Prepare the relevant journal entries to record all the above transactions for the
year ended 31 December 2021. (Narrations are not required)
(18 marks)
b. Prepare the Statement of Financial Position (extract) as at 31 December 2021.

(Equity and Non-current Liabilities sections only.)
(4 marks)
(Total: 25 marks)
END OF QUESTION PAPER

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CONFIDENTIAL 1 AC/DEC 2022/FAR160

UNIVERSITI TEKNOLOGI MARA

COURSE : FINANCIAL ACCOUNTING 2

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

i) the Question Paper

5. Answer ALL questions in English.

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

© Hak Cipta Universiti Teknologi MARA CONFIDENTIAL

They also agreed on the following matters:

During the year 2021, the following transactions took place:

2. On the same date, Danisha requested to become a new partner. Danisha

3. A new partnership agreement provides that:

4. On 1 February 2021, Asma and Balqis made a drawing by RM5,000 and

7. On 1 October 2021, Danisha transferred RM50,000 of her capital account

© Hak Cipta Universiti Teknologi MARA CONFIDENTIAL

a. Prepare the goodwill account as at 1 July 2021.

b. Prepare the revaluation account as at 1 July 2021.

Issued and paid-up capital

Current liabilities 6,000,000

© Hak Cipta Universiti Teknologi MARA CONFIDENTIAL

2. On 1 July 2021, the company issued 2,500,000 7% preference shares at

3. In order to generate more funds, on 1 September 2021 the company issued

b. Prepare the Statement of Financial Position (extract) as at 31 December 2021.

END OF QUESTION PAPER

© Hak Cipta Universiti Teknologi MARA CONFIDENTIAL

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