DIP1ACC03 Faculty of Business, Economics & Accounting Assessment Help

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Faculty of Business, Economics & Accounting

Department of Business Studies

Department of Accounting and Finance

School of Hospitality of Tourism

 

Part A: 20 marks

YOU ENTERPRISE runs a dress-making business and maintains a full set of accounting records. YOU ENTERPRISE’s financial year ends on 31December.

On 31 December 2019, YOU ENTERPRISE opened a suspense account and entered a credit balance of RM 2,027.

 

Required:

a).  State two reasons why it was necessary for you to open a suspense account.

(8 marks)

 

After analyzing their accounting records, YOU ENTERPRISE discovered the following errors that had been made:

1. Rent of premises, RM 250, had been debited to the rent account as RM 520.
2. RM 400 withdrawn from the bank for personal use had been debited to the wages account.
3. The total of the discount allowed column in the main cash book, RM 43, had not been transferred to the discount allowed account in the ledger.
4. RM 2,000 received from Amina had been credited to the account of Mona as RM200

Required:

b). Prepare the entries in YOU Enterprise’s general journal to correct the errors above. (8 marks)

c).  Complete the table below to show what effect each of the four errors had on your company’s profit for the year ended 31 December 2019. (4 marks)

Error	Effect on profit for the year
	Overstated RM	Understated RM	No effect
1
2
3
4

 

Part B: 80 marks

QUESTION 1 (40 MARKS)

Cast 77 Service Company has the following account balances: Cash, RM6,000; Accounts ReceivableRM7,000; Bank RM1,900; Fixed deposit RM1,200;  Supplies RM950; Equipment, RM7,000; Trucks, RM10,000; Accounts Payable, RM2,700; loanRM25,000; CapitalRM6,350. Business transactions during December are presented as follows:

1. Company received cash from clients for services, RM 7,500
2. Cast 77 paid to creditors RM600,
3. Paid office rent for the month of December, RM950,
4. Company billed client for accounting services on account, RM8,200
5. Supplies were purchased on account, RM450,
6. Company received cash from clients billed previously, RM4,200
7. Cast 77 received an invoice for services from Copy Plus for December (the invoice will be paid next month), RM 550,
8. Cast 77 paid monthly salaries, RM4,700,
9. Utilities expense were paid, RM380,
10. Miscellaneous expense were paid, RM250,
11. Paid for monthly insurance, RM200
12. Interest were paid, RM750.

Required:

1. Apply the basic accounting equation (create a spreadsheet) to complete a transaction analysis for each transaction (hint:  enter the balances provided first). (18marks)
2. Prepare income statement for the year ended 31 December. (10 marks)
3. Prepare statement of owner’s equity for the year ended 31 December. (2 marks)
4. Prepare balance sheet as at 31 December. (10 marks)

 

QUESTION 2 (40 MARKS)

1).  Accounting has often been called the language of business. In what respects would you agree with this description? How might you argue that this description is deficient?

In accounting, people prepare financial statement to record all the financial transactions and transmit all kind of financial information to relevant persons. Accounting provide, record and analysis a business’s past and present financial events. From these statement and report the parties can access their financial solvency or insolvency and etc. shorthand is a language but people who ignorant of it would not understand this symbolic language and so people call accounting as the language of business is logical also. The deficient of this description is there’s not any meaning for those who do not have knowledge about accounting. It just like a newspaper is just a paper for a blind person. There are no language in this world can be use as a general language. (10 marks)

2).  What is a balance sheet? On what aspect of a business does the balance sheet provide information?

All asset and liabilities that own by the business will be show in balance sheet. Balance sheet is a statement or report of the company financial position at end of the certain or specific period. Balance sheet use to transmit a company financial position to other people such as investors. (5 marks)

3).  What is an income statement? On what aspect of a business does this statement provide information?

Income statement is also call as profit and loss statement. This statement uses to show the business operating result. The result come out by the business revenue take out the expenses and cost. There will profit if the revenue is more than cost which mean the result come out is positive and opposite, if the revenue deducted the cost and expenses is negative will be the loss of the business. (5 marks)

4).  Give an example from your personal life that illustrates your use of accounting information in reaching a decision.  (10 marks)

5).  You have been elected to the governing board of your church. At the first meeting you attend, mention is made of building a new church. What accounting information would the board need in deciding whether to go ahead? (10 marks)

 

Criteria for grading

• You must demonstrate the knowledge acquired during the class and creatively applying it.
• If you have referred to any books or websites to provide your opinion, you are required cite them in the bibliography
• Should the work be similar with your classmates, the assignment will automatically be void.
• Marks will be based on the creativity and answers.
• All work must be neatly types using Microsoft Office software. (Eg: Microsoft word & Excel)

Requirement when you submit the assignment:
1.Cover page (write tittle as final assignment)
2. Table of contents
3.Your assignment answers
4.Turnitin report (only the page showing the percentage)

You all have to submit the final assignment via email to: haashini.g@help.edu.my

When you submit the assignment you should save the assignment as >YOURFULLNAME_CAMPUS<eg: YUHAASHINI_ELM or YUHAASHINI_Subang2

 

For REF… Use #getanswers2001576