PAST YEAR JUN 2016

FINANCIAL AND COST ACCOUNTING (ACC166)

Prepared By:

FATIN NAJWA BINTI CHE JAMIL (2013611752)

SORAYA NANIS BINTI HAMDAN (2013471294)
NOR SYAHIRA ADILA BINTI ISMAIL (2013629546)
EH2207A

Submitted To:
HALIM SHUHAIMI YEOP JOHARI

22 DECEMBER 2016
JUN 2016 (Q1)

Formula use:

Asset + Expenses = Capital + Liability + Revenue

No Transaction Type of accounts Affect Account entry

1 Open business with RM 10 000 Owner equity Increase Capital
cash and laundry equipment Asset Increase Cash
valued RM 10 000 Owner equity Increase Capital
Asset Increase Office
equipment
2 Borrowed RM 15 000 cash from Liability Increase Shark Loan
Shark Loan Sdn. Bhd. Sdn. Bhd.
Asset Increase Cash
3 Bought laundry detergents on Liability Increase Dayya Sdn.
credit from Dayya Sdn. Bhd. Bhd.
amounting RM 200 Asset Increase Goods
4 Cash sales of RM 200 Revenue Increase Sales
Asset Increase Cash
5 Paid cash for miscellaneous Asset Increase Cash
expenses RM 200 Expenses Decrease Returned out
6 Returned defective detergents Liability Decrease Dayya Sdn.
to Dayya Sdn. Bhd. amounting Bhd.
RM 200 Asset Decrease Goods
7 Paid rental of premises Expenses Increase Rental
amounted to RM 300 by cash Asset Decrease Cash
8 The owners took goods worth Owner equity Increase Drawing
RM 500 for personal used Asset Decrease Goods
9 Purchased another dryer Liability Increase Creditor
machine on credit worth RM 5 Asset Increase machine
000
JUN 2016 (Q2)

a)
PAK RAMLI TRADING
Statement of Profit or Loss for the year ended 31st December 2015
RM RM
Sales 775, 400
(-) Sales Return (Return (4200) 771,200
Inwards)
Less : Cost of Good sold :
COGS
Opening stock 45,800
Purchases (541,300 + 3550) 544,850
(-) Purchases return (return (2480)
outwards)
(+) Duty on purchases 2200 2200
(+) Transportation Inwards 3420 593,790

Less : Closing stock (34890) 558,900

(Inventory)
Gross Profit 212,300
Add : Revenue
Rental income (credit) 35,500
(+) Commissions (credit) 16,800
(+) Interest received 13,500 65,800

Less : Expenses
Water and electricity 31,750
Rental 28,100
Furniture & Fitting 11,850
Office equipment 12,500
Motor Vehicles 108,000
Stationaries 13,700
Salaries 122,680
Motor Vehicle Expenses 104,380
Transportation Outwards 3,540
Comission Expenses 15,500
Bad Debtor 1,200
Allowance for doubtful debt 4,240
Interest on loan 10,833 (468,273)
Net Profit/Loss (190,173)
b) Statement of Financial Position at End 31st December 2015

RM RM RM
Non-current asset :
Furniture and Fittings 118,500 (31,550) 86,950
Office equipment 125,000 (37,500) 87,500
Motor vehicles 560,000 (128,000) (432,000)
Current Asset :
Closing stock 34,890 34,890
Cash in bank 125,900 125,900
(1121100 + 13500)
Cash in hand 12,500 12,500
Account receivable 84,800
(-) Bad debt 1,200
(-) Allowance for 9,180 74,420
Provision Doubtful
(4900 +4200)

Fixed Deposit 120,000 120,000

974,160
Owned by :
Capital 568,900
(+) Net Profit (190,173)
(-) Drawings 12,700 366,027
Current liabilities :
Account Payable 72,500
Interest on Loan 10,822
Credit Purchases 3550
Water and electricity 1250 88,133
Non-current Liability:
SMM Bank Loan 520,000 520,000
974,160
JUN 2016 (Q3)

a) Calculate the following ratios for the year ended 31 December 2015.
i. Current ratio

=

74315
=
38720
= 1.9193
ii. Quick ratio

=

74315 7885
=
38720
= 1.7157
iii. Accounts receivables collection period

= 365

28150
= 365
170050
= 60.4219
iv. Inventory turnover ratio

=

7885 + 10700
= = 9292.5
2
110085
=
9292.5
= 11.85
b) Comments on the ratios calculated in (a)
The current ratio is 2:1, indicates that assets is greater than liabilities
High current ratio to be better as it indicates the company can fully pay the creditor
back
Quick ratio more than one can pay back its current liabilities
They are able to meet its current obligations
Accounts receivable shows it more than 30 days which it has become a business risk
that some certain customers will not pay balances due at all
High inventory turnover ratio indicates more sales are being generated for a given
amount of inventories.
JUN 2016 (Q4)

a)

Overhead sheet analysis

Production department Service dept.

Cost item Basis
Preparation Canning Delivery
Indirect material Direct allocation 8 000 6 000 4 000
Indirect wages Direct allocation 12 000 11 200 8 800
Number of
Staff supervision 7 360 9 200 1 840
employee
Number of
Staff meals 8 000 10 000 2 000
employee
Heating and
Area 1 920 2 400 480
lighting
Maintenance of Direct labour
10 631.58 9 568.42 -
equipment hour
Building
Area 1 280 1 600 320
insurance
Depreciation of
Ratio = 4:2:2 15 000 7 500 7 500
equipment
Total apportion 64 191.58 57 468.42 24 940
Re apportion: Half for each
12 470 12 470 (24 940)
delivery dept
Total 76 661.58 69 938.42 -

b) Overhead absorption rate (OAR):

76 661.58
Preparation department = 9 600

= RM 7.99 / machine hours

69 938.42
Canning department = 9 000

= RM 7.77 / direct labour hours

c) Under or over absorption of overhead

preparation department = 7.99 X 7 000

= RM 55 930

= under absorption of overhead

Canning department = 7.77 x 9 200

= RM 71 484

= Under absorption of overhead

JUN 2016 (Q5)

RM RM
Selling price/unit 200
Cost/unit
Direct Material 100
Direct Wages 12
Variable overhead 8
Fixed overhead 20 (140)
Profit/unit 60

Annual production : 130000 units

a)
Sales 200
Direct Material (100)
Direct Wages (12)
Variable overhead (8)
Contribution margins RM80

= 20 13000 = RM2600000

=

2600000
= = 32500
80
= 200 32500 = 6500000
= 130000 32500 = 97500

b) Additional cost = RM 10000

Material cost increase = 50% = RM150

Wages cost increase = 25% = RM15

i. = 2610000
() = 27

(#) = 96667
ii. = 4000000
=
= ( + )

4000000 = (130000) [(173 130000) + 2610000]

 = 223.8461
iii. = 4000000

10% = 8.8
4000000 = (200) [(173.8 130000) + 2610000]
= 140620

c) Cost volume profit (CVP)

i. Three assumption need to be made before a cost-volume-profit (CVP) analysis can
be used,

1. Constant sales price

2. Constant variable cost per unit
3. Constant total fixed cost

ii. One example for each direct material cost and fixed cost,
Direct material cost = Raw materials
Fixed cost = Rental