ACC166

FINANCIAL AND COST ACCOUNTING

ASSIGNMENT

PAST YEAR QUESTION (DECEMBER 2014)

NAME : AHMAD SIDDIQ BIN SANI (2013467436)

NUR AFIQAH BINTI ANUWAR (2013279908)

NUR RADIAH BINTI MOHD YUSOF (2013201196)

SHAHIRAH BINTI BORHAN (2013603592)

GROUP : EH2207A

SUBMITTED TO : ENCIK HALIM SHUHAIMI YEOP JOHARI

DATE OF SUBMISSION : 19 DECEMBER 2016

Answer:

Question 1 (a)

Date Particulars Debit (RM) Credit (RM)

Cash 100 000
1/11/2014
Capital 100 000
Purchases 4 500
2/11/2014
Cahs 4 500
Motor Vehicles 40 000
3/11/2014
Cash 40 000
Purchases 10 000
4/11/2014
Mahmood 10 000
Cash 8 000
5/11/2014
Sales 8 000
Mohsin 20 000
6/11/2014
Sales 20 000
Sundry Expenses 200
7/11/2014
Cash 200
Cash 15 000
8/11/2014
Mohsin 15 000
Return Inwards 3 000
9/11/2014
Mohsin 3 000
Mahmood 8 000
10/11/2014
Cash 8 000
Mahmood 1 000
11/11/2014
Return Outwards 1 000

Question 1 (b)

AB Enterprise

Trial Balance as at 30 November 2014

Particulars Debit (RM) Credit (RM)

Capital 100 000
Cash 70 300
Mahmood 1 000
Mohsin 2 000
Purchases 14 500
Motor vehicles 40 000
Sales 28 000
Sundry Expenses 200
Return Inwards 3 000
Return Outwards 1 000
TOTAL 130 000 130 000
Answer: Question 2

Raya Enterprise
 Statement of Profit And Loss for Year Ended

30th November 2014

RM RM RM
Sales 111280

Less Cost Of Good Solds

Opening Stock 10,000
Purchases 50,000
(Return Outwards) 650
Net Purchases 49,350
Drawings 550
48,800
Carriage Inwards 90
48,890
Closing Stock 1500
Cost Of Goods Sold 57,390
Gross Profit 53,890

Add Revenue
Discount Received 600
Interest Deposit 1000
1600
Less Expenses
Rent 2000
General 1400
Wages 17000
Insurance 1000
Telephone 800
Discount Allowed 1200
Depreciation (Motor Vehicle) 4000
Depreciation (Office Equipment) 20,000
Interest on Bank Loan 2000
Bad Debt Provision 200
Allowance For Doubtful Debt Increase 60 49,870
Carriage Expenses 210
Net Profit 5,620

Raya Enterprise

Statement of Financial Position for Year Ended

 30th November 2014

RM RM
Non-Current Asset
Motor Vehicle 50000
Less Depreciation 14000 36000

Office Equipment 100,000

Less Depreciation 40,000 60,000

Current Asset
Cash at Bank 3000
Debtor 12000
Less Provision For Doubtful Debt 360 11640
Fixed Deposit 10000
Rent(Advance) 500
Insurance (Advance) 800
Interest(Fixed Deposit) 1000
Closing Stock 1500
124,440

Finance By
Capital 80,000
Less Drawing 1050
Net Profit 5620 84,570

Non current liabilities

Bank Loan 20,000

Current Liabilities
Creditors 16170
Interest on Loan 2000
Wages 1600
Telephone Expenses(Accrual) 100

124,440

Answer question 3:

a) i. Gross Profit Margin

 Gross Profit Margin =

Periuk Catering =

= 0.75

Belanga Catering =

= 0.58

ii. Net Profit Margin

Net Profit Margin =

Periuk Catering =

= 0.15

Belanga Catering =

= 0.26

iii. Current Ratio

 Current Ratio =

Periuk Catering =

= 2.1

Belanga Catering =

= 2.67

iv. Acid-test Ratio

Acid-test Ratio =

Periuk Catering =

= 1.35

Belanga Catering =

= 1.71

b) Profitability Based on gross profit margin, Periuk Catering has higher profitability
compared to Belanga Catering as it gross profit margin is higher

Liquidity Liquidity of Belanga Catering is better than Periuk Catering as it has higher
current and acid-test ratio

c) Investors and auditor

Question 3

September 2014
 a) Overhead Analysis Sheet
Overhead item Basis Production Department Stores and
Supplies Dep.

P1 P2 P3 S1

Indirect wages 43200 72000 21600 57600

& supervision

Indirect material 21600 33120 15840 12960

Rent and rates Area

occupied

(sq. =23040 =46080 =34560 =11520

metres)

Electricity Machine
hours

=21600 =36000 =7200 =7200

Insurance on Value on
building building

=7200 =10800 =3600 =7200

Depreciation on Value of
plant plant

=36000 =86400 =10800 =10800

Repair and Direct -

maintenance labour
cost
=17280 =23040 =5760

169920 242640 99360 107280

Total

b) Reapportionment
 P1 P2 P3

S1 107280x300000 107280x400000 107280x100000

800000 800000 800000

= 40230 =53640 =13410

OAR 210150 296280 120690

300000 400000 100000

=0.7005 =0.7407 =1.2069

c) P1

0.7005x149820=104948

Actual overhead cost=201350

Under absorption

P2

0.7407x419800=310945.86

Actual overhead=370900

Under absorption

Answer:Question 5 (a)
(i) Net profit of the year = Sales Fixed cost

Total fixed cost = RM 100 000 + RM 48 000 + RM 32 000 = RM 180 000

Net profit = RM 500 000 RM 180 000 = RM 320 000

(ii) Break-even point in units =

Contribution per unit =

= RM 7.20 per unit

Break-even points in units = = 25 000 units

Break-even points in value = Break-even points in units X Selling price per unit

Selling price per unit = = RM 10 per unit

Break-even points in value = 25 000 units X RM10 per unit = RM 250 000

Question 5 (b)

(i) Sales = Selling price per unit X Total unit

= RM 10 X 70 000 units = RM 700 000

Net profit = RM 700 000 (RM 180 000 + RM 36 000) = RM 482 000

(ii) New fixed cost = RM 180 000 + RM 36 000 = RM 216 000

Contribution per unit = =

= RM 8.00 per unit

 Break-even points in units = = 27 000 units

Break-even points in value = 27 000 units X RM 10 per unit = RM 270 000

Margin of safety = Sales Break-even point

= RM 700 000 RM 270 000 = RM 430 000

Question 5 (c)

Fixed cost = RM 180 000

New net profit = RM 482 000

Net profit of the year = Sales Fixed cost

Sales = Net profit + Fixed cost

= RM 482 000 + RM 180 000 = RM 662 000

Total unit =

= = 66 200 units

Question 5 (d)

Break-even point is the level of output at which costs are balanced by sales revenue and neither
a profit nor loss will occur