TOPIC 7 ADJUSTMENT
Type of Adjustment Solution Impact on SOCI Impact on SOFP 1. Accruals and Prepayment Accrued Expenses or expenses payable or expenses due but not paid Add the amount accrued to the amount of expenses in the given Trial Balance Total amount record as Expenses The Accrued amount will be shown as Accrued Expenses in Current Liabilities Section Prepaid Expenses or expenses paid in advance Less the amount prepaid to the amount of expenses in the given Trial Balance The Net amount record as Expenses The prepaid amount will be shown as Prepaid Expenses in Current Asset Section Accrued Revenues or revenues receivables or revenues due but not received yet Add the amount accrued to the amount of revenues in the given Trial Balance Total amount record as Other Income The accrued amount will be shown as Accrued Revenues in Current Asset Section Prepaid Revenues or revenues received in advance Less the amount prepaid to the amount of revenues in the given Trial Balance The Net amount record as Other Income The prepaid amount will be shown as Prepaid Revenue in Current Liability Section 7.1. INTRODUCTION Financial statements are prepared based on the account balances in the trial balance. However, this data might have balances that require some adjustments. There are four types of adjustment covered in this topic 89
2. Depreciation and Provision for Depreciation Annual Depreciation Expenses = % Provision of Depreciation x Cost of Asset Or Annual Depreciation Expenses = Cost of Asset - Scrap Value Estimated Useful life of asset The amount of Depreciation Expenses counted will be recorded as Expenses First Year of Asset Bought: The amount of Depreciation Expenses will be recorded as Provision For Depreciation Cost of asset Less the Provision for Depreciation in Non Current Asset Section. Following Year: Add The amount of Depreciation Expenses for the year with the amount of Provision For Depreciation in Trial Balance (previous year) Cost of asset Less the Total Provision for Depreciation in Non Current Asset Section. Type of Adjustment Solution Impact on SOCI Impact on SOFP 90
Type of Adjustment Solution Impact on SOCI Impact on SOFP 3. Bad Debts, Bad Debts Recovered and Provision For Doubtful Debt Bad Debt = Debt that are unable to be collected from the customer (Debtors) due to - customers’ death - customers mentally incapacitated - customer cannot be traced - customer declared bankrupt by court The amount need to be written off/expense off The amount of Bad Debt will be recorded as Expenses Total Debtors Less the Bad Debt in Current Asset Section. Bad Debt Recovered = Debts have been written off as bad debt been repaid by customers. The amount of Bad Debt Recovered will be recorded as Revenues Provision For Doubtful Debt = % of Provision For Doubtful Debt x (Debtors (trial balance figure - unadjusted bad debts) l Doubtful Debt in the trial balance: The whole amount computed recorded as Expenses as Increase in Provision For Doubtful Debt Provision For Doubtful Debt 91
Type of Adjustment Solution Impact on SOCI Impact on SOFP l There is a Provision for Doubtful Debt in the trial balance: i.If the amount in Trial Balance is greater than Amount Computed = Amount Trial Balance Less Computed Amount The difference record as Other Income : Decrease in Provision for Doubtful Debt ii. If the amount in Trial Balance is lower than Amount Computed = Amount Trial Balance Less Computed Amount The difference record as Expenses: Increase in Provision for Doubtful Debt 4. Unrecorded Transactions/ Error in recording Transaction Record or Adjust the relevant account accordingly 92
7.2. FORMAT FOR ADJUSTED SOCI 93
7.3. FORMAT FOR ADJUSTED SOFP 94
TOPIC 7: PRACTICAL EXERCISE QUESTION 1 The following are the balances from the ledger of Syuhada Borneo Enterprise as at 31 December 2021. Additional information: i. Closing stock at 31 December 2021 worth RM8,320 at market price and RM8,500 at cost price. ii. Depreciation rate for motor vehicle and Machine are 10% on cost. iii. One of the customers has been declared bankrupt recently. RM2,000 need to be written off. iv. Provision for doubtful debts is 2% from debtors. v. RM120 from the total insurance paid is for January and February 2022. vi. Accrued expenses for the period are: Commission RM200 Salary RM500 You are required to prepare: a) Statement of Comprehensive Income for the year ended 31 December 2021. b) Statement of Financial Position as at 31 December 2021. 95
QUESTION 2 The following are the balances from the ledger of Rubi Cakes as at 31 December 2018. Additional information: i. Closing stock at 31 December 2018 worth RM7,210 ii. Depreciation rate for motor vehicle is 15% on cost. iii.Provision for doubtful debts is 5% from Account Receivables. iv.Insurance amounting RM155 has been paid in advance v. RM550 rent received in advanced. You are required to prepare: a) Statement of Comprehensive Income for the year ended 31 December 2018. b) Statement of Financial Position as at 31 December 2021. 96
QUESTION 3 The following is Trial Balance of Syakir Trading as at 31 December 2022. Additional information: i. Closing stock on 31 December 2022 was RM5,000 at market price and RM5,400 at cost price. ii. Salaries accrued RM700. iii.Prepaid wages on purchase RM200. iv.A bad debt worth RM300 was created. v. Provision for depreciation for machine was valued at 10% per annum using the straight line method. You are required to prepare: a)Statement of Comprehensive Income for the year ended 31 December 2022. b)Statement of Financial Position as at 31 December 2022. 97
QUESTION 4 The following is the Trial Balance for Aleya Travel and Tours on 30 June 2023. Additional information: i. Stock as at 30 June 2023 amounted RM12,320. ii. Monthly rate is RM500. iii.Purchases return amounted RM240 is not recorded in the book. iv.Depreciation for vehicle is 10% on cost. v. Allowance for doubtful debt is adjusted to 2% on debtors. vi.Prepaid payment rate RM230. You are required to prepare: a)Statement of Comprehensive Income for the year ended 30 June 2023. b)Statement of Financial Position as at 30 June 2023. 98
QUESTION 5 The following is a Trial Balance for Merqeen Agency as at 31 December 2022. Additional information: i. Stock as at 31 December 2022 was valued RM620 at cost price and RM700 at market price. ii. Depreciation for equipment is 10% on cost. iii.Provision for doubtful debt is adjusted to 5% on debtors. iv.Prepaid interest received is RM30 and prepaid commission received is RM25 v. Accrued utilities expenses is RM40 You are required to prepare: a)Statement of Comprehensive Income for the year ended 30 June 2023. b)Statement of Financial Position as at 30 June 2023. 99
QUESTION 6 The following Trial Balance of Premier Bakery as at 31 December 2018. Additional information: i. Closing stock at 31 December 2018 worth RM5,000 at market price and RM4,900 at cost price. ii. Salaries accrued RM1,000 iii.Commission revenues accrued RM300 iv.Rental expenses paid in advanced RM1,000 v. Interest revenue in advanced RM70 You are required to prepare: a) Statement of Comprehensive Income for the year ended 31 December 2018. b) Statement of Financial Position as at 31 December 2018. 100
MOCK FINAL EXAMINATION
JABATAN PELANCONGAN DAN HOSPITALITI PEPERIKSAAN AKHIR DTM40123: PRINCIPLES OF ACCOUNTING FOR TOURISM AND HOSPITALITY JANGAN BUKA KERTAS SOALAN INI SEHINGGA DIBERITAHU OLEH KETUA PENGAWAS 101
SECTION A : 100 MARKS BAHAGIAN A : 100 MARKAH INSTRUCTION: This section consists of FOUR (4) structured questions. Answer ALL questions. ARAHAN: Bahagian ini mengandungi EMPAT (4) soalan berstruktur. Jawab semua soalan. QUESTION 1 SOALAN 1 a) Identify all the related steps in accounting cycle Kenalpasti kesemua Langkah-langkah yang berkaitan dengan kitaran perakaunan [8 marks] [8 markah] b) Fill in the blank with the correct answer. Isikan tempat kosong dengan jawapan yang tepat. [10 marks] [10 markah] 102
c) Accounting information users comprise of internal and external users. Categorize the followings users whether they are internal or external users. Pengguna maklumat perakaunan kewangan terdiri daripada pengguna dalaman dan pengguna luaran. Kategorikan pengguna yang berikut samaada pengguna dalaman atau pengguna luaran. i. Employee Union Persatuan Pekerja ii. Management team Pasukan Pengurusan iii. Employee Pekerja iv. Customer Pelanggan v. Marketing Department Jabatan Pemasaran vi. Government Kerajaan vii. Bank Bank [7 marks] [7 markah] 103
QUESTION 2 SOALAN 2 a) Briefly explain the difference between general journal and special journal. Terangkan dengan ringkas perbezaan di antara jurnal am dan jurnal khas [5 marks] [5markah] b) Bella started Arabella Diving Solutions on 1 July 2022.The following information was extracted from the accounting book of Arabella Diving Solutions for the month of July 2022. Muaz memulakan Arabella Diving Solutions, sebuah perniagaan makanan dan minuman pada 1 Julai 2022. Maklumat berikut telah diambil daripada buku perakaunan Arabella Diving Solutions bagi bulan Julai 2022. 104
You are required to record all the above transactions in the appropriate journal Anda dikehendaki untuk Rekodkan semua transaksi di atas dalam jurnal yang sesuai. [20 marks] [20 markah] 105
QUESTION 3 SOALAN 3 Zabidi started a travelling agency business ZaZa Travel & Tours in January 2022. The following transactions were extracted from the books of ZaZa Travel & Tours for the month of January 2022 106
You are required to: Anda dikehendaki untuk: a) Prepare relevant ledgers to record all the above transactions. Sediakan lejar-lejar yang sesuai untuk merekod semua transaksi di atas. [15 marks] [15 markah] b) Determine the Trial Balance for ZaZa Travel & Tours as at 30 June 2022. Tentukan Imbangan Duga untuk ZaZa Travel & Tours as at 30 June 2022. [10 marks] [10 markah] 107
QUESTION 4 SOALAN 4 The following are the balances from the ledger of Melody Café as at 31 December 2021 Berikut adalah baki-baki daripada lejer Melody Café pada 31 Disember 2021. 108
Additional information: Maklumat tambahan: i. Closing stock at 31 December 2021 worth RM7,210 Stok Akhir pada 31 Disember 2021 bernilai RM7,210 ii. Depreciation rate for motor vehicle is 15% on cost. Kadar susutnilai untuk kenderaan bermotor ialah 15% atas kos. iii. Provision for doubtful debts is 5% from Account Receivables. Peruntukan hutang ragu adalah 5% daripada Akaun Belum Terima iv.Insurance amounting RM155 has been paid in advance Insurans berniali RM155 telah dibayar terdahulu v. RM550 rent received in advanced. RM550 sewa diterima terdahulu. You are required to: a) Prepare Statement of Comprehensive Income for the year ended 31 December 2021 Sediakan Penyata Pendapatan Komprehensif bagi tahun berakhir 31 Disember 2021. [15 marks] [15 markah] b) Determine Statement of Financial Position as at 31 December 2021. Tentukan Penyata Kedudukan Kewangan pada 31 Disember 2021. [10 marks] [10 markah] END OF QUESTION SOALAN TAMAT 109
BASIC ACCOUNTING FOR TOURISM & HOSPITALITY