BBCA1033: Mr Zarid, a watch dealer, set up a shop by the name Syarikat Zn Watch Sdn Bhd on 1 March 2021: Introduction to Accounting Assignment, CUM, Malaysia


City University Malaysia (CUM)

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BBCA1033: Introduction to Accounting

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(a) Define the following term:

i. Allowance for doubtful debt.

ii. Accrued expenses.

ii. Residual value.

iv. Invoice

(b) The following are the rules of accounting that should be followed in the preparation of all accounts and financial statements. Discuss each of the following.

i. Accrual.

ii. Consistency.

iii. Prudence.


(a) Mr Zarid, a watch dealer, set up a shop by the name Syarikat Zn Watch Sdn Bhd on 1 March 2021. He brought in cash of RM100,000 and a used car, valued at RM30,000 for business use.

The following financial transactions occurred in March 2021.


(a) Prepare a trial balance in the books of Alan Sdn Bhd as of 31 December 2021.

(b) Describe TWO (2) types of errors that cause a trial balance to disagree.

(c) Classify each of the following, write R for revenue expenditure and C for Capital expenditure.

i. Replace a broken window in a factory.

ii. Installing an air conditioning system in a car used for business purposes.

iii. Payment for repairs of the refrigerator.

iv. Cost of preliminary test on a new machine.

(d) Goldenfox Sdn Bhd. purchased machinery for RM50,000 on 15 March 2019. Calculate the depreciation charged for 2019, 2020, and 2021 using the reducing balance method at 15% depreciation per year.

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