QUESTION 1 a) You are the accounts executive for BFC Enterprise. You are responsible to prepare the monthly receivables and payables control accounts for the business. Following are balances from the company’s record at 1 February 2020. Dr RM Cr RM Debtor ledger control account 54,000 1,000 Creditor ledger control account 200 43,000 The following information is extracted in February 2020 from the company’s records: RM Credit sales 251,000 Cash sales 34,000 Credit purchases 77,000 Cash purchases 29,000 Credit sales returns 11,000 Credit purchase returns 3,000 Amounts received from credit customers 242,000 Dishonoured cheques 500 Amounts paid to credit suppliers 74,000 Cash discounts allowed 3,000 Cash discounts received 2,000 Irrecoverable debts written off 1,000 Bad debt written off 1,200 Interest charged to customers 1,400 Contra settlements 800 At 29 February 2020, the balances in the debtor and creditor ledgers, as extracted follows: Dr RM Cr RM Debtor ledger control account to be calculated 2,000 Creditor ledger control account 200 to be calculated Required: Prepare the debtors ledger control account and the creditors ledger control account for the month of February 2020 and determine the missing figure above. b) You are the accountant for Sangat Serdap Sdn Bhd, a food production company. During the month, a new intern has joined the company and he approached you to understand how fundamentals accounting principles and concepts are used practically in the preparation of financial statements for Sangat Serdap Sdn Bhd. Required: Explain FOUR (4) fundamentals accounting principles and concepts. Your explanation should be supported with examples that are relevant to your company.
QUESTION 1
a)
You are the accounts executive for BFC Enterprise. You are responsible to prepare the monthly receivables and payables control accounts for the business. Following are balances from the company’s record at 1 February 2020.
Dr RM Cr RM
Debtor ledger control account 54,000 1,000
Creditor ledger control account 200 43,000
The following information is extracted in February 2020 from the company’s records:
RM
Credit sales 251,000
Cash sales 34,000
Credit purchases 77,000
Cash purchases 29,000
Credit sales returns 11,000
Credit purchase returns 3,000
Amounts received from credit customers 242,000
Dishonoured cheques 500
Amounts paid to credit suppliers 74,000
Cash discounts allowed 3,000
Cash discounts received 2,000
Irrecoverable debts written off 1,000
Interest charged to customers 1,400
Contra settlements 800
At 29 February 2020, the balances in the debtor and creditor ledgers, as extracted follows:
Dr RM Cr RM
Debtor ledger control account to be calculated 2,000
Creditor ledger control account 200 to be calculated
Required:
Prepare the debtors ledger control account and the creditors ledger control account for the month of February 2020 and determine the missing figure above.
b)
You are the accountant for Sangat Serdap Sdn Bhd, a food production company. During the month, a new intern has joined the company and he approached you to understand how fundamentals accounting principles and concepts are used practically in the preparation of financial statements for Sangat Serdap Sdn Bhd.
Required:
Explain FOUR (4) fundamentals accounting principles and concepts. Your explanation should be supported with examples that are relevant to your company.
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