MBB3333 - Financial Manufacturing Accounting - University of Technology Sarawak

Assignment Task

Objective

The aim of this accounting assignment is to expose students to the practice of maintaining financial statements for different types of business activities. This will allow students to be familiar with:

1. Differences between the final financial statements of trading companies and those of a manufacturing business and partnerships.

2. Prepare a manufacturing account and the various subtotals normally found in this account.

3. Prepare final financial statements from incomplete records and single entry.

4. Prepare the financial statements of a partnership where there is a change in partners.

Question

1. Prepare the manufacturing account The following information is extracted from the books of Sparkle Sdn. Bhd., a furniture manufacturer.

2. Prepare financial statements from incomplete records The following is the statement of financial position of April Sdn. Bhd. at 31 July 20x1.

April Sdn. Bhd. does not keep full records and you have to use what information is available to prepare the financial statement. The most reliable evidence is the cashbook in which all transactions passed through the bank account are recorded. A summary of the cash book for the year ended 31 July 20x2 has been prepared as follows:

The following amounts have been paid from the cash sales before they were banked:

3. Inventory at 31 July 20x2 was valued at RM3,290.

4. At 31 July 20x2, there are rental prepaid of RM650 and electricity accrued of RM120.

5. The trade receivables and trade payables outstanding at the end of the year are RM5,480 and RM5,270 respectively.

6. Motor vehicles and fixtures and fittings has been depreciated in past years at 20% and 10% per annum respectively by the reducing balance method.

7. Prepare the partnership account Victoria and Olivia are in partnership sharing profits and losses equally. The statement of financial position drawn up on 31 March 20x3 showed the following position:

Victoria retired as from 1 April 20x3 and at the same date Alicia was admitted to the partnership. For the purpose of these changes, the shop house were revalued at RM880,000, furniture and fittings at RM50,000, inventories at RM43,000 and goodwill was agreed at RM90,000. An allowance for irrecoverable receivables of 5?sed on closing receivables is also to be created.

The new valuation are to be included in the business accounts, but no account for goodwill is to be maintained. In the new partnership, profits and losses will be divided in the proportion 3:2 between Olivia and Alicia respectively. Alicia will introduce cash of RM500,000 and Victoria is to receive payment for her capital in cash.

This MBB3333–  Financial Accounting has been solved by our PHD Experts at My Uni Paper.