Junior Apprentice - Section 1 - USR2004-1

Assalamualaikum students,

Please be informed that the Jumbo Sale will be held on 17th and 18th of January 2018 right after your mid-semester break. There will be a two day Sale which are broken into 2 big sections.

As for our Section 1, the Jumbo Sale will be on 17th January 2018 (Wednesday).

So, what are you waiting for?

Class as usual and I'll be waiting for your proposal.

Cheerio!

This is something you should watch....

Cash book

Assalamualaikum,

We have actually or currently studying cash book. It is the combination of the cash account and also the bank account. In reality, we don't have cash account coz we will only dealing with petty cash. We will not cover petty cash at the moment, so let's focus on the cash book as it will be a question in your final.

I have already covered most of the topic during my lecture. And here is some notes I took from the net. You as same as me, should always refer to the net because it has so many valuable information that might help you in your study. Since you want to be spoon fed, then I'm not pasting it in my posting.

Definition and Explanation of Cash Book

Definition:

The book in which all cash transactions (either cash is received or paid) are primarily recorded according to dates, is called 'Cash Book'.

Features:

A Cash Book has the following features:

1. It plays a dual role. It is both a book of original entry as well as a book of final entry. All cash transactions are primarily recorded in it as soon as they take place; so it is a journal (a book of original entry). On the other hand, the cash aspect of all cash transactions is finally recorded in the Cash Book (no posting in Ledger); so a Cash Book is also a Ledger (a book of final entry).
2. Only one aspect of cash transaction is posted to the ledger account. The other aspect ( i.e. cash aspect) needs no posting in Cash A/c. Since the Cash Book is the substitute for Cash A/c, no Cash A/c is opened in the ledger.
3. It has two identical sides-left hand side, the debit side and right hand side, the credit side.
4. All the items of cash receipts are recorded on the left hand side and all items of cash payments on the right hand side in order of date.
5. The difference between the total of two sides shows cash in hand.
6. Its balance is verified by counting actual cash in the cash box.
7. It always shows debit balance. It can never show credit balance.

Advantages:

Generally cash transactions are numerous. What is credit transaction today, will be cash transactions tomorrow. In other words, all credit transactions are finally settled by cash. If like all other transactions cash transactions are also recorded primarily in Journal, the cash aspect of the transactions will be required to be posted to Cash A/C, in the Ledger separately. This involves much time and labour. This is why, cash transactions are recorded in a separate book named Cash Book. It saves much time and labour. Besides this the Cash Book renders the following benefits:

1. Daily cash receipts and cash payments are easily ascertained.
2. Cash in hand at any time can easily be ascertained through Cash Book balance.
3. Any mistake in the book can be easily detected at the time of verification of cash.
4. Any defalcation of money can be detected while verifying cash.
5. Since cash is verified daily, Cash Book is always kept up-to-date.

Is Cash Book a Journal or a Ledger?

From the above discussion it appears that the Cash Book is the substitute for the Cash Account. In fact, no separate Cash Account is opened in the Ledger, Cash Book serves the purpose of the Cash Account. The entries in Cash Book are regarded as one aspect of the Double Entry System - the other aspect is posted to the Ledger in the concerned account. L.C. Cropper remarked "Every entry in the Cash Book makes one half of a double entry; the other half of the double entry appears on the opposite side of some account in the Ledger."From this angle, 'Cash Book is a Ledger'.

On the other hand, all cash transactions are primarily recorded in the Cash Book in order of date and thereafter posted to the concerned ledger accounts. Judging from this angle, 'Cash Book is a Journal'. Thus we see that a Cash Book is the 'mixture of Journal and Ledger'. According to Spicer & Pegler, "the Cash Book is actually a ledger account, but owing to the large number of entries made therein, it is kept in a separate book, called a Cash Book, which is used also as a book of prime entry."

Specimen/format of Simple Cash Book:

Date	Particular	V. No.	L. F.	Amount$	Date	Particulars	V. No.	L. F.	Amount$

The Columns of the Cash Book are Explained Below:

1. Date:

The date of transaction is written in this column in two lines—in the first line, the year and in the second line, the name of the month followed by the actual date.

2. Particulars:

In this column the name of the opposite account is written (the second aspect of cash transaction). Below this is written the narration of the transaction.

3. L.F. (Ledger Folio):

The page number of the Ledger where the concerned (opposite ) account has been opened, is written in this column. This will help to locate the account from the Ledger. It may be noted that in a Ledger account J.F. is written as reference, while in a Cash Book L.F. is written. It is so, because cash transactions are not recorded in any Journal.

4. Amount:

The amount of the transaction is recorded in this column. The amount of cash received is recorded on the debit side in amount column and the amount of cash paid is recorded on the credit side in amount column.

5. V. NO. (Voucher Number):

The voucher number of each item of receipt and payment is also written. A voucher is necessary for each item of receipt and payment. Generally, a voucher has a serial number and this number-is written in this column (V. No).

When cash is received from a debtor or customer, generally a receipt or 'cash memo' is issued to the debtor which is called Receipt Voucher. Again, when money is paid to a creditor or supplier a receipt is obtained from him which is called 'Payment Voucher, Cash transactions are recorded in the Cash Book on the basis of Receipt Voucher and Payment Voucher.

Thus, a document evidencing cash receipts and payments and forming the basis for making entries in the Cash Book is called Cash Voucher.

Distinction Between a Cash Book and a Cash Account:

In fact, Cash Book is a substitute for a Cash Account. Yet there are some differences between the two, which are given below:

Cash Book		Cash Account
1.	It is a separate book in which cash transactions are directly recorded.	1.	It is an account in a Ledger in which posting is made from journal.
2.	It serves the purpose of both journal and ledger and hence cash transactions need not be primarily recorded in Journal.	2.	It serves the purpose of a Ledger only. If Cash A/C is opened in the Ledger, all cash transactions are first recorded in journal.
3.	Narration is required.	3.	Narration is not required.
4.	A column for Ledger Folio is provided.	4.	A column for Journal Folio is provided.

Thanks and credits to:

http://www.accountingexplanation.com/definition_and_explanation_of_cash_book.htm

Certified Healthcare Facility Manager - Medivest Batch 2

Assalamualaikum,

Sorry for the late posting regarding the project paper details. I was down with a mild fever after arriving from Melaka last week.  Attached is the documents regarding the project paper that need to be submitted on the exam day 20th January 2018.

Certified Healthcare Facility Manager - Batch 2

Trial Balance

A continuation from my recent post....

Trial balance is the LIST of balances of all the accounts that have been transacted in  a period of time. After doing the balancing off  of each account, the balance will be taken to form a statement called TRIAL BALANCE. This is normally done at the end of a period or whenever is need. Let say, your boss wanted a report to be presented tomorrow, and that tomorrow is not even the last day of the month! Should you tell your boss.."Hey look, I cannot accommodate your request since we are still in the middle of the month" Of course he will say, "Never mind, I'll get somebody to prepare it for me but you also need to prepare and pack up your things!" Hahahaha!

If that is the case, what you need to do is, just close the account, balancing it off and take the balances to post them at the trial balance. Look carefully at the balances either debit or credit. That will determine the location of the balances of the account. Or you need to know the nature of each account. If asset account, of course it is debit, liability is credit, equity is credit, revenue is credit and expenses is credit.

The example of a trial balance will be like this...

 

You need to get your trial balance BALANCE!. The name suggest it to be that way. If you managed to get it balance, then all your transactions of debits and credits are CORRECT!

Junior Apprentice – Section 1 – USR2004-1

Good news to you guys.... On this coming Friday 22 December 2017, the Usrah class will be postponed to a later date. The proposes replacement date is set on 5 January 2018. I postpone it to next year!

So guys, crack your head to prepare the business proposal and you may come and see me for consultation next week onwards. (after Christmas)

Very well then, see you when I see you!

Junior Apprentice – Section 1 – USR2004-1

Just to inform you guys that the Jumbo Sale for the said course is only ONE DAY, not two days as presumed earlier. So please take note, please plan carefully your sales, strategies and others, logistically efficient.

Later....!

How to Write a Sales Proposal | Edward Lowe Foundation

edwardlowe.org/how-to-write-a-sales-proposal-2/

What is Balancing off accounts?

What you do when you walk out from a room? Of course you will close the door behind you. Why don't you just let it open? Because you need to close it, that's is the function of having a door, right?

Balancing off normally is done at the end of a period. But it is actually done when you want it. If you want to close your account today because you need to prepare a financial presentation tomorrow, then you need to close it by today. What you need is to do balancing off of all your accounts.

By doing balancing off, you may get your total balance of the accounts. How much you have at the end of the period. It is either you can prepare for the next course of action or you can do some decision making on it.

What you need to do is to look at the account.... Don't just look at it coz you achieve nothing! Look at the total of both sides, the debit and credit side of the the account. Then total all of them up and see the difference. If the debit is higher than the credit, then we call the account has a debit balance. DEBIT WINS! The debit amount is higher than the credit. If the credit total is higher, then we call it as credit balance.

The difference of the total is what you have for the balance of that particular period. Say... the debit total is RM100,000 whereas the credit total is RM80,000. Then we know that the debit total is more. DEBIT WINS. We call the account has a debit balance. We do a balancing off by having the same total for both sides and of course the credit has to top up another RM20,000 to be at the same total as the debit side. That RM20,000 is the balance of the said account.

Is that simple!

Coming up next! the Trial Balance...

Recording transactions - Journal entries and the T-Accounts

Ok let's recap what we have done so far....

First of all you have transactions which you have to identify according to the category. The categories involved were assets, liabilities, equity, revenue and expenses. Then you determine the increase and decrease of each account thus translate them into debits and credits.

We then construct journal entries stating the accounts as well as the amount of each transaction. Remember, every transaction must have two accounts involving the same figures. That is why we should get our accounts balance.

Preparing the ledgers or some say the T-account will be done right after we confidently finished the journal entries recording each or the occurred transactions. The entry of the T-Account somehow making some students confuse due to the account containing an opposite accounts name inside. For example....

Starts business with cash RM20,000, then the journal entries would be

Dr Cash    Cr Equity (of the same amount at both sides)

But in the T-account is different, under the T-account of Cash, there will be the word equity at the debit side. This is because, the increase in cash of RM20,000 was due from the equity. Same goes to the equity T-account where the increase of equity will be at the credit side which the word cash appears.

Lastly, we do balancing off..... we shall continue the BALANCING OFF on the other page....

See ya!

MFRS101 - Presentation of Financial Statements

This content applicable for DIA students taking Financial Accounting 3. Well, it is not my area and I don't want to cross any line. But I feel responsible to share with you guys at least the summary and maybe some of the presentation made by otters that I can find in the net. Maybe it is useful for some of you.

Do watch this link and you may have something....

https://prezi.com/zbt_rfoavzrc/mfrs-101/

Control Account - Exercise again?

Here is another exercise for control accounts. Try to attempt this question ok?

RM
Balance b/d as at 1 December 2017
-          Sales ledger control account (Dr)                                                        48,700
-          Purchases ledger control account (Cr)                                                29,660
Transactions during the month,
Total cash sales                                                                                                   38,792
Total credit sales                                                                                               318,990
Total cash purchases                                                                                          13,212
Total credit purchases                                                                                     247,340
Sales return                                                                                                           3,345
Purchases return                                                                                                 3,950
Discounts received from suppliers                                                                  3,222
Discounts granted to credit customers                                                           3,630
Bad debts                                                                                                              6,750
Bad debts recovered                                                                                           1,780
Cash and cheques received including from the bad debts recovered 321,780
Cash and cheques paid to suppliers                                                            245,900
Interest charged on debtors                                                                                 975
Increase in provision for bad debts                                                                    989
Transfer from Purchase Ledger to Sales Ledger                                           1,865

Thinking of having this?

Warming up for Quiz - CBA1133 & DOM2234

Below are the transactions need to be settled.

Dec 1 Started business with RM10,000 cash

Dec 2 Transferred RM3,000 cash to bank

Dec 3 Bought stocks on credit from Munah RM5,000

Dec 4 Sold stocks to Minah cash RM2,000

Dec 5 Paid rental by cash RM800

Dec 6 Bought computer RM1,500 by cheque

Dec 7 Sold to Punah RM1,000 by cheque

Dec 8 Paid Munah RM2,000 by cheque

Dec 9 Withdrew cash RM500 for personal use

Dec 10 Paid electricity at Pos Malaysia RM100 cash

Ok, that's it for the moment.....will continue later

Don't forget to bring your calculator!

A simple instruction that I wish to see it coming. If I still see students using their mobile phone as a calculator, then I know that these students either they don't understand simple ENGLISH or they just don't want to listen.

To be a good student, you need to be one. Discipline and be responsible.

For those who still owing for the book, please bring the money by next week okay coz I also have my accounts payable to settle....

Exercise 3 - Warming up for the quiz

Applicable to CBA1133 and DOM2234. InsyaAllah I will post more exercises when time permits. 

See ya!

Exercise 3 - Quiz warm-up 1

Happy studying!

Control Accounts - Exercise

The following information relates to the general ledger of Rita Enterprise for the month of March 2013:

Balances at 1 March 2013	RM
Sales Ledger Control Account	19,744
Purchase Ledger Control Account	12,936
Transactions for the month of March 2013:
Cash paid to suppliers (suppliers on credit)	9,058
Interest charged to customers	144
Cash received from customers (customers on credit)	12,488
Bad debts written off	444
Credit purchases	10,712
Purchases returns	480
Freight charged to debtors	192
Discount allowed	270
Discount received from suppliers	188
Credit sales	9,134
Interest charged by creditors	88
Dishonoured cheque returned to customers	296
Sales returns	256
Cash sales	16,864
Cash purchases	1,380
Balances in sales ledger set off against credit balances in purchases ledger	152
Cash refunded to debtors	72

Required:

Prepare the sales and purchase ledger control accounts using the relevant information above.

Take a break....

Interested? Pamper yourself, you need to treat yourself. It can be your own satisfaction or it also can be an opportunity for those who really want to make this a reality.

Click and follow... https://www.instagram.com/nurbeautyfacial08/

or....

https://www.facebook.com/beautyNurFacial/

Ok Ok BUS2231 also can have their quiz...

It's not fair! Why other classes have quiz but we don't? We want quiz! We want quiz!

Ok now, it's settled. Your Control Account  and maybe a bit of Suspense Account quiz will be held on 18 and 19 December 2017. So be it!

You know the drill. So start studying!

It's time for a DOM2234 QUIZ!

We will be having our first quiz for DOM2234 Principles Of Accounting on this coming Monday 18 December 2017 for Section 1 and 2. As for Section 3 the quiz will be held on 19 December 2017.

Please read, attempt some exercises related to the quiz. Cover topic 1, 2, 3  and 4. Put focus on topic 1 and 2. The quiz is for your carrymarks. Master your Debit and Credit as well as the basic topic of Accounting Equation.

So...Adios!

Junior Apprentice - Section 1 - USR2004-1

Asalamualaikum and welcome to Junior Apprentice,

As you all know, this usrah module is designed to train your knowledge and skills to become a better businessman with virtuous values. You can refer to this link for references regarding this module...

https://tinyurl.com/usr2004

 

what we will discuss later is about your grouping, proposal and your marketing strategy. Ultimately you will put all that into practice during the Jumbo Sale Day. Finally, you have to prepare a report and the proceed of the sales made you will have the chance to donate to the organization in need.

See ya later!

What is accounts receivables?

Accounts receivables.

 

Accounts receivables is the money that the business has the right to receive it after the business had provided the other party either goods or services. The accounts receivables are also known as trade debtors where the business engages the activity of selling its goods or services to its customers on credit.

The sales made by cash or by cheque is simple. We just give our customer the goods and we receive money, either cash or cheque. But, when we deal with our customer, asking them to buy or to promote them to buy and we offer them a credit, where they take the goods first and then they will settle the payment later or at a agreed specified date. If this is the case, then we're having a credit sales. Now, we have persons who owe us money.

A credit sales will eventually creates an account. An account that we are able to receive. That is why we call the person who owe us money an account receivables or a trade debtor. A debtor that comes from a trade activity. it falls under an asset category, specifically under a current asset category. Why? Because this accounts receivable is the person who us money, so, that is our money, they are holding our money. We see them walking around, we see our money in them. That's is why accounts receivables is an asset.

What is the difference between a person who owe us money but not from the trading transaction?

 

A person who us money for some other reasons besides trading is known as debtors or we can put them as our sundry debtors. For example, Jack approached us to borrow some money. Since we don't have some money in our pocket, we decided to lend him some from the business money. So you took some cash from the business and gave it to him. (Please don't do this, it is not ethical!). Here, you have to record a transaction for the money you took just now from the business. Jack will be our sundry debtors, not an accounts receivables because he didn't do any trading with us neither buy or sell. So, Jack will be classified under current asset specifically as sundry debtor.

The above concept can also be applied to accounts payable. Just think of the opposite. Okay?

Ok see ya later!

Applicable to #ACC1231, #BUS1233, #CBA1133, #DOM2234

Try this!

BUS2231 - Control Accounts - Exercise 1

Try this, I took this from a website... http://www.accounting-basics-for-students.com/-debtors-creditors-control-accounts-question-.html which I also don't know the answer yet. Why don't you download this, print it and do it. Bring it to class for further discussion. Simple!

The following is a list of balances relating to Phiri Properties Ltd during 2010. The company maintains a memorandum debtors and creditors ledger in which the individual account of customers and suppliers are maintained.

These were as follows:

MK
Debit balance in debtors account      01/01/10                                         66,300.00
Credit balance in creditors account 01/01/10                                          50,600.00
Sunday credit balance on debtors ledger                                                      724.00
Goods purchased on credit                                                                     257,919.00
Goods sold on credit                                                                               323,614.00
Cash received from debtors                                                                    299,149.00
Cash paid to suppliers                                                                             210,522.00
Discount received                                                                                        2,663.00
Discount allowed                                                                                         2,930.00
Cash purchases                                                                                            3,627.00
Cash sales                                                                                                    5,922.00
Bad Debts written off                                                                                  3,651.00
Interest on overdue account of customers                                                      277.00
Returns outwards                                                                                         2,926.00
Return inwards                                                                                             2,805.00
Accounts settled by contra between debtors and creditors ledgers              1,106.00
Credit balances in debtors ledgers    31/12/10                                                815.00
Debit balances in creditors ledger    31/12/10                                                698.00

Required:

(a) Prepare the debtors control account as at 31/12/10.
(b) Prepare the creditors control account as at 31/12/10?

BUS2231 - Control Accounts

What is the purpose of control accounts?

 

A control account is a summary account in the general ledger. The details that support the balance in the summary account are contained in a subsidiary ledger—a ledger outside of the general ledger.

The purpose of the control account is to keep the general ledger free of details, yet have the correct balance for the financial statements. For example, the Accounts Receivable account in the general ledger could be a control account. If it were a control account, the company would merely update the account with a few amounts, such as total collections for the day, total sales on account for the day, total returns and allowances for the day, etc.

The details on each customer and each transaction would not be recorded in the Accounts Receivable control account in the general ledger. Rather, these details of the accounts receivable activity will be in the Accounts Receivable Subsidiary Ledger. This works well because the employees working with the general ledger probably do not need to see the details for every sale or every collection transaction. However, the sales manager and the credit manager will need to know detailed information on individual customers, including whether a customer recently reduced their account balance. The company can provide these individuals with access to the Accounts Receivable Subsidiary Ledger and can keep the general ledger free of a tremendous amount of detail.

Source: https://www.accountingcoach.com/blog/accounts-receivable-control-account-subsidiary-ledger

 

Sales Ledger Control Accounts And Purchases Ledger Control Accounts

 

Two of the most common Control Accounts are Sales Ledger Control Accounts and Purchases Ledger Control Accounts. After posting all transactions the balance of the Control Account and the sum of the detailed records in the Subsidiary Ledger should always be the same. In other words, a control account deals with summarized information while a subsidiary ledger deals with detailed information.  Because the control accounts contain summarized information they are also called total accounts. Therefore a control account for a Sales Ledger can be called a Sales ledger Control accounts or Total Debtors Account. A control account for a Purchases Ledger can be called a Purchases Ledger Control account or a Total Creditors Account.

 Sources of information for entries in Control Accounts

 

Significance of the balances on the control accounts

The closing balances on the sales ledger control accounts should be equal to the sum total of the closing balances on the individual debtor accounts in the sales ledger. It follow as well that the closing balances on the purchases ledger control accounts should be equal to the sum total of the closing balances on the individual creditor  accounts in the purchases ledger. If the respective balances are not in agreement then it would suggest some form of irregularity in the records which would need investigation.

Source: http://wizznotes.com/accounts/control-systems/sales-ledger-control-accounts-and-purchases-ledger-control-accounts

Accounting Equation - Part 2

Well guys and gals... Here is another video regarding the above topic. God knows how hard to do this coz I'm not an IT savvy. Huh!

CBA1133, DOM2234 - Journal Entries for Accounting Equation - Exercise 2

Again????

Well, you wanna pass? So, just do what I told you to do...

Download this, print this, attempt this, bring it to class.... ok?

Exercise 2 - Journal Entry - Accounting Equation

CBA 1133, DOM2234 - Classification of Assets, Liabilities and Equity - Exercise 1

Assalamualaikum and dear students,

Attached is an exercise for you to attempt.

Download it.... Print it... Attempt it... Bring it to class...

Just want to see how many will do this....

Exercise 1 - Classification of items - Accounting Equation

Life has begun... Counting on marks.

Accounting Equation - Part 1

This video is the continuation from the previous 6 episode videos I've posted last week. The title of this video is Accounting Equation - Part 1, there will be part 2, soon. So enjoy.....

BUACC1507 - Sayonara and Short exercise

Awkward right? Its not me but its them.... What I know now is that, I have to let go the class and replaced it with another class. The tossing game will keep on going until they resolved their inefficiency.

So, this maybe my last exercise for you.... till then, see you and bye!

Exercise 1

Enter the following transactions in the books of Muhaimin:

March 1     Started firm with RM50,000 cash

March 3     Deposited RM20,000 cash into a bank account

March 5     Bought stock on credit for RM8,600 from Mustakizah

March 7     Bought office equipment for RM12,000 paying by cheque

March 9     Returned stock worth RM3,000 to Mustakizah

March 11   Sold goods on credit to Farhana for RM4,800

March 13   Purchased office fixtures on credit from Afiq Supplies for RM4,600

March 15   Farhana returned goods worth RM2,000

March 17  Muhaimin settled his account with Mustakizah by sending cheque for RM2,600

March 19 Muhaimin brought in a personal computer to the business worth RM5,200

Exercise 2

Construct the ‘T-account’ for the following transactions in the books of Mr Bob:

Mr Bob started a textile business on 1 January 2018. He later put RM60,000 into the business bank account. Below are the transaction relating to the business for the month of January 2018. He also rent shop premise from En Rafiq for RM2,000 whom he paid by cheque. He bought a machine RM3,000 and shelves under fixtures and fittings for RM4,000, all of those were paid by cheque. The rest of the transaction occurred in the month of January 2018;

		RM
Jan 2	Bought goods for resale from Bothina Boutique by cheque	5,000.00
Jan 3	Withdrew cash from bank for business use	1,500.00
Jan 4	Bought goods for stock from Nor Fadzlina Fashion by cash	600.00
Jan 5	Sold to Shamsuddin Shoppe for cash	1,300.00
Jan 6	Sold to Batek Husna Enterprise on credit	3,700.00
Jan 7	Returned some goods to Bothina Boutique	300.00
Jan 8	Batek Husna returned goods	400.00
Jan 9	Cash sales to Faezah	1,500.00
Jan 11	Cash payment to Bouthina Boutique	800.00

Welcome BUS2231 Students.... Financial Accounting 2

Assalamualaikum, there was a last minute change in the timetable for Financial Accounting 2. Previously the lecturer in-charged was Mdm Aisyah Md Din and now....it's me. Well then, I have to take it...

So my advice to you is....same like previous semester where you have to adhere my rules and regulations. Please refer back to the Dos and Don'ts and do whatever I tell you to do.

And.....You'll need to purchase the book. Ok, see ya!

Accounting Equation BUS1233, CBA1133, ACC1231, DOM2234 and BUACC1507

Assalamualaikum and dear students,

Please spend some time by watching at these two videos regarding the accounting equation. Make sure you have understood all the 6 videos from my previous posting.

Later, I will put up exercise questions to test your understandings. Enjoy this video first. The part 2 of this video will follow suit....

Introduction to Accounting for CBA1133, ACC1231, DOM2234 and BUACC1507

Assalamualaikum and dear students,

Before we proceed even further into the subject, I want you guys to browse through the internet and read something about accounting. This will give you some ideas on the  accounting journey that we going to embark for the next couple of months. I also pinned us some simple introduction videos regarding accounting. The rest I am still working on it.

I will try my best to make this subject interesting and of course with the help of you guys, this subject will be even great.

Enjoy this video and we shall discuss further in class...

Welcome CBA1133, ACC1231, DOM2234 and BUACC1507 students

Assalamualaikum and salam sejahtera,

I would like to take this opportunity to welcome you to my class for the above subjects. First of all, let me lay down some rules and what the do’s and don’ts  for the class.

Do’s

1. Come to class.
2. Be punctual.
3. Mobile phones should always be in silent mode.
4. Always bring your accounting book/manual to class.
5. Every students’ should own a calculator (real calculator).
6. Give full attention to the lectures.
7. Sleep if you feel to sleep.
8. Attempt or sit for exercises,quizzes or assignment on specified date.
9. Submit any work given on time.

Don’ts

1. Absent without valid reasons.
2. Late to class.
3. Browsing, texting and talking on the phone during lecture time.
4. Sharing books is not recommended.
5. Using mobile phone as calculator.
6. Chit chatting/discussion with friends during the lecture.
7. Sleepwalking.
8. Absent for the exercises, quizzes or assignment without valid reasons.
9. Late submission of exercises, quizzes or assignment.

I welcome for students who wish to bring drinks or snacks to the lecturer ….hahaha

Please regularly check the blog as I will be posting some notes, exercises, assignments etc. Look at this sign Potential marks ♥♥♥♥♥ coz this will contribute to the marks when we discuss or when you you submit whatever is being required.

Welcome new semester!

Assalamualaikum and dear students,

As much as excited like you are, I am now eager to start my new semester with new environment, new students, new posting (just about to continue today...hehe) and also new hope. By the way, the word hope...not referring to the superman, not referring to the star wars episode but the hope that I put to you and to myself to becoming effective students and success. That's all I want from you guys...

So, for new students, some postings that will be appearing after this and throughout the semester will be full of information, notes, exercises, videos. All of that for you to learn. I'm just sharing whatever that I can get from the net for us to discuss and to do together.

Okay, enough mumbling, I hope you'll enjoy my class and here is something for you....Enjoy!

Thank you

I would like to take this opportunity to thank all my dear students for the time spent browsing my site and I hope that you found this site interesting and knowledgeable. I hope you will keep on visiting this site and support my intention to bring the best education to you and to the next generation.

Thank you, thank you and thank you.

I pray for your success and good luck to everything you do.

Suspense Account - Warming up

DO NOT THINK this is the final exam questions. Just attempt this to enhance and sharpen your skills.

SUSPENSE ACCOUNT

Balance as per trial balance RM2,400 (Dr)

1. Sales were undercast by RM800
2. Remittance of RM1,700 received from Ali, a debtor, was mistakenly credited in a creditor’s account, also by the name of Ali
3. Purchased from Mydin RM3,600 and no records have been found in any of the books
4. Payment of electricity to Pos Malaysia RM120 cash was posted as RM210 in the expenses ledger
5. Purchases were overcast by RM1,000
6. Discounts received of RM450 was posted into a discounts received account
7. Depreciation of a machine of RM1,000 was omitted in the expense account
8. Payment of cheque to Ahmed RM1,500 was recorded in Ahmad’s account
9. Payment of wages to part timers RM900 was recorded as RM600 in wages account

The net profit for the year was recorded as RM27,410.

Required:

1. Journal entries for each of the transaction
2. Suspense accounts

Statement of corrected net profit for the year.

Just for exercise - ACC1231 & BUS 1233 - Cashbook

Hi guys, DO NOT THINK that this is the exam question.... but this is just a warm up exercise for your cashbook. Okay

Cashbook exercise

October

1. Bal b/d – Bank 12,400, Cash 8,120
2. Credit sales to Ahmad RM8,000
3. Cash sales to Aminah RM1,430
4. Bought stationery from Pustaka Rakyat RM230 cash
5. Ahmad made payment by cheque RM2,150
6. Purchase on credit from Lokman RM5,400
7. Pay wages by cash 600
8. Promised to pay Lokman on 20^th October RM1,400
9. Pay electricity at Pos Malaysia by cheque RM800
10. Cash purchase from Rose RM2,000
11. Transfer cash to bank RM500
12. Payment by standing instruction for insurance RM740
13. Credit purchase from Leia RM3,200
14. Returned goods to Leia RM1,200

November

1. Pay rental by cheque RM2,000
2. Ahmad made some payment for his account by cheque RM1,800
3. Sales to Ali by cheque RM1,600
4. Loan from Ambank and received cheque RM10,000

Pay Leia RM1,000 thru bank transfer.

This is what you WANT!

There is still time.....hehe

ACC2232 - Cost Accounting (Revision)

What you need to know....

Economic Order Quantity - EOQ

What is an 'Economic Order Quantity - EOQ'

Economic order quantity (EOQ) is an equation for inventory that determines the ideal order quantity a company should purchase for its inventory given a set cost of production, demand rate and other variables. This is done to minimize variable inventory costs, and the formula takes into account storage, or holding, costs, ordering costs and shortage costs. The full equation is as follows:

where :

S = Setup costs

D = Demand rate

P = Production cost

I = Interest rate (considered an opportunity cost, so the risk-free rate can be used)

BREAKING DOWN 'Economic Order Quantity - EOQ'

The EOQ formula can be modified to determine different production levels or order interval lengths, and corporations with large supply chains and high variable costs use an algorithm in computer software to determine EOQ.

How Inventory Impacts Cash-Flow Planning

EOQ is an important tool for management to minimize the cost of inventory and the amount of cash tied up in the inventory balance. For many companies, inventory is the largest asset balance owned by the company, and these businesses must carry sufficient inventory to meet the needs of customers. If EOQ can help minimize the level of inventory, the cash savings can be used for some other business purpose.

Factoring in a Reorder Point

One component of the EOQ formula calculates a reorder point, which is a level of inventory that triggers the need to place an order for more inventory. By determining a reorder point, the business avoids running out of inventory and is able to fill all customer orders. If the company runs out of inventory, there is a shortage cost, which is the revenue lost because the company does not fill an order. Having an inventory shortage may also mean the company loses the customer or the client orders less in the future.

Example of Using EOQ

EOQ takes into account the timing of reordering, the cost incurred to place an order and costs to store merchandise. If the company is constantly placing small orders to maintain a specific inventory level, the ordering costs are higher, along with the need for additional storage space. Assume, for example, a retail clothing shop carries a line of men’s jeans and the shop sells 1,000 pairs of jeans each year. It costs the company $5 per year to hold a pair of jeans in inventory, and the fixed cost to place an order is $2. The EOQ formula is the square root of: (2 X 1,000 pairs X $2 order cost) / ($5 holding cost), or 28.284 with rounding. The ideal order size to minimize costs and meet customer demand is slightly over 28 pairs of jeans. A more complex portion of the EOQ formula provides the reorder point.

Read more: Economic Order Quantity (EOQ) http://www.investopedia.com/terms/e/economicorderquantity.asp#ixzz4wUlQm4mg

Follow us: Investopedia on Facebook

Inventory Valuation Methods Introduction

Inventory valuation methods are used to calculate the cost of goods sold and cost of ending inventory. Following are the most widely used inventory valuation methods:

1. First-In, First-Out Method
2. Last-In, First-Out Method
3. Average Cost Method

First-in-First-Out Method (FIFO)

According to FIFO, it is assumed that items from the inventory are sold in the order in which they are purchased or produced. This means that cost of older inventory is charged to cost of goods sold first and the ending inventory consists of those goods which are purchased or produced later. This is the most widely used method for inventory valuation. FIFO method is closer to actual physical flow of goods because companies normally sell goods in order in which they are purchased or produced.

Last-in-First-Out Method (LIFO)

This method of inventory valuation is exactly opposite to first-in-first-out method. Here it is assumed that newer inventory is sold first and older remains in inventory. When prices of goods increase, cost of goods sold in LIFO method is relatively higher and ending inventory balance is relatively lower. This is because the cost goods sold mostly consists of newer higher priced goods and ending inventory cost consists of older low priced items.

Average Cost Method (AVCO)

Under average cost method, weighted average cost per unit is calculated for the entire inventory on hand which is used to record cost of goods sold. Weighted average cost per unit is calculated as follows:

Weighted Average Cost Per Unit=	Total Cost of Goods in Inventory
	Total Units in Inventory

The weighted average cost as calculated above is multiplied by number of units sold to get cost of goods sold and with number of units in ending inventory to obtain cost of ending inventory.

Written by Irfanullah Jan

Contract costing

September 26, 2011

Contract costing is the tracking of costs associated with a specific contract with a customer. For example, a company bids for a large construction project with a prospective customer, and the two parties agree in a contract for a certain type of reimbursement to the company. This reimbursement is based, at least in part, on the costs incurred by the company in order to fulfill the terms of the contract. The company must then track the costs associated with that contract so that it can justify its billings to the customer.

The most typical types of cost reimbursement are:

• Fixed fee. The company is paid a fixed total amount for completing the project, possibly including progress payments. Under this arrangement, the company will want to engage in contract costing to compile all of the costs relevant to the construction project, just to see if the company earned a profit on the deal.
• Cost plus. The company is reimbursed for the costs it incurred, plus a percentage profit or fixed profit. Under this arrangement, the company will be forced under the terms of the contract to track the costs related to the project, so that it can apply to the customer for reimbursement. Depending on the size of the project, the customer may send an auditor to examine the company's contract costs, and may disallow some of them.
• Time and materials. This approach is similar to the cost plus arrangement, except that the company builds a profit into its billings, rather than being awarded a specific profit. Again, the company must track all contract costs carefully, since the customer may review them in some detail.

Contract costing can involve a considerable amount of overhead allocation work. Customer contracts typically specify exactly which overhead costs can be allocated to their projects, and this calculation may vary by contract.

In some industries, such as government contracting and commercial construction, contract costing is the primary task of the accounting department, or may even be organized as an entirely separate department. Proper contract costing can contribute a considerable amount of profits, and so is typically staffed with more experienced contract managers and accountants.

Process Costing

ACC1231 & BUS1233 - Nearly complete revision

Assalamualaikum,

We are now nearing to the exam date and attached is the final revision for you guys to attempt. Download this and we shall discuss this in class.

Even though the filename is for DIA but the DBA students can attempt this as well. It is still the same as long the name is still FA1.

Revision DIA

ACC2231 - Manufacturing Account - Revision

Print this and try to attempt this question..... I got it from a website. Can't disclose right now as you may Google it and get the answers. Hehe

Exercise 4 - Manufacturing Account - Jim Brothers