AFAR_PYQ_Q7 answer for TMA2.pdf - Index Number Academic Session 2010 Second Semester Examination December 2010 BAC 306/05 Advanced Financial Accounting

AFAR_PYQ_Q7 answer for TMA2.pdf - Index Number Academic...

This preview shows page 1 - 5 out of 24 pages.

Index Number : ___________ Academic Session 2010 Second Semester Examination December 2010 BAC 306/05 Advanced Financial Accounting and Reporting Time: 3 hours Instructions to candidates: 1. Please check that this examination paper consists of ten (10) pages of printed material before you begin the examination. 2. This paper consists of 2 parts. Part A: Answer ALL questions in the answer booklet. Part B: Answer any TWO (2) questions in the answer booklet. 3. Non-programmable electronic calculator may be used. 4. You are not allowed to remove this question paper from the examination venue.
Image of page 1

Subscribe to view the full document.

BAC306/05 2 Part A (40 marks) Answer ALL five (5) questions below. Write your answers in the answer booklet. Question 1 The Malaysian Accounting Standards Board was established as an independent authority to develop and issue accounting and financial reporting standards in Malaysia. List any eight (8) functions and powers of the MASB as provided under the Financial Reporting Act 1967 (8 marks) Question 2 Differentiate between the terms cash equivalents, and temporary investments. (8 marks) Question 3 FRS 116: Plant, Property and Equipment clearly separate the treatment of initial costs and subsequent costs. Discuss the differences between the two situations mentioned above. (8 marks) Question 4 A financial instrument is defined as any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Differentiate between what is a financial asset and a financial liability. (8 marks) Question 5 Identify and explain the four steps required in order to calculate deferred tax. (8 marks) …3-
Image of page 2
BAC306/05 3 Part B (60 marks) Answer ANY TWO (2) of the questions below. Write your answers in the answer booklet. Question 1 Below is the Trial Balance of Waves Berhad as at 31 December 2008 RM000 RM000 DR CR Ordinary shares RM1 each 700 10% Preference shares RM1 each 200 Retained profits carried forward 120 Share premium 40 Deferred tax liability 50 Sales 890 Inventory - opening 100 Purchases 300 Salesmen's salaries 100 Advertising 45 Office salary 105 Office expenses 50 Directors' salary 25 Audit fees 5 10% debentures 200 Preference dividends paid (interim) 7 Ordinary share dividends paid (interim) 25 Sinking fund 50 Debenture interest paid 10 Trade payables 40 Tax paid 35 Properties (cost) 1,200 Office equipment (cost) 100 Motor vehicles (cost) 240 Accumulated depreciation carried forward - Properties 140 Accumulated depreciation carried forward - Office equipment 60 Accumulated depreciation carried forward - Motor vehicles 50 Trade receivables 90 Bank 103 2,540 2,540 …4/-
Image of page 3

Subscribe to view the full document.

BAC306/05 4 Additional information Closing inventory as at 31 December 2008 was RM150,000. Provisions are to be made for: Accrued debenture interest of RM10,000 Depreciation on properties of RM60,000, office equipment of RM20,000 and on motor vehicles of RM10,000 (all are administrative expenses) Final preference dividends (net of Tax) Final ordinary dividends of 7% (net of Tax) Tax payable on the current year’s profit is calculated to be RM32,000. Income tax rate is 28% Required: Prepare the statements below which are suitable for publication.
Image of page 4
Image of page 5

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask 0 bonus questions You can ask 0 questions (0 expire soon) You can ask 0 questions (will expire )
Answers in as fast as 15 minutes