CIA1001 Introductory of Accounting – Financial Accounting Project

Assume you start up a merchandising business with capital obtained through issuance of shares.

Create 50 Business Transactions For A Period Of 1 Year from the establishment date of your business. Each group member must contribute at least 10 transactions.

The business transactions must cover all of the following main activities:

• Issuance of shares
• Sale of goods on both cash and credit terms Purchases of non-current assets.
• Purchases of inventories on cash and credit terms
• Expenses incurred in running the business
• Notes payable with interest
• Notes receivables with interest
• Payment of liabilities
• Payment received from debtors
• ETc.

Create 30 Additional Information For Adjustment At The End Of Financial Year.

Each group member must contribute at least 6 additional information.

The additional information for adjustment at the end of financial year must cover all of the following activities:

• Depreciation for the non-current assets.
• Provision for doubtful debts, provision for discount allowed
• Prepayments
• Accruals
• ETc

Assume that the applicable income tax rate is 24%. Distribute cash dividend at the end of the financial year, if your company has net income.

Required

(i) State the date of your business establishment and describe your business activities.

(ii) List all of the transactions. You must specify the date of transactions. In addition, state the group member who contributes the transactions.

(iii) Prepare journal entries for each of the transaction and post the journal entries to the ledger accounts.

(iv) Prepare the unadjusted trial balance.

(v) List all the additional information for adjustments. State the group member who contributes the additional information.

(vi) Prepare adjusting entries for additional information and post the adjusting entries to the ledger accounts.

(vii) Prepare the adjusted trial balance, income statement, statement of changes in equity and statement of financial position at the end of the financial period.

(viii) Prepare closing entries and post-closing trial balance.

(ix) Comment on performance of your business after the first year of its operation.

Experts Answer on Above Financial Accounting Project

Business establishment and activities

The name of the business is AZ Tech Supplies Sdn. Bhd. and the business establishment date was 1st January 2025. The primary business activity includes the stationery products such as computer accessories, office supplies and electronic gadgets in Malaysia.

Sample Transactions

The transactions are indicated as follows –
1st Jan 2025 – Issued ordinary shares amounting to RM200000
2nd Jan 2025 – Opened bank account and deposited capital.
3rd Jan 2025 – Purchased office furniture amounting to RM10000
4th Jan 2025 – Purchased computers worth RM20000
5th Jan 2025 – purchase inventory amounting to RM25000
6th Jan 2025 – purchase inventory of worth RM20000 in cash
7th Jan 2025 – Cash sales worth RM12000
8th Jan 2025 – Paid office rent RM2500
9th Jan 2025 – paid utility bill RM900
10th Jan 2025 – received payment from customers RM8000
More details of entries are given in the appendix section.

Sample Additional Adjustments

1) depreciation on furniture RM1500
2) depreciation on computer RM2000
3) Van depreciation RM4000
4) office equipment depreciation RM1500
5) Furniture impairment RM500
6) salaries owing RM3000
7) telephone expenses accrued RM300
8) audit fees accrued RM300
9) insurance prepaid RM1200
10) provision for doubtful debt 3% on debtors

Business performance comment

AZ Tech Supplies Sdn. Bhd has achieved a profitable performance in the first year because of consistent growth in the sales performance and effective inventory management. The cash flow management was also sound which allowed for effectively meeting out of the obligations to suppliers and lenders. The investments in the non current assets were also very effective in supporting future growth, and the profitability performance was highly affected by the increased expenses and depreciation. Overall the company showed a positive overall performance and strong potential to grow in the Malaysian Technology supply market.

Want Detailed Answers with References?

The above answers are given in brief and if you need detailed answers including complete journal entries, trial balance, adjusting entries treatment along with final statements preparation, get in touch with our accounting experts for complete accounting assignment help in Malaysia.