Multi Cakes SdnBhd is involved in selling cakes. You are required to classify the following costs according to their behavior.

No.   Cost items Fixed cost Variable costs Semi-variable costs
  Electricity expenses      
  Salary of baker      
  Salary of cashier      
  Depreciation of machine      
  Telephone expenses      
  Directors’ salary      
  Baking powder      


                   (Total: 5 Marks)

 Question 2

  1. Fill the missing amount in each of the following accounting equations.










550,000 150,000 (i) 250,000 575,000
650,000 115,000 255,000 (ii) 600,000
855,000 (iii) 345,000 200,000 685,000
(iv) 220,000 365,500 280,000 750,000
750,000 120,000 540,000 500,000 (v)
230,750 (vi) 175,000 50,000 250,000
(vii) 90,000 275,000 200,000 319,500
88,000 25,000 92,000 50,000 (viii)

(8 marks)

  1. Below is the transaction in relation to Cempaka Rias Enterprise (CRE) for January 2021
  Transactions Effects Double entry
Eg: Paid stationeries by cheque Increase expenses

Decrease asset

Dr Stationery

Cr Bank

1. Owner brought in cash into the business    
2. Owner brought in furniture into the business    
 3. Purchased goods on credit from Sweety Enterprise    
4. Received a loan from ABC Bank    
5. Paid employees’ wages by cheque    


  1. Identify the effects (increase/decrease) of the above transactions on assets, liabilities, owner’s equity, revenues and expenses.                                                                                                                                                                                                (5 marks)
  2. Identify the double entry for the above transactions (5 marks)

(Total: 18 marks)

Question 3

Walla manufactured SdnBhd is a car manufacturer that produce side mirror with a sales price of RM350 and a variable cost of RM150.  Fixed costs are RM250,000 per annum with total unit sold was 1,400 units. You are required to calculate the following:

  1. Contribution / Sales ratio.

(2 marks)

  1. Number of units to break-even.

(2 marks)

  1. Sales (RM) at break-even point.

(2 marks)

  1. Number of units to be sold to achieve a profit of RM150,000 per annum

(4 marks)

  1. Based on B above, find the margin of safety in units.

(2 marks)

(Total: 12 marks)

 Question 4

Rahul Sign, the owner of Wood Factory Expert (WFE) has the following accounts balance on 31 December 2021.

Capital 600,000
Drawings 22,500
Sales 2,000,000
Purchases 1,040,000
Return inwards 20,000
Return outwards 10,000
Inventory, as at 1 January 2021 300,000
Delivery van 60,000
Office equipment 120,000
Accounts receivable 376,500
Accounts payable 80,000
General expenses 3,000
Insurance 10,000
Cash in hand 15,000
Cash in bank 40,000
Commission received 5,000
Wages and salaries 100,000
Long term investments 600,000
Rent received 12,000

 Additional information:

  1. The closing inventory was valued at RM240,000


  1. Prepare a Statement of Profit and Loss for the year ended 31 December 2021

(10 marks)

  1. Prepare a Statement of Financial Position as at 31 December 2021

(5 marks)

  (Total: 15 marks)

Answers to Above Questions on Multi Cakes SdnBhd

Answer 1: The classification of different types of cost as fixed, variable and semi-variable is performed as follows:


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