AFT 1043

BASIC ACCOUNTING
SEMESTER FEBRUARY
SESSION 2016/2017

GROUP ASSIGNMENT
NAME OF LECTURER (TUTORIAL): MADAM NOR
MAIZATULAKMA BINTI SAIDI
LECTURE GROUP: L3T2

GROUP MEMBERS MATRIC NO

NURHIDAYAH BINTI CHE JAAPAR A16A0774
SHAHIDAH ADLINA BINTI AZMI A16B0959
NURUL IZZATI BINTI ROZALI A16A0854
SITI NURHIDAYAH NABILAH BINTI BADRUL-HELMY A16A1030
SITI NUR SOLIHAH BINTI MOHD SARBANI A16A1022
 CONTENT NO OF PAGES
1. ABSTRACT 1
2. INTRODUCTION 3
3. BACKGROUND OF THE BUSINESS UNDER STUDY 5
4. CURRENT BUSINESS RECORDING STATUS 7
5. ACTION TAKEN BY GROUP TO GUIDE AND HELP THE 8
BUSINESS TO HAVE/IMPROVE A SYSTEMATIC
RECORDING OF BUSINESS TRANSACTIONS
6. FULL SET OF ACCOUNTS FOR ONE MONTH
i. JOURNALIZE ONE MONTH TRANSACTIONS 10
ii. POST TO THE ACCOUNTS/LEDGERS 11
iii. PREPARE THE TRIAL BALANCE 17
iv. PREPARE THE STATEMENT OF PROFIT AND LOSS 18
v. LIST DOWN ALL ASSETS AND LIABILITIES 19

7. THE IMPORTANCE OF ACCOUNTING TO THE MICRO 20

BUSINESSES/PETTY TRADERS ACTIVITIES
8. SUGGESTIONS TO THE MICRO BUSINESSES/PETTY 22
TRADERS OF HOW AND WHAT TO DO TO HAVE
SYSTEMATIC RECORDINGS OF BUSINESS
TRANSACTIONS AND FINAL ACCOUNTS
9. CONCLUSIONS 24
10. APPENDICES 26
 1. ABSTRACT

The main purpose our groups doing this assignment is to apply the basic
accounting subject (AFT 1043). So, we can learn the theory toward practical in the
class. Our group member consist of six students who have different backgrounds and
culture. The company that our group has chosen are Percetakan Berkat Karisma. This
company located at Giat Mara industry area. Why we choose this company? Because
that company are near to our campus, so that is easy to our member to doing this
assignment. Percetakan Berkat Karisma company are runs a business about print paper,
card, banner and other such as paper exam and greeting card. we carry on an this
interview with the company owner and company workers. We get many information to
doing our assignment about Percetakan Berkat Karisma and it very useful to us. We get
information about Percetakan Berkat Karisma background, financial information and the
purpose of setting up this business and many more. Last but not least, all the detail
that our group got, very help us a lot to finish this accounting assignment. The
transactions for one month, it managed to achieve successfully.

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ACKNOWLEDGEMENT

Our group member like to thank to our lecturer and our tutor lecturer, Dr
Hakimin and madam nor maizatulakma who willing to spends their time to guides our
group and give their support to our group to finish doing this Accounting assignment
with successfully. Before that, our group member also want thanks to our classmate
that give the full corporations when we all in progress to finish and complete this
assignment before dateline.

Then, we feel very appreciate and very thanks to University Malaysia Kelantan
(UMK) which give us chance for our group member to learn more and many about Basic
Accounting subject. We also need to thank to our group member that very proactive
and motive to find the information and doing this assignment with hardworking.

Lastly, our group member need to thanks the happiness and friendly owner and
worker that work at Percetakan Berkat Karisma company because they has spent their
useful time with us. We know they very busy with their job but their still give us good
corporations and we fill interview session with successful. They are very good employee
and Percetakan Berkat Karisma will if have good employee like them. Time interview
session, our group member can ask all question to them and we had been allow to took
picture and other document. So, all information that our group member got, we can use
with correctly and usefully.

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 2. Introduction

Accounting is the systematic and comprehensive recording of financial

transactions pertaining to a business, and it also refers to the process of summarizing,
analyzing and reporting these transactions to oversight agencies and tax collection
entities. Accounting is one of the key functions for almost any business. It may be
handled by a bookkeeper and accountant at small firms or by sizable finance
departments with dozens of employees at large companies.
Accounting is a service activity and it is important as it provides quantitative
information of financial nature to various stakeholders which are intended to be used in
making economic decision. These stakeholders include investors, management, and
government, suppliers, financiers, regulators and etc. The business accounting help in
making a number of short term and long term business decisions which helps an
enterprise to grow. In todays complex business environment, it is very important for
the business to keep their accounting records clean and up to date. Proper accounting
is important to any business because the accounting records helps in evaluating the
performance of business. It also helps to manage and monitor cash flow and helps
business to be statutory compliant. Besides that, the accounting records helps to create
budget and future projections and it also helps in filing financial statements with
regulators, stock exchanges and filing of tax returns.
The objective of this study is this course will introduce students to the
preparations and uses of financial statements, accounting standards, concept and
theory and accounting cycle framework. The course will also equip students with skills
to do record keeping, bank reconciliation, and final accounts with adjustments. At the
end of this course, the students are able to prepare the financial statements using
accounting concepts and financial reporting standards. The students also can manage
business information in the preparation of financial statements and can report verbally
the preparation process of the financial statements.
For this assignment, we have chosen the Percetakan Berkat Karismas company.
We have to prepare a report on the preparation of a full set of accounts for micro

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business or petty traders. In order to get the information about the company, we have
to conduct an interview with the managers or the business owner. On 23 March 2017,
we went to Percetakan Berkat Karismas company and make an interview with the
manager of the company. We asked the manager about the account of the company for
one month transaction on January 2017.

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 3. COMPANY BACKGROUND

Generally, we know at Malaysia have many company that running their own
business. There are many type of business such as food and beverage that people in
this country running up their business. So, we have chosen one of the types of business
that provide accounting report which is to gain their profit in their business. Percetakan
Berkat Karisma is the company that we have interviewing them to know their own profit
that their get every month. Mr Haji Alias bin Haji Awang Kechik who is the founder of
the company that running up the business. He was choose the type of business like
printing industry which is he has the knowledge about the printing services.
The founder of the company is Mr Haji Alias which is 55 years old. He was born
in Kelantan on 1962. Before he run up the business, he was taking the Sijil Pelajaran
Malaysia (SPM) at Sekolah Menengah Kebangsaan Putra, Kota Bharu. After then, he
never continues or furthers the studies but make decision to work with his parents at
the hometown. Then, he makes decision by developing his own business under Industri
MARA, Pengkalan Chepa and now became one of the successful business men in
Kelantan.
He was married with his wife who is Hajah Che Hazmah binti Che Kob who is
running the business with him and always supports their business. She is 54 years old
and she works at Universiti Teknologi Malaysia (UITM) Kota Bharu. They have three
children that also help their business. The eldest is Nurul Aisha binti Haji Alias, 29 years
old. The second child is Mohd Shahmi bin Haji Alias, 23 years old and the last child is
name Mohd Irfan bin Haji Alias, 20 years old. He also has a son in-law and daughter in-
law. Besides, he also has three grandchildren.
Percetakan Berkat Karisma is located at Lot 148, Kawasan Industri Mara Fasa 3,
Pengkalan Chepa, 16100 Kota Bharu, Kelantan. The company was registered on
October 16, 1996 and was registered with the Ministry of Finance in the field of supplier
or services. Now, Percetakan Berkat Karisma has been 21 years in business world.
Percetakan Berkat Karism was opened on working hour which is on 8.30 AM until 5 PM
and closed on Friday. The company have contact number and mobile phone which is

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their customer can contact them. Besides that, the company also have email which is
berkat501@yahoo.com. In addition, Percetakan Berkat Karisma have their motto which
is Customers satisfaction is our priority. Besides that, the objective is We have our
own aim to strive in making Malaysia more modern and we strive hard to be satisfaction
and be one of the best printing suppliers. Other than that, the vision of Percetakan
Berkat Karisma is 'Strive hard to be one of best printing supplier'.
The company have 12 employees who are help him to run up the business since
21 years ago. The employees that hired by Percetakan Berkat Karisma are 12 skilful and
trustful workers including his three children and also son in-law. The employees are
very dedication and innovative. They will make every effort to succeed and become a
respected supplier of printed materials in the face of the new millennium and moving
towards achieving the goals of Vision 2020. Last but not least, Mr Haji Alias has their
own mission and vision to increase his profit of company.

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 4. CURRENT BUSINESS

Percetakan Berkat Karisma was a sole proprietorship which is one of the types of
business. This is because Mr Haji Alias was run up his business by himself. Then, he
made a loan from bank to run the business. Now, the company have amount of capital
around RM80000 in their company. Then, the salaries of their employees were around
RM15000. That means their company were very stable. Mr Haji Alias can manage their
own business when he used the types of business like sole proprietorship.
A sole proprietorship is a business other that the business registered under the
Company Act 1965, business managed by the government or any incorporated public
bodies, organisations registered or exempted under any written law that enforce in
regards and with organisational registration or a cooperative company, business that
stands as on-going of any profession (Section 4, Business Registration Act, 1956).
Many people more prefer to choose sole proprietorship than company or partnership
because it is established, owned, funded and managed by only one person. Normally, it
is run by one person and will hire a few workers to help the business. For example, the
founder of Percetakan Berkat Karisma who is Mr Haji Alias just taken 12 workers to help
him manage the business. That means he used this type of business because he want
to manage his company by himself. So, he can gain their profit when his used this type
of business.
Generally, sole proprietorship is the highest number of registered businesses in
Malaysia. This is because sole proprietorship is allotted under the Business Registration
Act 1956 where this type of business is easily established and formed. Then, it profit
also belong to the owner. If the company it lost, the owner also lost or bankrupt. So, it
will be effect to the owner. As conclusion, Mr Haji Alias is one of the sole proprietorship
that running up their business in Malaysia.

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 5. Actions taken by the group to guide and helps the business to
have/improve a systematic recording of business transactions.

In every business there are numerous business transactions and it is impossible for
the management to keep in their mind all business transactions that they have made or
purchase the items. The systematic and complete recording of business transactions
helps the management to receive any retrieve information easily and in time. Business
records which must be kept include documents which provide a record of the business
transactions, or which enable these transactions to be traced and verified through the
accounting system from start to finish. The types of business transactions are include
invoices, receipts, cash register tapes, banking records, cheque, etc. The essence of
good record keeping is good book keeping. Efficient bookkeeping will save the company
time and money in long run.
To improve a systematic recording of business transactions are by making the
bookkeeping part of the accountant or owner of company regular routine. Once they
established a routine, they shall find that the work through their books more quickly.
Next, the accountant or owner has to keep their bookkeeping up to date all the time if
there are transactions that make on that day. They also have to keep the books in an
organized manner because their works quicker if they can easily access the information
that they needs. It is very important to record the business transactions every day
because when the transactions are record last minutes, there will incident that will
happen during the recording. For example, the transactions are misplace or missing and
that why do not leave things until last minutes. Besides the guides that our group has
given, they can also look for another ways to improve their bookkeeping or meet the
accounting company that can give the good guidelines and examples for them to
improve more.
To keep the business transactions there are two ways to do it. First using the paper
based method. To use the paper based record keeping simply means that keep all the
invoices for sales and for purchases as well as cheque, copies of bank deposit slips and
bank statements. When the company use the paper based method of book keeping,

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they must make sure they keep all records in legible and well organized manner. The
second method is using the computer method. It is depending on the type and size of
the company business, using the computer can simplify and improve the company
record keeping. There are several advantages using a computer to keep the records
because most computer accounting programs will give them an up-to-date picture of
how the business is going and help them plan and forecast the business future
situation. The computer can improve the accuracy of record keeping and find the
recorded information more quickly if they need it for later. Besides, the lists of items
that change from time to time can be updated more easily if they are kept the record of
transactions on the computer.

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 6. FULL SET OF ACCOUNTS FOR ONE MONTH
i. JOURNALIZE ONE MONTTH TRANSACTIONS

TRANSACTION OF PERCETAKAN BERKAT KARISMA SDN. BHD.

2017

JANUARY 1 Deposited credit RM80000 into bank as capital

6 Purchased paper and ink on time from SMO Book Stores RM10000

8 Paid insurance by credit with amount RM5000.

15 Paid maintenance by credit with amount RM20000.

18 Paid rent transportation RM1000 cash.

21 Sold exam paper to UITM Kota Bharu RM5000 on credit.

22 Bought computer for office use RM2700 on credit.

24 Lembaga Kenaf dan Tembakau Negara has paid to us RM4400 by

internet transfer.

25 Bought computer for office use, RM2700 on credit.

26 Puan Hasmah bought printed as a wedding gift by cash RM1500.

27 En. Ahmad paid service printing by cash RM2100.

28 Paid salary RM15000 by using transfer bank.

29 Paid rent of building, RM500 by bank.

30 Paid electric and water with cash RM20

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 ii. LEDGRES ACCOUNT

Capital account
2017 RM 2017 RM January 1
balance c/d 80,000 January 1 Bank 80,000

80,000 80,000

Bank
2017 RM 2017 RM
January 1 Capital 80,000 January 6 Paper and ink 10,000
24 LKTN 4,400 8 Insurance 5,000
15 Maintenance 20,000
21 Exam paper 5,000
22 Computer Acer 2,700
28 Salary 15,000
29 Rent building 500
84,400 84,400

Balance b/d 26,200

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 Paper and ink
2017 RM 2017 RM
January 6 Bank 10,000 balance c/d 10,000
10,000 10,000
Balance b/d 10,000

Insurance
2017 RM 2017 RM
January 8 Bank 5,000 balance c/d 5,000
5,000 5,000
balance b/d 5,000

Maintenance
2017 RM 2017 RM
January 15 Bank 20,000 balance c/d 20,000
20,000 20,000
balance b/d 20,000

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 Rent of transportation
2017 RM 2017 RM
January 18 Cash 10,000 balance c/d 10,000
10,000 10,000
balance b/d 10,000

Cash
2017 RM 2017 RM
January 26 Puan Hasmah 15,000 June 18 Rent of transportation 1000
27 En. Ahm 2,100 25 Withdraw 500
30 Electric and water 2000
Balance c/ d 100

3,600 3,600
Balance b/d 100

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 Exam Paper UITM Kota Bharu
2017 RM 2017 RM
January 21 Ban 5,000 balance c/d 5,000
5,000 5,000
Balance b/d 5,000

Computer Acer
2017 RM 2017 RM
January 22 Bank 2,700 balance c/d 2,700
2,700 2,700
Balance b/d 2,700

Lembaga Kenaf dan Tembakau Negara

2017 RM 2017 RM
Balance c/d 4,400 January 24 Bank 4,400
4,400 4,400
Balance b/d 4,400

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 Withdraw
2017 RM 2017 RM
January 25 Cash 500 balance c/d 500
500 500
balance b/d 500

Puan Hasmah
2017 RM 2017 RM
balance c/d 1,500 January 26 Cash 1,500
1,500 1,500
Balance b/d 1,500

En. Ahmad
2017 RM 2017 RM
Balance c/d 2,100 January 27 Cash 2,100
2,100 2,100

balance b/d 2,100

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 Salary
2017 RM 2017 RM
January 28 Bank 15,000 balance c/d 15,000
15,000 15,000
Balance b/d 15,000

Rent building
2017 RM 2017 RM
January 29 Bank 500 balance c/d 500
500 500
Balance b/d 500

Electric and Water

2017 RM 2017 RM
January 30 Cash 2,000 balance c/d 2,000
2,000 2,000
Balance b/d 2,000

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 iii. TRIAL BALANCE

TRIAL BALANCE

RM RM

Bank 26,200 Capital 80,000

Paper and ink 10,000 LKTN 4,400

Insurance 5,000 Pn. Hasmah 1,500

Maintenance 20,000 En. Ahmad 2,100

Transportation 1,000

Cash 100

Exam paper 5,000

Computer 2,700

Withdraw 500

Salary 15,000

Building 500

Electric and water 2,000

TOTAL 88,000 88,000

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 iv. STATEMENT OF PROFIT AND LOSS

Profit and Loss

Sales RM 8000
(-) Cost of goods sold
Opening stock RM 0
Purchase RM 10000
RM 10000
(-) closing stock RM 8000

RM 2000
Gross Profit RM 6000
(-) Expenses
Insurance RM 5000
Maintanance RM 20000
Transportation RM 1000
Computer RM 2700
Salary RM 15000
Building RM 500
Water and electric Bill RM 2000
(RM 40200)
Net Loss (RM 40200)

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 v. ASSETS AND LIABILITIES

BALANCE SHEET

Capital RM 80000
Current Asset: (-) Net Loss RM 40200
Bank RM 26200 Drawing RM 500
Cash RM 100 RM 40700
Debtor RM 5000
Closing Stock RM 8000

RM 39300 RM 39300

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 7. The importance of accounting to the micro businesses or petty traders
activities

Accounting is communications of information that owners, managers, and

investors need to evaluate a companys financial performance. The term Accounting is
very familiar and we always hear that term. Accounting is a process of recording,
summarizing, analyzing and recording of financial transactions of the micro business.
Accounting is the most of important functions of the business. Accounting can be
divided into various fields such as management accounting and financial accounting.
Management accounting is report of information for internal user. Then, financial
accounting refer to statutory reporting.

The important of accounting to the Percetakan Berkat Karisma is to provide

quantitative information of financial nature to various stakeholder which is intended to
be used in making economic decision. Business accounting help in making a number of
short term and long term business decisions will helps micro business to grow as well as
penetrate in market. Accounting also helps in evaluate the performance of business.
The accounting records refer to results of operations as well as statement of financial
position. Balance sheet and profit and loss accounts rations are calculate which help
user of financial statements to analyze the performance of an entity. For instance,
current ratio, turnover ratio and debt equity ratio. We can get budgeted figures if we
compare previous period accounting data with current period.

If your income good or positive but cash flow bad and negative? Why? Do you
have much business debt, will you manage it? Then, we need to learn some current
ratio, turnover ratio and other. Turnover ratio function is to help business to gouge
companys activity level. It also identify things that will be hidden in plain sight such as
finding out business inventory and customers are needs to pay later and later.

Next, helps Percetakan Berkat Karisma to be statutory compliant and create

budget and future projections. Goods business accounting can may sure timely record
our liabilities that need to be paid within the prescribed time line. For example,

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provident fund, pension fund, VAT, sales tax and income tax. This will helps business to
be statutory if payment of liabilities with timely. Accounting data also helps Percetakan
Berkat Karisma to steady budget and forecast for future time. Business trends are
projected based on past data produced by accounting system.

Then, the important of accounting to the micro business is accounting will save
your time. An accounting will helps you to accomplish and look at your duty and the
time with constraints. It is quite tempting and motivate the business owner to manage
and care their own accounts but it is always advisable. It is gives you a lot of time that
you can spend on business growth.

Lastly, Accounting also helps in Audits and legal issues. The bad issues for
business are getting audited and checked by government authorities. Accounting can
handle all your audit related issues. You do not have to worry and think about tax
season or audits your account. That skills of accounting offer you to great advice on
legal financial issues.

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8. Suggestions to the micro businesses/petty trader of how and what to do
to have a systematic recordings of business transactions and final account.

Systematic recordings of business transactions and final account usually not used by
micro businesses. This would effects their business. If the business use systematic
recordings of business transactions and final account, they will know the profit and loss
the company. Moreover, the recording business transaction can improve the company.
My suggestions to the micro businesses/petty traders of how to do to have a systematic
recordings of business transactions and final account are:

1. Keep recordings of business transactions up to date.

Micro business not think that the business transaction as important things and
many of them do the transaction last minute before close the account. So, this
can probably the account not balance. Recordings need up to date. As we know,
if the recordings not up to date, this can make our work more difficult and risk
losing money if not realising that the customers and our debt. All businesses
need records all the business transactions to confirm the calculation. The records
that must be kept such as receipts, payment, income, expenditure, list of debtors
and creditors and more.

2. Use electronic record.

Micro business more prefer manual record and just use notebook for their
recording business transaction but now we have another way of recording
business transaction that is electronic record. Manual record cheaper and less
risk to loss than electronic record but, electronic record more efficient and less
storage. Moreover, now we have accounting software that make it easier to
record information. This can save time and storage. Other than that, electronic
record can save the data and more security.

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3. Hire specific worker.
Usually, micro business just use the worker that need to do many work to record
business transaction. But, this is not fine to the company. Because the worker
need to think about many of his work. So they cannot concentrate. It no loss if
hire specific worker for record business transaction because the worker can only
do their work and can concentrate. So, this can give advantage to the company
and the record of account will not false. Moreover, the owner will find an
accounting for the business micro that have basic account. The owner no need
to worry anymore.

4. Go to class business transaction.

Why we need to record business transaction?. I think, if we not record business
transactions, that will give bad effect to business financial. Thats why we need
to recording everything in business. If we have worker, the company need send
and sponsor them to the class for improve in business transaction even though
they work long time in the company. Moreover, they can study how to record
and how to use manual and electronic recording business transaction.

5. Learn basic account.

Many of owner micro business not high study. So, they not know about basic
account. At the first open the business, they will be an accountant for the
business. This is because, they not believe any person and do not want the
business bankrupt. In this case, the owner need to learn basic account. This
can make sure that the owner can ind

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 9. CONCLUSION

Based on the research that we have interviewed at Percetakan Berkat Karisma

Sdn. Bhd. we have learnt about the on how they have prepared a systematic recording
for their business transactions. Besides that, we also got more understands for our
subject when we have did our interviewed on them. After, got the information and
financial statement from the Percetakan Berkat Karisma Sdn. Bhd. we have did the
transaction for one month and from that we can analyse the company was good in
arrange their accounting for their business. Moreover, we can conclude that before
doing the financial statement we have to know the purpose in each system in
accounting for give more ease to record and to avoid from the mistakes.

Firstly, we can know on how to find the profit and loss. The profit and loss
statement is often used for today and under the accrual basis the revenue and
expenses reported on the profit and loss statement should be the revenue that were
earned during the accounting period and the expenses that match the revenues being
reported or have during the accounting period. Then , it will be said that profit and loss
is very crucial in the business because it can be track for know how much the company
can gain the net profit or the net loss.

Besides that, we also know to prepare the trial balance for the company. As
known trial balance is a list closing balances of ledger accounts on a certain date and is
the first towards the preparations of financial statement. Then, trial balance usually
prepared at the end of an accounting period to assist in the drafting of financial
statement. Moreover we have knew the purposes of the preparing the trial balance was
to ensure that for every debit entry recorded, a corresponding credit entry has been
recorded in the books in according with the double entry concept of accounting. When
the totals of the trial balance were not balance, the differences may be investigated and
resolved before financial statement are prepared. Then, to ensures that the account
balances are accurately extracted from accounting ledgers and assists in the
identification and rectification of errors.

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 Therefore, we can also know an assets and liabilities. Assets is the things that
are resources owned by a company and which have future economics value that can be
measured and can be expressed in dollars. Moreover, it also report on the balance
sheet usually ay cost or lower. After that, we can also know the long term assets and
the short assets. Then, liability is an obligation and it is reported on a companys
balance sheet. For instance in liability includes loan payable, bonds payable, interest
payable, wages payable and income taxes payable. If less common liabilities are
customer deposits and deferred values. Liability also is often viewed as claims on a
companys assets. Other than that, liability can also be thought of as a source of a
companys assets.

Besides that, the company has gained loss about RM 46,200. So for avoid from
the losses the company has to increase the system in financial system for the company.
In addition the company should has the

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APPENDIX

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