Problem Based Questions Presentation (20%)

Problem Based Questions Presentation (20%). AGR323 – Estate Budgeting And Accounting.

State two (2) advantages and one (1) disadvantage of double entry system.

There are two primary accounting methods used by businesses in recording and reporting financial transactions, namely cash and accrual accounting system. Measure three (3) differences of these both accounting methods..

Part B. Question 1. Assets Liabilities Current Assets RM150,000 Current Liabilities RM80,000 Non-current Assets Long-term Liabilities RM20,000 Land RM300,000 Building RM120,000 Owner Equity RM700,000 Plant and Machinery RM230,000 Total Assets RM800,000 Total Liabilities and Owner Equity RM800,000.

Part B. Question 2. Table below was a summary of income statement for an agricultural project.

Question 3. Rania has two projects that require RM30,000 as capital for each project. She has to choose only one of the two investments because of capital limitation. The project can generate cash inflows as outlined below;.

Question 3. INVESTMENT B a) Payback Period P = C/E , C: Original cost, E: Expected annual net cash revenue Total cash revenue: = RM7000 + RM8000 + RM9000 + RM9000 + RM10,000 = RM43,000 Net cash revenue = Total cash revenue – Initial investment = RM43,000 – RM30,000 = RM13,000 SUM of 3 years: RM24,000 The fourth years: Need RM6000 only RM9000 / 12 months = 750/ month RM6000 / 750 = 8 months Payback period = 3 years 8 months.