FACULTY OF ECONOMICS AND MANAGEMENT
EPPA1013/EPPD1033: PRINCIPLES OF ACCOUNTING
SEMESTER II SESSION 2024/2025
PROJECT: FINANCIAL STATEMENT FOR SERVICE OPERATIONS
This project is a business process simulation that contributes 20 marks (For EPPD1033 - 15 Marks) to the overall assessment for this course. It aims to enhance students' understanding and practical knowledge of different business types and ownership forms, the recording process, and the preparation of financial statements. This project is a group project with each group consisting of five (5) members. Each group must form a sole proprietorship business (simulation only) that operates services for 3 months starting from 1 April 2025 to 30 June 2025.
In the setup phase, students will register the business, design the logo and business source documents, and plan the business activities, mission, and vision. During the operation phase, each business will conduct transactions, some of which will involve interaction with other student groups' businesses. Transactions will be recorded in journals and ledgers. In the final phase, each business will prepare financial statements and closing entries.
PART A: GENERAL INSTRUCTIONS
1. The group consists of 5 (five) members
2. Each group needs to determine the type of service business they will run Examples of service business include:
i. Advertising
ii. Delivery
iii. Photocopying
iv. Accounting Firm
v. Salon
vi. Consultancy/ Advisory Services
3. Each group also needs to determine the name of the business they will be running. The business name needs to be registered by completing the Business Registration Form (Form A) and the Business Name Approval Form (Form PNA.42) which can be downloaded from the Companies Commission of Malaysia (SSM) website.
The business being conducted must be a sole proprietorship.
PART B: PROJECT IMPLEMENTATION
The detailed activities for the project implementation are as follows:
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WEEK
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ACTIVITY
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LEARNING
OUTCOMES*
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1 & 2
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Form. groups of five members
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-
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3
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o To register your business (simulation only), each group needs to:
• download FormA and Form PNA42 from the Companies Commission of Malaysia website,
• fill out the forms.
o In this activity, each group must also provide the following information:
• Business name (as registered with SSM), • Business logo,
• Main business activity,
• Mission, and Vision of the business
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1
|
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4
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Design source documents that will be used in your business transactions. Examples of source
documents include:
• official receipts, • sales invoices,
• payment vouchers.
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1
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5
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Conduct at least 30 transactions for the first three months of the business:
• Each transaction must have a source document and be recorded.
• These 30 transactions should consist of 10 transactions with other groups and 20
transactions not involving other groups (e.g., paying employee salaries). You may use UKMFOLIO or WhatsApp groups to communicate with other group members.
• Analyze each transaction using the accounting equation.
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1 & 3
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6
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Using the transactions that have been made:
• Record journal entries for each transaction, • Open all relevant accounts,
• Post all journal entries,
• Prepare a trial balance.
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2 & 3
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7
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o Prepare at least 5 adjustment entries,
• Record adjustment entries,
• Post adjustment entries,
o Prepare an adjusted trial balance.
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2 & 3
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8
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o Prepare financial statements,
o Record closing entries,
o Prepare a post-closing trial balance.
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2 & 3
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LEARNING OUTCOMES*:
1. Identify accounting concepts and principles in business.
2. Complete the steps in the complete accounting cycle for the preparation of financial statements.
3. Practice ethical behaviour in accounting information selection.
PART C: PROJECT REPORT SUBMISSION
The output of the entire project including the financial statements must be submitted in softcopy (words document/ PDF file) via UKMFolio by the group leader in the 13th week of the lecture session, which is no later than Sunday, 22 June 2025, at 11.59 p.m. Early submission is welcome. The weighting for the assessment of this project is 20%, of which 15% is assessed through the project report submitted (group mark) and another 5% through the assessment of peers in the group (individual mark). (For EPPD 1033, all 15% is assessed through the project report submitted (group mark)).