FACULTY OF ECONOMICS AND MANAGEMENT
EPPA1013: PRINCIPLES OF ACCOUNTING
SEMESTER I SESSION 2024/2025
PROJECT: FINANCIAL STATEMENT FOR SERVICE OPERATIONS
This project is a business process simulation that contributes 20 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 is a group project, with each group consisting of five (5) members. Each group must create a sole proprietorship (simulation only) that will operate a service business for 3 months, from 1 October 2024 to 31 December 2024.
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 must determine the type of service business they want to operate. Examples of service business types include:
i. Advertising
ii. Delivery
iii. Photocopying
iv. Accounting Firm
v. Salon
vi. Consultancy/ Advisory Services
3. Each group must also decide on the name of the business they will operate. The business name must 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.
4. The business established 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 Form. A 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 the space on 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 atrial 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. Solve the steps of a complete accounting cycle in financial statements generation.
3. Practice ethical behaviour in accounting information selection.
PART C: PROJECT REPORT SUBMISSION
The complete results of the project, including the prepared financial statements, must be submitted in soft copy (Word document/PDF file) via UKMFolio by the group leader no later than the 15th week of the lecture session, specifically by Monday, 20 January 2025, at 11:59 p.m. Early submissions are encouraged. The project assessment weight is 20%, with 15% evaluated based on the project report submitted by the students (group marks) and the remaining 5% through peer evaluation within the group (individual marks).