ACC406

INTERMEDIATE FINANCIAL ACCOUNTING AND REPORTING

HM245

FACULTY OF HOTEL AND TOURISM MANAGEMENT

PROJECT

INTERVIEW

LECTURER’S NAME

DR. NORHASLINDA DAUD

GROUP MEMBERS

NAME STUDENT ID
CLANDIA AVING AVAT 2018272712
MAIZHATUL FARIZHA BINTI IRIN 2018635206
AMIRAH NABILAH BINTI MOHD ALI 2018438846
ALYAA NADZIRAH BINTI HAMBELEE 2018288366
ACKNOWLEDGEMENT

We would like to express our deepest appreciation to all those who provided us the
possibility to complete this report. A special gratitude we give to our lecturer, Dr.
Norhaslinda, whose contribution in stimulating suggestions and encouragement, helped us
to coordinate our project.

We would like to thanks Mr. Yunus Bin Hamzah, the manager of Empat F Maju Jaya
Services for his kindness by letting us interview his company. Thanks for helping us by
giving as much as information that we need to finalize the report.

Furthermore, a special thanks goes to all group members, who invested full effort in
preparing this report. We had sacrificed our time and money to complete this assignment.
Lots of challenges we been through to prepare this report but finally we finished it gratefully
on time.

Not only that, I have to appreciate the guidance and support given by other friends
and family members. Sometimes it is hard to understand some questions and we need the
nearest person to explain and give us some advices and knowledge. Thanks to all friends
who keep supporting us. Same goes to our family members who give support us with money
and advices.

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TABLE OF CONTENT

Contents Pages
Acknowledgement 2
Introduction 4
Contents: 5-11
a) Background of organization
b) Classification of business items
c) Characteristics of business
d) Comment on the recording process of
the business
e) Strength and weaknesses of the
business
Conclusion 12
References 13
Appendix 14

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INTRODUCTION

This assignment is designed to enhance us to demonstrate teamwork through

acquisition and organisation of accounting information in the preparation of financial
statement of sole proprietorship. For this assignment, we need to choose, find and locate
any business that willing to cooperate, share the information, willing to accept our visit and to
be interviewed by us. After tried calling few companies to ask for their cooperation, we are
so lucky that we found Empat F Maju Jaya owner that willing to help us to accomplish the
assignment by our lecturer. We have set-up an appointment with the owner on 5 November
2019 at 3pm at his office at Jalan Dataran Suria, Bandar Puncak Alam, Selangor.

From the visit, we need to gather the information related to the business such as the
background of the business, business activity, classification of the business items on the
business assets, liabilities, capital, drawing, revenue and expenses, the characteristic of the
visited business, the recording process of the business which we need to focus on the
accounting cycle and identify the strength and weaknesses of the business. During the
interview, we have gathered the information through observation, verbal interview and
questionnaire.

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BACKGROUND OF ORGANIZATION

In order to make this our project assignment, we have choose the business
organization which is Empat F Maju Jaya Services. Empat F Maju Jaya Services owned by
Mr Yunos Hamzah. Based on our interview and information that we got from the website this
company was incorporated since from 2012. He has start this business for RM10, 850. The
name of Empat F is very unique, easy to say, easy to find and make people always want to
know this company more about what. Other that, based on the story from Mr Yunos Hamzah
this Empat F taken from her son’s name.

The location of this business is at Bandar Puncak Alam which is at No 3 – 1, Jalan

Dataran Suria 15/7/3, 42300 Bandar Puncak Alam, Selangor Darul Ehsan. He choose this
location and not at Shah Alam or Kuala Lumpur because he want to reduce the cost of fuel
and want to reduce the distance travel time. Besides that, he choose this location because it
is very close to where he lives and got many savings and also easy to commute from home
and workplace. In additional, this location also more strategic which is he can get many
customer either from this town or outside such as Seri Kembangan.

In business of Empat F company which owned by Mr Yunos Hamzah, this business

is more to sole proprietorship. Mr Yunos Hamzah also has said that there are no branches of
this business. Other that, the type of business that he do is manufacturing box product. In his
business also he and his workers design and market in all kind of corrugated carton boxes
products. Their also very committed to being efficient to produce box products. Their also try
their best to meet the criteria of the customer's desired box.

In their business activity also, there are more emphasized to provide a good service
and match customer need in terms of delivery, quality and pricing, to provide a good quality
with reasonable prices to ensure that their products are more competitive and to upgrade
their machineries to produce higher quality products to meet the market demand.
Furthermore, their business activity also emphasized better printing and graphics,
customization and recyclable. This is because, cardboard corrugated boxes are light weight
and thus are very convenient to handle while packaging, loading and unloading.

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CLASSIFICATION OF BUSINESS ITEMS

Every business that run by an entrepreneur or dealer has a classification of business.

For example is asset. Asset divided into two types which is non-current assets and current
assets. Non-current assets are assets which is acquired or bought and not for resale but to
be used in the operation or production products. Basicly the useful lives of this assets is
more than one year. The non-current assets also broken into three categories which is
tangible non-current assets, intangible non-current assets and investment. Based on the
business that we have visited and interviewed which is company of Empat F owned by Mr
Yunos Hamzah, he have this assets but some are not. For tangible non currents assets, Mr
Yunos Hamzah have his land and building, machinery, office equipment, furniture, motor
vehicle and more. He use all this thing in order to making production. For non-tangible
currents assets is Mr Yunos Hamzah has his his own trademark which is ‘empat F or 4F ’.
Other that he also have patent which is for supporting him in business, therefore to exclude
others from making, using, or selling a discovery. However, Mr Yunos Hamzah didn’t have
any investment. For current assets is assets that are either cash or can be converted into
cash within one year. These assets constantly change their form during an accounting
period. Example of currents assets is inventory or stock, account receivables or debtors,
cash at bank and cash in hand. Based on our interview company Empat F which is owned
by Mr Yunos Hamzah the current asset for cash at bank is RM10, 602.52.

Next is liabilities, liabilities are funds that supplied by external parties or person to the
business for the acquisition of assets. It is for financial obligations of the business to external
parties. In liabilities there are two types which is non-current liabilities and current liabilities.
For currents liabilities is amount that owed by the business. Example of non-current liabilities
are long terms loan, mortages in premises and debentures. Beside that current liabilities,
currents liabilities are ammount that owed by the business and need to pay in one year.
Example of current liabilitities are short term loans, bank overdrafts, creditors or account
payable. For company Empat F, this company have loan from Hazmiah binti Mohammad for
RM 9000.00.

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 Drawing is taking or using money from the bank account. We use the money either
for the goodness or needed of our business or we use that for personal use. Based on the
cashbook that Mr Yunos Hamzah show to us he has taking money for RM1500 after he
transfer money business to the account Citibank Berhad at RM5228.00 and to the account
Ambank Berhad at RM850.00

Capital or owner’s equity represents owner supplied funds to the business for the
acquisition of assets for the business. It is the financial obligation of the business to the
owner. Profit will increase the the capital of the business where losses and drawing will
reduce the capital of the business. Drawing occur when owner uses whatever assets of the
business for personal use. Based on our interview with Mr Yunos Hamzah, his capital or
owner’s equity for the first is at around RM 10, 850.

Revenues is the gross increase in owner’s equity resulting from business activities
entered into for the purpose of earning income. Trading business derive their main form of
revenue from the sale of goods and services. For examples is sales of goods or services
commissions receive and interest received. In business company Empat F their will get the
revenues by selling the box products and also in term services.

Expenses is the costs of assets consumed or services that has been used in the
process of earning revenues. A business must incur expenses items which are necessary for
the continuing operation of the business but for which no long term benefit will be obtained.
For example is purchasing of items or goods, salary, interest expenses, rent expenses and
discounts allowed. In business of company Empat that owned by Mr Yunos Hamzah the cost
expenses that he have such as costs for bill phone, electric, rent office and more. For
example is, based on the cashbook that he show to us the rent office for September is
RM1400. Other that he also have make bill payment for Tenaga Nasional Berhad (TNB)
which is RM172.20, Telekom Malaysia Berhad which is RM348.75 and for electrical is
RM40.00.

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CHARACTERISTICS OF VISITED BUSINESS (SOLE PROPRIETORSHIP)

Profit or loss No profit sharing

Finance The necessary capital to run, the business is provided by

the sole owner. However, he may borrow from other
sources such as friends or bank as need arises.

Ownership The business is owned by a single individual.

Management Being small in size, it is managed by te owner himself.

and Control However, he may have some paid workers to assist him.

Liability Unlimited liability

Risk The proprietor himself bears all the risk.

Legal status There is no difference between the business assets and

the private assets of the sole proprietorship.

Empat F Maju Jaya Services is a cardboard manufacturing company that has been
operating since 2012. Empat F Maju Jaya Services is located in Jalan Dataran Suria, Bandar
Puncak Alam. This company designs and markets all kinds of boxes. There are 8 types of
boxes that been produce which are RSC (Regular Slotted Carton), Nesting, Carton sheet,
FOL (Fully Overlapping), Die-cut boxes, Five panel, Top/bottom and White paper board.

Empat F Maju Jaya Services is sole proprietorship business owned by Encik Yunus
Bin Hamzah. The necessary capital to run, the business is provided by the sole owner.
However, he may borrow from other sources such as friends or bank as need arises. This
business is owned by a single individual.

Empat F Maju Jaya Services is managed and controlled fully by Encik Yunus and he
have some workers to assist him. The liability of this company is unlimited liability. Moreover,
the proprietor hirmself bears all the risk.

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THE COMMENTS OF ACCOUNTING CYCLE OF COMPANY

The accounting cycle is a collective process of identifying, analyzing and recording

the accounting events of a company. The series of steps begin when a transaction occurs
and end with its inclusion in the financial statements.

The purpose of recording and analyzing accounting information of a company is to

know the financial status of organization, whether the business is making a profit or running
at a loss and the corrective actions to be taken to improve the situation. Besides that, it is for
easier reference for manager or accountant to do accounting process. Furthermore, it is
important to avoid misleading financial statements if there are no proper records.

The accounting cycle have seven steps which are transactions, sources documents,
journals, ledgers, trial balance, adjustments and financial statements. However, Mr. Yunus
just follow a few steps of accounting cycle.

Empat F is a small company that running by Mr. Yunus himself mostly. He doesn’t
has any subordinate that can helps him to manage office management so, he is the person
who in charge to do accounting, administration and marketing. The because of the company
is small and lack of office worker, Mr. Yunus just do some of simple recording and analyzing
accounting information of Empat F.

Transactions

A transaction is an agreement between a buyer and a seller to exchange goods,

services or financial instruments. The accounting process of Empat F is starts with the
recording of business transaction from sources documents which are cash book and bank
statements. The business transactions involved suppliers, customers, and bank.

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Sources documents

A sources documents is often called as business paper because it is the document

produced with each business event and used to record every business transaction. It is used
to journalize accounting information. A sources documents are original and show an
objective report of the economic activities of each transaction.

The examples of sources documents that Empat F received are sales receipts,
checks, purchase orders, invoices, bank statements, and payroll reports. A bank statement
or account statement is a summary of financial transactions which have occurred over a
given period on a bank account held by a person or business with a financial institution.

Journal

A journal is a detailed account that records all the financial transactions of a

business. It is used for future reconciling of and transfer to other official accounting records
called ledger. In a journal, date of a transaction,which accounts were affected, and the
amounts are stated.

Mr. Yunus records all financial transaction that involved Empat F business in cash
book in monthly. The cash book is a financial journal that contains all cash receipts and
disbursements including bank deposits and withdrawals.

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THE STRENGTH AND WEAKNESSES OF THE BUSINESS

Weakness

1. The business is lack of workers especially in office management. Mr. Yunus as a

founder of Empat F is the only person who work in the office and does all works such as
accounting, handle customer complain, administration and marketing. It is effect Mr. Yunus’s
personal life and the effectiveness and smoothness of activities in the business.

2. Mr. Yunus does not record all details about company budget which is important for
Empat F financial. For example, he does not do budgeting for machinery, tools, equipment
and marketing. It will difficult for Mr. Yunus to determine the business’s profit and loss.

3. This company does not do general ledger. Mr. Yunus may has a problem to make
financial statements.

4. The manufacture building and office building of Empat F is separated and located at
different places. It will be difficult for Mr. Yunus to handle the workers and activities in
manufacture and office.

Strengths

1. This company is owned by a native of Malaysia, Malay. It is a chance for native

people to involve in industry to contribute for economy of our country.

2. This company is produce a product that has high demand from others business
industry. So, the production of this product which is boxes is always there. The boxes will be
produced in different designs according to customer request.

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CONCLUSION

This assignment gives us knowledge on how to setup a company and do the

management. As a student, we needs this experience and knowledge to create our own
business one day. This knowledge and experience are very useful I the future. There are lots
of moral and lessons in conducting a business.

From our site visit toward Empat F Maju Jaya Services, we identified that this
business was controlled by Mr. Yunus. He shows us the independent he had to manage the
business alone without any others workers but in collaboration with his factory. Even though
we unable to visit the factory but we had learn how the business works from management.
Which is we learn about the business items, company’s book of accounting and the
characteristics of the business.

We hope that by completing this assignment, we will become much better in

understanding the subject. We wish to be able to create our own business using the
knowledge and experience that we learn from class and during the interview.

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REFERENCES

EMPAT F MAJU JAYA SERVICES. http://www.empatf.com.my/

Fatimah Abd Rauf, Amla Abu and Razia Makmur. Published on 2017 by McGraw_Hill
Education HE Malaysia Sdn BhdFinancial Accounting For Non-Accounting Student, Edition
Fifth (2017)

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APPENDIX

PICTURES DURING THE INTERVIEW SESSION

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QUESTIONAIRE FOR INTERVIEW SESSION WITH EMPAT F MAJU JAYA SERVICES
COMPANY

1. Empat F Maju Jaya Services was incorporated in 2012 that design & market in all
kind of corrugated carton boxes products.
2. Located at Jalan Dataran Suria, Bandar Puncak Alam. Does this company have
branches?
3. There are 8 types of products. Which are RSC (Regular Slotted Carton), Nesting,
Carton sheet, FOL (Fully Overlapping), Die-cut boxes, Five panel, Top/bottom and
White paper board. Do u have any other types?
4. Can you explain the characteristics of the business from this aspect?
- How many owner of the company?
- What types of company it is? (Sole proprietor/ partnership/ company)
- Who manage and control the business? (owner/ partners/ shareholders)
- Who own the profit & loss of the company? (owner/ Share partners/ paid to
shareholders as dividen)
- Does the company has proper books of account? Such as Yearly Financial
Statement and Income Statement?
- Can you classify the business’s asset, liability, drawing, capital, revenues and
expenses?
- Do you prepare financial statement and income statement?
- Does the company follow the accounting process?
Transactions –Journal – Ledger – Trial Balance – Prepare Financial
Statement
5. What is the strength and weaknesses of the company?

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