PSPM QUESTIONS 2013/2014-2020/2021

PSPM QUESTIONS ( 2013/2014 UNTIL 2020/2021
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PSPM QUESTIONS ( 2013/2014 UNTIL 2020/2021
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PSPM QUESTIONS ( 2013/2014 UNTIL 2020/2021

PSPM 2013 / 2014

SECTION A (THEORY QUESTION)

QUESTION 1

a) Puan Azmahton plan to open a business of selling furniture. State three (3) choice

of form of business which can be considered by Puan Azmahton. State one (1)

characteristic for each form of business listed. [6m]

b) State the accounting concepts is not complied with for each of the following
situations:

i) Owner’s wife of Kedai Kopi Kampung Baru used business money to buy
computers for use by her and her children but not recorded in the book
business.

ii) Utama Enterprise had purchased a store worth RM450,000 in 2007. In
2012, market value for the store is RM700,000. Business accountant had
reported the store in business financial statement for the year 2012 at the
market value.

iii) Perniagaan Ceria management has decided to change depreciation method
from reducing balance to straight line for the current year after a year of its
use [3m]

QUESTION 2

a) Perniagaan Harum Manis have the following liabilities on 30 June 2013:
i Mortgage payable worth RM100,000 will be settle for RM10,000 per year for 10
years.
ii Interest payable worth RM7,500 is for mortgage.
iii Notes payable worth RM50,000 will be matured in 4 years.
iv Accounts payable worth RM35,000.

REQUIRED:

State each liabilities listed above (i-iv) either current liability or non-current liability.

Give reason for each answer. [4m]

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PSPM QUESTIONS ( 2013/2014 UNTIL 2020/2021

SECTION B (CALCULATION QUESTION)

QUESTION 1

The following is Bank Statement for Ahmad Kasa Sdn. Bhd. for August 2013 :

Date Cheque Details Debit Credit Balance
RM
number RM RM
25,000
1 Balance b/f 24,850
30,850
2 155449 150 30,100
28,600
3 Deposit 6,000 20,550
28,550
3 155448 750 22,200
31,200
6 155450 1,500 23,150
28,650
7 155451 8,050 28,000
32,150
7 Deposit 8,000 31,450
31,400
10 155447 6,350 30,400

13 Deposit 9,000

16 155453 8,050

20 Deposit 5,500

21 155452 650

22 Bank collection -Notes receivable 4,150

23 155454 700

27 Bank charges 50

30 155455 1,000

Cash book record for Ahmad Kasa Sdn. Bhd. for August 2013 showed the following:

August Details Cash Book (bank column only ) Cheque Total
Cheque Total August Details number (RM)
1 Balance b/f number (RM) 155450 1,500
2 Sales 155451 8,500
6 Alias 17,750 2 Purchased 155452
10 Samat 321768 6,000 4 Purchased 155453 650
19 Sales 045621 8,000 6 Fauzi 155454 8,050
30 Sarimah 155455
54322 9,000 10 Zainuddin 155456 700
04763 5,500 21 Insurance 155457 1,000
37893 6,600 22 Salleh 1,300
1,360
23 Purchased 29,790
27 Salary 52,850
31 Balance c/f
52,850

Additional information:

1. All record in bank statement are correct

2. On 31 July 2013, Ahmad Kasa Sdn. Bhd. had three (3) cheques worth

RM7,250 which have been issued in July 2013 but still outstanding

3. Bank collection for notes receivable includes the interest RM150.

REQUIRED:

i. Prepare Bank reconciliation for Ahmad Kasa Sdn. Bhd. as at 31 August 2013. [5m]

ii. Prepare journal entries as at 31 August 2013. [6m]

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PSPM QUESTIONS ( 2013/2014 UNTIL 2020/2021

QUESTION 2

a) The following are sales and purchases of inventory information for Perniagaan

Cahaya Baru for March 2013:

Date Transactions Unit Price per unit (RM)

March 5 Sales 1,000 17.00

8 Purchases 800 14.00

12 Sales 600 18.00

15 Purchases 900 12.50

21 Sales 300 17.50

27 Sales 200 19.00

The business used perpetual system and first-in first-out method to record the
inventory. Opening balance for inventory is 1,250unit at the price RM12.50 per unit.

REQUIRED: [6½m]
i Calculate cost of goods sold. [1m]
ii Calculate the inventory on 31 March 2013.

b) The following are information related to non-current assets for Perniagaan Makmur:

Details Vehicle Washing machine

Cost RM160,000 RM85,000

Date of purchases 1 April 2007 1 January 2009

Residual value RM5,000 RM3,000

Depreciation rate per annum 10% 15%

Additional information:
1. All non-current assets are depreciated using straight-line method.

2. On 1st May 2013, the business has decided to change washing machine to dryer

machine to fulfill high demand from the customer. Information related to dryer

machine are:

Details Dryer machine

Cost RM100,000

Date of purchases 1 May 2013

Residual value RM5,000

Depreciation rate per annum 20%

3. Supplier of dryer machine agreed to receive washing machine and Perniagaan
Makmur will receive cash worth RM2,000 as trade in value.

4. On 1st May 2013, Perniagaan Makmur has paid insurance premium for dryer
machine worth RM5,000 per year.

5. The business considered to charge full depreciation for all assets that are used at
the end of accounting period. No depreciation charged for the disposed assets in
the year of disposal.

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PSPM QUESTIONS ( 2013/2014 UNTIL 2020/2021 [7½m]
[5m]
6. Business accounting period ends on 31 December each year.
REQUIRED:

i. Prepare journal entries on 1 May 2013.
ii. Prepare adjustment entries on 31 December 2013.

QUESTION 3

a) Perniagaan Kayu Manis had borrowed RM50,000 from Bank Perwira on 1 July 2013
by signing a notes payable for one year with interest rate 10% per annum. Accounting
period ends on 31 December each year.

REQUIRED:

i Prepare journal entries on 1 July 2013 (omit explanations). [1m]

ii Prepare adjustment entries on 31 December 2013 (omit explanations). [2m]

b) Encik Amer kept business record of Amer Trading used single entry system. The
following are analysis for transactions occurred for the year ended 31 December
2012:

Details RM
Cash in hand - 1 January 2012 225
Receipts for Accounts receivable
Sales discount 27,000
Bank loan - 31 December 2012 400
Bank loan - 1 January 2012
Payments for Accounts Payable 1,860
Salaries expense 2,175
Miscellaneous expense 15,600
Cash drawings 6,320
Purchases discount 2,100
Cash in hand - 31 December 2012 2,800

160
90

Balances for business assets and liabilities are:

Account 1 January 2012 (RM) 31 December 2012 (RM)
12,500
Inventory 10,500 39,500
10,600
Accounts receivable 31,000 7,000
1,700
Accounts payable 9,650

Van 7,000

Office equipment 1,700

Depreciation for non-current assets are 15% per annum for van and 5% per annum
for office equipment using straight line method.

REQUIRED:

i Prepare Statement Of Comprehensive Income for the year ended 31 December

2012. [8m]

ii Calculate owner’s capital on 31 December 2012. [4m]

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PSPM QUESTIONS ( 2013/2014 UNTIL 2020/2021
End of questions

PSPM 2014 / 2015

SECTION B (CALCULATION QUESTION)

QUESTION 1

The following is bank statement of Seri Bulan Sdn. Bhd. for May 2014:

Date Cheque no. Details Debit (RM) Credit (RM) Balance (RM)
May 1 Balance 123,000
345678 Deposit 3,500 14,000 137,000
3 345679 12,000 4,900 133,500
8 Deposit 9,300 121,500
12 345681 5,000 126,400
13 345682 Deposit 3,400 121,400
15 118,000
17 345684 Bank charges 900 127,300
22 345686 7,300 126,400
24 345687 13,700 119,100
27 345688 1,444 105,400
29 103,956
30 100 103,856
31

Cash book of Seri Bulan Sdn. Bhd. for May 2014 shows the following information:

Cash Book ( bank column only)

May Details Cheque Total May Details Cheque Total
no. (RM)
1 Balance b/f no. (RM) 3,500
3 Ali Bersaudara 345678 12,000
10 Aman Makmur 123,000 8 MPSJ 345679 5,700
12 Siti Enterprise 345680 5,000
20 Suci Sdn. Bhd. 002244 14,000 11 Purchases 345681 3,400
29 Jit Ria Sdn. Bhd. 345682 1,600
30 TNB 993399 320 12 Min Enterprise 345683 9,000
345684 7,300
987654 4,900 14 Halim Security 345686 13,700
345687 93,764
663333 9,300 15 Purchases

421877 2,000 19 Kasa Angkut

345688 1,444 23 Insurance

26 Rental

29 Salary

30 Balance c/f

All records in bank statement are correct.

REQUIRED :
Prepare Bank Reconciliation Statement for Seri Bulan Sdn. Bhd. as at 31 May 2014.
[6m]

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PSPM QUESTIONS ( 2013/2014 UNTIL 2020/2021

QUESTION 2

a) Perniagaan Lautan Samudera had prepared the inventory information for September
2014. This business used perpetual inventory system and weighted average method
to calculate the inventories.

Date Transactions Unit Price per unit (RM)
Sept 1 Balance 100 12.00
200 11.80
3 Purchases 220 15.00
6 Sales 160 11.60
10 140 11.20
11 Purchases 200 14.90
18 Purchases 175 11.00
23 100 14.90
27 Sales 50 14.80
30 Purchases

Sales
Sales

REQUIRED:

i Calculate the cost of goods sold using the appropriate table (round up the average

price to two decimals place). [10m]

ii Calculate the ending inventory value on 30 September 2014. [1m]

b) Alam Suria Enterprise had trade-in old printer with a new one. These are information

related to both printers:

Model Cost (RM) Date of purchases Scrap value(RM) Useful life

Old model 8,900 1 January 2010 500 5 years

WCT102

New model 11,400 1 December 2013 800 8 years

WCT144

Additional information:
1. Supplier of new printer agreed to received old printer and offered RM1,000 as
trade-in value to Alam Suria Enterprise.

2. Depreciation is calculated by yearly basis and using straight line method.
Depreciation is charged fully in the year of purchased and no depreciation charged
in the year of disposal.

3. Accounting period for Alam Suria Enterprise ended at 31 December each year.

REQUIRED:

Prepare journal entries to record purchased of model WCT144 on 1 December

2013 . [5m]

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PSPM QUESTIONS ( 2013/2014 UNTIL 2020/2021

QUESTION 3

a) Account of Alam Mesra Sdn. Bhd. showed the following information related to non-
current liabilities:

Bank Total Interest per Interest Date of issued / Remarks
loan (RM) annum payments obtained
100,000 Once per 10 percent from principal
8 percent on year on 31 1 January 2012 need to settle every year
balance December on 31 December
beginning on 2012

Bond 500,000 6 percent Twice per 1 January 2013 Bond will be settled at the
(5 year 30 maturity date
years) June and 31
December

Accounting period of Alam Mesra Sdn. Bhd. ended on 31 March every year.

REQUIRED:

i Prepare journal entries on 30 June 2013, 31 December 2013 and 31 March 2014

(omit explanations). [7m]

ii Prepare extracted of Statement Of Financial Position for Alam Mesra Sdn. Bhd.
(non-current liabilities and current liabilities segment only) as at 31 March 2014.
[3m]

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PSPM QUESTIONS ( 2013/2014 UNTIL 2020/2021

b) Sinar Suria Enterprise which belongs to DS Normah didn’t kept completed accounting
records.

Details Balance on Balance on
1 January 2013 (RM) 31 December 2013 (RM)
Machine, at cost
Inventory 9,000 9,000
Accounts receivable 3,450 4,450
Bank 2,000 3,760
Prepaid rental 1,460
Accounts payable ?
Salaries payable - 250
980 1,330
200
-

Cash book of Sinar Suria Enterprise showed the following information:

Receipts RM Payments RM
Accounts receivable 10,000 Accounts payable 6,770
Sales Salaries expense 3,600
3,500 Rental expense 1,200
Purchases 1,000
General expense
200

Additional information:

1. Machine was bought on 1 January 2011 and had been depreciated on 20
percent per year used straight-line method.

2. DS Normah took goods worth RM99 for her used.
3. Purchases returns worth RM100.
4. Sales discounts are RM70.
5. Bad debts expense is RM125.

REQUIRED: [2m]
i Calculate Sinar Suria Enterprise capital on 1 January 2013.

ii Prepare Statement Of Comprehensive Income for Sinar Suria Enterprise for the

year ended 31 December 2013. [8m]

END OF QUESTIONS

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PSPM QUESTIONS ( 2013/2014 UNTIL 2020/2021

PSPM 2015/2016

SECTION A (THEORY QUESTION)

QUESTION 1

a) State four (4) users of accounting information and explain how each user uses

the accounting information. [4m]

b) State the basic accounting concepts that suitable for the statement given :
i) Perniagaan Angkasa claims that the accounting information prepared are
according to assumption that a business will be continued to operate in future
and without any intentions to dissolve.

ii) Perniagaan Azizah recorded machine value at a cost of purchase even though
the current value of machine is decline.

iii) Perniagaan Mona did not report in its financial statements the loss suffered by
the fire although the amount of loss was substantial.
[3m]

QUESTION 2
a) State another two (2) inventories valuation method instead of FIFO. During the

inflation, which method will show the higher profits,give your reason. [4m]

b) Give definition of current liabilities and non-current liabilities with one (1)

example for each liability. [3m]

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PSPM QUESTIONS ( 2013/2014 UNTIL 2020/2021

SECTION B (CALCULATION QUESTION)
QUESTION 1
Below is a Bank Statement of Iskandariah Sdn. Bhd for the month of March 2015 :

Date Particulars Cheque No. Debit Credit Balance (RM)
(RM) (RM)
March 1 Balance b/f 89090 6000 200
3 Deposit 89091 5 1500 6200
4 Deposit 89092 450 7700
6 Cheque book charge 600 542 7695
8 Cheque 343 245 7245
10 Cheque 465 100 6645
12 Cheque 6302
15 Credit Transfer 80 6844
20 Debit Transfer 6379
25 Interest Received 6624
29 Deposit 6724
30 Bank Charge 6644

Cash Book record of Iskandariah Sdn Bhd for the month of March 2015 is:

Cash Book (Bank column)

March Particulars Cheque RM March Particulars Cheque RM
No No

1 Balance b/f 200 7 Lim Auto 89090 450
3 Deposit 6000 8 Calmex 89091 600

Bhd

4 Abu 1050 10 Ali 89092 343
30 Najib 750
28 Ben 89093 300

29 Sabariah 100

31 Balance c/f 6207

8000 8000

Additional Informations :

1. All record in Bank statement is corrects.

2. Cheque that has been deposited on 4 March 2015 worth RM1,500 was

mistakenly recorded as RM1,050 in the cash book.

3. Cheque that has been received from Sabariah worth RM100 was recorded as

payment in the cash book.

REQUIRED:

Prepare Bank Reconciliation Statement Iskandariah Sdn Bhd as at 31 March

2015. [13m]

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PSPM QUESTIONS ( 2013/2014 UNTIL 2020/2021

QUESTION 2

These are business record of Perniagaan Permaisuri as at 1 April 2014:

Accounts RM
Vehicles (cost) 170,000
Accumulated Depreciations – Vehicles 88,000
Accounts Receivable 76,500

Perniagaan Permaisuri accounting period ended 31 March every year.

Additional informations:
1. On 1 Ogos 2014, Perniagaan Permaisuri had purchased new vehicles worth
RM35,000 by trade-in one of old vehicles with cost value RM30,000 and
accumulated depreciations RM22,000. Perniagaan Permaisuri received trade-in
value worth RM8,800. Payment is made by cash. Vehicles depreciation rate is 10%
per annum using straight-line method. Depreciations will be charge on the month
of purchase and no depreciations on the month of disposed.

2. During the financial year ended March 31, 2015, Perniagaan Permaisuri recorded
a credit sales of RM155,000 and collection fromAccounts Receivable RM107,000.
During this period, the Perniagaan Permaisuri has written off a customer's debt of
RM5,000. In the current financial year, Perniagaan Permaisuri intends to create an
allowance for doubtful debts estimated at 1.5% on the Accounts Receivable
Balance.

3. Perniagaan Permaisuri is using the First-in First-Out Method (FIFO) to evaluate
the inventories.

REQUIRED:

i) Prepare the journal entries to record the purchase of new vehicles on 1 August

2014.(omit explanations) [4m]

ii) Prepare the journal entries to record depreciation expenses for vehicles for the year

ended 31 March 2015 and calculate the Vehicles net book value as at 31 March

2015. (omit explanations) [8m]

iii) Calculate the balance of Allowance for Doubtful Debts as at 31 March 2015. [4m]

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PSPM QUESTIONS ( 2013/2014 UNTIL 2020/2021

QUESTION 3

Ali Hamzah is an owner of Ali Enterprise which has been operated since 1 March 2011.
His business record is not properly maintained and not recorded the transactions using
the accounting system. He asks your help to prepare the full set of accounts for the
period from 1 March 2014 until 28 February 2015.

This information has been discovered:

1. Ali Enterprise had an accounts at Bank Syariah Malaysia Berhad with the balance

of RM27,000 as at 1 March 2014.

2. All sales are by cash but credit sales will be giving to selected customer. Accounts

Receivable balance as at 1 March 2014 are RM4,300 and balance as at 28 February

are RM7,000.

3. Opening Inventories worth RM105,000.

4. All purchases are on credit. Accounts Payable balance as at 1 March 2014 are

RM56,260 and balance as at 28 February 2015 are RM24,630.

5. Ali Enterprise have two (2) workers and total salaries are RM12,000 per year.

Payment wiil be made by cheque.

6. Ali Enterprise policy for cash is to keep RM500 per day.

7. Ali Hamzah withdrew RM200 cash every week. (Assume that 52 weeks a year)

from business accounts for his wife. Drawings of goods throughout the year

amounted RM600.

8. Total cash sales for the year are RM159,000 and collections from Accounts

Receivable amounted RM11,200.

9. These are all information related to business non-current assets :

Assets Depreciation Cost Value Net Book

Method (RM) Value (RM)

Vehicles 20 % on net book 200,000 120,000

value

Furniture 10 % on costs value 12,000 9,600

Office Equipment 15 % on cost values 10,000 7,000

There is no scrap value for all non-current assets.

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PSPM QUESTIONS ( 2013/2014 UNTIL 2020/2021

10. Inventories as at 28 February 2015 worth RM80,000.

11. All payment using cheque as follows :

Expenses Total (RM)
Payment to supplier 100,000
Utilities Expenses 3,000
12. Miscellaneous expenses RM4,000 paid by cash.

REQUIRED:

i) Prepare Cash and Bank accounts Ali Enterprise for the year ended 28 February

2015. [6m]

ii) Prepare Statement of Profit or Loss Ali Enterprise for the year ended 28

February 2015. [11m]

END OF QUESTIONS

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PSPM QUESTIONS ( 2013/2014 UNTIL 2020/2021

PSPM 2016/2017

SECTION A (THEORY QUESTION)

QUESTION 1

a) Explain two (2) differences of these business types : sole proprietorship,

partnership and company. . [3m]

b) State and explain the basic accounting concepts that suitable to record these

transactions :

i) Ah Chong Enterprise make a sales to Orkid Sdn Bhd worth RM7,000 on July

2016. Orkid Sdn Bhd paid RM3,000 cash when transactions occurred. Ah

Chong Enterprise had been credited sales accounts amounted RM7,000 for

these transaction. [2m]

ii) Rasta Enterprise had a business located at Seri Kembangan since 1 October

2015. On 30 September 2016, after a year of operation, Rasta Enterprise

prepare their business accounts. [2m]

QUESTION 2

Explain why incomplete records occurred and state two (2) methods that can be used to

calculate profit or loss for incomplete records in accounting. [2m]

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PSPM QUESTIONS ( 2013/2014 UNTIL 2020/2021

SECTION B (CALCULATION QUESTION)
QUESTION 1

Perniagaan Seroja prepare cash records for the month of August 2016:

General Ledger

Bank Account

2016 RM 2016 RM
Aug 1 12,513
Balance b/f 7,411 Aug 31 Payment 8,354
31 Receipts Balance c/f 20,867
13,456

20,867

Cash Receipt Journal (Bank column)

Date Particulars Cheque No. RM
Aug 2 3,470
Sales 617541 715
7 507
8 Fatimah Enterprise 410119 995
10 3,100
16 Sales 734001 1,972
22 2,060
29 Sales 913610 637
30
Sherry Enterprise 811625

Zetty Sdn Bhd 700100

Sales 112113

Sales 240615

Cash Payments Journal (Bank column)

Date Particulars Cheque No. RM
Aug 2 918
Purchases 410118 2,130
8 864
10 Purchases 410120 1,742
24 2,000
28 Syarikat Mamat 410121 732
29 1,512
30 Hakimah Sdn Bhd 410122 215
31 2,400
31 Perniagaan Wahab 410123

Purchases 410124

Purchases 410125

Telephone 410126

Salaries 410127

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PSPM QUESTIONS ( 2013/2014 UNTIL 2020/2021

Perniagaan Seroja Bank Statement as at 7 September 2016 as follows:

Bank Statement August 2016

2016 Particulars Debit Credit Balance
Aug (RM) (RM)
(RM) 1,200 7,411
1 3,470 8,611
1 Opening Balance 507 12,081
4 995 11,163
7 Credit transfers – Rental Revenue 3,100 11,670
9 12,665
12 Deposit 1,715 10,335
13 1,972 13,455
13 Cheque 410118 918 10,355
14 200 9,640
15 Deposit 8,776
18 8,526
21 Deposit 10,241
22
Cheque 410120 2,310 12,213
23 10,471
26 Cheque 811625 8,471
30 8,671
30 Bounced Cheque 811625 3,100 8,651
30
Cheque 410119 715

Cheque 410121 864

Standing Instructions – Insurance 250

Electronic Funds transfer – Accounts

Receivable

Deposit

Cheque 410122 1,742

Cheque 410123 2,000

Dividend received

Bank charge 20

Additional informations :
1. All record in Bank Statement is correct.
2. Cheque no 410119 for Fatimah Enterprise has been recorded wrongly into

cash receipts journal.

REQUIRED:

(i) Prepare Bank Reconciliation Statement Perniagaan Seroja as at 31 August

2016. [8m]

(ii) Prepare adjustment entries as at 31 August 2016. [5m]

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PSPM QUESTIONS ( 2013/2014 UNTIL 2020/2021

QUESTION 2

a) On 1 July 2015, Teratai Enterprise purchase truck by cash RM53,000 for his business
purpose. On the same day, the truck was painted and placed the Teratai Enterprise
logo at a cost of RM8,000. The truck was expected to have a useful life of three years
or 40,000 km. Teratai Enterprise also expected that the truck scrap value RM4,000 at
the end of its useful life. Teratai Enterprise has to pay RM500 to send this truck to a
Disposal Collection Center. Depreciation will be charged on the month of purchase
and no depreciation is charged at the month of disposal.

REQUIRED:

i) Prepare the journal entries to record the purchase of truck on 1 July 2015.

[1m]

ii) Prepare the journal entries to record depreciation expenses at 31 December

2015 and 31 December 2016 using the straight-line method. [3m]

iii) Prepare the journal entries if the truck sales on 2 January 2017 at a price of

RM26,000 by cash. [3m]

iv) Explain why gain or loss occurred on disposal of truck at 2 January 2017. [2m]

v) Calculate the depreciation expense for 2016 by using the declining-balance

method at 30% per annum. [2m]

b) Kenanga Sdn Bhd was selling several of products. These are analysis of purchase and
selling one of the products Kenangan Sdn Bhd for the month of March 2016. Kenanga
Sdn Bhd was using the periodic inventories system.

Date Particulars Purchases Sales
Cost Price
March Opening Unit Selling Price
inventories Unit per unit per unit (RM)
1 Purchases (RM)
Sales 80
3 Purchases 100 40
4 Sales 60 50 90
10 Sales 90
16 Sales 200 55 90
19 Purchases
25 40 60
30

Additional information: Inventories are 80 units at the end of month.

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PSPM QUESTIONS ( 2013/2014 UNTIL 2020/2021

REQUIRED:

(i) Determine the cost of goods sold value and unit sold for the month of March

2016 by using the First-in First-out method (FIFO). (Show all the calculations).

[4m]

(ii) Determine the ending inventories value as at 31 March 2016 by using the

weighted average method. (Show all the calculations). [5m]

QUESTION 3

a) On 1 January 2013, Melati Corporation received loan RM40,000 for 2 years from
Bank Nusantara with the interest rate 10% per annum. On the same date, Melati
Corporation also signing notes RM25,000 with Bank United for 3 years, 12%
interest rate per annum. Interest will be paid every year at 1 January for both loan
and notes payable.

REQUIRED:

(i) Prepare the journal entry at 1 January 2013 [2m]

(ii) Prepare the journal entry to record the interest expenses at 31 December

2013. [3m]

(iii) Prepare the journal entry to record interest payment on January 2014.

[1m]

(iii) Prepare the journal entry to record retirement of Notes Payable from Bank

United at 1 January 2016. [2m]

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PSPM QUESTIONS ( 2013/2014 UNTIL 2020/2021

b) On 1 January 2015, Perniagaan Chempaka has the opening balance as follows:

Particulars RM
Total current assets 100,000
Total non-current assets 145,000
Total liabilities 125,000
Drawings 12,000

On 31 December 2015, Perniagaan Chempaka have the accounts balance as

follows :

Accounts RM
Bank 110,000
Accounts Receivable 34,000
Prepaid Insurance
Inventories 5,000
57,000

Equipment 46,000
Accumulated depreciation – Equipment 18,700
Land 50,000

Accounts Payable 38,000
Salaries payable 8,250

Loan 50,000
Drawings 13,000

REQUIRED:

i) Determine the capital on 1 January 2015 (show all calculations) [2m]

ii) Determine the profit or loss for the year ended 31 December 2015. (Show

all calculations) [8m]

END OF QUESTIONS

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PSPM QUESTIONS ( 2013/2014 UNTIL 2020/2021

PSPM 2017/2018

SECTION A (THEORY QUESTION)

QUESTION 1
State the relevant accounting concepts in the following situations:

i) Value of the premises is recorded in the statement of financial position at its cost.

ii) All transactions are recorded in Ringgit Malaysia.

iii) Owner records cash withdrawal from the business for his own use.

iv) To measure the performance of a business, the life of the business must be divided

into certain periods. [2m]

QUESTION 2 [4m]
Explain the uses of the following source documents:

i) Debit note

ii) Delivery note

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PSPM QUESTIONS ( 2013/2014 UNTIL 2020/2021

SECTION B (CALCULATION QUESTION)

QUESTION 1
Setia Sdn. Bhd. Received the bank statement dated 31 March 2017 as follows:

Date Particulars Debit Credit Balance
(RM) (RM) (RM)
Mar 1 Balance (3,385)
6 Cheque no. 254108 1,250 2,030 (4,635)
7 Cheque clearance (825123) (2,605)
9 Standing order 55 211 (2,660)
11 Credit transfer 4,500 (2,449)
12 Cheque clearance (583107) 70 5,000 2,051
16 Cheque clearance (605125) 550 7,051
19 Standing order 770 6,981
20 Cheque no. 254109 15 6,431
29 Cheque no. 254112 5,661
31 Bank service charges 5,646

The general ledger’s bank account shows the following entries for the month of March

2017:

Bank Account

March Particular Cheque RM March Particular Cheque RM
No No

7 Maju Sdn 583107 4,500 1 Balance c/d 3,385
Bhd

20 Zatil 456321 1,300 3 Zuma 825123 2,030

Trading Enterprise

31 Balance 3,915 6 Hassan 254108 1,250

c/d Enterprise

10 Premium 254109 550

insurance

12 Muslimah 254110 780
Trading

15 Rifatah Sdn 254111 950
Bhd

29 Rental 254112 770

9,715 9,715

Additional Information:
1. The book keeper had incorrectly credited a cheque received from Zuma
Enterprise in the business bank account.
2. Bank confirmed that cheque number 605125 does not belong to Setia Sdn Bhd.

REQUIRED:
Prepare Bank Reconciliation Statement for Setia Sdn Bhd as at 31 March 2017. [6m]

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PSPM QUESTIONS ( 2013/2014 UNTIL 2020/2021

QUESTION 2

a) The financial information of Anggun Sdn Bhd at 31 July 2017 was as follows:

Particulars Debit (RM) Credit (RM)
Accounts receivable 160,000
Allowance for doubtful debts 2,000
Credit sales 50,000 800,000
Sales returns and allowances

REQUIRED:

Prepare the journal entries to record the bad debt expenses using the following

methods:

i) 1% from net credit sales [2m]

ii) 5% from accounts receivable [3m]

b) Olala Sdn Bhd recorded the purchase and sale of merchandise transactions for the
month of April 2017 as follows:

Date Purchases (unit) Cost per unit (RM)
Beginning inventory April 600 6.00
1
1,500 6.08
4 800 6.40
8 1,200 6.50
13 700 6.60
21 500 6.79
29 5,300

Date Sales (unit) Sales price per unit (RM)
April 3 500 10.00
1,300 10.08
9 600 11.00
11 1,200 11.00
23 900 12.00
27 4,500

i) Assume Olala Sdn Bhd used the periodic inventory system, calculate the

value of ending inventory on 30 April 2017 using the weighted average

method 9round per unit costs to two decimal places). [5m]

ii) Assume Olala Sdn Bhd used the perpetual inventory system, calculate the

value of ending inventory on 30 April 2017 using the weighted average

method 9round per unit costs to two decimal places). [6m]

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PSPM QUESTIONS ( 2013/2014 UNTIL 2020/2021

c) On 1 March 2015, Sayonara Sdn Bhd purchased a machine for RM279,000. The
estimated useful life was 10 years with RM15,000 residual value. (Accounting
period ended 31 December annually)

REQUIRED:

Calculate the total depreciation expense for 2016 using the following methods:

i) Straight-line [2m]

ii) Reducing-balance (depreciation rate 40% annually) [3m]

QUESTION 3
Mustaqim, a small proprietor, operates a grocery store named Perniagaan Mustaqim in
Seremban. He did not keep a complete business records. However, he keeps a cash book
which he considered adequate since most of his business transactions are on cash basis.
The following summary was obtained from his business cash book for the year ended 31
December 2016.

Summary of Receipts and Payments for the year ended 31 December 2016

RM RM

Beginning balance 5,800 Purchases 10,000

Sales 20,000 Salary expense 1,000

Additional investment by 1,000 Rent expense 2,500

Mustaqim

Collection of accounts 1,500 Utility expense 800

receivable

Miscellaneous expense 1,100

Freight-out 1,500

Drawings 2,000

Purchase of equipment 500

Purchase of refrigerator 3,000

Ending balance 5,900

28,300 28,300

Additional information:
1. On 1 January 2016, the assets of Perniagaan Mustaqim are as follows: inventory
RM2,500; equipment RM1,500; account receivables RM1,600 and cash RM5,800.

2. On 31 December 2016, the balance of the inventory was RM3,000 and the account
receivables was RM1,800.

3. The annual depreciation rates for equipment were 10% and refrigerator was 5%
per annum using the straight-line method.

4. A customer, who was declared bankrupt, was unable to pay his debt of RM450.

REQUIRED:

a) Prepare the Statement Of Profit or Loss Perniagaan Mustaqim for the year ended

31 December 2016. [11m]

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PSPM QUESTIONS ( 2013/2014 UNTIL 2020/2021

b) Prepare the Statement Of Financial Position Perniagaan Mustaqim as at 31

December 2016. [9m]

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PSPM QUESTIONS ( 2013/2014 UNTIL 2020/2021

PSPM 2018/2019

SECTION A [45 marks]
This section consists of 3 questions. Answer all questions.

QUESTION 1 [15 marks]
(a) Identify TWO (2) external users and TWO (2) internal users of accounting

information.
[2 marks]

(b) State the relevant accounting concepts for the following descriptions.
i. Information recorded is based on the actual costs incurred in transactions.
ii. Every business is accounted for separately from its owner.

iii. Financial statements reflect the assumption that the business continues
operating.

iv. All transactions are recorded in Ringgit Malaysia.
v. A company reports the details of Financial Statements that would impact

users’ decision.
vi. The life of a company can be divided into time periods, such as months and

years.
[3 marks]

(c) Classify the following items into asset, liability and equity.
i. Loan from bank
ii. Prepaid insurance

iii. Capital
iv. Account receivable
v. Accrued salary
vi. Notes payable

[3 marks]

(d) Mr. Art started a laundry business called Big Bubbles. The following transactions
occurred during the first month of business :
i. Invested RM3,000 cash and RM15,000 of equipment in Big Bubbles.
ii. Paid RM500 to rent a space for the business.
iii. Purchased washing machine at a price of RM1,800.
iv. Received RM2,000 cash for the laundry services.
v. Paid salary of RM800 during the month.
vi. Purchased a dryer machine RM5,000. Paid deposit 10% and balance was covered
by bank loan.

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PSPM QUESTIONS ( 2013/2014 UNTIL 2020/2021

Required :

Show the effect of each transaction based on accounting equation using the table
below.

Example : Paid utilities of RM500 during the month.

Asset = Liability + Equity
Cash
Example -RM500 Capital Revenue Expense

-RM500

[7 marks]

QUESTION 2 [15 marks]
(a) Match the following adjusting journal entries (TABLE 2.1) with appropriate

explanations (TABLE 2.2).

TABLE 2.1

(i) Dr Salaries expense RM5,000
Cr Accrued salaries expense
RM5,000

(ii) Dr Interest expense RM800
Cr Accrued interest expense
RM800

(iii) Dr Insurance expense RM1,200
Cr Prepaid insurance
RM1,200

(iv) Dr Unearned professional fees RM2,500
Cr Professional fees
RM2,500

(v) Dr Accrued interest expense RM750
Cr Interest revenue
RM750

TABLE 2.2 [5 marks]
A To record the earning of previously unearned income. [2 marks]
B To record accrued interest expense. [2 marks]
C To record accrued interest revenue. [4 marks]
D To record the use of prepaid insurance expense. [2 marks]
E To record accrued salaries expense.

(b) Explain ‘deposit in transit’ and ‘outstanding cheque’.

(c) State TWO (2) purposes of bank reconciliation.

(d) Explain TWO (2) methods to accounts for bad debt.

(e) Explain capital expenditure and revenue expenditure.

QUESTION 3 [15 marks] [4 marks]
(a) Explain TWO (2) types of inventories.

(b) Explain TWO (2) characteristics of non-current assets.

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PSPM QUESTIONS ( 2013/2014 UNTIL 2020/2021
[2 marks]

(c) Explain with an example of current liabilities and non-current liabilities.
[4 marks]

(d) State THREE (3) effects of incomplete records to the preparation of financial
statement.
[3 marks]

(e) Explain accrued expenses and its presentation in statement of financial position.
[2 marks]

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PSPM QUESTIONS ( 2013/2014 UNTIL 2020/2021

SECTION B [85 marks]

This section consists of 4 questions. Answer all questions.

QUESTION 1[20 marks]

(a) Kamilah is a newly appointed account assistant for Tasek Enterprise. Upon

comparing the bank statement and the cash book of the business for the month of

October 2018, she found that there were differences between cash book and bank

statement as shown below:

BANK SEJAHTERA

Bank Statement as at 31 October 2018

Date Particulars Debit Credit Balance

(RM) (RM) (RM)

October 1 Balance 2,154.50 CR

2 299513 241.00 1,913.50 CR

3 Credit transfer 543.20 2,456.70 CR

6 Bank services charges 100.00 2,356.70 CR

9 463029 73.40 2,283.30 CR

12 463028 356.30 1,927.00 CR

17 Standing order 76.40 1,850.60 CR

20 Credit transfer 400.00 2,250.60 CR

23 463030 249.00 2,001.60 CR

23 463032 150.00 1,851.60 CR

25 Credit transfer 68.70 1,920.30 CR

27 Credit transfer 580.20 2500.50 CR

30 463033 242.60 2,257.90 CR

Cash Book Tasek Enterprise

Date Particulars Amount Date Particulars Cheque Amount
(RM) no. (RM)
Oct. 1 Balance b/f 356.30
2 Sales 2,154.50 Oct. 5 Purchase 463028 73.40
18 Sales 463029 200.00
24 Sales 543.20 10 Utilities 463030 160.00
26 Sales 463031 150.00
27 Sales 400.00 16 Purchases 463032 242.60
30 Sales 463033
580.20 18 Stationaries 463034 1,940.30
463035 153.00
75.60 20 Purchases 1,145.40
4,421.00
84.30 25 Purchases

583.20 28 Rental

29 Purchases

30 Balance c/f

4,421.00

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PSPM QUESTIONS ( 2013/2014 UNTIL 2020/2021

Additional information:
1. Payment to creditor (cheque no. 463030) amounting to RM249.00 was wrongly

recorded in the cash book as RM200.00.
2. Cheque no. 299513 in the bank statement was wrongly debited by the bank. The

cheque actually belongs to Temasek Enterprise.

Required
Prepare a Bank Reconciliation Statement for Tasek Enterprise as at 31 October
2018.

[9 marks]

(b) Pedu Sdn Bhd began its operation on 1 January 2016. During its first two years of
operation, the company completed a number of transactions involving credit sales,
accounts receivable collections and bad debt. These transactions are summarized as
follows:
2016
1. Sold RM236,000 of merchandise which had a cost RM189,000 on credit.
2. Received RM115,000 cash in payment of accounts receivable.
3. In adjusting entry for year ended 31 December 2016, the company estimated
that 1.5% of the accounts receivable would be uncollectible.
2017
1. Sold RM318,000 of merchandise which had a cost RM236,000 on credit.
2. Wrote-off RM450 uncollectible accounts receivable.
3. Received RM215,000 cash in payment of accounts receivable.
4. In adjusting entry for the year ended 31 December 2017, the company estimated
that 1.5% of the accounts receivable would be uncollectible.

Required :
Prepare journal entries to record the above transactions. (The company uses perpetual
inventory system and round your answers to the nearest RM).

[11 marks]

QUESTION 2 [20 marks]

Chini Sdn Bhd. Uses perpetual inventory system. The beginning inventory, sales and

purchases for the month of September 2018 are shown below:

Date Activity Purchase Sales

September 1 Beginning inventory 400 units @ RM14

3 Sales 200 units @ RM30

7 Purchase 200 units @ RM15

10 Sales 200 units @ RM30

14 Purchase 300 units @ RM16

18 Purchase 250 units @ RM20

21 Sales 300 units @ RM35

24 Purchase 100 units @ RM21

27 Sales 300 units @ RM36

30 Purchase 250 units @ RM23

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PSPM QUESTIONS ( 2013/2014 UNTIL 2020/2021

Required:

Calculate ending inventory using the method stated and round up answers to two
decimal places:

(i) First-in, First-Out Method

[10 ½ marks]

(ii) Weighted Average Method

[9 ½ marks]

QUESTION 3 [20 marks]

The following information is extracted from the Statement of Financial Position of
Kenyir Sdn Bhd. as at 31 December 2016.

Non-current Assets Date of Purchase Costs (RM)
Machinery 3 March 2014 134,000
25 July 2013 267,000
Motor Vehicles 245,000
Office Equipment 16 September 2012

Kenyir Sdn Bhd purchased the following assets during the year ended 31 December
2017:

Non-current Assets Date of Purchase Costs
Machinery 23 March 2017 RM35,000 (excluding transportation
charges of RM1,500 and installation
Motor Vehicles 14 April 2017
cost of RM500).
Office Equipment 2 July 2017 RM85,000 (including painting of
business name on motor vehicle

RM2,000).
RM15,000

Additional information:
1. Machinery and motor vehicles are depreciated using straight line method at 20%

per annum.
2. Office equipment is depreciated using reducing balance method at 10% per annum.
3. The company’s policy is calculate depreciation based on ending balance for the year.
Required:
(a) Prepare accumulated depreciation accounts for the year ended 31 December 2017

for:
i. Machinery
ii. Motor vehicle

iii. Office equipment
[15 marks]

(b) Prepare Statement of Financial Position (extract) as at 31 December 2017.
[5 marks]

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PSPM QUESTIONS ( 2013/2014 UNTIL 2020/2021

QUESTION 4 [25 marks]
(a) Banding Sdn. Bhd. provides pest control services. The following transactions

occurred during the year 2017. The accounting year ends on 31 December each year.
1. On 1 October 2017, Banding Sdn Bhd borrowed RM60,000 from a bank in return

for a 90-day, 12%, RM60,000 note.
2. In August 2017, Banding Sdn Bhd, sold RM150,000 of merchandise covered by a

6-month warranty. Prior experience shows that costs of the warranty equal 5%
of sales. In November 2017, the company paid RM2,000 for warranty
expenditure related to sales made in August 2017.
3. Salaries for two employees for December 2017 will be paid in January 2018. The
salary for each employee is RM2,500 per month.
4. The income tax expense for the year 2017 was RM12,000.

Required:
Prepare the related journal entries for the above transactions during 2017. Adjusted
journal entries are made on 31 December each year.

[9 marks]

(b) Cik Nurbayu, the owner of Perniagaan Tudung Titiwangsa, did not keep complete
business records. The financial records on 1 January 2017 showed the following
balances:

RM RM

Cash 8,500 Accounts receivable 6,400

Equipment 2,600 Accounts payable 5,350

Inventory 4,800 Building 30,000

Prepaid insurance 3,900 Salary payable 3,500

Transactions in Cash Book on 31 December 2017 are as follows:
Cash Book

2017 RM 2017 RM
2,650
Dec Sales 15,600 Dec 31 Drawings 4,560
31
1,200
Accounts receivable 6,800 Accounts 8,650
Payable 6,450
1,500
Loans 10,000 Utility expense

Salary

Purchase

Equipment

Additional information:
1. Balances on 31 December 2017:

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PSPM QUESTIONS ( 2013/2014 UNTIL 2020/2021
2. Discount received from supplier was RM250.
3. Interest on loans not yet recorded was RM380.
Required:
(i) Prepare the accounts receivable control account and account payable control
account.

[5 marks]
(ii) Prepare the Statement of Profit or Loss for Perniagaan Tudung Titiwangsa for the

year ended 31 December 2017.
[11 marks]

END OF QUESTION PAPER

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PSPM QUESTIONS ( 2013/2014 UNTIL 2020/2021

PSPM 2019/2020

SECTION A [45 marks]

This section consists of 3 questions. Answer all questions.

QUESTION 1 [15 marks]

(a) (i) What is the definition of accounting?

[3 marks]

(ii) State four (4) branches of accounting

[2 marks]

(b) Identify accounting concepts for the following situations:
(i) Perniagaan Raya (PR) has been using straight line depreciation method to
record depreciation expenses and accumulated depreciation. In 2018, PR’s
accountant changed the straight line method to reducing balance method
without disclosing it in the financial statements.

(ii) Perniagaan Dahlia bought a piece of land for RM50,000. The market value
was RM55,000. The amount recorded was RM50,000.

(iii) Rose Enterprise perceives that the inventory valuation method for example
Weighted Average can be changed to First-in First-out (FIFO) at any time.

(iv) Perniagaan Anggerik believes that the depreciation expenses for furniture
and office equipment should not be recorded.

(v) Vehicle maintenance expenses of Jarum Enterprise in July 2018 was
RM7,000. This amount included RM800 maintenance expenses of the
business owner’s personal car.
[5 marks]

(c) Describe two (2) differences between revenue expenditure and capital

expenditure.
[4 marks]

(d) What is cash basis accounting?

[1 marks]

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PSPM QUESTIONS ( 2013/2014 UNTIL 2020/2021

QUESTION 2 [15 marks]

(a) State the appropriate terms for the following:
(i) Permission given to banks to pay a set of amount at regular interval to
another parties’ accounts.
(ii) Cheque received from debtors but returned by the bank.
(iii) A cheque issued to a supplier for payment has not been recorded in the
bank statement.
[3 marks]

(b) (i) State two (2) transaction that affect Account Receivable.

[2 marks]

(ii) State two (2) reasons for incurrence of actual bad debt expense.
2 marks]

(c) State two (2) differences between the periodic inventory system and perpetual

inventory system.
[4 marks]

(d) State four (4) examples of costs that can be included in determining initial cost for

machinery and equipment.
[4 marks]

36 | P a g e

PSPM QUESTIONS ( 2013/2014 UNTIL 2020/2021

QUESTION 3 [15 marks]

(a) List three (3) types of special journals.

[3 marks]

(b) State six (6) types of sources documents used in business.

[3 marks]

(c) Identify items listed below as “Current Liability” or “Non-current Liability”.
(i) Accounts Payable
(ii) Notes Payable, 4% - maturity 90 days
(iii) Mortgage Payable
(iv) Loans – maturity 2 years
(v) Salaries Payable
(vi) Bonds Payables, 9%
(vii) Utilities Payable
(viii) Interest Payable
[4 marks]

(d) List two (2) methods in calculating net profit for business with incomplete
records.
[2 marks]

(e) State three (3) effect that arise when business does not keep complete records of
business transactions.
[3 marks]

37 | P a g e

PSPM QUESTIONS ( 2013/2014 UNTIL 2020/2021

SECTION B [85 marks]

This section consists of 4 questions. Answer all questions.

QUESTION 1 [20 marks]
(a) On 1st September 2018, Kemboja Sdn. Bhd. received a bank statement and found

different balances between the bank statement and cash book. The following are
the bank statement and cash book for the month of August 2018:

Bank Statement

Bank Kekwa Berhad

Kemboja Sdn. Bhd. Account No: 1111111111
114012348766
123 Jalan Pongsu Seratus

06000 Kepala Batas

Alor Setar

Date Particulars Cheque No Debit Credit Balance
(RM) (RM) (RM)

2018 4,447
August 1 Balance

3 Cheque 40051 3,127 1,040 1,320
5 Deposit 1,457 2,360
6 Deposit 40050 550 3,817
40052 814 660 3,267
6 Cheque 40053 2,902 377 2,453
10 Cheque (449)
40055 1,372 539
15 Cheque 20 211
18 Dividen – KMP
588
Sdn. Bhd.
21 Interest Fixed (784)
(245)
Deposit (265)
24 Cheque
25 Deposit Bank
31 Bank Charges (RM)

Cash Book (Bank Column) 3,127

Date Particulars Bank Date Particulars Cheque
(RM) No
2018
August 1 Balance 3,897 August 8 Purchase 40051

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PSPM QUESTIONS ( 2013/2014 UNTIL 2020/2021

10 Sale 1,040 3 Kedai 40052 814
Mewah
14 D&Gold 1,457 40053 2,902
7 Jimmy
25 Coacher 539 Choong 40054 979
26 Balenciagae 1,379 400055 1,372
31 Balance 1,449 9 Beejanni 40056
12 Hermisy 40057 72
9,761 13 Channeli 495
13 Salary 9,761

Required:
Prepare a Bank Reconciliation Statement for Kemboja Sdn. Bhd. as at 31st August 2018.

[6 marks]

(b) The following information of Lavender Enterprise for the year ended 2018.

Total net credit sales RM
Total cash sales 72,000
Cost of goods sold
Net Accounts Receivables 1,600
Beginning Balance of Allowance for Doubtful Debts 54,000
Bad debt written-off 38,600
Total expenses excluding bad debt expenses
The rate of provision for doubtful debts on net credit sales 3,000
240

5,940
5%

Required:
(i) Calculate the bad debt expenses for the year 2018 using allowance method

percentage on net credit sales.
[2 marks]

(ii) Show the journal entries to record the write-off of bad debt and bad debt
expenses.
[4 marks]

(iii) Prepare Allowance for Doubtful Debts Account for the year 2018.
[2 marks]

(iv) Prepare a Statement of Profit or Loss for the year ended 31st December

2018.
[4 marks]

(v) Show an extract of Statement of Financial Position as at 31st December
2018 in relation to Account Receivable presentation.
[2 marks]

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PSPM QUESTIONS ( 2013/2014 UNTIL 2020/2021

QUESTION 2 [20 marks]

(a) On 1st May 2019, inventory of Tulip Sdn. Bhd. were 50 boxes of perfume at RM50
per box. During the month, Tulip Sdn. Bhd. purchases and sales were as follows:

Date Activity Units Cost per unit (RM) Price (RM)
May 3 Purchase 60 60 100
Sales 70 110
4 Purchase 70 110
10 Sales 200
16 Purchase 80 80
19 Sales 40
25
130

Required:
(i) Based on perpetual inventory system, determine the company’s ending

inventory cost and cost of goods sold using First-In-First-Out valuation
method.

[16 marks]

(ii) Based on periodic inventory system, determine the company’s ending
inventory cost and cost of goods sold using weighted average method.
(Round up answers to two decimal places).
[4 marks]

40 | P a g e

PSPM QUESTIONS ( 2013/2014 UNTIL 2020/2021

QUESTION 3 [20 marks]

(a) A machinery was purchased for RM10,000 by cash. The following costs were
incurred:

Transportation cost RM400
Installation cost RM1,200
Yearly premium insurance RM250
Repair (broken down due negligence during installation) RM200

Required:
Calculate the cost of the machinery and journalize all related transactions.

[5 marks]

(b) Rafflesia Enterprise purchase a machine for RM91,000 in March 2014. The
machine has an estimated useful life of seven years and a residual value of
RM7,000. Straight line method is used for calculation of depreciation. The
depreciation expenses recorded in full for the year of purchase and is not recorded
in the year of disposal. The accounting period ends at 31st December.

Required:
Journalize the disposal and purchase of the machine under each of the following
situations.
(i) Sold the machine for RM72,000 in October 2017.

[5 marks]

(ii) Sold the machine for RM28,000 in September 2018.

[3½ marks]

(iii) Trade in old machinery with a new machinery in September 2018. The cost of

new machinery is RM105,000. Trade-in value for the old machinery is RM35,000.
[4½ marks]

(iv) Purchase a new machine for RM20,000 in January 2018 by cash. The straight line
depreciation method is used. The estimated life for the machine is two years and
no residual value. Prepare journal entries for the purchase of machine and
depreciation expenses at the end of 2018.
[2 marks]

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PSPM QUESTIONS ( 2013/2014 UNTIL 2020/2021
QUESTION 4 [25 marks]
(a) The liabilities of Lily Trading on 1st January 2019 were as follows:

Item RM
Accounts payable 44,600
Interest payable 5,000
Unearned service revenue 16,000
Long-term Loan (interest rate is 4%)
150,000

Transaction occurred during January 2019 were as follows:

Date Transaction

Jan 1 Acquired RM35,000 bank loan by signing a notes payable with interest

rate 9% and a maturity period of 6 months.

Jan 1 Received another long-term loan 3% with Union Bank worth of
RM250,000.

Jan 1 Issued cheque to settle interest payable of 2018.

Jan 12 Provided services to customer who has paid RM10,000 on 15th
November 2018.

Jan 20 Sold 600 units of new product on account at RM55 each. The new
products are entitled for 1-year warranty. Company’s estimation for
warranty liability is 8% over sales. Replacement will be offered if the
defective goods are returned within warranty period.

Required:
(i) Prepare journal entries to record the transaction involved.

[7 marks]

(ii) Prepare adjusting entries on 31st January 2019.

[3 marks]

(b) The following information is obtained from Perniagaan Matahari for the year
ended 31st December 2018:

Cash receipt RM Cash payment RM
Sales 19,800 Puchase 4,750
500
Account Payable

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PSPM QUESTIONS ( 2013/2014 UNTIL 2020/2021 300
6,000
Drawing 1,400
Salaries Expense 1,000
Rental Expense
Utilities Expense

Balances of assets and liabilities as at 1st January and 31st December are as follows:

Equipment (Cost) 1st January 2018 31st December 2018
Cash 5,630 5,630
Inventory ??
Account Payable 12,780 1,500
0 1,160

750

Additional information:
1. Depreciation of equipment is 10% on cost
2. Unpaid utilities bill is RM500 at 31st December 2018.
3. Purchase a motorcycle for RM4,000 on 1st April 2018 on loan (4% interest

rate per annum). Depreciation rate is 10% per annum and adjustment made
at the end of the year.
4. Analysis method will be used in preparing the financial reports.

Required:
(i) Prepare Statement of Profit or Loss for the year ended 31st December 2018.

[7½ marks]
(ii) Prepare Statement of Financial Position as at 31st December 2018.

[7½ marks]

END OF QUESTIONS PAPER

43 | P a g e

PSPM QUESTIONS ( 2013/2014 UNTIL 2020/2021

PSPM 2020/2021

QUESTION 1 [20 marks]
(a) Illustrated below is the Bank Statement and Cash Book (bank column) of Sutera
Enterprise for the month of March 2020.

Date Particulars Debit Credit Balance
(RM) (RM) (RM)
2020 13,750
120 240 13,630
March 1 Balance 210 1,100 13,420
13,660
9 551102 45 14,760
30 14,715
17 551104 14,685

23 Cheque

27 Hana: Credit Transfer

30 Media Corp: Standing Order

31 Bank Service Charges

Additional information:
1. All entries in the bank statement are correct.
2. A cheque of RM2,300 from Hasan was returned to Sutera Enterprise with a non-
sufficient fund notification.
3. A cheque of RM240 from Annie deposited on 23rd March was wrongly recorded
as RM420 in the cash book.

Date Particulars RM CASH BOOK Cheque No RM
2020 Balance b/f 13,750 Date Particulars 551102 120
Mar 1 2020 Bob Co.
2,300 Mar 7 551103 320
17 Hasan 420 10 Jaya Enterprise 551104 210
20 Annie 1,200 15 Purchases 551105 470
25 Jamil 30 Marwan
1,800 Enterprise 18,350
31 Abdullah 31 Balance c/f

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PSPM QUESTIONS ( 2013/2014 UNTIL 2020/2021 19,470
19,470

Required:

(i) Prepare a Bank Reconciliation Statement for Sutera Enterprise as at 31st March
2020.

[7 marks]

(ii) Show journal entries for the adjustment on Cash Book (bank column) of Sutera
Enterprise after the reconciliation (omit explanation).
[3 ½ marks]

(b) Below is the information related to Accounts Receivable and Allowance for
Doubtful Debts accounts of Luna Enterprise on 31st July 2020.

Account RM

Accounts Receivable 210,000

Allowance for Doubtful Debts 4,200

Below are the transactions of Luna Enterprise during August 2020.

1. Cash sales is RM220,000 and credit sales is RM140,000.

2. Shukri a debtor has gone missing. His debts amounted to RM750.

3. A debtor, Jana whose debts was already written-off few years ago appeared
and paid her debts RM1,200.

Required:
(i) Prepare journal entries to record the transactions during August 2020 using

allowance method (omit explanation).
[4½ marks]

(ii) Prepare Allowance for Doubtful Debts Account based on the above journal
entries (i). Allowance for doubtful debts is estimated to be 2% on ending
balance of Accounts Receivable.
[4 marks]

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PSPM QUESTIONS ( 2013/2014 UNTIL 2020/2021
(iii) Prepare the adjustment entry to record the allowance for doubtful debts on

31st August 2020 (omit explanation).
[1 mark]

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PSPM QUESTIONS ( 2013/2014 UNTIL 2020/2021
QUESTION 2 [20 marks]

(a) Following are the transactions of Jasa Tech Enterprise for the month of June 2020.

June 7 Purchased merchandise from Barokah Enterprise for RM10,000,
terms 2/10, n/30.

10 Returned defected merchandise to Barokah Enterprise RM200.
20 Cash sales RM2,500. The cost of the sales was RM1,900.

Required:
Record the above transactions in general journal using perpetual inventory system
(omit explanation).

[4 marks]

(b) Moda Enterprise has the following inventory, purchases, and sales data for
September 2020. The beginning inventory is 100 units at RM11.00 per unit. Sales
price per unit is RM18.50.

Date Transactions Units Cost Per Unit
200 10.80
Sept 3 Purchases 220
160 10.60
6 Sales 140 10.20
200
10 Purchases 175 10.00
100
11 Purchases 50

18 Sales

23 Purchases

27 Sales

30 Sales

Required:
Using First-In, First-Out (FIFO) method and periodic inventory system, calculate:
(i) Inventory in units on 30th September 2020.

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PSPM QUESTIONS ( 2013/2014 UNTIL 2020/2021

(ii) Ending inventory in RM on 30th September 2020. [5 marks]
[2 marks]

(iii) Cost of goods sold for the month of September 2020.

[6½ marks]

(iv) Gross profit for the month of September 2020.

[2 marks]

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PSPM QUESTIONS ( 2013/2014 UNTIL 2020/2021

QUESTION 3 [20 marks]
D' Aman Sdn. Bhd. has two machines. The machines' depreciation are calculated using
straight-line method.

Machine Date purchased Purchased Cost Salvage Value Useful Life Rate (%)
A 1st March 2017 7,400 1,400 6 years -
B 1st October 2019 8,000 2,000 10 years 10

D' Aman Sdn. Bhd. also has two equipments. Equipments are depreciated using the

reducing balance method.

Machine Date purchased Purchased Cost Rate (%)

C 15th July 2017 10,000 10

D 30th December 2018 2,000 10

The financial period ends on 31st December each year.

Required:

(a) Prepare journal entries to record (omit explanation):
(i) Total machine's depreciation expense for 2019, if it is calculated on
monthly basis.
[5½ marks]
(ii) Total equipment's depreciation expense for 2019, if it is calculated on
yearly basis.
[9 marks]

(b) Show equipment's depreciation expense account and accumulated depreciation
account for the year 2019.
[5½ marks]

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PSPM QUESTIONS ( 2013/2014 UNTIL 2020/2021

QUESTION 4 [25 marks]

(a) On 1st April 2019, Jauhari Enterprise obtained a 15 years' mortgage amounting
RM175,000 with a 7.5% interest rate per annum and a monthly payment of
RM1,622.28. The first monthly installment is to be paid on 1st May 2019.

Required:
(i) Prepare journal entry to record the receipt of the mortgage (omit
explanations).
[1 mark]

(ii) Calculate the interest expense and reduction of principal for the first month.
[3 marks]

(iii) Prepare journal entry to record the first monthly installment payment (omit
explanations).
[1½ marks]

(b) Perniagaan Othman does not keep a complete record of its business but would like
to know its business financial performance for the year ending 31st December
2019. The following are the assets and liabilities of Perniagaan Othman for the year
end 2018 and 2019.

Items 31st December 2018 31st December 2019
(RM) (RM)
Equipment 13,500 13,500
Motor Vehicle 15,000 35,000
Inventory 3,750 4,410
Accrued miscellaneous expense 220 160
Prepaid Insurance 320 460
Accounts Payable 2,850 3,190

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