BUKU TUTORIAL AA015

1

TOPIC 1: INTRODUCTION TO ACCOUNTING

Question 1

Asyraaf started a motorcycle workshop in his residential area. Three years later, a friend of
Asyraaf is interested in jointly contributing capital, energy and expertise to run the business.
Asyraaf agrees to accept his friend’s proposal to continue with the business. List three (3)
advantages and three (3) disadvantages of the newly established business between Asyraaf and

his friend.

Question 2
Syakirah is the owner of a construction company. Her business has shown growth and progress.
Syakirah intends to convert her business from sole proprietorship to a company. Analyze two (2)
advantages that can be enjoyed by Syakirah if she forms a company.

Question 3
Accounting standards in business financial reporting are important. In your opinion, why are
accounting standards important?

Question 4
Explain briefly two (2) characteristics between sole proprietorship, partnership and public
company.

Question 5
List three (3) accounting bodies in Malaysia and its primary role.

Question 6
Complete the following table.

Bil. Users Internal/External Branches of Uses of
accounting
1 Managers users accounting
2 Employees
3 Taxing Authorities
4 Creditors
5 Investors
6 Potential investors
7 Suppliers

2

TOPIC 2 : BASIC ACCOUNTING CONCEPTS

SECTION A

Question 1

What is the accounting equation ? Briefly explain each of the three parts.

Question 2

Identify the best concept that matches the situations:

1. The furniture in the bookshop had recorded in the business’ books at the cost of RM 12
000 although it is worth RM 15 000 if sold.

2. Sharifah does not recoded her bank overdraft in the bookshop’s statement of financial
position.

3. Sharifah does not foresee any reason that the business will terminate in the future and
all transactions are recorded to reflect this expectation.

4. The business’ transactions are recorded in terms of Ringgit Malaysia.

Question 3

As a manager of Papa Sam’s Restaurant, you must deal with varieties of business
transactions. Give an example of a transaction that relate to the following effects on the
accounting equation:

a. Increase in asset and decrease in asset.
b. Decrease in asset and decrease in equity.
c. Decrease in asset and decrease in liability
d. Increase in asset and increase in equity
e. Increase in asset and increase in liability.

SECTION B

Question 1

John Joos is the owner and operator of You’re A Star, a motivational consulting business. At the
end of its accounting period, December 31,2018, You’re A Star has assets of RM 800 000 and
liabilities of RM 350 000. Using the accounting equation, determine the following amounts:

a. Owner’s equity as at December 31,2018
[RM 450 000]

b. Owner’s equity as at December 31, 2019, assuming that assets increased by RM 130
000 and liabilities decreased by RM 25 000 during the year 2019.
[RM 605 000]

Question 2

Assume that on November 1, 2018, Chris Clark begins a business that will be known as
NetSolutions. Chris business plan is to operate NetSolutions as a service business assisting
individuals and small businesses in developing web pages and installing computer software.
Indicate the effect of each transaction and the balances after each transaction, using the
following tabular heading:

Nov Transactions
2018

3

1 Chris Clark deposited RM 25 000 in a bank account in the name of NetSolutions.
5 NetSolutions paid RM 20 000 for the purchase of land as a future building site.
10 NetSolutions purchased supplies for RM 1 350 and agreed to pay the supplier in

the near future
18 NetSolutions received cash of RM 7 500 for providing services to customers.
20 NetSolutions paid the following expenses during the month : wages,RM 2 125;

rent,RM 800; utilities, RM 450; and miscellaneous, RM 275.
30 NetSolutions paid creditors on account, RM 950.
30 Chris Clark determined that the cost of supplies on hand at the end of the month

was RM 550.
30 Chris Clark withdrew RM 2 000 from NetSolutions for personal use.

Indicate the effect of each transaction and the balances after each transaction, using the
following tabular heading:

Date Assets = Liabilities + Owner’s Equity
10 000 (Capital)
10 000 ( Cash)

[asset RM 26 450, liabilities RM 400, owner equity RM 26 050]

Question 3

Attorney Law, is a proprietorship owned and operated by Cecil Jameson. On July 1, 2018, the
company has the following assets and liabilities: cash RM 1 000, account receivable RM 3 200,
supplies RM 850, land RM 10 000, accounts payable RM 1 530. Business transactions during
July are summarized as follows:

a. Received cash from clients for services, RM 3 928.
b. Paid creditors on account, RM 1 055.
c. Received cash from Cecil Jameson as an additional investment, RM 3 700.
d. Paid office rent for the month, RM 1 200.
e. Charged clients for legal services on account, RM 2 025.
f. Purchased supplies on account, RM 245.
g. Received cash from clients on account, RM 3 000.
h. Received invoice for paralegal services from Legal Aid Inc. for July ( to be paid on

August 10), RM 1 635.
i. Paid the following expenses : wages expense RM 850, utilities expense RM 325,

answering service expense RM 250 and miscellaneous expense RM 75.
j. Determined that the cost of supplies on hand was RM 980; therefore the cost of supplies

used during the month was RM 115.
k. Jameson withdrew RM 1 000 in cash from the business for personal use.

Requirements :

1. Determine capital on 1 July 2018.
2. Indicate the effect of each transaction and record the balances after each transaction,

using the following tabular heading:

Assets = Liability + Owner’s Equity

Cash Accounts Supplies Land Accounts Capital Drawing Revenue Expenses
Receivable Payable

4

Example -50 -50

[asset RM 20 078, liabilities RM 2 355, owner equity RM 17 723]

3. Determine the net income for July 2018.
[RM 1 503]

Question 4
Ron Smith opens an apartment-locator business near a college campus. The company will be
named as Campus Apartment Locators. During the first month of operations, July 2015, the
business completes the following transactions:

a. Smith contributes RM 35 000 to the business. The business gives capital to Smith.
b. Purchases RM 350 of office supplies on account.
c. Pays cash of RM 30 000 to acquire a lot next to campus.
d. Locates apartments for clients and receives cash of RM 1 900.
e. Pays RM 100 on the accounts payable the business created in transaction b.
f. Pays cash expenses for office rent RM 400 and utilities RM 100.
g. Smith withdrew cash of RM 1 200.

Requirements:
Indicate the effect of each transaction and the balances after each transaction, using the
following tabular heading:

Assets = Liability + Owner’s Equity
Drawin Revenu Expens
Cash Office Land Accounts Capit
supplie Payable al g e es

s -50

Exampl -50
e

[asset RM 35 450, liabilities RM 250, owner equity RM 35 200]

Question 5
Anna Taylor started a new business, Taylor Gymnastics and completed the following
transactions during December:

Dec 1 Anna contributed RM 30 000 cash in exchange for capital.
2 Received RM 4 000 cash from customers for services performed
5 Paid RM 100 cash for office supplies
9 Performed services for a customer and billed the customer for service
rendered RM 3 000.
10 Received RM 200 bill for utilities due in two weeks
15 Paid for advertising in the local paper, RM 125
20 Paid utility bill received on Dec 10
25 Collected cash from customer billed on Dec 9
28 Paid rent for the month, RM 1 500
28 Paid RM 1050 to assistant for wages
30 Received RM 2 800 cash from customers for services performed.
31 Anna withdrew RM 2 000 cash from the business for personal use

Requirements:
Indicate the effect of each transaction and the balances after each transaction, using the
following tabular heading:

5

Assets = Liability + Owner’s Equity
Accounts Drawin Revenue Expense
Date Cash receivabl Office Accounts Capital
Dec supplie gs
e Payable
1 +30 s
000
+30 000
[RM 34 925]

6

TOPIC 3 : ACCOUNTING CYCLE

SECTION A

Question 1
Identify Steps in the Accounting Cycle.

Question 2
Explain types of source Documents given below :

a. Invoice
b. Delivery note
c. Debit note
d. Credit note
e. Purchase order
f. Receipts
g. Payment voucher
h. Cheque Butt
i. Bank slip
j. Bank statement

Question 3
On August 2019, Rafael established the business by selling children toys named Toys Trading.
which completed the following transactions during the month. Identify the appropriate journals
involved for each transaction and choose the correct journals as stated below:

1. Purchases journal 2. Sales journal 3. Cash receipts journal

4. Cash payment journal 5. General journal

Bil Transactions Types of journal

a. The owner transferred cash from a personal bank account to

an account to be used for the business.

b. Purchased merchandise on credit from the supplier

c. Returned part of the merchandise to supplier due minor

damage.

d. Paid cash to suppliers on account and received purchase

discount.

e. Sold merchandise on account.

f. Received merchandise returned by customer because of

damage.

g. Received cash on account from customers .

h. Sold vehicle and received cash.

i. Sold merchandise to the customer and received cash.

j. Purchased merchandise and paid in cash.

k. The owner withdrew cash for personal use.

l. Purchased office equipment on account.

m. Purchased office supplies and paid in cash.

n. The owner brought personal televisyen to the business.

o. Paid office rent by issuing cheque.

p. Paid salaries to employees in cash.

Required:

State the correct journals for the above transactions.

SECTION B

7

Question 1
Mara Trading started a business on January, 2019.The following transactions occurred during the
month of January 2019 :

During January, the business engaged in the following transactions :

Date Transactions

January 1 Started a business with RM10,000 in cash and furniture worth RM5, 000
as capital

4 Purchased merchandise worth RM5,000 on credit from Meriah Entreprise
with terms 2/15, n/45.

10 Sold merchandise RM1,500 and received cash .

12 Returned a part of merchandise RM500 purchased on 4th January due to
minor damage and received credit note from Meriah Entreprise.

15 Paid half of the debts to Meriah Entreprise for the transaction made on 4th
January with cheque.

30 Sold merchandise RM2,100 on credit to Berjaya Entreprise with credit
terms 2/15, n/30.

Required:

a. Prepare the journal entry of the transactions in a Sales Journal, Purchases
Journal, Cash Receipts Journal, Cash Payments Journal and General Journal.
[SJ = 2,100, PJ=5,000, CRJ= cash 11,500 , CPJ= 2205 , 45 , GJ = 5,000, 500]

b. Post the journal entries to the subsidiary ledger of account receivable and account
payable.
[AP= 2,250, AR= 2,100]

c. Post the journal entries to the general ledger of account receivable and account
payable.

Question 2

Thomas Trading operated the business by using periodical inventory system. The business closed
their accounts every end of the year. The account balances at November, 30 2019 are as follows:

Accounts RM

Cash 14,000
Accounts Receivable – Merry Trading 27,600
Inventories 27,500
Equipment 42,000
Bank loan 34,200
Accounts Payable - Carey Ltd 31,200

The following transactions were completed by Thomas Trading during December 2019.

8

December 1 Purchased merchandise on credit from Carey Ltd. RM10,500 with credit terms 1/10,
n/30.

2 Sold merchandise on account to Merry Trading, RM4,500 with credit terms 2/15,
n/30.

5 Returned a part of merchandise RM400 that purchased on 1st December due to
minor damages.

9 Merry Trading returned a part of merchandise RM350 because of default from sales
made on December 2.

11 Received cheque from Merry trading for sales made on December 2.
16 Settled the amount owed to Carey Ltd by cheque,for the purchase made on 1st

December.
30 Paid utility expenses in cash RM250.
31 Paid salaries expenses in cash RM1,200.

Required:

a. Journalize each transaction .
[PJ=10,500, SJ=4,500 , CRJ = 4,067 , 83 , CPJ =10,100 , 1,450 , GJ =400, 350]

b. Post the journal entries to the subsidiary ledger and general ledger.
[AP=31,200, AR=27,600, cash=12,550 , bank=6,033]

c. Prepare the trial balance as at December 31, 2019.
[122,033)

Question 3

The trial balance for Turky Company Ltd at the end of the year 2019 are presented
below :

Turky Company Ltd

Trial Balance As At 31 December 2019

Debit Credit
414, 720
Sales and Purchases 250, 500 206,800

Capital 14, 400
31, 000
Cash 27, 220 18, 100

Premises 196, 000 58,300

Land 54, 000

Drawings 15, 000

Purchase discount and Sales discount 6, 700

Accumulated depreciation-Premises

Purchase return and Sales return 21, 000

Account receivable 15, 600

Freight in 14,050

Account payable

Salaries expenses 88, 050

Utilities expenses 4, 800

Insurance expenses 3, 600

9

Advertising expenses 5, 000
Miscellaneous Expenses 1, 500
Beginning Inventory 40,300
743, 320
743,320

Additional information:
Ending inventory is RM 48,200

Required :

a. Prepare The Statement Of Comprehensif Income For The Year Ended 31
December 2019
[59,920]

b. Prepare The Statement Of Financial Position as at December 2019.
[310,020]

Question 4

Aaron Woody was the owner of Mimaland Entreprise. At 31 December 2019, the business’s
accounting records show these balances as follows:

Accounts Debit Credit
RM RM
Accounts payable 2,360
Accounts receivable 3,500
Drawings 600 50
Freight in 60
Buildings 12,290
Salaries expenses 50,000 72,000
Utilities expenses 560
Bad debt expenses 400 300
Depreciation expenses -Building 180 20,000
Depreciation expenses-Vehicle 450
Purchases 340 200
Purchases discount 1,000
Sales discount 5,800
Insurance expenses 680
Inventory January 1, 2019 40
Sales 200
Vehicles 1,000
Capital
Allowance for doubtful debt 34,000
Bank loan
Purchases return 250
Sales return
Accumulated Depreciation – Buildings
Accumulated Depreciation – Vehicles

10

Cash 11,500 108,880
108,880
Additional information:
i) Inventory at December 31, 2019 RM1,500.

Required:

a. Prepare the Statement of comprehensive income for the year end 31 December 2019.
[RM4,760]

b. Prepare the Statement of financial position as at 31 December 2019. [RM98,520]
Question 5

Kuala Pilah Entreprise ( KPE) operated the business of selling sport shoes . The following are the
accounts and their balances at December 31, 2019 :

Debit (RM) Credit (RM)

Cash 24,960

Account Receivable 9,000

Vehicles 27,000

Inventory 13,800

Equipment 3,810

Accumulated Depreciation – Equipment 900

Account Payable 25,800

Capital 51,870

Total 78,570 78,570

Additional information:

The following are the subsidiary Ledgers and their balances on January 1, 2020 are listed below
:

Account Payable:

Juasseh entreprise RM16,800

Terachi Entreprise RM9,000

Account
Receivable:

Gemas Entreprise RM6,000

Johol Enterprise RM3,000

Ending Inventory at 31 January 2020 RM10,000
During the month of January 2020, the business completed the following transactions :

11

Jan 2 Sold merchandise to Senaling Entreprise RM2,400. Terms 2/10, n/30.
5 Received cash from Johol Enterprise on account RM2,100.

10 Paid freight in RM180 in cash for purchasing merchandise.
12 Paid rent expenses for January in cash RM600.
14 Received a cheque in full settlement from Senaling Entreprise.
16 Made payment in cheque to Terachi Entreprise on his account and received

purchase discount RM90.
19 Purchased merchandise from Melang Enterprise on account RM960. Terms

2/10,n/30.
25 Sold merchandise and received cash RM5,160.
29 Returned a part of merchandise RM300 to Melang Enterprise due to wrong sizes.

Required:
a. Prepare the journalize of the transactions in a Sales Journal, Purchases Journal,

Cash Receipts Journal, Cash Payments Journal and General Journal.
[SJ=2,400 , PJ=960, CRJ=2,400 , 7,260 , CPJ=8,901 ,780 ,90 GJ=300]
b. Post the journal entries to the suitable general ledger and subsidiary ledger.
[AR=6900, AP=17,460 cash=31,440 , bank=6,510]
c. Prepare the trial balance as at January 31, 2020.
[84,690]
d. Prepare the Statement of comprehensive income for the month ended 31 January
2020.
[2,410]
e. Prepare the Statement of financial position as at 31 January 2020.
[78,250]

12

TOPIC 5: ADJUSTMENT AT THE END OF ACCOUNTING PERIOD

SECTION A

1. State two basis of accounting.

2. Explain the definition of revenues and expenses

3. Describe the differences between revenues expenditures and capital expenditure

4. Describe the purpose for adjustment at the of the accounting period

5. Explain the definition of:
a. Unearned revenues
b. Accrued revenues
c. Prepaid expense
d. Accrued expense

6. State two types of errors and give the example.

7. Momentous Occasions is a photography business that shoots videos at college parties. The
freshmen class pays RM1,000 in advance on March 3 to guarantee services for its party to be
held April 2. The sophomore class promises a minimum of RM2,800 for filming its formal dance
and actually pays cash of RM4,100 on February 28 at the dance. Answer the following question
about the correct way to account for revenue under the accrual basis.

a. Considering the RM1,000 paid by the freshmen class, on what date was revenue earned?
Did the earning occur on the same date cash received?

b. Considering the RM4,100 paid by the sophomore class, on what date was revenue earned?
Did the earning occur on the same date cash was received?

SECTION B

QUESTION 1
Jason Elsner started his own consulting firm, Elsner Company, on June 1, 2020. The trial
balance at June 30 is shown below.

ELSNER COMPANY

Trial Balance June 30, 2020

Debit Credit

(RM) (RM)

Cash 7,150

Accounts Receivable 6,000

Supplies 2,000

Prepaid Insurance 3,000

Equipment 15,000

Accounts Payable 4,500

Unearned Service Revenue 4,000
Owner’s Capital 21,750

Service Revenue 7,900

Salaries and Wages Expense 4,000

Rent Expense 1,000

38,150 38,150

13

Other data:
1. Supplies on hand at June 30 are RM750.
2. A utility bill for RM150 has not been recorded and will not be paid until next month.
3. The insurance policy is for a year.
4. RM2,800 of unearned service revenue is recognized for services performed during the

month.
5. Salaries of RM1,900 are accrued at June 30.
6. The equipment has a 5-year life with no salvage value. It is being depreciated at RM250

per month for 60 months.
7. Invoices representing RM1,200 of services performed during the month have not been

recorded as of June 30.

Instructions
(a) Prepare the adjusting entries for the month of June.
(b) Prepare an adjusted trial balance at June 30, 2020. [41,650]

QUESTION 2
The unadjusted trial balance of Canton Air Purification System at December 31, 2020, and the
data needed for the adjustment follow:

Canton Air Purification System
Trial Balance December 31, 2020

Debit (RM) Credit (RM)

Cash 7,200 3,700
Accounts Receivable 19,400 3,400
Prepaid rent 2,200 2,600
Office supplies 1,600 39,000
Equipment 20,000 15,900
Accumulated depreciation
Accounts payable 9,600 64,600
Unearned revenues
Canton, capital
Canton, withdrawal
Service revenue

Salaries expense 3,300

Advertising expense 1,300

Total 64,600

Adjustment data at 31 December as follows:

a. On December 15, Canton contracted to perform services for a client receiving RM2,000 in
advance. Canton recorded this receipt of cash as Unearned revenue. As of December 31,
Canton has completed RM1,800 of the services.

b. Canton prepaid two months of rent on December 1.
c. Canton used RM400 of office supplies during the month
d. Depreciation for the equipment is RM700
e. Canton received a bill for December’s online advertising, RM400. Canton will not pay the bill

until January.
f. Canton pays its employees weekly on Monday for the previous week’s wages. Its employees

earn RM2,000 for five days workweek. December 31 falls on Wednesday this year.
g. On October 1, Canton agreed to provide a four months air system check (beginning October

1) for a customer for RM2,040. Canton has completed the system check every month, but
payment has not yet been received and no entries have been made.

14

Instructions
(a) Prepare the adjusting entries on December 31.
(b) Prepare an adjusted trial balance at December 31, 2020. [68,430]

QUESTION 3
Maquoketa River Resort opened for business on June 1 with eight air-conditioned units.
Its trial balance before adjustment on August 31 is as follows.

Cash Debit Credit
Supplies 19,600
Prepaid Insurance 6,500
Land 3,300 7,400
Buildings 6,000 80,000
Equipment 25,000 100,000
Accounts Payable 125,000 80,000
Unearned Rent Revenue 26,000
Mortgage Payable
Owner’s Capital 5,000
Owner’s Drawings
Rent Revenue 3,600
Maintenance and Repairs
Expense 51,000
Salaries and Wages Expense 9,400
Utilities Expense
RM273,90
0 RM273,900

Other data:
1. Insurance expires at the rate of RM300 per month.
2. A count on August 31 shows RM800 of supplies on hand.
3. Annual depreciation is RM6,000 on buildings and RM2,400 on equipment.
4. Unearned rent revenue of RM4,800 was earned prior to August 31.
5. Salaries of RM400 were unpaid at August 31.
6. Rentals of RM4,000 were due from tenants at August 31. (Use Accounts Receivable.)
7. The mortgage interest rate is 9% per year. (The mortgage was taken out on August 1.)

Instructions
(a) Journalize the adjusting entries on August 31 for the 3-month period June 1–

August 31.
(b) Prepare an adjusted trial balance on August 31. [281,000]
(c) Prepare statement of profit or loss for the 3 months ending August 31. [18,300]
(d) Prepare the statement of financial position as at August 31. [203,400]

QUESTION 4

Abdulli Company RM RM
Trial balance 629 17,075

December 31, 2020
Account Title

Capital
Withdraw

15

Inventory 500 6,000
Purchases 3,500 20
Sales revenue 80
Salaries expenses 1,800
Sales returns 25 1,080
Purchase returns 24,255
Sales discounts 100
Purchase discounts
Rent expense 1,138
General expense 162
Freight in 120
Miscellaneous expense 812
Accounts receivable
Accounts payable 2,050
Furniture and fixtures
Equipment 2,840
Cash 3,000
TOTAL 7,579
24,255

Other data:
a. Inventory on hand at December 31, RM700
b. Personal expense recorded as a miscellaneous expense, RM15
c. Prepaid rent, RM200
d. Accrued salaries expenses, RM400
e. Depreciation on fixed assets, 5% of asset cost.

Instructions

1. Journalize the adjusting entries at December 31, 2020.
2. Prepare the company’s statement of comprehensive income for the month ended December

31, 2020. [-1,834]
3. Prepare the company’s statement of financial position as at December 31, 2020. [16,077]

QUESTION 5

Alenna Company

Trial balance

December 31, 2020

Account Title RM RM

Cash 2,850 2,400
47,000
Accounts receivable 4,600
2,000
Note receivable, current 8,000 12,600
25,900
Inventory 38,600 168,000

Supplies 650

Prepaid insurance 1,200

Furniture and fixtures 33,200

Accumulated depreciation

Accounts payable

Deposit

Note payable, long term

Capital

Withdraw 54,100

Sales revenues

Sales discounts 1,400

Sales returns 2,000

16

Interest revenue 91,400 600
Purchases 3,000
Purchase discounts 5,200 1,200
Purchase returns 9,800
Freight in 8,400 262,700
Wage expense 1,300
Rent expense 262,700
Interest expense
TOTAL

Other data:
a. Interest revenue earned but not yet collected, RM400
b. Supplies on hand, RM100
c. Prepaid insurance expired during the year, RM1,000
d. Depreciation, RM600
e. Sales revenues earned during the year, RM1,300
f. Accrued wage expense, RM400
g. Accrued interest expense, RM200
h. Inventory on hand at December 31, RM40,200

Instructions

1. Journalize the adjusting entries at December 31, 2020.
2. Prepare the company’s statement of comprehensive income, statement of owner’s equity,

and statement of financial position at December 31, 2020. [53,850, 25,650, 86,550]

QUESTION 6

RENN COMPANY

Trial balance

June 30, 2020

Account Title RM RM

Cash 15,200 16,000
18,000
Accounts receivable 8,500 51,800
70,000
Inventory 5,000
1,200
Equipment 80,000 1,200

Accumulated depreciation 1,100
2,200
Accounts payable 161,500

Capital

Withdrawals 5,000

Sales revenues

Sales discounts 500

Purchase discounts

Rent revenue

Freight out 1,600

Freight in 800

Insurances expenses 1,200

Purchases 35,500

Salaries expenses 5,500

Interest revenue

Sales returns 2,700

Purchase returns

TOTAL 161,500

17

Other data:
a. Inventory on hand at June 30, RM6,300
b. Prepaid insurance, RM800
c. Accrued salaries expenses, RM500
d. Unearned rent revenue during the year, RM400
e. Interest revenue earned but not yet collected, RM200
f. Write off as uncollectible the accounts receivable of Johnny, RM400
g. Purchase discounts, RM200 recorded as Purchase returns.
h. Renn Company depreciate equipment over 5 years, on a straight-line basis with zero residual

value.
Instructions
1. Journalize the adjusting entries at June 30, 2020.
2. Prepare the company’s statement of comprehensive income, statement of owner’s equity,

and statement of financial position at June 30. [12,900, 59,700, 78,600]

18

TOPIC 6: ACCOUNTING FOR CASH

SECTION A

Question 1

Explain the meaning of cash.

Question 2
Identify the principles of cash controls.

SECTION B

QUESTION 1
On 31 May 2020, cash receipts journal and a cash payments journal for Berjaya Trading showed
different balances with bank statements.

Bank statements for the month of May 2020

Date Particulars Cheque Debit Kredit Balance
(RM)
May 1 No. (RM) (RM) 780 (Cr)
4 560 (Cr)
8 Balance
9 1,920 (Cr)
Cheque 3,960 220 1,420 (Cr)
10 3,820 (Cr)
12 Deposit 1360 3,520 (Cr)
13 1,520 (Cr)
13 Cheque 3,961 500 1,670 (Ct)
18 2,150 (Cr)
Deposit 2400
26 1,390 (Cr)
28 Cheque 3,962 300 1,335 (Cr)
29
Cheque 3,963 2,000 315 (Dr)

Fixed deposit interest 150

Syarikat ABA Berhad - 480

Dividends

Cheque 3,964 760

Bank charges 55

Cheque 2,965 1,650

Cash Book (Bank Column only)

Date Particulars Bank Date Particulars Bank
(RM)
2020 (RM)
May 1 500
2012 2,000
6
9 Balance b/f 560 May 8 Rent 760
25 1,650
29 Rama 1,360 10 Liza 1,180
31
Ali 2,400 12 Insurance 6,090

Commission 600 24 Furniture

Sale 400 28 Syarikat Lee

Balance c/f 770

6,090

Additional information:
Checks numbered 3962 forgot recorded in the Cash Book.

19

INSTRUCTIONS:

(i) Show the Bank Reconciliation Statement on 31 May 2020. (-495)
(ii) Show journal entries to record the adjustments.

QUESTION 2

The bank statements for August 2020 was received by Perniagaan Kamarul shows different

balance with the cash book balance for the month. Here is a cash book and bank statements for

the month of August 2020.

Cash book (column only bank)

Date Particulars Bank Date Particulars Cheque Bank

(RM) No. (RM)

Aug 1 Balance b/f 5,480 Aug 3 Purchase 256434 750

4 Sale 886 8 Rent 256435 500

7 Nazri 1,290 16 Wilson 256436 1,690

Company

14 Prabu 2,140 22 Beta Company 256437 850

25 Jualan 1,210 26 Alan Company 256438 1,240

29 Lim 800 28 Insurance 256439 250

30 Sally 1,800 31 Balance c/f 8,326

13,606 13,606

Bank statements for the month of August 2020

Date Particulars Cheque Debit Kredit Balance

No. (RM) (RM) (RM)

Aug. 1 Balance b/f 6,480

2 Cheque 256433 1,000 5,480

6 Deposit 886 6,366

6 Cheque 256434 750 5,616

10 Cheque Branch Own 1,290 6,906

13 Cheque 256435 500 6,406

18 Cheque 256436 1,960 4,446

18 Local Cheque 2140 6,586

22 Dividend - Hui Company 530 7,116

26 Deposit 1,210 8,326

28 Cheque 256437 850 7,476

30 Bank Charge 10 7,466

Additional information:

Cheque number 256436 were recorded with the wrong amount in the Cash Book.

INSTRUCTIONS:
(i) Show the Bank Reconciliation Statement on 31 Ogos 2020. (8576)
(ii) Show journal entries to record the adjustments.

20

QUESTION 3
Perniagaan Tirai Sutera has received a bank statement for the month of September 2020. The
following is a cash book and bank statements for the month.

Date Particulars Cash book (Bank column only) Checks Bank (RM)
Bank Date Particulars No.
(RM)

Sept Hoon Yap 940 Sept Balance b/f 2280
1
1 650
15 1800
23 Sale 10,200 3 Indah Bhd 176682
176683 960
26 Lashiny 1,450 5 Hazwani
176684 1720
27 Company 1060
29 176685
Sale 3,640 6 Perabot 176686 3400
Malia 2,670 Jaya
176687 500
6 Purchase 730
176688 6430
Arini 630 8 Kedai Wan 176689 19530

Siah Balance
(RM)
13 Perniagaan 125 Dr
1,925 Dr
Tina 1,675 Dr
2,520 Dr
18 Salary 3,120 Dr
7,080 Cr
23 Purchase 7,050 Cr
3,650 Cr
30 Balance c/f 2,340 Cr
620 Cr
19530 440 Dr
465 Dr
Bank Statements 1,195 Dr
1,475 Cr
Date Particulars Debit Kredit 915 Cr
765 Cr
(RM) (RM) 2,215 Cr

Sept. 1 Balance c/f

8 Cheque No. 176683 1,800

9 Dividend 250

12 Cheque No.176681 845

15 Insurance 600

16 Deposit 10,200

17 Charge bank 30

19 Cheque No.176687 3,400

21 Cheque No.176680 1,310

21 Cheque No.176685 1,720

23 Cheque No.76686 1,060

24 Cheque book 25

26 Cheque No.176689 730

27 Deposit 2,670

28 Cheque No.176682 560

29 Interest on overdraft 150

30 Deposit 1,450

21

Additional information:
1) Cheque the numbered 176682 issued to Indah Bhd. recorded with the wrong amount in the

cash book.
2) Cheque received on 29 September 2020 is returned by the bank as "Refer to Drawer".

INSTRUCTIONS:
(i) Show the Bank Reconciliation Statement on 30 September 2020. (5335)
(ii) Show journal entries to record the adjustments.

QUESTION 4
Perniagaan Shamir received a bank statement showing a balance of different with the balance in
the Cash Book (the bank) on 30 April 2020. Cash book and bank statements are as follows:

Date Particulars Bank Cash book Particulars Checks Bank
(RM) Date No. (RM)

Apr. 1 Balance b/f 3,910 Apr. 1 Rental Expense 293110 510
5 Sale 1,045 10 Syarikat Bayu 293111 470
6 Mistam 2,735 19 Hotel Angkasa 293112 292
Aqilla 20 Ramlan 293113 651
30 491
430
27 Zaidah 293114 5,828
30 Balance c/f 8,181

May 1 Balance b/f 8,181
5,828

Bank Statements

Date Particulars Cheque Debit Kredit Balance
(RM) (RM)
Apr. 1 No. (RM) 3,930
499 4,429
2 Balance c/f 4,134
1,045 3,910
5 Deposit 2,735 4,955
11 4,445
17 Cheque 293108 295 115 7,180
22 6,888
23 Cheque 293109 224 6,237
25 6,212
29 Deposit 6,327
30 6,027
Cheque 293110 510

Deposit

Cheque 293112 292

Cheque 293113 651

Cheque Book 25

Dividend

Insurance 300

REQUIRED:
(i) Show the Bank Reconciliation Statement on 30 April 2020. (5618)
(ii) Show journal entries to record the adjustment

22

QUESTION 5
Cash book Perniagaan Semambu showed different balances with bank statement on 30 April
2020. The following cash book and bank statements at that date.

Cash book (Bank column only)

Date Particulars Bank Date Checks Particulars Bank
(RM)
(RM) No.
880
Balance Sale 7,230 Apr. 2 1013 Rental Expense 600
3 Angelo Bhd. 2,660 1014 Repair of vehicles 690
5 Denna 1015 Commissions 320
8 Bonita Bhd 890 19 1016 Freight in 2,560
Perniagaan 1,650 20 1017 Yana & Co 5,765
25 Bimbo 2,640 27 1018 Aroon Sdn Bhd
28 Peruncit Mamat 1,870 30 220
8,880
29 2,350 1019 Telekom Bhd
1020 Syarikat Sri Jaya 260
May 1 Balance c/f 885 1021 Takaful Bhd 20,175
20,175

MAYBANK BHD
BANK STATEMENTS

Perniagaan Semambu No Akaun:
No. 123 Jalan Londang 087-161555667-2
Kg. Pengkalan Balak, Tarikh:
Masjid Tanah, Melaka. 30 April 2020

Date Particulars Check Debit Kredit Baki
No. (RM) (RM) (RM)

2020 1013 880 2,660 8,250
April 1014 600 890 7,370
1 Balance 6,770
5 Check 1012 1,020 1,650 9,430
10 Check 1016 15 10,320
11 Deposit 1018 1,870 9,300
Deposit 1017 320 1,550 9,285
12 Check 2,400 8,965
Check book 5,765 2,350 10,615
14 Check 2,650 4,850
16 Deposit 2,200
28 Check 4,070
Check 5,620
29 Deposit 8,020
30 Dividend (Syarikat Adlyna Bhd) 10,370
Syarikat Tana Man (Credit Transfer)
30 Deposit

23

All entries in the statement is correct.

INSTRUCTIONS:
(i) Show the Bank Reconciliation Statement on 30 April 2020. (2960)
(ii) Show journal entries to record the adjustments.

QUESTION 6
Bank statement balance for Perniagaan Mazwin Cantik on 30 June 2020 was found different from
the balance of cash book. Here is the cash receipts journal, a cash payment (bank column) and
bank statements of business on 30 June 2020.

Cash Receipts Journal

Date Particulars Bank Accounts Sales Other
Jun 5 Sales (RM) Accounts
(RM) Receivable
950 (RM)
(RM)

950

10 Hwa Thai 1,200 1,200
15 Commission 500
500

25 Sales 600 600

28 Helmi 580 580 1,550 500
30 Zamarul 730 730
30 Total 4,560 2,510

Cash Payment Journal (Bank column)

Date Particulars Bank Accounts Purchase Other
Accounts
Check No (RM) Payable (RM)
(RM)
(RM)

Jun 10 Salary - 500 1,000 1,000

15 Purchase – 501 2,200 2,200

18 Shila Amzah -502 720 720 480 500
24 Rent -503 500 2,680 1,500
26 Adlin -504 380 380
27 Saloma -505 450 450
30 Purchase - 506 480
30 Total 5,730 1,550

24

Particulars BANK BAIDURI Kredit Balance
BANK STATEMENT (RM) (RM)
Balance 5,450
Cheque Cheque Debit 950
Cheque No. (RM) 1200 4,750
Deposit 4,200
Cheque 498 700 825 5,150
Deposit 499 550 500 4,150
Dividen 5,350
Deposit 500 1,000 580 6,175
Cheque 6,675
Auto debit (Rental Expense) 501 2,200 4,475
Cheque 1,500 2,975
Cheque 500 2,475
Bank charges 380 2,095
Cheque 40 2,055
Deposit 1,650
505 405 2230
321

Additional information:
1) Balance bring forward for cash book (bank column) is RM4,200.
2) All the information in the bank statement is true (non-existent errors).

INSTRUCTIONS:
(i) Show the Bank Reconciliation Statement on 30 June 2020. (2360)
(ii) Show journal entries to record the adjustments in cash book.

QUESTION 7
Perniagaan Cengal receive bank statements in August 2020, which shows a different balance
with the cash book balance. Here bank statement and cash book (bank column).

Bank Maju Malaysia Bhd

Bank Statement

Date Particulars Check. Debit Kredit Balance
(RM) (RM)
2020 No (RM)
Aug.
1 Balance b/f 053351 2,840 940 4,140
10 Check 1,325 1,300
11 Deposit 053350 500 2,240
Deposit 053352 740 600 3,565
12 Check 053353 2,650 340 3,065
13 Check 2,325
18 Check
20 Dividen Syt Meranti Bhd 325
Fixed deposit interest 275
615

25

25 Check 053355 1,240 625
28 Deposit 16 576
28 Bank Charges 49 592
31 Total 7986 3254
Bank
Cash book (Bank column only) (RM)

Date Particulars Bank Date Checks Particulars 2,840
740
(RM) No.
2,650
Aug. 1 Balance b/f 3,640 Aug. 6 053351 Purchase 890
8 Sales 940 11 053352 Freight in
Pin Pin 14 053353 Umy 1,240
10 Monathi 1,325 18 053354 Syt. Kizashi Bhd. 65
16 Kedai Ah Huat 490 25 053355 Horma
20 Balance c/f 28 053356 TNB 450
31 1,250 30 053357 Salary 8,875
1,230

8,875

INSTRUCTIONS:
(i) Show the Bank Reconciliation Statement on 31 August 2020. (-257)
(ii) Show journal entries to record the adjustments in cash book.

26

TOPIC 7: ACCOUNTING FOR RECEIVABLES

SECTION A

Question 1

Explain the meaning of account receivables.
.

Question 2

Identify the factors of bad debts.

SECTION B

QUESTION 1

(i) On December 31, 2020, the total sales Bayu Sdn Bhd. (BSB) is RM837,000. An estimated
1% of sales can’t be quoted. Using the allowance method, show journal entries to record bad

debt expense. (8,370)

(ii) During January 2020, a total of RM4,500 from the account receivable written off. Show journal

entries to record write-off the debt if the allowance method used. (4,500)

(iii) Referring to questions (ii) assume BSB apply direct write-off method for recording

uncollectible accounts. Show journal entries to record the write-off. (4,500)

QUESTION 2
Hidayah Sdn Bhd (HSB) sells furniture from Italy. The following information relating to accounts
receivable for the year ended December 31, 2020.

The balance of accounts receivable at 31 December 2020. RM24,500
(Before written off bad debts)

Total write-off during the year ended 31 December 2020. RM650

INSTRUCTIONS:

(i) Show journal entries to record write-off if using direct write-off methods. (650)

(ii) Show journal entries to record the write-off and adjustment entries at the end of the period by

using the allowance method, 2% of the balance accounts receivable. The balance allowance

for doubtful accounts is RM450. (677)

QUESTION 3
On 31 December 2019, Karimah Sdn. Bhd. (KSB) record the following information in the
Statement of Financial Position.

Accounts receivable balance RM
42,600

Allowance for doubtful accounts 852

Transactions that occur ended December 31, 2020 as follows:

27

Sales (40% is cash) RM
255,000

Return on sales (for credit sales) 4,200

Receipts of accounts receivable 172,500

Accounts receivables written off 900

Additional information:
Provision for doubtful debts for the year ended December 31, 2020 is estimated at 2% of the
balance accounts receivable.

INSTRUCTIONS:
(i) Show journal entries to record the transactions for the year ended 31 December 2020.
(ii) Calculate the balance of accounts receivable and allowance for doubtful debts account for

the year ended 31 December 2020.
(iii) Show journal entries to record the adjustment of accounts receivable at 31 December 2020.

(408)

QUESTION 4
Pudu Jaya Sdn Bhd (PJSB) sells and distributes furniture. Details of trial balance on July 31, 2020
is as follows:

Accounts receivable RM
200,000

Allowance for doubtful accounts 3,000

Information transactions on July 31, 2020:
(1) Mr. Halim missing and owed a total of RM500.
(2) Mr. Latif pay off a debt of RM1,000 in 2018.
(3) Provision for doubtful debts on July 31, 2020 is estimated at 2% of the balance of accounts

receivable.

INSTRUCTIONS:
Show journal entries to record the adjustment of accounts receivable at 31 July 2020 using the
allowance method.

QUESTION 5
Kemuning Enterprise (KE) school shoes sold in Selangor. Details of trial balance on September
30, 2019 is as follows:

Accounts receivable RM
62,700

Allowance for doubtful accounts 1,254

28

Information transaction ended 30 September 2020.
(1) Total sales worth RM468,900, 30% is cash sales.
(2) Received RM333,160 from the debtor, including the deposit of RM2,400 from Sekolah

Kebangsaan Raja Laut for reservations footwear that should be sent on January 4, 2020.
(3) Shop was burned and destroyed the receivables business inventories. Number of RM1,820

debt remains unpaid and the management of the debt write off.
(4) A debtor returns the merchandise amounting to RM550.
(5) Provision for doubtful debts ended 30 September 2020 is estimated at 3% of the balance of

Accounts Receivable.

INSTRUCTIONS:

(i) Show accounts receivable and allowance for doubtful debts accounts based on the above

transactions.

(ii) Show a journal to record the write-off of accounts receivable. (650)

QUESTION 6

On 31 December 2018, Perniagaan Aziz had accounts receivable total RM10,000. Businesses do
not create an account provision for doubtful debts on accounts receivable balances. After
receiving advice, the business agreed to allocate 5% of estimated uncollectible debt. The
information below is relevant to operations for the year ended 31 December:

Credit sales 2019 2020
Cash received from customers (RM) (RM)
Bad debt write-off 220,000 230,000
Cash from debtors that have been written off
215,000 236,000

4,000 2,100

- 500

INSTRUCTIONS:
Relate an account for bad debt expense and allowance for doubtful debts account ended 31
December 2019 and 2020.

29

TOPIC 8:ACCOUNTING FOR INVENTORIES

SECTION A

QUESTION 1
Explain the meaning of inventory.

QUESTION 2
Briefly explain TWO (2) types of inventories.

QUESTION 3

Wooden Furniture Shop is a sole proprietorship business involved in the buying and selling of
wooden furniture owned by Anizan. The business started operations seven years ago and has
been using the periodic inventory system to record the movement of its inventory.

According to Anizan’s younger brother who is an accounting graduate, the movement of inventory
can also be recorded using the perpetual inventory system.

Required:

a. State TWO (2) inventory system.
b. Explain TWO (2) characteristics of the perpetual inventory system.
c. You are required to prepare the appropriate journal entries (narration is not required)

for the following economic events of Wooden Furniture Shop using the perpetual
inventory system:

Date Economic events
2018 Purchased 10 units of dining tables from Nyatoh Trading costing
May 5 RM3,000 per unit and 13 cupboards of RM1,000 per unit on credit.
13 2 units of cupboards were returned to Nyatoh Trading due to defects.

23 Sold 5 units of dining tables at RM3,500 per unit and 8 cupboards to
Houses Galore at RM1,300 per unit on credit.

28 Purchased 8 units of cupboards at RM1,500 per unit from Jati Utama
by cheque.

SECTION B

QUESTION 1
PLASMA Sdn Bhd is having difficulty in costing material AC to the various jobs that it is used on.
The materials are bought in bulk and recent receipts and issues for the month of June 2020 have
been recorded as follows:

June 1 Balance brought forward 800 kilos at RM4.50 per kg
8 Purchase 3,000 kg at RM5 per kg
16 Purchase 1,000 kg at RM5.50 per kg
19 Sale 2,500 kg

Purchase 3,000 kg at RM4.50 per kg
22

30

Sale 3,000 kg
24

REQUIRED:

Under a perpetual inventory system, determine the cost of inventory on hand at 30 June and the
cost of goods sold for June under Weighted average methods.( Estimated amount to the nearest
2 decimal point) [ Ending inventory RM10,860; COGS RM26,740]

QUESTION 2
Dyna Distribution market CDs of the performing artist King James. At the beginning of March,
Dyna had in beginning inventory 1,500 King James CDs with a unit cost of RM7. During March,
Dyna made the following purchases of King James CDs.

March 5 3,500 @ RM8
March 13 4,000 @ RM9
March 21 2,000 @ RM10
March 26 2,000 @ RM11

During March, 10,000 units were sold. Dyna uses a periodic system.

REQUIRED:
a. Determine the cost of goods available for sale. [ COGS RM116,500 ]
b. Using FIFO Method Determine:
i) The ending inventory [ RM32,000]
ii) The cost of goods sold under the FIFO method. [ RM84,500]

QUESTION 3

The accounting record of beginning inventory, purchased and sale during the month of May 2020
for Salim Maju Enterprise (SME). This company uses Perpetual Inventory System.

Date Beginning Inventory 50 unit @ RM6 Price perunit RM8.50
May 5 Sale 20 unit Price perunit RM8.50
8 Purchase 45 unit @ RM7 Price perunit RM9.00
15 Sale 22 unit
20 Purchase 40 unit @ RM8
24 Sale 35 unit

INSTRUCTION :

Compute cost of goods sold and ending inventory if SME uses First In First Out (FIFO) method.
Use the format below. [ Ending inventory cost RM446; COGS RM489]

Purchase Cost of goods Balance
(RM)
sold (RM) (RM)

Beginning Inventory

Determine cost of ending inventory with weighted average method if SME uses Periodic Inventory
System.( Estimated amount to the nearest 2 decimal point) [ Ending inventory cost RM401.94
]

31

QUESTION 4:

Syarikat Komputer Saleh Yacop (SKSY) has prepared an inventory record for the month of
January 2020 as follows:

Date Explanation Units Unit Cost Total cost
(RM) (RM)
Jan 1 Opening inventory 100 8 800
6 Purchase 60
13 Sales 70 9 540
21 Purchase 150 20 1,400
24 Sales 210 9 1,350
27 Purchase 90 22 4,620
30 Sales 30 10 900
25 750

From the company’s accounting records for the month of January, the company recorded
operational expenses amounted to RM1,900. Assume the company uses Periodic Inventory
System.

REQUIRED:
a) Prepare Comprehensive Income Statement, using the First In First Out (FIFO).
[FIFO nett income RM2180]
b) Prepare Comprehensive Income Statement, using the Weighted Average methods:
( Estimated amount to the nearest 2 decimal point) [Weighted Average nett income
RM2088.20]
c) Assuming you are the Finance Director of SKSY, suggest the inventory evaluation
methods that the company can achieve to:
i. Minimize tax
ii. Report highest profit

QUESTION 5
The management of Mahiran Group is considering the effects of inventory costing methods on
its financial statements and its income tax expenses. Assume that the inventory price is
increasing, which method will:
a. Provide the higher net income?
b. Provide the higher ending inventory?
c. Result in the lower income tax expense?

32

TOPIC 9: ACCOUNTING FOR NON-CURRENT ASSETS

Section A

1. What is the definition of non-current assets?
2. State differences between depreciation expenses and accumulated depreciation.
3. Give three examples of cost that may be incurred other than the cash price when purchasing

a factory machine.

Section B

Question 1

Syarikat Samsuri purchased a printer with the following costs:

Invoiced price RM75,300

Transportation cost 7,530

Travel insurance cost 2,500

Installation cost 3,000

Sales tax 650

Repair cost 600

Required:
a. Calculate the cost of purchasing the printer.

[Answer: RM88,980]

b. Prepare journal entries to record the fixed asset.
[Answer: Machine RM88,980 ]

Question 2

May 1, 2017
Purchased an old vehicle worth RM5,300. An estimated useful life of the vehicle was 2 years
which was equivalent to 100,000 km with residual value of RM500.
The accounting period ended on 31 December each year.

Required:
Prepare a schedule to calculate depreciation expense for each year of the useful life of the vehicle
if the following methods were used:
a. Straight-line method.

[Answer: Depreciation 2017 RM1,600; 2018 RM2,400; 2019 RM800]

b. Reducing balance method (depreciation rate of 60% per annum).
[Answer: Depreciation 2017 RM2,120; 2018 RM1,908; 2019 RM772]

Question 3

Below was the balance of fixed assets of Perniagaan Jaya (PJ) as at 31 December 2018.

Non-current assets :

Premise RM500,000

Accumulated depreciation (RM10,000)

RM490,000

Vehicles RM400,000

Accumulated depreciation (RM40,000)

RM360,000

Total RM850,000

33

On July 1, 2019, PJ purchased a truck at a cost of RM200,000 by credit. PJ used the straight-line
method to calculate the depreciation expense for both of these fixed assets. The premise
estimated useful life was 50 years, while the estimated useful life of the vehicle was 10 years.
Required:
a. Prepare journal entries for purchase of vehicle.

[Answer: Vehicle RM20,000 ]

b. Prepare journal entries for depreciation expense as at December 31, 2019.
[Answer: Depreciation: Pemises RM10,000; Vehicle RM50,000]

c. Prepare journal entries for depreciation expense as at December 31, 2019 if annual basis
is used. [Answer: Depreciation: Pemises RM10,000; Vehicle RM60,000]

d. With reference to (b), prepare an extract of statement of financial position as at 31 December
2019.
[Answer: Total Non-current Assets RM990,000 ]

Question 4

Machinery RM45,000
Accumulated depreciation 25,000
Book value 20,000

Required:
Referring to the above information, Prepare journal entries for each of the following cases.
(Assume that each case are not related)
a. Disposing of the machine.

[Answer: Loss on disposal RM20,000]

b. The machine was sold at a price of RM25,000.
[Answer: Gain on disposal RM5,000]

c. The machine was sold at a price of RM18,000.
[Answer: Loss on disposal RM2,000]

d. Exchange for a new machine cost RM50,000. The trade in allowance amount to RM25,000.
[Answer: Gain on disposal RM5,000]

e. Exchange for a new machine cost RM50,000. The company has to pay cash RM35,000
from the exchange of the asset .
[Answer: Loss on disposal RM5,000]

Question 5

On December 31, 2019, Syarikat Komsas reported the following fixed assets:

Land RM300,000

Building RM2,650,000 1,440,000
Accumulated Depreciation – Building (1,210,000)

Equipment 4,000,000
Accumulated Depreciation - Equipment (500,000) 3,500,000

RM5,240,000

34

Below are the cash transactions throughout the year 2019.
March 1 Purchased land RM220,000.
April 1 Exchanging an old equipment cost RM60,000 when purchased on January 1, 2015. The

exchange trade in allowance for the old equipment is RM36,000. New equipment
acquired at a price of RM50,000.
June 1 Sold of the land acquired on June 1, 1990 at a price of RM180,000. The land cost
RM50,000.
The company used the straight-line method to calculate depreciation of building and equipment.
The estimated useful life of the building was 40 years and estimated useful life of equipments
were 10 years.
Required:
a. Prepare the journal entries for all transactions (disregard the narration).
[Answer: 1/3 Land RM220,000; 1/4 Gain on disposal RM1,500; 1/6 Gain on disposal
RM130,000]
b. Prepare the journal entries for depreciation expense for the year 2019 (disregard the
narartion).
[Answer: Depreciation: Premises RM66,250; Equipment RM397,750]

35

TOPIC 10: ACCOUNTING FOR LIABILITIES

Section A

1. Give one (1) characteristic of current liabilities of certain amount with example.
2. Give one (1) characteristic of current liabilities of estimated amount with example.

Section B

Question 1
Identify the maturity date and calculate the interest for each Payable Note below:

Date Value Interest Rate Maturity Period [RM 188.63]
January 10 RM 8,500 9% 90 days [RM 189.37]
15 April RM 7,200 8% 120 days [RM 105.21]
June 27 RM 6,400 5% 120 days [RM 81.37]
October 12 RM 8,800 5% 45 days [RM 126.58]
December 23 RM 7,700 8% 75 days

Question 2
Below are the information from Syarikat Teguh Jaya for year 2020 and 2021.
2020
March 8 Borrows RM 30,000 from HSBC by signing a 60- days, 8% note.
May 6 Pay principal and interest to HSBC. [interest expense:RM 394.52]
Nov 16 Borrows RM 6,000 from Maybank by signing a 90-days, 6% note.
Dec 31 Make an adjustments to interest payable. [accrued interest :RM 45.37]

2021
Feb 13 Pay principal and interest to Maybank. [Bank : RM 6 088.77]

Required:
Prepare general journal entries to record the above transactions.

Question 3
On July 1, 2020, Syukur Jaya Bhd (SJB) has issued bonds worth RM 300,000 5% for a period of
10 years. The bond interest was paid at the end of the year with 6 months period and the first
payment was made on December 31, 2020.

On January 1, 2020, Ufuk Jaya Berhad (UJB) issued RM 400,000 10% for 10-year bonds. Interest
payments are made twice yearly on 30 June and 31 December.

REQUIRED :
Prepare journal entries to record:
a) Issuance of Bonds.
b) Payment of bonds interest for the year 2020 by SJB and UJB. [SJB: 7500, UJB: 20000]
c) Redemption of the bonds at maturity date. [SJB Bank: RM 307 500, UJB Bank RM 420 000]

Question 4
Mekar Sdn Bhd (MSB) has a mortgage liability of RM 250,000. The mortgage is repayable on
monthly installment of RM 2,550 (including interest rate of 12% per annum).

Required :

36

a) Prepare an amortization schedule that shows the initial balance of the mortgage and the
distribution of the first four monthly payment between interest expense and reduction of the
balance due. (Round to the nearest ringgit). [Balance payable 4th month : RM 249 797]

b) Prepare journal entries to record the second and fourth monthly payments.
[interest expense 2nd month : RM 2500 , 4th month : RM 2498]

Question 5

On January 1, 2020, Perniagaan IZ Rizky book ledger showed the following current liabilities:

RM

Accounts Payable 44,600

Sales Tax Payable 6,600

Unearned rental revenue 16,000

In the month of January, the following transactions took place:

2020 Borrows RM35,000 from CIMB by signing, a 6 months, 9% note.
Jan 1

Jan 1 Borrows RM 20,000 cash from RHB by signing a 4 months, 12% note.

Jan 5 Sold goods and received cash of RM 16,800 including sales tax of 5%. The sales
tax has not been paid. [sales : RM 16 000]

Jan12 Provided service to customer who had paid advance rent of RM 10,000. No service
tax is charged.

Jan 14 Paid last year sales tax to the Customs Department. [sales tax payable : RM 6 600]

Jan 20 Sold a new line of product by credit totaling 600 units at a price of RM 55 per unit.
Sales tax for the new line of product is 5%. This new line of product has a 1 year
warranty. [sales tax payable : RM 1 650]

Jan 25 Sold goods and received cash of RM 13,125 including sales tax of 5%. [sales tax
payable : RM 625]

Required :
a) Prepare the record of all transactions in a journal entry

b) Prepare the adjusting entries on January 31, 2020 for:
i. Notes Payable on hand. [interest expense : RM262.50, RM200]
ii. Estimated warranty liability with the assumption that 8% of sales of new line of product
will be returned for a replacement with new items (warranty payable :RM 2 640)

c) Prepare a current liability note in the Statement of Financial Position for Perniagaan IZ Rizky
on January 31, 2020 [Total : RM 111 777.50]

37

TOPIC 11: ACCOUNTING FOR INCOMPLETE RECORDS AND SINGLE ENTRY SYSTEM

SECTION A:

1. Define incomplete record and single entry system.
2. Explain the effects of incomplete records and single entry system.
3. List two (2) methods used in calculating net profit.

SECTION B:

Question 1
Pn. Aishah, a clothes dealer does not have a complete record of her business transaction. The
business assets and liabilities are recorded as follows:

July 1, 2019 June 30, 2020

RM RM

Vehicle 6,000 5,400

Fittings and Fixtures 2,500 2,250

Inventory 300 260

Accounts Receivable 340 300

Accounts Payable 410 390

Cash 2,500 1,870

Wages Payable 20 70

Prepaid Rent 150 0

Additional information :
Pn. Aishah withdrew cash of RM100 and inventories of RM50 for her own use. Pn. Aishah
deposited RM500 cash as an additional capital on October 1, 2019.
Required :
a. Calculate the capital on July 1, 2019 of Perniagaan Pn. Aishah. [RM 11,360]
b. Calculate the capital on 30 June, 2020 of Perniagaan Pn. Aishah. [RM 9,620]
c. Prepare the Statement of Comprehensive Income for the year ended June 30, 2020. [RM 2,090]
d. Prepare the Statement of Financial Position as at June 30, 2020. [RM 10,080]

Question 2
Pn. Joyce does not keep her business record completely. The following items are taken from her
book on June 30, 2019.

July 1, 2019 June 30, 2020

RM RM

Inventory 9,220 10,220

Cash 2,190 ?

Accounts Receivable 13,610 11,900

Accounts Payable 6,580 6,310

Equipment 7,200 7,600

38

Vehicle 36,000 32,400
Bank Loan 12,000 6,000
Salaries Payable 0
Prepaid Insurance 500 440
160

Below is a summary of cash book for the year ended June 30, 2020:

Receipts: RM Payment: RM

Accounts Receivable 44,700 Accounts Payable 26,300

Commissions 400 Purchases 5,770

Sales 11,100 Rent 7,800

Salary 6,900

General Expenses 750

Equipment 800

Drawings 1,570

Bank Loan 6,000

Additional information : Interest 1,200

1. Pn. Joyce has received discounts and allowance of RM540 from the supplier and has given
Insurance Premium
RM760 discounts to customers. 880

2. Goods costing of RM410 were returned to the supplier and the customer has returned goods

worth RM350.

3. The annual rent is RM7,200.

4. Debt of RM200 has become obsolete and written off as bad debts

5. Pn. Joyce took inventories valued at RM400 a month for her family use.

Required :
a. Prepare the Statement of Comprehensive Income for the year ended June 30, 2020. [RM

8,340]
b. Prepare the Statement of Financial Position as at June 30, 2020. [RM 63,580]

Question 3

Pn. Haslina does not keep its record of double entry system. She commenced a business on
January 1, 2020 with the following balances:

RM

Bank 3,852

Accounts Receivable 8,784

Accounts Payable 5,778

Inventory 3,222

Vehicle 26,000

Furniture 6,400

Salaries Payable 216

39

The following items are taken from the Cash Book on December 31, 2020

Receipts: RM Payment: RM
Accounts Receivable
Additional Capital 25,560 Cash Purchases 2,430
Cash Sales 1,800 Accounts Payable 20,988
Commissions 6,984 General Expenses
8,000 Salary 1,224
Rent 1,350
9,360

The balances of accounts at December 31, 2020 are as follows:

Accounts Receivable RM
Accounts Payable 6,642
Vehicle 4,914
Salaries Payable
Inventory 25,200
Furniture 272

4,880
6,000

Required :
a. Show the "T" accounts for Accounts Receivable, Accounts Payable and Salaries Payable.

[Credit Sales:RM23,418 Credit Purchase:RM20,124, Salary:RM1,406]
b. Calculate the beginning capital and the balance of the bank. [Capital:RM4,2264, Bank:

RM10,844]
c. Prepare the Statement of Comprehensive Income for the year ended December 31, 2020.

[RM4,316]
d. Prepare the Statement of Financial Position as at December 31, 2020. [RM53,566]

Question 4

Perniagaan Asmah keeps books for a single entry. The following information is derived from
Perniagaan Asmah until 31 December 2020.

Summary of Receipts and Payments

Balance b/f Cash Bank Cash Bank
RM RM RM RM
10,000 Accounts Payable 13,000
200 -

Cash Sales 1,000 - Drawings 500 -

Accounts Receivable - 24,000 Wages - 2,000

Insurance - 1,200

40

Rent - 1,500
Balance c/f ? 16,300
1,200 34,000 1,200 34,000

The balance of assets and liabilities are as follows:

January 1, 2020 December 31, 2020

Assets: RM RM

Vehicle 20,000 18,000

Furniture 8,000 7,600

Inventory 6,000 8,000

Accounts Receivable 6,500 4,000

Cash 200 700

Bank 10,000 16,300

Liabilites:

Accounts Payable 2,500 3,500

Rent Payable - 500

Required :

a. Prepare the Accounts Receivable and Accounts Payable. [Credit Sales;RM21500, Credit
Purchase:RM 14,000]

b. Prepare the Statement of Comprehensive Income for the year ended December 31, 2020.
[RM2,900]

c. Prepare the Statement of Financial Position as at December 31, 2020. [RM54,600]
Question 5

Aina trading is a batik and silk retailer. Below is a cash book for the year ended 30 September
2019:

Cash Book (Bank)

RM RM

1/10/18 Balance b/d 27,780 Accounts payable 132,340

Accounts receivable Rates expense 2,850
167,300

Sales 9,070 Telephone expenses 1,350

Rent expenses 4,800

Insurance expenses 2,400

41

Motorvan expenses 7,200

Drawings 1,800

Salaries expenses 18,200

Purchases 10,200

30/9/19 Balance c/d 23,010

204,150 204,150

Additional information:

1. Motor van and equipment at cost RM76,130 and RM24,700 respectively. All fixed assets
were bought in 2016 and fully depreciated at 20% for motor van and 10% for equipment at
cost.

2. RM980 was returned by customers because of wrong colours and patern.

3. Ms Aina returned defect silk to supplier RM3,200.

4. Ms Aina has written off Ms Maisarah debts who passed away on 2 November 2018 amounted
RM180.

5. These are the assets and liabilities balances as at 30 Sept 2018 and 2019:

30 Sept 2018 30 sept 2019
(RM) (RM)

Accounts receivable 39,780 44,190

Account payables 54,600 63,350

Inventory 62,120 58,500

Accrued salaries 2,550 1,850

Prepaid Insurance 1,100 700

REQUIRED:

i) Prepare accounts for accrued salaries, prepaid insurance, accounts receivable and
accounts payable.

ii) Prepare an income statement for Ms Aina Trading for the year ended 30 September
2019. ( net loss RM 28 326)

iii) Prepare statement of Financial Position as at 30 September 2019.( RM 156 446)

42

TOPIC 1: INTRODUCTION TO ACCOUNTING
PAST YEARS QUESTIONS

PSPM 2011/2012
QUESTION 1:
a) Briefly explain the two branches of accounting.
b) Kaisara runs a book distribution business nationwide with a capital contribution of

RM50,000. Kaisara offered Aisha to invest in her business with an offer of profit according
to the amount of capital contributed by Aisha.
i. What is the Kaisara's form of business?
ii. If Aisha accepted the Kaisara's invitation, what would their form of business?
iii. State two (2) business characteristics as (b) above.

PSPM 2012/2012
QUESTION 1(A):
i) What is the definition of accounting and name three (3) professional accounting bodies in

Malaysia.
ii) State four (4) types of financial statement.

PSPM 2013/2014
QUESTION 1
a) Puan Azmahton plans to open a furniture business. State three types of business ownership

options that Puan Azmahton can consider. Specify three (3) characteristics for each of these
forms of ownership.

PSPM 2014/2015
QUESTION 1
a) Accounting information is used to make decisions. Specify for (4) external users who use

the information.

PSPM 2015/2016
QUESTION 1
a) State four users of accounting information and explain how each user uses the accounting

information.

PSPM 2016/2017
Question 1
a) Explain two (2) differences between proprietorship, partnership and corporation.

43

TOPIC 2: BASIC ACCOUNTING CONCEPT
PAST YEARS QUESTIONS

PSPM 2010/2011

You are required to identify the accounting concepts involved and what to comply with the
following situation :

1. Ruzita’s Company has applied the straight line method to record depreciation expense and
accumulated depreciation. For the year 2010, the Accountant has changed the straight line
method to the reducing balance method without recording in the Financial Statements .

2. Tabaya Company has bought a piece of land at the invoice cost RM50,000 and the market
value is RM55,000 . The company does not sure how much is the amount should be recorded
.

3. Puan Rohaida thinks that stock inventory that recorded as Last In First Out ( LIFO) method can
be changed to First In First Out ( FIFO) method at any time.

4. Amanda Company gives an opinion that depreciation expense for furniture and office
Equipment should not be recorded in the company’ account.

5. A vehicle’s maintenance expense of Jaju Enterprise is RM7,000 at July 2010. This amount
includes RM800 for maintenance expense which belong to the owner’s private car.

PSPM 2011/2012

On 1 August 2011, Salehuddin started a service business The following was a list of his

transactions for his first month of trading.

Date Transaction

August 1 Started business with cash RM10,000

2 Purchased office supplies on credit RM1,150

4 Received cash RM4,500 for service given.

10 Paid account payable RM675

15 Issued bill RM3,250 to customer for service given.

18 Paid vehicle rent RM680

25 Office supplies used RM935
27 Withdrew RM1,000 cash from the business for owner’s personal use.

29 Office rent RM2,500 paid in cash.

Required:

Show the effects of the following transactions using the account equation table below. The first

transaction has been recorded as an example:

ASSETS = LIABILITIES + OWNERS EQUITY

Date Cash Supplies Accounts = Accounts Capital Revenue
10,000 Receivable Payable 10,000 (Expenses)
2011
August

1

(answer : assets RM13 110 , liabilities RM475 , owner equity RM12 635)

44

PSPM 2012/2013

En Khairuddin started a laundry business in Bandar Malim Nawar. The following was a list of his

transactions for his first month of trading.

Date Transaction

2012 Started business with RM30,000 in the Bank

January 1

3 Purchased an equipment RM18,000 on credit from Syarikat

Peralatan Maju Sdn. Bhd.

4 Purchased t Supplies RM6,000 by cash.

10 Send invois RM2,550 for the services given to Mutiara Resort.

12 Send invois RM1,000 for the services given to Perniagaan Hassan.

13 Paid half of equipment that purchased on 3 January 2012

19 Received cheque from Mutiara Resort for the invoice that send on

10 January 2012.
23 Withdrew cash RM1,000 for owner’s family use.

25 Paid rent expense RM800 .

28 Paid utilities expense RM350.

29 Owner took out some soaps from the shop RM30 for personal use.

Required:

Show the effects of the following transactions using the account equation table below. The first

transaction has been recorded as an example:

ASSETS = LIABILITIES + OWNERS EQUITY

Date Cash/ Equipment Supplies Accounts = Accounts Capital Revenue
Payable (Expenses)
Bank Receivable

2012 30,000 30,000
Jan 1
(answer : assets RM40 370 , liabilities RM9 000 , owner equity RM31 370)

PSPM 2013/2014

State the basic accounting concepts and comment whether comply or not comply with the
concepts based on the following situations:

(i) The owner’s wife of New Village Coffee Shop business withdrew cash to buy a computer
for her and her children but not recorded in the book business.

(ii) The enterprise had purchased a shop worth RM450,000 in 2007. In 2012, the market value
of this shop RM700,000. Business accountants have reported this shop in the financial
statements in 2012 on the market value.

(iii) The management of Cheerful Business has decided to change the depreciation method
from declining balance method to straight-line method during the current year after using
one year of the method.

PSPM 2014/2015

Fariz Iqbal is the owner of Mutiara Enterprise that involved in making and selling furniture.
Information below show the transactions that occurred in the month of September 2014:

(i) Mutiara Enterprise received orders to make bookshelf worth RM200 from Abu Nawas.
Payment will be made when the bookshelf is to be completed within two weeks.

(ii) Purchased a used truck from Rainbow Light Enterprise at RM50,000 to pay deposit of
RM10,000 in cash.

45

(iii) At the beginning of the month, businesses paid an advance half of the salary of an
employee for the death of his father. The employee’s salary will be paid RM1,800 per
month.

(iv) Fariz Iqbal use his saving to buy a sofa worth RM2,500 for office use of Mutiara Enterprise.
(v) Paid electricity bills by cheque RM540.

(vi) Fariz Iqbal withdrew cash RM200 to pay their children's school sports fees.

REQUIRED:

Show the effects of all transactions using the accounting equation in the following format:
Example: Fariz Iqbal pay the phone bill of RM250 in cash.

ASSET = LIABILITY + OWNER’S EQUITY

No. Asset Liability Capital Revenue Expenses

(RM) (RM) (RM) (RM) (RM)

Cash Telephone

-250 Expenses

-250

(answer : assets RM41 760 , liabilities RM40 000 , owner equity RM1 760)

PSPM 2015/2016

Explain the basic acccounting concepts in accordance with the following transactions :
i) Space Enterprise claimed that the accounting information provided is based on the assumption

that the business will continue to operate in the future with no intention of dissolving it.
ii) Azizah Enterprise recorded engine value at cost price when purchasing though the current

value of the asset has decreased.
iii) Mona Enterprise did not disclose in its financial statements about the losses that suffered due

to fire even if the total loss is large.

PSPM 2016/2017

a) Identify and explain the accounting concepts that are relevant when recording the following
transactions
i. Ah Chong Enterprise sold goods worth RM 7000 to Orkid Sdn Bhd in July 2016.
Orkid Sdn Bhd paid RM 3000 cash at the time of sale. Ah Chong Enterprise
recorded in the credit side of sales account RM 7000 for this transaction.

ii. Rasta Enterprise owns a business in Seri Kembangan since 1 October 2015. On
30 September 2016, which is after one year of operating the business, then Rasta
Enterprise prepared its accounts for their business.

46

TOPIC 3: ACCOUNTING CYCLE
PAST YEARS QUESTIONS

PSPM 2011/2012

QUESTION 2

The followings were the accounts balance of Perniagaan Mesra (PM) on 1 July 2011 :

Accounts RM

Cash 16,000
Account Receivable – Makmor Sdn. Bhd 18,500
Account Payable – Aminah Enterprise 4,870

Capital 29,630

ME had the following transactions for the month of July 2011:
Date Transactions
July 2 Makmor Sdn. Bhd. settled all its debts
3 Paid all the balance debt owed to Aminah Enterprise
4 Purchased merchandise RM4,000 on credit from Segar Sdn. Bhd with terms
3/15, n/ 30
5 Owners brought in furniture worth RM15,000 for business use
7 Sold merchandise RM12,000 to Amzar Sdn. Bhd on credit with terms 2/10, n/30.
The cost of goods sold worth RM5,500
9 Paid transportation costs RM570 for sales made on 7 July
11 Sold merchandise RM6,000 in cash
12 Return a part of merchandise purchased worth RM700 from Segar Sdn. Bhd.
14 Settled all debts owed to Segar Sdn. Bhd.
16 Received all payments from Amzar Sdn. Bhd.
18 Purchased merchandise on credit worth RM7,500 from Adnan Enterprise
20 Paid the salaries and bonuses to employees RM6,400
23 Sold merchandise RM4,800 to Sulhi Enterprise
26 Settled all debts to Adnan Enterprise and received discount RM420
28 Purchased merchandise on credit RM5400 from Perniagaan Syafiq
29 Paid for office rent RM1,200 for the month of August 2011

Required:

(i) Record all te above transactions for the month of July 2011 into the sales journal, purchases

journal, a cash receipts journal and a cash payments journal and the general journal (narration

not required) [11.5 marks]

(Answer: SJ=16,800; PJ=16,900; CRJ=36,260 ,240; CPJ=23,321 ,519; GJ=15,000 ,700)

(ii) Prepare the Trial Balance as at July 31, 2011. [8.5 marks]
(Answer: 74,049)

PSPM 2012/2013 (Question 2)

Perniagaan Tukang Bina (PTB), operated a business selling household appliances. The

followings were the account balance of PTB on July 1, 2012.

Accounts RM

Cash 18,000

Accounts Receivable- Syarikat Tukul Sdn Bhd 9,500

Equipment 11,500
Accounts Payable – Perniagaan Jati 3,000

Capital 30,000

Loan 6,000

47

The following transactions occured during the month of July 2012.

Date Transactions

July 2 Sold merchandise worth RM12,000 to Perniagaan Belati with terms 2/10, n/30

4 Received payments from Syarikat Tukul Sdn Bhd to settle all debts

6 Purchased merchandise on credit RM 8,000 from Syarikat Mukmin with terms

2/10, n/ 30

9 Paid transportation costs RM700 for sales made on July 2, 2012

10 Settled all debts to Perniagaan Jati

11 Received payments from Perniagaan Belati for sales on July 2, 2012

13 Purchased furniture on credit RM3,800 for office use from Kedai Perabot
D’Cantek

15 Returned merchandise purchased RM900 from Syarikat Mukmin because of

damage

17 Settled all debts to Syarikat Mukmin

20 Purchased merchandise RM5,400 in cash from Pasaraya Maju Indah

23 Sold merchandise RM3,500 to Kedai Runcit Salina.
25 Paid the employee’s salary RM1,800

27 Purchased merchandise RM9,500 from Perniagaan Berkat .

30 Paid rent expenses RM1,500 for the month of July 2012 .

Required:

(i) Record all transactions for the month of July 2012 into the sales journal, purchases journal, a

cash receipts journal, cash payments journal and the general journal (narration not required).

[11 marks]

(Answer: SJ=15,500; PJ=17,500; CRJ=21,260 , 240; CPJ=19,500; GJ=3,800 ,900)

(ii) Prepare the Trial Balance as at 31 July 2012. [9 marks]

(Answer: 65,700)

PSPM 2013/2014 (Question 2)

Perniagaan Aman Jaya sold electrical appliances. The following accounts had the accounts

balance at 1 September 2013:

Accounts RM

Cash 5,000

Bank 20,000
Accounts Receivable – Setia Trading 8,500

Office Equipment 3,200
Accounts Payable – Qaseh Enterprise 6,300

Capital 20,400

Bank Loan 10,000

The following transactions occurred during the month of September 2013:

Date Transactions

September 3 Settled all the remaining debts to Qaseh Enterprise in check.

5 Purchased merchandise on credit RM5,000 from Firdaus Enterprise with
terms 2/10, n/30.

7 Received cheque payments from Setia Trading on all outstanding debts.

9 Brought in a personal computer for the business use RM1,500.

11 Sold merchandise worth RM7,200 to Kedai Mesra with terms of 2/10, n/30.

13 Paid transportation cost RM420 in cash for the sale made on September

11 .

14 Settled debts to Firdaus Enterprise by cheque.

17 Purchased merchandise RM1,800 in cash from Perniagaan Ahmad .

20 The owner took a television worth RM1,700 for family use

48

22 Sold merchandise RM3,200 in cash to Perniagaan Berkat and gave sales
discount of RM160.

25 Purchased merchandise RM8,000 on credit from Maju Enterprise with
terms 2/10, n/30.

27 Paid employee salaries of RM1600 in cash.

30 Paid shop rent of RM 1500 in cash for the month of September 2013.

Required:

i. Record all transactions for the month of September 2013 into the sales journal, purchases

journal, cash receipts journal, cash payments journal and the general journal (narration not

required). [8 ½ Marks]

(Answer: SJ=7,200; PJ=13,000; CRJ=8,500 , 3,040; CPJ=11,200 , 5,320, 100; GJ=1,500,

1,700)

ii. Prepare the Trial Balance as at September 30, 2013. (Answer: 50,240)

[11 ½ Marks]

PSPM 2014/2015

Question 2

Perniagaan Maju Jaya operated frozen foods in the south of Malaysia. The following accounts

had the balance on August 1, 2014:

Accounts RM

Cash 10,900

Bank 20,000

Accounts Receivable - Indah Enterprise 3,700

Accounts Payable - Bintang Sdn Bhd 13,500

Capital 21,100

The following transactions occurred during the month of August 2014:

Date Transactions

Ogos 5 Purchased merchandise on credit RM11,000 from Teraju Sdn Bhd Enterprise with

terms 2/10, n / 30.

7 Settled all the remaining debts to Bintang Sdn Bhd by cheque.

8 Returned a part of merchandise purchased RM 1,000 to Teraju Sdn Bhd made

on August 5th.

12 Made payments to Teraju Sdn Bhd by cheque for the purchase made on August

5th.

18 Sold merchandise RM 18,800 to Mukmin Sdn Bhd with terms of 3/10, n/30.

21 Mukmin Sdn Bhd returned part of merchandise worth RM3,200

22 Purchased merchandise on credit RM15,000 from Sentosa Sdn Bhd with terms

2/15, n/30.

25 Received payment in cheque from Mukmin Sdn Bhd on all outstanding debts.

28 Received payment in cheque from Indah Enterprise on all outstanding debts.

29 Paid employee salaries of RM7,300 in cash.

30 Paid utility expenses RM2,300 in cash.

31 Sold merchandise RM 5,000 in cash.

Required:

(i) Record all transactions for the month of August 2014 into the sales journal, purchases journal,

cash receipts journal, cash payments journal and the general journal for Perniagaan Maju

Jaya (narration not required). [11 Marks]

(Answer: SJ=18,800; PJ=26,000; CRJ=18,832, 5,000, 468; CPJ=23,400, 9,600, 100;

GJ=1,000, 3,200)

(ii) Prepare the Trial Balance as at August 31 2014. [9 Marks]

49

(Answer: 61,000)

PSPM 2015/2016

Question 2

Juwita Sdn. Bhd.operated a business supplying home garden appliance. The following accounts

had the accounts balance on May 1, 2015. The accounting period ended every 31 May.

RM

Cash 9,670

Accounts Receivable:

Abu Bakar 5,000

Hussein 3,650

Inventories 5,230

Accounts Payable

Perniagaan Teoh 1,500

Perniagaan Samy 2,480

Notes Payable 6,370

Rent Payable 3,200

Capital 10,000

All transactions are in cash unless otherwise indicated. The following transactions occurred during

the month of May 2015:

Date Transactions

May 1 Paid the rent payable by cheque.

3 Purchased merchandise on credit RM2,200 from Perniagaan Teoh with terms 5/7,

n/45.

5 Purchased merchandise on credit RM1,500 from Perniagaan Samy with terms 5/10,

n/45.

6 Received cheque from Abu Bakar RM5,000.

7 Paid to Perniagaan Teoh for purchase on April 23 amounting to RM1,500 and the

purchase on May 3.

10 Sold goods RM 1,000 on cash to Suzana Sdn Bhd and sold goods on credit to

Zaidin RM1,500 with payment terms of 10/3, n/15.

11 Paid notes payable RM4,000 with interest RM80 with cheque.

12 Sold goods on credit RM 1,800 to Halimah with payment terms of 10/3, n/15.

17 Sold goods on credit RM 2,500 to Maslina with payment terms of 10/3, n/15.

20 Received payments from Maslina.

23 Received payments from Zaidin.

25 Paid employees salary RM1,500.

27 Received utility bills RM200.

28 Paid shop rent RM3,200 for the month of May 2015.

31 Employees salaries not paid yet in May RM700.

Required:

(i) Record all transactions for the month of May 2015 into the sales journal, purchases journal,

a cash receipts journal, cash payments journal and the general journal. (narration not

required). [12 marks]

(Answer: SJ=5,800; PJ=3,700; CRJ=4,750, 5,000, 250; CPJ=8,290, 7,280, 110; GJ=200,

700)

(ii) Prepare the Trial Balance As at May 31, 2015. [8 marks]

(Answer : 26,440)

PSPM 2016/2017
Question 2

50