BUKU TUTORIAL AA015

Raflesia Sdn Bhd operated a business of selling pottery. The following accounts had the account

balance on June 1, 2016.

Accounts RM

Capital 40,000

Bank Loan 15,000

Office Equipment 10,000

Furniture 13,000

Van 20,000

Bank 12,000

Cash 3,000
Accounts Receivable – Pasu Alam Enterprise 12,000
Accounts Payable – Faber Sdn Bhd 15,000

The following transactions occurred during the month of June 2016:

Date Transactions

June 3 Purchased merchandise on credit RM4,000 from Tanah Merah Enterprise with

terms 2/10, n/30.

5 Sold merchandise RM6,000 to Perniagaan Mewah with terms of 2/10, n/30.

7 Paid transportation costs RM1,000 in cash for the purchase made on June 3, 2016.

8 Received a cheque from Pasu Alam Enterprise who settled 50 percent of the

remaining debts.

9 Sold merchandise RM5,000 in cash.

10 Settled all debts to Faber Sdn Bhd.by cheque.

12 Made payments to Tanah Merah Enterprise by cheque for the purchases on June

3, 2016.

16 Received a cheque from Perniagaan Mewah for the sales on June 5, 2016.

19 Sold merchandise RM5,000 to Pasu Alam Enterprise with terms of 2/10, n/30.

20 Received merchandise returned worth RM500 by Pasu Alam Enterprise because

of low quality.

22 Purchased merchandise RM5,000 in cash from Flora Sdn Bhd

25 Paid employees salaries of RM3,000 in cheque.

27 Utility bills paid RM1,200 in cash.

28 Purchased merchandise on credit RM4,000 from Faber Sdn. Bhd. with terms

2/10,n/30.

28 Cash received from Pasu Alam Enterprise for sales on June 19, 2016.

Required:

(i) Record all transactions for the month of June 2016 into the sales journal, purchases journal,

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

[9 marks]

(Answer: SJ=11,000; PJ=8,000; CRJ=12,000, 9,410, 90; CPJ=21,920, 7,200, 80; GJ=500)

(ii) Prepare a Trial Balance of Raflesia Sdn. Bhd. as at 30 June 2016. [11 marks]

(Answer: 75,080)

51

TOPIC 5 - ADJUSTMENT AT THE END OF ACCOUNTING PERIOD
PAST YEARS QUESTIONS

PSPM 2010/2011

Sanguine Ent (SE) has a fiscal year ending on June 30. Selected data are presented below:

Accounts Dr Cr

Cash 13,550 51,000
Accounts receivables 37,500 35,300
Prepaid insurance 33,500
Investment, long term 1,800 25,000
Land 20,000
Building 50,000 3,000
Accumulated depreciation – building 137,500 222,500
Office equipment 288,400
Accumulated depreciation – Office equipment 90,100
Accounts payable 5,500
Liabilities, long term (6% annually) 10,000 2,250
Unearned rent revenue
Capital 90,000 666,450
Withdrawal 8,000
Sales
Purchases 3,050
Sales returns
Purchase returns 15,000
Sales discounts 101,200
Purchase discounts
Inventory, July 1, 2009 58,200
Salaries and wages expenses 19,000
Advertising expense 11,550
Utility expense 666,450
Maintenance expense

Information on June 30, 2010:
1. Inventory on June 30 2010, RM23,550.
2. Prepaid insurance expired during the year, RM800.
3. Interest expenses should be paid on June 30 and December 31.
4. Building depreciation, RM1,620 and Office equipment, RM3500 during the year.
5. Accrued salaries and wages expenses, RM1,050.
6. Unearned rent revenue, RM1,000.
7. The company writes off En Ramli’s, RM10,000 as uncollectible on June 30, 2010. The

estimated percentage uncollectible is 1% of accounts receivable balance on June 30, 2010.

Required:

a) Journalize the adjusting entries at June 30, 2010

[9 marks]
b) Prepare the company’s statement of profit or loss for the year ended June 30, 2010.

(Answer : - 2,295)

[10.5 marks]

c) Prepare the company’s statement of financial position as at June 30, 2010.

(Answer : 270,755)

[10.5 marks]

52

PSPM 2011/2012

Abdullah Sdn Bhd (ASB), offers laundry services has a fiscal year ending on June 30. The trial

balance for (ASB) are as follows:

Abdullah Sdn Bhd

Trial Balance

June 30, 2011

Accounts Dr (RM) Cr (RM)

Cash 20,700 60,000
Accounts receivable 10,000 13,100
Equipment 185,000 97,000
Accumulated depreciation – Equipment 114,900
Vehicles 28,500
Accumulated depreciation – Vehicles 285,000
Capital 5,000
Withdrawal
Service revenue 14,300
Advertising expense 15,600
Salaries expenses
Utility expense 2,500
Insurance expense 2,400
Mischellanous expense 1,000
285,000

Information on June 30, 2011:
1. Prepaid insurance, RM1,650.
2. Service provided but unbilled at June are RM3,500.
3. Unearned services revenues still unearned, RM25,600.
4. Salaries payable, RM1,570.
5. ASB estimated percentage uncollectible is 5% of accounts receivable balance.
6. Depreciation on fixed assets using a straight line basis:

Equipment 15%
Vehicles 20%

Required:

a) Journalize the adjusting entries at June 30, 2011

[7 marks]
b) Prepare the company’s statement of comprehensive income for the year ended June 30,

2011. (Answer : 22,955)

[7 marks]

c) Prepare the company’s statement of financial position as at June 30, 2011.

(Answer : 142,125)

[6 marks]

PSPM 2012/2013

On December 31, 2011, the account balances of Yahya Bongsu Ent (YBE) were as follows:

ACCOUNTS RM

Capital (January 1, 2011) 60,000

53

Van 10,000
Accumulated depreciation –van 2,000
Office equipment
Accumulated depreciation – Office equipment 15,000
Inventory (January 1, 2011) 3,000
Cash
Purchases 37,000
Sales 8,900
Bad debt expense
Accounts receivable 180,000
Accounts payable 250,000
Insurance expense
Purchase discounts 300
Salaries expenses 50,000
Sales returns 16,450
Mischellanous expense
Purchase returns 500
Withdrawal 750
23,500
2,500
2,500
500
2,500

Information on December 31, 2011:
1. Inventory on December 31 2011, RM25,000.
2. Prepaid Insurance, RM200.
3. Cash withdrawal, RM1,000.
4. Bad debt, RM650 is written off.
5. Miscellaneous payable RM250.
6. Depreciation on vehicles using a declining balance method, the annual rate is 20%.
7. Depreciation on office equipment using a straight line method, the annual rate is 10%.
8. Salaries payable, RM1,200.

Required:
a) Prepare the company’s statement of profit or loss for the year ended December 31, 2011.

(Answer : 24,950)

[11 marks]
b) Prepare the company’s statement of financial position as at December 31, 2011.

(Answer : 99,350)

[9 marks]

PSPM 2013/2014

Perniagaan Perabot Kekal Abadi has a fiscal year ending on August 31, 2013. Selected data are

presented below:

ACCOUNTS RM

Bank 39,880

Accounts receivable 12,000

Office equipment 8,600
Accumulated depreciation – Office equipment (September 1, 2012) 1,200

Land 30,000

Inventory (September 1, 2012) 34,000

Vehicles 63,000
Accumulated depreciation – Vehicles (September 1, 2012) 9,450

Rent revenue receivable 800

Accounts payable 13,500

Loan, long term 50,000

54

Capital (September 1, 2012) 93,810
Withdrawal 5,000
Sales
Purchases 123,000
Purshase returns 78,000
Sales returns 1,720
Insurance expense 6,800
Salaries expenses 3,000
Salaries payable 8,200
Rents expenses 800
Utility expense 2,500
1,700

Information on August 31, 2013:

1. Inventory on August 31 2013, RM32,000.

2. 50% of insurance expense is insurance premium for September to November 2013

3. Accounts receivable, RM600 is written off.

4. Depreciation on fixed assets using the straight line method.

Office equipment 10%

Vehicles 20%

Required:
a) Prepare the company’s statement of profit or loss for the year ended August 31, 2013.

(Answer : 9,960)

[10 marks]

b) Prepare the company’s statement of financial position as at August 31, 2013.

(Answer : 163,070)

[10 marks]

PSPM 2014/2015

Ipin, owner of Perniagaan Ayam Segar. On August 31, 2014, the account balances of Perniagaan

Ayam Segar were as follows:

Accounts RM

Capital (September 1, 2013) 150,000

Sales 212,500

Purchase Returns 1,400

Purchases 175,360

Rent expenses 3,000

Utility expense 18,500

Salaries expenses 6,120

Insurance expense 2,400

Freight in 2,870

Buildings 250,000

Vehicles 88,000
Accumulated depreciation – Buildings (September 1, 2013) 12,500
Accumulated depreciation – Vehicles (September 1, 2013) 17,600

Inventory (September 1, 2013) 13,400

Accounts receivable 19,000

Accounts payable 30,830

Bank 16,550

Cash 4,630

Loan, long term 17,5000

55

Information on August 31, 2014:
1. Inventory on August 31, 2014, RM12,000.
2. Depreciation on buildings using the straight line method, the annual rate is 2.5%.
3. Depreciation on vehicles using the straight line method, the annual rate is 20%.
4. Accounts receivables (Abu Bakar), RM1,000 is written off on August 20, 2014.
5. Salary payable on August, RM600.
6. Insurance expenses paid for 12 months, started on Mei 1, 2014.

Required:

a) Journalize the adjusting entries at August 31, 2014

[5 marks]
b) Prepare the company’s statement of profit or loss for the year ended August 31, 2014.

(Answer : -19,600)

[8 marks]

c) Prepare the company’s statement of financial position as at August 31, 2014.

(Answer : 336,830)

[7 marks]

PSPM 2015/2016

Talam Ent run book and stationery business more than 10 years ago. Talam Ent has a fiscal

year ending on Mac 31. The account balances were as follows on 31 Mac 2015:

Accounts RM

cash 2,700

bank 78,500

Accounts receivables 85,000

Inventory (1 April 2014) 35,400

Land 95,000

Buildings 60,000

Accumulated depreciation (1 April 2014) 27,000

Office equipment 20,000

Accumulated depreciation (1 April 2014) 4,000

Accounts payable 55,000

Bank loan 40,000

Capital (1 April 2014) 231,000

Drawing 2,300

Sales 235,000

Sales return 3,200

Purchase 110,000

Purchase return 1,700

Salary expense 60,000

Advertising expense 8,000

Utility expense 6,000

Insurance expense 18,000

Transportation expense 7,600

Miscellaneous expense 2,000

Information on Mac 31, 2015:

1. Depreciation:

a. Building RM3,000

b. Office equipment RM2,000

2. Inventory on Mac 31, 2015, RM26,000.

3. Utlity bills for Mac 2015, RM500.

56

4. Insurance expense RM18,000 for the period of September 1, 2014 to Ogos 31, 2015.

Required:

a) Prepare the company’s statement of profit or loss for the year ended Mac 31, 2015.

(Answer : 14,500)

[10 marks]

b) Prepare the company’s statement of financial position as at Mac 31, 2015.

(Answer : 338,700)

[10 marks]

PSPM 2016/2017

On December 31, 2015, the account balances of Mawar Ent were as follows:

Accounts RM

Capital (January 1, 2015) 100,000

Van 70,000
Accumulated Depreciation – van (January 1, 2015) 14,000

Office equipment 25,000

Accumulated Depreciation - Office equipment (January 1, 2015) 5,000

Inventory (January 1, 2015) 24,800

Cash 2,900

Purchase 145,000

Sales 220,000

Bad debt expense 800

Accounts receivables 42,800

Accounts payable 13,500

Purchase discount 1,250

Sales discount 950

Salary expense 25,800

Sales return 2,500

Miscellaneous expense 6,600

Purchase return 1,300

Rent expense 8,200

Commission revenues 3,300

Drawing 3,000

Information on Dec 31, 2015:

1. Inventory on Dec 31, 2015, RM18,000.

2. Commission RM700 received for the month of Jan 2016.

3. Rent expense RM800 for the month of Jan 2016 was paid on Dec 2015.

4. Owner withdraw cash RM1,300 for personal use.

5. Account receivables RM700 was write off as a bad debt

6. Miscellaneous expense still unpaid RM850

7. Depreciation using straight line method:
a. Van – 10%
b. Office equipment – 15%

Required:
a) Prepare the company’s statement of profit or loss for the year ended Dec 31, 2015.

(Answer : 16,950)

[11 marks]

b) Prepare the company’s statement of financial position as at Dec 31, 2015.

(Answer : 127,700)

[9 marks]

57

TOPIC 6: ACCOUNTING FOR CASH
PAST YEARS QUESTIONS

PSPM 2010/2011

QUESTION 1

A The bank statement of Katering Malaya (KM) shows a balance of RM9 144 on 30 June
2010. All cash receipts are deposited into the bank the next day. Here is a summary of
cash receipts and payments for the month of June 2010:

Cash balance on June 1, 2010 RM
Total cash receipts in June 3,979
Total cash payments / checks issued in June 28,972
Cash balances at June 30, 2010 28,388
4,563

Comparison of bank statements at 30 June 2010 with a record kept by businesses have
found the following information:

1. The Bank has made a collection of notes receivable amounted to KM RM1,030.
2. Deposit of RM1,852 is not in the bank statement on June 30, 2010.
3. A cheque worth RM5,265 issued to suppliers Murni Sdn. Bhd. has not yet presented for

payment.
4. Cheques worth RM139 wrongly records as RM193 by the bank.
5. Cheques worth RM210 to creditors Avery Equipment Sdn. Bhd. was returned by the

bank.
6. A service charge banks for the month of June 2010 amounted to RM18.

You are required to:

(i) Prepare the Bank Reconciliation Statement on 30 June 2010 for KM. (5,785) (8
marks)

(ii) Prepare journal entries to correct the balance of KM cash book business. (Ignore the
description). (3 marks)

PSPM 2013/2014

Question 1

C. Below are the bank statement of Ahmad Kasa Sdn Bhd for the month of August 2013

Date Cheque Transaction Debit Credit (RM) Balance
No. Balance b/f (RM) 6,000 (RM)
1 Deposit 8,000 25,000
2 155449 150 24,850
3 Deposit 30,850
3 155448 750 30,100
6 155450 1,500 28,600
7 155451 8,050 20,550
7 28,550

58

10 155447 6,350 22,200
31,200
13 Deposit 9,000 23,150
5,500 28,650
16 155453 8,050 4,150 28,000
32,150
20 Deposit 31,450
31,400
21 155452 650 30,400

22 Collection of -notes receivable

23 155454 700

27 Bank charges 50

30 155455 1,000

Below are the cash book of Ahmad Kasa Sdn Bhd for the month of August 2013:

Augus Transactions Cheque RM Augu Transactions Cheque RM
t No. st No.
1 Balance b/f 17,750 2 Purchases 155450 1,500
2 Sales 321768 6,000 4 Purchases 155451 8,500
6 Alias 045621 8,000 6 Fauzi 155452 650
10 Samat 54322 9,000 10 Zainuddin 155453 8,050
19 Sales 04763 5,500 21 Insurance 155454 700
30 Sarimah 37893 6,600 22 Salleh 155455 1,000
23 Purchases 155456 1,300
52,850 27 Salary 155457 1,360
Balance c/f 29,790

52,850

Additional information:
1. All the information recorded by the bank is right.
2. On 31 July 2013, Ahmad Kasa Sdn Bhd has three (3) keeping a check worth RM7,250 which

was released in July 2013 but not paid by the bank.
3. Quotations by the bank to the note receivable plus interest of RM150.

You are required to:

a) Prepare a Bank Reconciliation Statement of Ahmad Kasa Sdn Bhd As at 31 August 2013.

(34,340) (5

marks)

b) Prepare journal adjustment on August 31, 2013. (6

marks)

PSPM 2014/2015
QUESTION 1
(b) Below are the bank statement of Seri Bulan Sdn Bhd for the month of May 2014.

Date Cheque Transaction Debit (RM) Credit (RM) Balance
No. Balance b/f (RM)
1 May Deposit 3,500 14,000 123,000
3 345678 12,000 4,900 137,000
8 345679 Deposit 133,500
12 121,500
13 126,400

59

15 345681 5,000 121,400
118,000
17 345682 3,400 127,300
126,400
22 Deposit 9,300 119,100
105,400
24 345684 900 103,956
103,856
27 345686 7,300

29 345687 13,700

30 345688 1,444

31 Bank Charges 100 are
Below

the cash book of Seri Bulan Sdn Bhd for the month of Mei 2014.

Cash Book (Bank Column)

May Details Cheques RM May Details Cheques RM
No.
No. 345678 3,500
345679 12,000
1 Balance b/f 123,000 8 MPSJ 345680 5,700
345681 5,000
3 Ali Bersaudara 002244 14,000 11 Purchases 345682 3,400
345683 1,600
10 Aman MAkmur 993399 320 12 Min Enterprise

12 Siti enterprise 987654 4,900 14 Halim Security

20 Suci Sdn. Bhd. 663333 9,300 15 Purchases

29 Jit Ria Sdn. 421877 2,000 19 Kasa Angkut

Bhd.

30 TNB 345688 1,444 23 Insurance 345684 9,000
345686 7,300
26 Rent 345687 13,700
93,764
29 Salary

Balance c/f

All the information recorded by the bank is right.

You are required to:
Prepare a Bank Reconciliation Statement of Seri Bulan Sdn Bhd as at 31 May 2014. (98,876)

(6 marks)

PSPM 2015/2016

QUESTION 1

(c) Below are the Bank Statement of Iskandariah Sdn Bhd for the month of March 2015.

Date Details Cheque Debit Credit Balance
No. (RM) (RM) (RM)
1 Mac Balance b/f 6,000 200
3 Deposit 89090 5 1,500 6,200
4 Deposit 89091 450 7,700
6 Chequebook fee 89092 600 542 7,695
8 Cheque 343 245 7,245
10 Cheque 465 100 6,645
12 Cheque 6,302
15 Credit transfers 80 6,844
20 Debit transfers 6,379
25 Interest received 6,624
29 Deposit 6,724
30 Bank charges 6,644

Below are the cash book of Iskandariah Sdn Bhd for the month of March 2015.

60

Cash Book (Bank Column)

March Details Cheques RM March Details Cheques RM
No.
No.

1 Balance b/f 200 7 Lim Auto 89090 450
3 Deposit 6,000 8 Calmex Bhd 89091 600
4 Abu 1,050 10 Ali 89092 343
30 Najib 750 28 Ben 89093 300
29 Sabariah 100
8,000 31 Balance c/f 6,207
8,000

Additional information:
1. All the information recorded by the bank is right.
2. A cheque of RM1,500 deposited on 4 March 2015 wrongly recorded as RM1,050 in the

cash book.
3. A cheque received from Sabariah for the sum of RM100 has been recorded as a payment

in the cash book.

You are required to:
Prepare a Bank Reconciliation Statement of Iskandariah Sdn Bhd as at 31 March 2015. (7,094)
(13 marks)

PSPM 2016/17

QUESTION 1
c) The cash record for Perniagaan Seroja in August 2016 is as follows:

General Ledger

Bank Account

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

20 867

Cash Receipt Journal (Bank column)

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

Sherry Enterprise 811625

Zetty Enterprise 700100

Sales 112113

Sales 240615

Cash Payment Journal (Bank column)

Date Particular Cheque No RM
61

Aug 2 Purchases 410118 918
8 Purchases 410120 2 130
10 Syarikat Mamat 410121 864
24 Hakimah Sdn Bhd 410122 1 742
28 Purchases 410123 2 000
29 Purchases 410124 732
30 Purchases 410125 1 512
31 Telephone 410126 215
31 Salary 410127 2 400

62

AA015 ACCOUNTING 1 SESSION 2021/2022
The business receives the following bank statement on Sept 7, 2016:

Bank Statement August 2016

August Particular Debit Credit Balance
RM RM
1 RM 1 200 7 411
1 3 470 86 11
4 Balance b/f 507 12 081
7 995 11 163
9 Credit Transfer - rental 3 100 11 670
12 12 665
13 Deposit 1 715 10 335
13 1 972 13 455
14 401118 918 10 355
15 200 9 640
18 Deposit 8 776
21 8 526
22 Deposit 10 241
23 12 213
26 410120 2 310 10 471
30 8 471
30 811625 8 671
30 Non Sufficient FundCheque –811625 3 100 8 651

410119 715

410121 864

Standing Order – Insurance Expense 250

Bank Collection–AccountReceivable

Deposit

410122 1 742

410123 2 000

Dividends Receive

Bank Charges 20

Additional Information:
1. All the information that the bank records is correct

2. The number 410119 payment check issued by Fatimah Enterprise has been
recorded in the wrong journal

REQUIRED:

i. Prepare a Bank Reconciliation Statement forPerniagaan Seroja as at August
2016 (6,489)

ii. Prepare an adjustment journal on August 31, 2016

63

AA015 ACCOUNTING 1 SESSION 2021/2022

TOPIC 7 ACCOUNTS RECEIVABLE
PAST YEARS QUESTIONS

PSPM 2011/2012

At the beginning of the year, Perniagaan Umar accounts receivable balances amounting to
RM775,000 and net sales amounted to RM6,000,000. Provision for doubtful debts before
adjustments have a balance of RM8,050. Credit sales is 17% of net sales. While the collection
of receivables of RM650,000 and RM17,500 written off using the method of allocation. At the
end of the financial year, the provision for doubtful debts estimated at 2.5% on the balance of
accounts receivable.

INSTRUCTIONS:

Show accounts receivable, accounts allowance for doubtful debts accounts and bad debt

expense accounts. (Answer: 17,500)

64

AA015 ACCOUNTING 1 SESSION 2021/2022

TOPIC 8: ACCOUNTING FOR INVENTORIES

PAST YEARS QUESTIONS

PSPM 2010/2011
Question 1(b)

The accounting record of beginning inventory,purchase and sale during the month of May

2010 for Salim Maju Enterprise (SME). This company uses Perpetual Inventory System.

Date Beginning Inventory 50 unit @ RM6

May 5 Sale 20 unit Price perunit RM8.50

8 Purchase 45 unit @ RM7

15 Sale 22 unit Price perunit RM8.50

20 Purchase 40 unit @ RM8

24 Sale 35 unit Price perunit RM9.00

INSTRUCTION :

(i) 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 sold Total cost

(RM) (RM) (RM)

Beginning Inventory

(ii) Determine cost of ending inventory with weighted average method if SME uses
Periodic Inventory System. [ Ending inventory cost RM401.94 ]

PSPM 2013/2014

Question 4(a)

The accounting record for sale and purchase of inventory Perniagaan Cahaya Baru (PCB)

during the month of March 2013:

Date Explanation Units Unit cost

(RM)

March 5 Sale 1,000 17.00

8 Purchase 800 14.00

12 Sale 600 18.00

15 Purchase 900 12.50

21 Sale 300 17.50

27 Sale 200 19.00

PCB uses Perpetual Inventory System with First In First Out (FIFO) method. Beginning
inventory is 1,250 units (RM12.50 perunit).

COMPUTE:
(i) Cost of goods sold. (RM27,450)
(ii) Inventory at 31 March 2013. (RM10,625)

PSPM 2014/2015
Question 4(a)
The inventory data Perniagaan Lautan Samudera for the month of September 2014 are shown
below:

65

AA015 ACCOUNTING 1 SESSION 2021/2022

Date Explanation Units Unit cost
(RM)
Sept 1 Beginning inventory 100 12.00
3 Purchase 200 11.80
6 Sale 220 15.00
10 Purchase 160 11.60
11 Purchase 140 11.20
18 Sale 200 14.90
23 Purchase 175 11.00
27 Sale 100 14.90
30 Sale 50 14.80

The company uses Perpetual Inventory System with weighted average method to compute
inventory cost.

COMPUTE:
(i) Cost of goods sold (round weighted average unit cost to two decimal point).
(RM6,602.40)
(ii) Ending inventory as at 30 September 2014. (9RM2,306.60)

66

AA015 ACCOUNTING 1 SESSION 2021/2022

TOPIC 9: ACCOUNTING FOR NON-CURRENT ASSET
PAST YEARS QUESTIONS

PSPM 2010/2011
Question 4

On January 1, 2009, Julie Enterprise had equipments at cost RM135,620 and RM81,374
accumulated depreciation.
In 2009, Julie Enterprise purchased new equipment at cost of RM47,800 by selling old
equipment (original cost RM36,000 and accumulated depreciation RM28,224) at fair value
(trade-in allowances) RM5,700.
Equipment depreciated at 40% using the reducing-balance method. Depreciation will be
recorded on all equipments used at the end of the financial year and depreciation on assets
disposed will not be recorded in the year of disposal.
Julie Enterprise financial year ended on December 31, 2009.

Required:
i) Show the calculations and prepare the journal entries to record the purchase of new

equipment and the sale of old equipment. What is the gain or loss of the disposal from
trade in the equipment. (Answer: Loss on disposal RM2,076; Cash RM42,100)

[7 marks]

ii) Calculate the depreciation expense of equipment and journal entries to record
depreciation expense in 2009.
(Answer: Depreciation RM37,708)
[4 marks]

iii) Give four (4) methods of calculating non-current asset depreciation expense.
[4 marks]

PSPM 2011/2012
Question 4 (b)

On 1st April 2011, Hanz Sdn. Bhd. (HSB) had purchased new equipment RM285,000. HSB
received RM70,000 as an allowance for trade-in of old equipment of the same type and paid
in cash. The following information related to old equipment: cost RM183,500 on December
31, 2010, RM96,000 for accumulated depreciation and RM12,000 for annual depreciation.
Depreciation recorded full in the month of purchase and not recorded in the month of disposal.

Required:
i. Prepare the journal entries to record current depreciation expenses for old equipment at

the date of trade in transaction.
(Answer: Depreciation RM3,000)

ii. Prepare journal entries to record the purchase of new equipment on 1st April 2011.
(Answer: Loss on disposal RM14,500)

iii. State two ( 2 ) accounting concepts used in the above transactions.

[12.5 marks]

PSPM 2012/2013
Question 4 (a)

67

AA015 ACCOUNTING 1 SESSION 2021/2022

Mr. Q, an owner of Perniagaan Amarul (PA) had decided to trade in the old food-processing

machines to the new machine to meet high demand. The following information related to the

transactions.

Detail Model Samson (Old) Model Samlan (New)

Cost RM125,000 RM150,000

Date of acquisition May 1, 2007 July 5, 2012

Residual value RM5,000 RM3,000

Useful life 10 years 8 years

Additional information:

1. The supplier of Model Samlan had agreed to receive Model Samson with receiving

RM5,000 cash for trade in transactions.

2. Depreciation expense recorded in accordance during the month of purchase and not

recorded in the month of disposal.

3. PA accounting period ended on 31st December.

Required:
i. Prepare journal entries to record the purchase of Model Samlan on July 5, 2012.

(narration ignored).
(Answer: Gain on disposal RM82,000)

[8 marks]

ii. Prepare journal entries to record depreciation expense for the year 2012. (narration
ignored). (Answer: Depreciation RM8,750)
[2 marks]

PSPM 2013/2014
Question 4 (b)

The following information related to fixed assets of Perniagaan Makmur (PM):

Details Vehicles Washing Machine

Cost RM160,000 RM85,000

Date of acquisition 1 April 2007 1 January 2009

Residual value RM5,000 RM3,000

The depreciation rate per year 10% 15%

Additional information:
1. All fixed assets were depreciated using the straight-line method.
2. On May 1, 2013, Perniagaan Makmur had made decision to exchange the washing

machine to the dryer machine in order to meet the high demand among customers.
Related information of Dryer machine was as followed:

Details Dryer Machine
Cost RM100,000
Acquisition date 1 Mei 2013
The residual value RM5,000
The depreciation rate 20%

3. The Supplier of dryer machine agreed to accept the washing machine and Perniagaan
Makmur will receive cash RM2,000 for trade in transaction.

4. On 1 May 2013, Perniagaan Makmur paid the insurance premium of RM5,000 per year
for dryer machine.

68

AA015 ACCOUNTING 1 SESSION 2021/2022

5. Perniagaan Makmur decided that depreciation expenses recorded full year for all assets
used at the end of the financial year. No depreciation was recorded on assets in the year
of disposal.

6. The accounting period ended on December 31 each year.

Required:
(i) Prepare journal entries on 1 May 2013.

(Answer: Gain on disposal RM66,200; Insurance expenses RM5,000)

[7 ½ marks]

(ii) Prepare adjusted journal entry on December 31, 2013.
(Answer: Depreciation: Dryer machine RM19,000; Vehicle RM15,500; Prepaid insurance
RM1,667)
[5 marks]

PSPM 2014/2015
Question 4 (b)

Alam Suria Enterprise exchanged old printer with a new printer. Information related to both of

the printers were as follows:

Model Cost (RM) Purchase date Residual Useful life

value (RM)

Old model WCT 102 8,900 1 January 2010 500 5 years

New Model WCT 144 11,400 1 December 2013 800 8 years

Additional information:
1. The supplier agreed to accept new printer and offered to Alam Suria Enterprise RM1,000

as trade in allowance.
2. Depreciation calculated on an annual basis using the straight-line method. Depreciation

recorded in the full year of purchase and no depreciation recorded in the year of disposal.
3. The accounting period of Alam Suria Enterprise ended 31 December each year.

Required:
(i) Prepare journal entries to record the purchase of model WCT 144 on December 1, 2013.

(Narration ignored).
(Answer: Loss on disposal RM2,860)

[5 marks]

(ii) In addition to the above fixed assets, non-current assets also have other classification as
intangible assets. Explain the definition of intangible assets and give with three (3)
examples of intangible assets.
[4 marks]

PSPM 2015/2016
Question 4

The following information obtained from the Business Registration report on April 1, 2014:

Account RM

Vehicles (at cost) 170,000
Accumulated depreciation – vehicles 88,000

Account receivables 76,500

The business accounting period ended every 31 March.
Additional information :

69

AA015 ACCOUNTING 1 SESSION 2021/2022

1. On August 1, 2014, Perniagaaan Permaisuri purchased a new vehicle RM35,000. This
purchase recorded by exchanging one of the old vehicles with cost of RM30,000 and the
accumulated depreciation of RM22,000. Perniagaan Permaisuri received trade in
allowance of RM8,800. Payment was made in cash. Depreciation expense for vehicles
with the rate of 10 percent per year by using straight line method. Depreciation recorded
on the month of purchase and no depreciation recorded on the month of disposal.

2. During the financial year ended March 31, 2015, Perniagaan Permaisuri recorded sales
on credit of RM155,000 with cash sales of RM107,000. During this period, Perniagaan
Permaisuri had written off bad debts from a customer RM5,000. In the current financial
year, Perniagaan Permaisuri intended to create an allowance for doubtful debts estimated
at 1.5 percent of accounts receivable.

3. Perniagaan Permaisuri used the First In First Out (FIFO) method for inventory
accounting system.

Required:
(i) Provide a journal entry to record the purchase of new vehicle on 1 August 2014. (narration

ignored). (Answer: gain on disposal RM800)
[4 marks]

(ii) Prepare a journal entry to record vehicle depreciation expenses for the year ended March
31, 2015 and the net book value of the vehicle on that date. (narration ignored).
(Answer: Depreciation RM17,333,33)
[8 marks]

PSPM 2016/2017
Question 4 (a)

On July 1, 2015, Teratai Enterprise purchased a truck for cash at a cost of RM53,000 for use
in its business. On the same day, the truck was painted and fixed with Teratai Enterprise logo
at a cost of RM8,000. Teratai Enterprise estimated the truck useful life was 3 years with
RM4,000 residual value. Teratai Enterprise also had to spend RM500 to send this truck to a
shabby collection center. Depreciation is charged on the month of purchase and no
depreciation charged at the disposal date.

Required:
i. Prepare journal entry on July 1, 2015 for the purchese of the truck.

(Answer: Truck RM61,000)
[1 mark]

ii. Prepare journal entry on 31 December 2015 and 31 December 2016 to record
depreciation expenses using the straight-line method.
(Answer: Depreciation 2015 RM9,500; 2016 RM19,000)
[3 marks]

iii. Prepare journal entry if a truck had been sold on Jan 2, 2017 at a price of RM26,000 cash.
(Answer: Loss on disposal RM28,500)
[3 marks]

iv. Explain why there was a profit or loss on the disposal of the truck on 2 January 2017.
[2 marks]

70

AA015 ACCOUNTING 1 SESSION 2021/2022

TOPIC 10: LIABILITY
PAST YEARS QUESTIONS

PSPM 2010/2011
On 1st Jan. 2009, Xero Corporation applied loan for RM40,000 for 5 years tenure from
Regional Bank at 10% interest rate per annum and signed a note payable RM25,000 from
United Bank for a period of 3 years at 12% interest rate per annum. For these both loans,
interest will be paid annually on every 1st of January.

REQUIREMENT:
Prepare journal entries for these dates (round off to the nearest RM)

(i) 1 Jan 2009 : made loans with Regional Bank and United Bank (ans : bank RM
65 000)

(ii) 31 Dis 2009 : recorded interest expense (ans : RM7 000)
(iii) 1 Jan 2010 : paid interest (ans : RM 7 000)
(iv) 1 Jan 2012 : payment of the note payable to United Bank (ans :interest payable

RM 3 000)

PSPM 2011/2012
On 1st January 2010, Elite Sdn. Bhd issued RM300,000 of 8% , 5 year bond at face value .
Interest paid semi annually on July 1st and January 1st . Financial statements prepared
annually on December 31st.

REQUIREMENT:
a) Prepare the journal entry to record the issue of the bond. (ans : bank 300 000)
b) Prepare the journal entry to record the payment of interest on July 1st 2010. (ans : RM
12 000)
c) Prepare the journal entry on Dec 31,2010 (ans : RM 12 000)
d) Show the Statement of Financial Position presentation (Liability only) for ESB on 31st
December 2010. (total : 312000)

PSPM 2012/2013
(a)

i. Explain one (1) characteristic for current liabilities of known amount, current
liabilities of estimated amount and non-current liabilities.

ii. Classified the following accounts as a liability or non-liability.

No. Accounts
1. Accounts Payable
2. Revenues Receivable
3. Prepaid Insurance
4. Note Payable
5. Accumulated Depreciation - Equipments
6. Drawings
7. Warranty

(b) On 1 April 2012, Perniagaan Ukhwah applied loan RM100,000 from Umaran Bank
by signing a Note Payable 10% interest agreement for a period of six(6) months.
i. Prepare a journal entry on 1 April 2012. ( ans :bank RM100 000)
ii. Prepare a journal entry to record accrued interest on 30 June 2012 in order
to provide half-year financial statements. (ans: interest RM2 500)
iii. Prepare a journal entry on the maturity date 30 September 2012. (ans:
cash RM 105 000)

71

AA015 ACCOUNTING 1 SESSION 2021/2022

PSPM 2013/2014
(a) Perniagaan Harum Manis had the following obligations as at 30 June 2013:

(i) RM100,000 accrued mortgages will be paid by RM10,000 per annum for 10 years.
(ii) Interest payable RM7,500 on mortgages.
(iii) Notes payable worth RM50,000 will mature within 4 years.
(v) Accounts payable RM35,000.

REQUIRED:
State each of the above obligations (i - iv) either current or non-current liabilities. Give
reasons for each.

(b) Perniagaan Kayu Manis had applied loan RM50,000 from Bank Perwira on 1 July 2013
by signing a payable note for one year at a rate of 10 per cent per annum. The Financial
Year ends on December 31 each year.

REQUIRED:
(i) Prepare a journal entry on July 1, 2013 (Narration is ignored). (ans: bank RM 50 000)
(ii) Prepare the adjusting journal on 31 December 2013 (Narration is ignored).
(ans: interest RM 2 500)

PSPM 2014/2015

(a) Information from Alam Mesra Sdn. Bhd. Showed the following non-current liabilities:

Amount Interest per Interest Date of Notes

year payment issued /

acquired

RM100,000 8 percent Yearly on 1 Januari 10 percent of the

Bank on balancei 31December. 2012 principle loan is

loan repayable every

31 December from

2012.

Bon RM500,000 6 peratus Twise one 1 January Repayment of loan

( 5 tahun year on 30 2013 on bon maturity

) June and 31 date.

December.

The accounting year of Alam Mesra Sdn. Bhd ends on every 31 March.

REQUIRED :

(i) Prepare a journal entry on June 30, 2013, December 31, 2013 and March 31, 2014.
(Narration is ignored). (30 jun :interest RM 7 500 . 31 dec interest payable RM 1 800, 31
march interest RM1600)

(ii) Provide an extract from the Financial Position of Alam Mesra Sdn. Bhd.
(Current liabilities and non-current liabilities only) as at 31 March 2014. (total: 589100)

PSPM 2015/2016
(b) Provide the definition of current liability and non - current liberation with one (1) example
for each the type of liability.

72

AA015 ACCOUNTING 1 SESSION 2021/2022
PSPM 2016/2017
On 1 January 2013, SME Corporation makes a loan of RM 40000 for 2 years from Bank
Nusantara with a rate of 10 percent per year. On 1 January 2013, Melati Corporation also
signed Note Payables of RM 25 000 with Bank United for a 3-year period, interest rate of 12
per cent per annum. Interest is paid once a year on 1 January for both loans and notes
payable.
Be required:

1. Prepare journal entries on January 1, 2013 (bank RM 65 000)
2. Prepare a journal entry to record interest expense on 31 December 2013 (interest RM

expense RM 7 000)
3. Prepare journal entry to record interest payments on 1 January 2014 (interest payable

RM 7 000)
4. Prepare journal entries for redemption of Notes payable to Bank United on 1 January

2016 (interest payable RM 3 000)

73

AA015 ACCOUNTING 1 SESSION 2021/2022

TOPIC 11: ACCOUNTING OF INCOMPLETE RECORDS AND SINGLE ENTRY
PAST YEARS QUESTIONS

PSPM 2011/2012

Perniagaan Salmah (PS)’s Financial Position on June 30, 2011 is as follows:

Accounts Debit (RM) Credit (RM)

Cash 89,000

Accounts Receivable 45,000

Prepaid Insurance 17,500

Motor Vehicles 185,000

Accumulated Depreciation – Motor Vehicles 23,000

Building 100,000

Accumulated Depreciation – Building 17,000

Accounts Payable 38,000

Unearned Revenue 12,500

Capital 268,000

Drawings 102,000

Additional information on 1 July 2010: RM

Total Current assets 200,000
Total non-current assets 370,000
Total liabilities 105,000

REQUIRED :
Calculate :
i. Capital on 1 July 2010. ( RM 465 000)
ii. Profit/Loss for the year ended 30 June 2011. (net loss : RM 95 000)
iii. Long term liabilities on 30 June 2011. ( RM 78 000)

PSPM 2013/2014

Mr. Amer keeps Amer Trading business books by using single records system. The following
are the analysis of transactions that have occurred for the year ended 31 December 2012:

Particular RM
Cash in hand 1 January 2012 225
Received from accounts receivable
Sales discounts 27,000
Bank loan 31 December 2012 400
Bank loan 1 January 2012
Payment to accounts payable 1,860
Wages and salaries 2,175
Miscellaneous expense 15,600
Cash withdrawal 6,320
Purchases discounts 2,100
Cash in hand 31 December 2012 2,800

160
90

Balances of assets and liabilities are as follows:

Accounts 1 January 2012 31 December 2012
(RM)
(RM)
12,500
Inventory 10,500

74

AA015 ACCOUNTING 1 SESSION 2021/2022

Accounts receivable 31,000 39,500

Accounts payable 9,650 10,600

Van transportation 7,000 7,000

Office equipment 1,700 1,700

This business has estimated van transportation depreciation at 15 percent a year while office

equipment at the rate of 5 per cent per annum on a straight line method.

REQUIRED:
i. Prepare statement of profit or loss for the year ended 31 December 2012. ( net profit: RM

11 395)
ii. Calculate capital at 31 December 2012. ( RM 47 195)

PSPM 2014/2015
Sinar Suria Enterprise owned by DS Normah did not recorded accounting records completely.

Particular Balance at Balance at
1 January 2013 31 December
Machine, at cost
Inventory (RM) 2013
Accounts receivable (RM)
Bank 9,000
Rental prepaid 3.450 9,000
Accounts payable 2,000 4,450
Salaries payable 1,460
3,760
-
980 ?
200 250

1,330
-

Cash book of Sinar Suria Enterprise showed the following information:

Received RM Payment RM

Payment from customers 10,000 Payment to supplier 6,770

Sales 3,500 Salaries expenses 3,600

Rental expenses 1,200

Purchase 1,000

General expenses 200

Additional information:

1. The machine purchased on January 1, 2011 and depreciated at a rate of 20 percent per
annum using the straight line method.

2. DS Normah withdrew goods worth RM99 for her personal use.
3. Return goods on purchase of RM100.

4. The amount of sales discount RM70.
5. Bad debt expense RM125.

REQUIRED:

i. Calculate the capital of Sinar Suria Enterprise on 1 January 2013. (RM 11 130)
ii. Prepare the statement of profit or loss for the year ended 31 December 2013. ( net

profit:RM 1 889)

PSPM 2015/2016

(a) Ali Hamzah operated business retail, Ali Enterprise since 1 March 2011. However, he did
not completedly record the business transaction accordance with accounting systems. He
need your help to provide complete business account transactions starting on March 1,
2014 until February 28, 2015.

75

AA015 ACCOUNTING 1 SESSION 2021/2022

The following information was found:
1. Ali Enterprise had an account at Bank Syariah Malaysia Berhad, with a balance of

RM27,000 on March 1, 2014.

2. The majority of sales are in cash. Credit sales are granted to selected customers only.
The balance of accounts receivable as of March 1, 2014 is RM4,300 while the
remaining end on February 28, 2015 is RM7,000.

3. Purchase of merchandise made on credit. The balance of accounts payable on March
1, 2014 was RM56,260 while remaining on February 28, 2015 is RM24,630.

4. Ali Enterprise has two (2) employees and the total salaries of two employees is
RM12,000 a year. Salary payments are made by cheques.

5. Ali Enterprise applied a policy to remain minimum cash at the business account
RM500 per year.

6. Ali Hamzah withdrew cash of RM200 each week (assuming there are 52 weeks in a
year) from the business for his wife’s use and withdrew goods from the business by a
family member during the current year amounted to RM600.

7. The total cash sales for the year RM159,000 while the cash receipts from accounts
receivable amounting to RM11,200.

8. Information related to the business of fixed assets are as follows:

Assets Depreciation Cost value Book
method (RM) value (RM)

Motor vehicle 20% on book value 200,000 120,000

Furnishings 10% on cost 12,000 9,600
7,000
Office equipment 15% on cost 10,000

No residual values for all fixed assets.

9. The value of inventories on February 28, 2015 is RM80,000.

10. Cheque payments for the year are as followed:

Expenses Total (RM)

Payments to suppliers 100,000
Utility expenses 3,000

11. Miscellaneous expenses RM4,000 are paid in cash.
12. Beginning inventory RM 60 000

REQUIRED:
i. Prepare a Cash Account and Bank Account of Ali Enterprise for the year ended February

28, 2015.
ii. Prepare Statement of Profit or Loss for the year ended February 28, 2015 of Ali Enterprise.

( net profit: RM 79 430)

PSPM 2016/2017
On January 1, 2015, Perniagaan Chempaka has shown the following opening balances as
follows:

76

AA015 ACCOUNTING 1 SESSION 2021/2022

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

As at 31 December 2015, the account’s closing balance of Perniagaan Chempaka were as

follows:

Accounts RM

Bank 110,000

Accounts receivable 34,000

Prepaid insurance 5,000

Inventory 57,000

Equipment 46,000
Accumulated depreciation – Equipment 18,700

Land 50,000

Accounts payable 38,000

Salaries payable 8,250

Loans 50,000

Drawings 13,000

REQUIRED:
(i) Determine the capital on January 1, 2015. (Show calculations) (RM 120 000)
(ii) Determine net profit or net loss for the year ended 31 December 2015. (Show
calculations) ( net profit:RM 80 050)

77