MODUL ABAD A SEMESTER 1 SESI 2020/2021

DI SEDIAKAN OLEH
MOHD KHAIRI BIN ABDUL RAHMAN

KOLEJ MATRIKULASI MELAKA

TOPIC 6: ACCOUNTING FOR CASH

QUESTION 1

Must A and Co. received the bank statement for the month of June 2015 that shows a different

balance with cash book balance. The following is a Bank Statement and Cash Book (bank

column)

Bank Statement

Date Description Cheque Debit Credit Balance
no.

2015 RM RM RM

June 1 Balance b/f 4480

1 Cheque 3349 1200 3280

2 Cheque 3351 2 500 780

5 Deposit 900 1680

8 Deposit 1315 2995

17 Debit Instruction - Utilities expense 600 2395

18 Cheque 3352 640 1755

22 Cheque 3353 2 530 (775)

23 Dividend - Hema Company 1380 605

25 credit transfer- Commission 800 1 405

26 Cheque 3355 1 200 205

27 Deposit 50 255

28 Bank Charges 20 235

Cash Book (Bank column only)

Date Particulars Amount Date Particulars Cheque No Amount
2015 RM
June 1 Bal b/f RM 2015 3351 2 500
Sales 3352 640
8 Bella 3 280 June 6 Purchases 3353 2 350
10 Zaskiah 3354 870
16 900 11 Insurance
3355 1 200
1 315 14 Frieght in 3356 70

450 18 Chin Chang 3357 480
8 110
Bhd

20 Rusdy 1 300 25 Kasdap
25 Letchumy
100 28 Syrkt. Air

Melaka

30 Baki c/f 765 30 Salary

8 110

Additional information:
(i) All entries in the bank statement are correct.
(ii) A cheque received on 25 June 2015 was returned by the bank due to non-sufficient

fund.

REQUIRED:
Prepare bank reconciliation as at 30 June 2015. (Answer: RM565)
QUESTION 2
Khaulah Iman is the owner of Iman Indah Boutique. Below is its Bank Statement and Cash
Book for the month of August 2018.

Date Description Cheque No Debit Credit Balance
RM RM RM
August 1 Balance b/f 54789 5,862
1 Cheque Deposit 67849 500 200 6,062
2 Cheque Deposit 00423 400 2,442 8,504
8 Cheque 00425 5,000 8,004
Cheque 77767 2,000 7,604
17 Deposit 00426 1,400 9,604
15 Cheque 420 300 4,604
19 Credit Transfer 88890 70 200 4,904
21 Dividend 00427 200 2,242 5,104
24 Cheque Deposit 7,346
27 Cheque 5,946
28 Standing Order 5,526
29 Bank Charges 5,456
30 Direct Debit 5,256
30

Date Particular Cheque Cash Book Particular Cheque RM
No. RM Date No.
Aug. 1 Balance b/f Khadijah Enterprise 500
5 Halimah Enterprise 54789 5,862 Aug. 2 Hassan Enterprise 00423 2,640
Teguh Sdn Bhd 67849 200 10 Insurance Premium 00424 4,000
12 Anas Malik 88890 12 Ainul Mardiyah Sdn 00425 5,000
18 2,442 15 Bhd 00426
Umar 23498 2,242 Thalhah 1,400
25 Deposit 33789 Abu Hurairah 00427 5,000
28 Sales 18989 2,400 20 00428
30 Balance c/f 190 30 18,540
30 700

4,504
18,540

Additional information:
All entries in the bank statement are correct.

REQUIRED:
Prepare the Bank Reconciliation as at 31 August 2018. (Answer: RM906)

QUESTION 3 (PSPM 2009/2010)
Summary of the Cash Book for Ceria Tehtiam as at September 2009 is as follow:

Beginning balance RM
Ending balance 700
Cash receipt 900
Cash payment
3,600
3,400

A bank statement with a balance of RM420 shows different balance from the Cash Book. The
differences occur because of some of the following problems:

1. Cheques worth RM1,320 received from Harum Teh Enterprise have not yet credited by
bank until September 2009.

2. Credit transfer from one of the customer, RM1,400 has been credited by bank but not
yet recorded in the cash book.

3. Cheque amounted RM600 which was issued by Deria Tehtiam have wrongly recorded
in the CT’s bank statement.

4. Cheque RM920 that was issued to Gula Manis Sdn Bhd has not been submitted to the
bank

5. RM100 of bank charges has not yet recorded in the cash book.

6. Cheque worth RM250 paid by bank has been wrongly recorded as RM350 in the bank
statement.

7. Bank standing order for the payment of rental expense RM680.

REQUIRED:
(i) Show the Bank Reconciliation as at 30 September 2009. (Answer: RM1,520)
(ii) Show the journal entries to record the adjustments.

QUESTION 4 (PSPM 2010/2011)
A Bank Statement for Katering Malaya on 30 June 2010 shows balance of RM9,144. This
balance is different balance from the Cash Book. All the cash receipt will be deposited in the
bank on the following day. Below is the summary of the cash book as at June 2010:

Balance on 1 June 2010 RM
Cash receipt for June 3,979
Cash payment for June
Balance on 30 June 2010 28,972
28,388

4,563

The differences occur because of some of the following problems:

1. Bank has made a collection of notes receivable RM1,030 for KM.

2. Deposit in transit RM1,852 did not exist in the bank statement.

3. Cheque worth RM5,265 that was issued to Pembekal Murni Sdn Bhd has not been
submitted to bank.

4. Cheque worth RM139 that was issued by KM, has been wrongly recorded by bank as
RM193.

5. Cheque worth RM210 that was issued to company’s supplier Avery Equipment Sdn.
Bhd. was returned by bank.

6. Bank charges for June 2010 is RM18

REQUIRED:
(i) Show the Bank Reconciliation as at 30 June 2010. (Answer: RM5,785)
(ii) Show the journal entries to record the adjustments.

QUESTION 5 (PSPM 2014/2015)
Bank Statement of Seri Bulan Sdn. Bhd. for May 2014 are as follows:

Date Check Details Debit Credit Balance
Number Balance (RM) (RM) (RM)
May 1 Deposit 14,000 123,000
3 345678 Deposit 3,500 137,000
8 345679 Deposit 12,000 4,900 133,500
121.500
12 345681 Bank Charge 5,000 9,300 126,400
13 345682 3,400 121,400
15 118,000
17 345684 900 127,300
22 345686 7.300 126,400
24 345687 13,700 119,100
27 345688 1,444 105,400
29 100 103,956
30 103,856
31

Cash Book for May 2014 the following information:

Cash Book (Bank Column)

May Details Check RM May Details Check RM
Number
Number 345678 3,500
345679 12,000
1 Balance b/f 123,000 8 MPSJ
3 Ali Bersaudara
002244 14,000 11 Purchase

10 Aman Makmur 993399 320 12 Min Enterprise 345680 5,700
12 Siti Enterprise 987654 4,900 14 Halim Security 345681 5,000
20 Suci Sdn. Bhd. 663333 9,300 15 Purchase 345682 3,400
29 Jit Ria 421877 2,000 19 Kasa Angkut 345683 1,600
30 TNB 345688 1,444 23 Insurance 345684 9,000
26 Rent 345686 7,300
29 Salary 345687 13,700
93,764
Balance c/f

All information contained in the bank statement is correct.

REQUIRED:
Prepare a Bank Reconciliation on 31 May 2014. (Answer: RM98,876)

QUESTION 6 (PSPM 2015/2016)
Bank Statement Iskandariah Sdn. Bhd for March 2015 is as follows:

Date Details Check Debit Credit Balance
Number (RM) (RM) (RM)

Mar 1 Balance 89090 6,000 200
3 Deposit 89091 1,500 6,200
4 Deposit 89092 5 7,700
6 Check Book Charge 450 7,695
8 Check 600 7,245
Check 343 6,645
10 Check 542 6,302
12 Credit Transfer 465 6,844
15 Credit Transfer 245 6,379
20 Interest 100 6,624
25 Deposit 80 6,724
29 Bank Charge 6,644
30

Cash Book for March 2015 shows the following information:

Cash Book (Bank column)

Mac Details Check RM Mac Details Check RM
Number
1 Balance b/f Number 89090 450
3 Deposit 89091 600
4 Abu 200 7 Lim Auto 89092 343
30 Najib 89093 300
6,000 8 Calmex Bhd. 100
6,207
1,050 10 Ali 8,000

750 28 Ben

29 Sabariah

31 Balance c/f

8,000

Additional information:
1) All information in the bank statement is correct.
2) Cheque deposited on 4 March 2015 amounting to RM1,500 were mistakenly recorded as

RM1,050 in cash book.
3) Cheque received by Sabariah of RM100 have been recorded as payment by the business

in the cash book.

REQUIRED:
Prepare a Bank Reconciliation on 31 March 2015. (Answer: RM7,094)

QUESTION 7 (PSPM 2016/2017)
The cash record for Seroja in August 2016 is as follows:

General Ledger

Bank

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

20,867 RM
3,470
Cash Receipts Journal 715
507
(Bank Column) 995
3,100
Date Details Check Number 1,972
Aug. 2 2,060
Sales 617541 637
7
8 Fatimah Enterprise 410119 RM
10 918
16 Sales 734001
22 2,130
29 Sales 913610 864
30
Sherry Enterprise 811625 1,742
2,000
Zetty Sdn Bhd 700100
732
Sales 112113 1,512

Sales 240615 215
2,400
Cash Payment Journal

(Bank Column)

Date Details Check Number
Aug. 2
Purchase 410118
8
10 Purchase 410120
24
28 Syarikat Mamat 410121
29
30 Hakimah Sdn Bhd 410122
31
31 Peniagaan Wahab 410123

Purchase 410124

Purchase 410125

Phone expenses 410126

Wages 410127

The business receives the following bank statement:

August Bank Statement Debit Credit Balance
Details (RM) (RM) (RM)
1,200 7,411
1 Balance b/f 918 3,470 8,611
1 Credit Transfer - Rental Revenue 12,081
4 Deposit 2,310 507 11,163
7 410118 3,100 995 11,670
9 Deposit 3,100 12,665
12 Deposit 715 10,335
13 410120 864 1,715 13,455
13 811625 250 1,972 10,355
14 Non sufficient fund - 811625 9,640
15 410119 1,742 200 8,776
18 410121 2,000 8,526
21 Fixed Instructions - Insurance Fee 10,241
22 Bank Collection – Account Receivable 20 12,213
23 Deposit 10,471
26 410122 8,471
30 410123 8,671
30 Bank Collection - Dividends Received 8,651
30 Bank Charges

Additional information:
1) All information recorded by the bank is correct.
2) The cheque number 410119 issued for Fatimah Enterprise has been entered in the

wrong journal.

REQUIRED:
(i) Prepare a Bank Reconciliation as at 31 August 2016. (Answer: RM6,489)
(ii) Prepare an adjusting journal on 31 August 2016.

QUESTION 8 (PSPM 2017/2018)
Setia Sdn. Bhd. received the bank statement dated 31 March 2017 as follows:

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

The general ledger’s cash account shows the following entries for the month of March 2017:

March Particular Cheque Cash Account Particular Cheque RM
no. RM March no.
7 Maju Sdn. 3,385
Bhd. 583107 4,500 1 Balance b/d
2,030
20 Zatil Trading 456321 1,300 3 Zuma Enterprise 825123 1,250
31 Balance c/f 3,915 6 Hassan 254108
550
Enterprise 254109
10 Premium 780
254110 950
Insurance 254111 770
12 Muslimah Trading 254112 9,715
15 Rifatah Sdn. Bhd.
29 Rental

9,715

Additional information:
1) The book keeper had incorrectly credited a cheque received from Zuma Enterprise in the

business bank account.
2) Bank confirmed that cheque no. 605125 does not belong to Setia Sdn. Bhd.

REQUIRED:
Prepare a Bank Reconciliation as at 31 March 2017. (Answer: RM216)

QUESTION 9 (PSPM 2018/2019)
Kamilah is a newly appointed accountant assistant for Tasek Enterprise. Upon comparing the
bank statement and the cash book of the business for the month of October 2018, she found
that there were differences cash book and bank statement as shown below:

Bank Sejahtera

Bank Statement as at 31 October 2018

Date Particulars Debit Credit Balance
(RM)
October 1 (RM) (RM)
2 2,154.50 CR
3 Balance 1,913.50 CR
6 2,456.70 CR
9 299513 241.00 2,356.70 CR
2,283.30 CR
12 Credit transfer 543.20 1,927.00 CR
17 1,850.60 CR
20 Bank services charges 100.00 2,250.60 CR
23 2,001.60 CR
23 463029 73.40 1,851.60 CR
25 1,920.30 CR
27 463028 356.30 2,500.50 CR
30 2,257.90 CR
Standing order 76.40

Credit transfer 400.00

463030 249.00

463032 150.00

Credit transfer 68.70

Credit transfer 580.20

463033 242.60

Cash Book Tasek Enterprise

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

84.30 25 Purchases

583.20 28 Rental

29 Purchases

30 Balance c/f

4,421.00

Additional information:
1. Payment cheque no.463030 amounting to RM249.00 was wrongly recorded in the cash

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

actually belongs to Temasek Enterprise.

REQUIRED:
Prepare a Bank Reconciliation Statement for Tasek Enterprise as at 31 October 2018.
(Answer: RM988.70)

QUESTION 10 (PSPM 2019/2020)
On 1 September 2018, Kemboja Sdn. Bhd. received a bank statement and found different
balances between the bank statement and cash book. The following are the bank statement
and cash book for the month of August 2018:

Bank Statement
Bank Kekwa Berhad

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

06000 Kepala Batas

Alor Setar

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

2018 Balance 40051 3,127 1,040 4,447
August 1 Cheque 1,457 1,320
Deposit 40050 550 2,360
3 Deposit 40052 814 660 3,817
5 Cheque 40053 2,902 3,267
6 Cheque 2,453
6 Cheque 40055 1,372 (449)
10 Dividen – KMP 20
15 Sdn. Bhd. 211
18 Interest Fixed
Deposit 377 588
21 Cheque
Deposit (784)
24 Bank Charges 539 (245)
25
31 (265)

Cash Book (Bank Column)

Date Particulars Bank Date Particulars Cheque Bank
No (RM)
(RM)
3,127
2018 3,897 August 8 Purchase 40051 814
August 1 Balance 1,040 3 Kedai 40052
Mewah 2,902
10 Sale 1,457 7 Jimmy 40053
Choong 979
14 D&Gold 539 9 Beejanni 40054 1,372
1,379 12 Hermisy 400055
25 Coacher 1,449 13 Channeli 40056 72
26 Balenciagae 13 Salaryi 40057 495
31 Balance 9,761 9,761

REQUIRED:
Prepare a Bank Reconciliation Statement for Kemboja Sdn. Bhd. as at 31 August 2018.
(Answer: (RM432))

TOPIC 7: ACCOUNTING FOR RECEIVABLES

QUESTION 1
Record obtained from Perniagaan A Plus on 1 January 2017 shows the balance of account
receivable RM80,500.
During the financial year ended 31 December 2017, Perniagaan A Plus recorded sales on
account of RM190,000 with cash collection of RM136,000. During this period, Perniagaan A
Plus has written off a customer's debt of RM6,200.
During current financial year, Perniagaan A Plus intends to create a provision for doubtful
debts of approximately 2 percent on the balance of accounts receivable.

REQUIRED:
(i) Calculate balance of the provision for doubtful debts on 31 December 2017.

(Answer: RM2,566)
(ii) Prepare the journal entry to record bad debt expense on 31 December 2017.

QUESTION 2

The following information was obtained from Perniagaan Always A as at 31 December 2014.

Accounts Receivable RM
1,000,000

(Less) Allowance For Doubtful debt 60,000

940,000

The transactions occurred regarding Accounts Receivable during 2015 were as follows:

Credit sales RM
2,600,000

Cash received from Accounts Receivable 2,300,000

Accounts receivable written off 65,000

Accounts receivable recovery 25,000

Allowance of doubtful bebt is 5% of the accounts receivable balance.

REQUIRED:
(i) Prepare adjusted entries to record bad debt on 31 December 2015.

(Answer: RM66,750)
(ii) Show bad debt expense account and allowance for doubtful debts account for the year

ended 31 December 2015. (Answer:

QUESTION 3
On 31 Disember 2016, Semangat Jitu Sdn Bhd reported the following information in the
statement of financial position.

Accounts receivable RM 760,000
Allowance for doubtful debts RM 80, 000

During 2017, the company credit sales was RM 3,520,000. Sales returns and allowances was
RM5,000. Total receipt from accounts receivable was RM2,760,000 which includes RM
30,000, recovery of bad debts previously written off as uncollectible from Halimah Bhd. SJSB
decided to write off accounts receivable deemed uncollectible debt total RM95,000. SJSB
estimated 3% of accounts receivable balance as uncollectible since last years.

REQUIRED:
(i) Prepare journal entries to record all transactions above.
(ii) Prepare accounts receivable and accounts allowance for doubtful debts.

(Answer: Balance c/f RM1,450,000, RM43,500)
(iii) Prepare journal entries to record bad debts expenses. (Answer: RM58,500)
(iv) Calculate the net realizable value of the accounts receivable. (Answer: RM1,406,500)

QUESTION 4 (PSPM 2015/2016)
The following information is obtained from Perniagaan Permaisuri record on 1 April 2014:

Account RM
Account Receivables 76,500

Accounting period ending every 31 March.

Additional information:
During the financial year ended 31 March 2015, Perniagaan Permaisuri recorded sales on
account RM155,000 with cash collection of RM107,000. During this period, Perniagaan
Permaisuri has write off a customer's debt of RM5,000. During current financial year,
Perniagaan Permaisuri intends to create a allowance for doubtful debts of approximately 1.5
percent on the balance of accounts receivable.

REQUIRED:
Calculate balance of the Allowance for Doubtful Debts on 31 March 2015.
(Answer: RM1,792.50)

QUESTION 5 (PSPM 2017/2018)
The financial information of Anggun Sdn. Bhd. At 31 July 2017 was as follows:

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

REQUIRED:
Prepare the journal entries to record the bad debt expenses using the following methods:
(i) 1% from net credit sales. (Answer: RM7,500)
(ii) 5% from accounts receivable. (Answer: RM6,000)

QUESTION 6 (PSPM 2018/2019)
Pedu Sdn. Bhd. began its operations on 1 January 2016. During its first two years of operation,
the company completed a number of transaction involving credits sales, account receivables
collections and bad debt. These transactions are summarized as follows:

2016
1. Sold RM236,000 of merchandise which had a cost RM189,000 on credit.
2. Received RM115,000 cash in payment of accounts receivable.
3. In adjusting entry for year ended 31 December 2016, the company estimated that

1.5% of the account receivable would be uncollectible.

2017
1. Sold RM318,000 of merchandise which had a cost RM236,000 on credit.
2. Write-off RM450 uncollectable account receivable.
3. Received RM215,000 cash in payment of account receivable.
4. In adjusting entry for the year ended 31 December 2017, the company estimated

that 1.5% of the account receivable would be uncollectible.

REQUIRED:
Prepare journal entries to record the above transaction.

QUESTION 7 (PSPM 2019/2020) RM
The following information of Lavender Enterprise for the year ended 2018. 72,000
1,600
Total net credit sales 54,000
Total cash sales 38,600
Cost of goods sold 3,000
Net Accounts Receivables 240
Beginning Balance of Allowance for Doubtful Debts 5,940
Bad debt written-off 5%
Total expenses excluding bad debt expenses
The rate of provision for doubtful debts on net credit sales

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

on net credit sales. (Answer: RM3,600)
(ii) Show the journal entries to record the write-off of bad debt and bad debt expenses.
(iii) Prepare Allowance for Doubtful Debts Account for the year 2018.
(iv) Prepare a Statement of Profit or Loss for the year ended 31st December 2018.
(v) Show an extract of Statement of Financial Position as at 31st December 2018 in relation

to Account Receivable presentation.

TOPIC 8: ACCOUNTING FOR INVENTORIES

QUESTION 1
Syarikat Komputer Bersepadu (SKB) is a computer component supplier using periodical
inventory system and First in first out method to calculate its inventory. The beginning balance
shows 100 units at RM8. Below is the inventory record for January 2011:

Date Item Quantity Cost Per Unit
(RM)
Jan 6 Sales 60 10
13 Purchase 70 9
21 Sales 80 11
25 Purchase 20 10

REQUIRED:
(i) Calculate the value of ending inventory and total cost of goods sold on 31 January.

(Answer: RM470, RM1,160)
(ii) Calculate the value of ending inventory and total cost of goods sold on 31 January if the

perpetual inventory system and average method is applied.
(Answer: RM1171.70, RM458.80)

QUESTION 2 (PSPM 2014/2015)
Perniagaan Lautan Samudera provide the following inventory information for September 2014.
This business uses perpetual inventory sytem with average method in calculating the cost of
the inventory.

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

REQUIRED:
(i) Calculate the cost of goods sold with a suitable schedule (round the average price to two

decimal places). (Answer: RM6,602.40)
(ii) Calculate the value of the ending inventory cost on 30 September 2014.

(Answer: RM2,306.60)

QUESTION 3 (PSPM 2016/2017)
Kenanga Sdn. Bhd. sells multi products. The following is an analysis of the purchase and sale
one of Kenanga products for March 2016. Kenangan Sdn. Bhd. uses periodic inventory
system.

Date Details Purchase Sales
Unit Cost per Unit Price per
Mac 1 Beginning inventory
3 Purchase unit unit
4 Sales 100 RM40
Purchase 60 RM50 90 RM80
10 Sales
16 Sales 200 RM55 120 RM90
19 Sales 75 RM90
25 Purchase 40 RM60 65 RM90
30

REQUIRED:
(i) Calculate the cost of goods sold in March 2016 using the First In First Out (FIFO).

(Answer: RM17,450)
(ii) Calculate the value of ending inventory 31 March 2016 using the Weighted Average.

(Answer: RM2,550)

QUESTION 4 (PSPM SESSION 2017/2018)

Olala Sdn. Bhd. recorded the purchase and sale of merchandise transactions for the month

of April 2017.

Date Purchases Cost per unit
Unit RM

April 1 600 6.00

4 1,500 6.08

8 800 6.40

13 1,200 6.50

21 700 6.60

29 500 6.79

5,300

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

REQUIRED:
(i) Olala Sdn. Bhd. used the periodic inventory system, calculate the value of ending

inventory on 30 April 2017 using the weighted average method (round per unit costs to
two decimal places) (Answer: RM5,080)
(ii) Olala Sdn Bhd. used the perpetual inventory system, calculate the value of ending
inventory on 30 April 2017 using the weighted average method (round per unit costs to
two decimal places). (Answer: RM5,326)

QUESTION 5 (PSPM SESSION 2018/2019)
Chini Sdn. Bhd. uses perpetual inventory system. The beginning inventory, sales and
purchase for the month of September 2018 are shown below:

Date Activity Purchases Sales
September 1 Beginning inventory 400 units @ RM14 200 units @ RM30
Sales 200 units @ RM30
3 Purchases 200 units @ RM15
7 Sales 300 units @ RM35
10 Purchases 300 units @ RM16 300 units @ RM36
14 Purchases 250 units @ RM20
18 Sales
21 Purchases 100 units @ RM21
24 Sales
27 Purchases 250 units @ RM23
30

REQUIRED:
Calculate ending inventory using the method stated and round up answer to two decimal
places.
(i) First-In, First Out Method. (Answer: RM10,850)
(ii) Weighted average method. (Answer: RM10,170)

QUESTION 6 (PSPM SESSION 2019/2020)
On 1 May 2019, inventory of Tulip Sdn. Bhd. were 50 boxes of perfume at RM50 per box.
During the month, Tulip Sdn. Bhd. purchases and sales were as follows:

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

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

and cost of goods sold using First In First Out method. (Answer: RM5,300, RM18,000)
(ii) Based on periodic inventory system, determine the company’s ending inventory cost

and cost of goods sold using weighted average method. (Round up answers to two
decimal places). (Answer: RM4,659.90, RM18,640.10)

TOPIC 9: ACCOUNTING FOR NON-CURRENT ASSETS

QUESTION 1
On 1 January 2018, Mantap Sdn. Bhd has equipment worth RM135,620 and RM81,374
accumulated depreciation.

In 2018, business purchased new equipment at a cost of RM47,800 by selling old equipment
(original cost RM36,000 and RM28,224 accumulated depreciation) at fair value (allowances
trade) RM5,700.

Equipment is depreciated at 40% using the declining balance method. Full depreciation is
charged on all equipment used at the end of the financial year and no depreciation charge in
the year of disposal.

Mantap sdn. Bhd. financial year ended 31 December 2018.

REQUIRED:
(i) Prepare journal entries to record the purchase of new equipment and the sale of old

equipment.
(ii) Prepare journal entries to record depreciation expense in 2018. (Answer: RM37,708)

QUESTION 2
The following information was obtained from Syarikat Juara Selatan pada 30 Jun 2014.

Machine RM45,000
Accumulated depreciation RM 5,000
RM40,000

The following transactions incurred during the year ended June 30, 2015.

March 1 Purchased new machine by exchange the old machine that was purchased on
1 July 2010 at a cost of RM12,000. The cost of new machine is RM24,000.
Trade in allowance is RM3,000. All the payment is made by cash.

Depreciation of the machine is 10% every year. The depreciation expense is fully record in
the month of purchase and no record in the month of disposal. The accounting period end
every 30 June.

REQUIRED:
(i) Show journal entries to record the purchase of the new machine.
(ii) Show the adjusting entries on 30 June 2015. (Answer: RM4,100)

QUESTION 3
Syarikat Oh My A purchased an equipment at a cost price of RM18,000 on 1 January 2015.
The equipment has a residual value of RM2,000 and its useful life is 4 years. Business use
declining balance method at 50% to calculate the depreciation expense.

REQUIRED:
(i) Prepare depreciation schedules for 2015 and 2016. (Answer: RM9,000, RM4,500)
(ii) Show depreciation expense account and accumulated depreciation account for 2015 and

2016.

QUESTION 4
The following is information on equipment transactions for Skor A Sdn. Bhd:

Transaction 1 Equipment A Equipment B Transaction information
Cost (Old) (New)
Date of 1) Depreciation expense is
ownership RM250,000 RM300,000 calculated in full in the year of
Residual value 1 Jun 2009 16 Sept. 2014 purchase and no depreciation in
Useful life the year of sale.
RM10,000 RM20,000
Transaction 2 10 years 8 years 2) Depreciation is calculated using
Cost the straight line method.
Date of
ownership 3) Cash paid RM50,000.
Date of sale 4) The accounting period ends every

Residual value 31 December.
Useful life
RM60,000 1) The calculation of depreciation
1 May 2012 using monthly basis with the
declining balance method by
20 October 15%.
2014
2) Sales price of RM9,000.
RM15,000 3) The accounting period ends
10 years
every 31 December.

REQUIRED:
Provide a journal entry to record transaction 1 and transaction 2. (description omitted)

QUESTION 5 (PSPM 2013/2014)
The following are information related to fixed assets of Perniagaan Makmur:

Items Vehicles Washing Machine
Cost RM160,000 RM85,000
Date of acquisition 1 April 2007 1 January 2009
Residual value RM5,000 RM3,000
Annual depreciation rate 10% 15%

Additional information:
1. All fixed assets are depreciated using the straight-line method.
2. On 1 May 2013, this business change a washing machine to a drying machine. The

information related to the drying machine is as follows:

Items Drying Machine
Cost RM100,000
Date of acquisition 1 Mei 2013
Residual value RM5,000
Annual depreciation rate 20%

3. Supplier of the drying machine agrees to accept the washing machine and Perniagaan
Makmur will receive RM2,000 cash.

4. On 1 May 2013, Perniagaan Makmur has paid RM5,000 for annually premium insurance
of drying machine.

5. This business prescribes a full year depreciation expense for all assets used at the end
of the financial year. There is no depreciation charge on the assets disposed of at the
year of disposal.

6. The business accounting period ends on December 31 of each year

REQUIRED:
(i) Prepare the journal entries on 1 May 2013.
(ii) Prepare the adjusting entries on 31 December 2013.

QUESTION 6 (PSPM 2014/2015)
Alam Suria Enterprise change the old printer with a new printer. The information related to
both printers is as follows:

Model Cost Date of purchase Salvage value Useful
(RM) 1st January 2010 (RM) age
Old Model 8,900 1st Disember 2013 500
WCT 102 5 years
New Model 11,400 800
WCT 144 8 years

Additional information:
1. The new printing machine supplier agrees to receive the old printing machine and offers

to Alam Suria Enterprise RM1,000 as a machine trade-in allowance.
2. Depreciation is calculated on an annual basis using the straight-line method. Depreciation

is calculated at full in the year of purchase and no depreciation is charged at the year of
disposal.
3. Alam Suria Enterprise's accounting period ends every 31 December.

REQUIRED:
Prepare a journal entry to record purchase of the WCT 144 model on 1 December 2013.

QUESTION 7 (PSPM 2015/2016)
The following information is obtained from Perniagaan Permaisuri record on 1 April 2014:

Account RM
170,000
Vehicles (cost)
Accumulated depreciation – Vehicles 88,000

Perniagaan Permaisuri accounting period ends every 31 March:

Additional information:
On 1 August 2014, Perniagaan Permaisuri bought a new vehicle worth RM35,000. This
purchase is done by exchage one of the old vehicles with cost of RM30,000 and cumulative
depreciation of RM22,000. Perniagaan Permaisuri receives trade-in allowances of RM8,800.
Payment is made in cash. The depreciation is at a rate of 10 per cent per annum using the
straight-line method. Depreciation is charged on monthly basis and no depreciation is charged
on the disposal date.

REQUIRED:
(i) Prepare journal entries to record the purchase of new vehicle on 1 August 2014.
(ii) Prepare journal entries to record vehicle depreciation expenses for the year ending 31

Mac 2015 and calculate net cost of vehicle on that date.

QUESTION 8 (PSPM 2016/2017)
On 1 July 2015, Teratai Enterprise bought trucks for cash at a cost of RM53,000 for business
use. On the same day, the truck was painted and placed with logo at a cost of RM8,000.
Teratai Enterprise expects the truck have a 3 years lifespan or 40,000 km journey. Teratai
Enterprise also estimates the residual value for this truck is RM4,000. Teratai Enterprise also
has to spend RM500 to deliver this truck to a recycle center. Depreciation is charged on the
month of purchase and no depreciation is charged at the disposal date.

REQUIRED:
(i) Prepare a journal on 1 July 2015 for purchase the truck.
(ii) Prepare a journal on 31 December 2015 and 31 December 2016 to depreciation

expenses using the straight-line method.
(iii) Prepare journal, assumed trucks are sold on 2 January 2017 at RM26,000 cash.

QUESTION 9 (PSPM 2018/2019)
The following information is extracted from the Statement of Financial Position of Kenyir Sdn.
Bhd. as at 31 December 2016.

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

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

Non-Current Asset Date of Purchase Cost
Machinery 23 March 2017 RM35,000 (excluding transportation charges
of RM1,500 and installation of RM500)
Motor Vehicles 14 April 2017 RM85,000 (including painting of business
name on motor vehicle RM2,000)
Office Equipment 2 July 2017 RM15,000

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

annum.
2. Office equipment is depreciated using reducing balance method at 10% per annum.
3. The company’s policy is to calculate depreciation based on ending balance for the year.

REQUIRED:
(a) Prepare accumulated depreciation accounts for the year ended 31 December 2017 for:

i. Machinery (Answer: RM114,600)
ii. Motor Vehicle (Answer: RM284,000)
iii. Office equipment (Answer: RM116,296.96)
(b) Prepare Statement of Financial Position (extract) as at 31 December 2017.

QUESTION 10 (PSPM 2019/2020)
(a) A machinery was purchased for RM10,000 by cash. The following costs were incurred:

Items RM
Transportation cost 400
Installation cost
Yearly premium insurance 1,200
Repair (broken down due negligence during installation) 250
200

REQUIRED:
Calculate the cost of the machinery and journalize all related transactions.
(Answer: RM11,600)

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

REQUIRED:
Journalize the disposal and purchase of the machine under each of the following situations.
(i) Sold the machine for RM72,000 in October 2017.
(ii) Sold the machine for RM28,000 in September 2018.
(iii) Trade in old machinery with a new machinery in September 2018. The cost of new

machinery is RM105,000. Trade-in value for the old machinery is RM35,000.
(iv) Purchase a new machine for RM20,000 in January 2018 by cash. The straight line

depreciation method is used. The estimated life for the machine is two years and no
residual value. Prepare journal entries for the purchase of machine and depreciation
expenses at the end of 2018.

TOPIC 10: ACCOUNTING FOR LIABILITIES

QUESTION 1
On 1 April 2010, Syarikat Ailisyia make a loan of RM180,000 for a period of three (3) years
from the Selesa Bank with an interest rate of 10% per year and signed a note payable. The
interest is paid once a year, on every January 1. The accounting period end every 31
December

REQUIRED:
Prepare journal entries to record:
(i) All the transaction for the year ended 31 December 2010.
(ii) Payment of interest on 1 January 2011.
(iii) Payment of the notes payable on the maturity date.

QUESTION 2
The following information is obtained from Bidadari Sdn. Bhd. record on 1 April 2016:

Account RM
Equipment (cost) 180,000
Accumulated depreciation – Equipment
Account receivables 88,000
Allowance for doubtful debts 76,500

750

Bidadari Sdn. Bhd’s accounting period ends every 31 March:

Additional information:
1. On 1 August 2016, Bidadari Sdn. Bhd. bought a new equipment worth RM38,000. This

purchase is done by exchange one of the old equipment with cost of RM32,000 and book
value of RM12,000. Bidadari Sdn. Bhd. receives trade-in allowances of RM9,000.
Payment is made in cash. Equipment depreciation is at a rate of 10% per annum using
the straight-line method. Depreciation is charged on yearly basis and no depreciation is
charged at the disposal date.

2. During the financial year ended 31 March 2017, Bidadari Sdn. Bhd. recorded sales on
credit of RM185,000 with cash collection of RM127,000. During this period, Bidadari Sdn.
Bhd. has written off a customer's debt of RM5,800. Provision for doubtful debts for the
year ended 31 March 2017 is estimated at 2% on the balance of Accounts Receivable.

3. `On 1 November 2016, Bidadari Sdn. Bhd. signed a notes payable of RM40,000 with Bank
Tiger for 3 years, interest rate of 12% per annum. Interest is paid once a year on 1
January.

REQUIRED:
(i) Prepare journal entries to record new equipment purchase on 1 August 2016.
(ii) Prepare journal entries to record equipment depreciation expense for the year ending 31

Mac 2017 and calculate net book value of equipment on that date.
(iii) Prepare journal entries to record bad debt expense on 31 March 2017.
(iv) Prepare journal entries on on 1 November 2016, 1 January 2017 and 31 March 2017.

QUESTION 3 (PSPM 2018/2019)
Banding Sdn. Bhd. provides pest control services. The following transaction occurred during
the year 2017. The accounting year ends on 31 December each year.

1. On 1 October 2017, Banding Sdn. Bhd. borrowed RM60,000 from a bank in return for a
90 days, 12%, RM60,000 note.

2. In August 2017, Banding Sdn. Bhd. sold RM150,000 of merchandise covered by a 6
months warranty. Prior experience shows that costs of the warranty equal 5% of sales.
In November 2017, the company paid RM2,000 for warranty expenditure related to sales
in August 2017.

3. Salaries for two employees for December 2017 will be paid in January 2018. The salary
for each employee is RM2,500 per month.

4. The income tax expense for the year 2017 was RM12,000.

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

QUESTION 4 (PSPM 2019/2020) RM
The liabilities of Lily Trading on 1st January 2019 were as follows: 44,600
5,000
Item 16,000
Accounts payable
Interest payabler 150,000
Unearned service revenue
Long-term Loan (interest rate is 4%)

Transaction occurred during January 2019 were as follows:

Date Transaction
Jan 1 Acquired RM35,000 bank loan by signing a notes payable with interest rate
9% and a maturity period of 6 months..
Jan 1 Received another long-term loan 3% with Union Bank worth of RM250,000.
Jan 1 Issued cheque to settle interest payable of 2018.
Jan 12 Provided services to customer who has paid RM10,000 on 15th November
2018..
Jan 20 Sold 600 units of new product on account at RM55 each. The new products
are entitled for 1-year warranty. Company’s estimation for warranty liability is
8% over sales. Replacement will be offered if the defective goods are
returned within warranty period.

REQUIRED:
(i) Prepare journal entries to record the transaction involved.
(ii) Prepare adjusting entries on 31 January 2019.

TOPIC 11: ACCOUNTING FOR INCOMPLETE RECORDS AND SINGLE ENTRY
SYSTEM

QUESTION 1
Sanisah Enterprise did not keep proper accounting records. Assets and liabilities of the
business as at 2014 dan 2015 are as follows:

Equipment 31 Dec 2014 31 Dec 2015
Vehicle (net)
Inventory RM15,200 RM14,100
Wages payable 24,000 20,000
Prepaid Insurance 6,420 7,100
Accounts payable 400 320
Akaun receivable 200 410
Bank 4,240 5,530
5,110 5,320
2,140 3,680

Additional information:
1) Sanisah withdraw cash from bank RM310 and took stock RM400 for her private usage

during 2015.
2) Bad debt RM240 would be write off at the end of year 2015.
3) Any reduction in non current asset is considered as depreciation expenses..
4) RM250 telephone bill is still not paid at the end of 2015

REQUIRED :
(i) Calculate capital as at 31 December 2014. (Answer: RM48,430)
(ii) Calculate capital as at 31 December 2015. (Answer: RM44,270)
(iii) Calculate profit or loss for the year ended 31 December 2015. (Answer: RM3,450)
(iv) Show the Statement of Financial Position as at 31 Disember 2015.

(Answer: RM50,370)

QUESTION 2
Kirkwood is a dealer who has not kept proper books of account. At 31 August 2014 his state
of affairs was as follows:

Cash RM
Bank 115
Fixtures
Stock 2,209
Debtors 4,000
Creditors 16,740
Vehicle (at valuation) 11,890
9,052
3,000

During the year to 31 August 2015 his drawings amounted to RM7,560. Winnings from a golf
event RM2,800 were put into the business. Extra fixtures were bought for RM2,000. At 31
August 2015 his assets and liabilities were:

Cash RM
Bank overdraft 84
Stock
Creditors 165
Accrued expense 21,491
Fixtures to be depreciated
Motor van to be valued 6,002
Debtors 236
Prepaid expenses 600

2,500
15,821

72

REQUIRED:
Show Statement Profit or Loss made by Kirkwood for the year ended 31 August 2015.
(Answer: RM14,823)

QUESTION 3
Haji Nazmi is the owner of Nazmi Printing Services did not keep proper accounting records.
He was able to provide these infomation below:

Item 1 Sept 2008 30 Sept 2008
RM RM
Accounts receivable
Inventory 3,250 3,200
Office equipment 5,540 4,210
Accumulated depreciation – Office equipment 8,300 8,300
Cash at bank 3,230 3,650
Accounts payable 3,700 ?
2,370 4,070

Additional information:
1) Cash sales RM5,040 and cash purchases RM2,120.
2) Payment to accounts payable RM1,750 and received discount RM70.
3) Received RM2,320 cash from accounts receivable.
4) Haji Nazmi received deposit RM500 from Tadika Sayang Balai Panjang for printing

pamphlets of the kindergarten sport day.
5) Payment for rent RM850 and salaries RM1,230.

REQUIRED:
(i) Show the cash account at 30 September 2008. (Answer: Balance c/f RM5,610)
(ii) Show the Statement of Profit and Loss for Haji Nazmi Trading for the month ended 30

September 2008. (Answer: Net loss RM2,090)
(iii) Show the Statement of Financial Position as at 30 September 2008.

(Answer: RM17,670)

QUESTION 4
Below is a summary the Statement of Financial Position Perniagaan Runcit Jasmin (PRJ) as
at 31 March 2001:

Equipment RM RM Capital RM
Less : 33,000 Accounts Payable 46,800
13,200 Accrued electricity
Acc. Depreciation 19,800 27,000 6,390
Inventory 690
Accounts receivable 6,300
Prepaid Insurance 780
Bank
6,600

53,880 53,880

PRJ does not keep a complete accounting record. Its business transactions during the
financial year ended 31 March 2002 are summarized as follows:
1) Credit sales of RM287,490, sales return of RM2,640 and accounts receivable on 31

March 2002 amounting to RM13,200.
2) Inventories on 31 March 2002 showed an increase of RM8,000 compared to last year.
3) Accounts payable as at 31 March 2002 amounted to RM11,910 and discounts received

from suppliers for the year of RM 1,350, while the credit purchase was RM 239,550.
4) Payment for electricity expenses RM 21,300 and insurance RM24,750.
5) On 31 March 2002 prepaid electricity amounting RM960.
6) As at 31 March 2002, short term loan of RM6,000.
7) Cash drawings of RM12,000 and merchandise drawings RM930 for personal use.
8) The allowance for doubtful debts was charged at 2½% of the receivables as at 31 March

2002.
9) The depreciation of the equipment is at 10% of the cost.
10) Bank overdrafts on 31 March 2002 is RM180.

REQUIRED:
(i) Show Accounts Receivable and Accounts Payable.

(Answer: Cash RM277,950, RM232,680)
(ii) Show Statement of Profit or Loss for the year ended 31 Mac 2002.

(Answer: Profit RM6,770)
(iii) Show Statement of Financial Position as at 31 Mac 2002. (Answer: RM58,730)

QUESTION 5
Cik Addah runs a small business, AA Plus Enterprise that selling girl’s toys in Segarmart. She

did not keep a proper account of her business. The following information has been found for

the company in 2017:

1) Cik Addah has a balance of cash in hand RM2,600, inventory RM3,000, accrued rental
RM500 and prepaid insurance RM1,850 on 1 January 2017.

2) The balance of account receivable on 1 January is RM7,000 while the ending of account
receivable on 31 December 2017 is RM8,300. The cash receipt from the customer is
RM7,100.

3) All the purchase of merchandise is made on credit. The balance of account payable on 1
January is RM4,000 while the ending of account payable on 31 December 2017 is
RM7,200. The payment to the supplier for 2017 is RM890.

4) Cik Addah had taken RM850 to buy her parents’ medicine for the year. She also has
received RM1,800 dividen from Bank of Commerce.

5) Others receipt and payment of cash for 2017 are as follow:

Item RM
Sales 400
Insurance (including RM245 for January 2018 premium). 260
Miscellaneous expense 300
Rental expense 670

6. Cik Addah has received a discount of RM700 and also have given a discount of RM1,080
for the year ended 31 December 2017.

7. The business vehicles have purchased on 2015 with the cost price of RM45,000. The
annual depreciation is at 20%.

8. The rental amounted RM120 has not been paid on 31 December 2017.

9. Cik Addah has bring additional RM1,900 in cash into her business for the year ended 31
December 2017. She has taken one of the toys worth RM150 as a birthday present for
her niece.

10. Ending inventory as at 31 December 2017 is RM5,400

REQUIRED:
(i) Show cash account, accounts receivable and accounts payable.

(Answer: Balance c/f RM10,830, Sales RM9,480, Purchase RM4,790)
(ii) Show the statement of profit or loss for the year ended 31 December 2017.

(Answer: Net loss RM2,395)

QUESTION 6 (PSPM 2014/2015)
Sinar Suria Enterprise owned by DS Normah did not maintain a complete accounting record.

Details Balance Balance
at 1 January 2013 at 31 December 2013
Machine at cost
Inventory (RM) (RM)
Account Receivable 9,000 9,000
Bank 3,450 4,450
Prepaid Rent Expenses 2,000 3,760
Account Payable 1,460
Accrued Salaries Expand ?
- 250
980 1,330
200
-

Sinar Suria Enterprise's cash book shows the following information:

Receipt RM Payment RM
6,770
Payment from customers 10,000 Payment to suppliers 3,600
1,200
Sales 3,500 Salaries Expenses 1,000

Rent Expenses 200

Purchase

Miscellaneous Expenses

Additional information:
1) The machine was purchased on 1 January 2011 and depreciated at 20 per cent per

annum using the straight line method.
2) DS Normah takes merchandise worth RM99 for own used.
3) Purchase return is RM100.
4) Sales discount is RM70
5) Bad debts is RM125

REQUIRED:
(i) Compute the capital of Sinar Suria Enterprise on 1 January 2013. (Answer: RM11,130)
(ii) Show Statement of Profit or Loss for Sinar Suria Enterprise for the year ended 31

December 2013. (Answer: Net profit RM1,889)

QUESTION 7 (PSPM 2015/2016)
Ali Hamzah runs the retail business of Ali Enterprise since 1 March 2014. However, he did not
record transactions in accordance with the proper accounting system. He asks for your help
to set up a complete account from 1 March 2014 to 28 February 2015. The following
information has been found:

1) Ali Enterprise has an account at Bank Syariah Malaysia Berhad, with a balance of
RM27,000 on 1 March 2014.

2) Most of the sales are in cash. Credit sales are given to selected customers only. The
balance of the accounts receivable on 1 March 2014 is RM4,300 while the final balance
on 28 February 2015 is RM7,000.

3) Purchase of merchandise is made on credit. The balance of the accounts payable on 1
March 2014 is RM 56,260 while the balance on 28 February 2015 is RM24,630.

4) Ali Enterprise has two (2) employees and the total salary for the two employees is
RM12,000 per year. Payment of pay is made by check.

5) Ali Enterprise operates a cash deposit policy at a business premise of RM500 per day.

6) Ali Hamzah takes cash at RM200 per week (assuming there are 52 weeks a year) from
the business to be given to his wife. Drawing merchandise by family members during
the current year amounted to RM600.

7) Total cash sales for the year was RM159,000 while cash receipts from the receivables
amounted to RM11,200.

8) Information relating to fixed assets is as follows:

Assets Depreciation Method Cost Value Book Value
(RM) (RM)
Vehicles 20 percent of book value 200,000 120,000
Furniture 10 percent of cost 12,000 9,600
Office Equipment 15 percent of cost 10,000 7,000

No residual value of all fixed assets.

9) The inventory value on 28 February 2015 is RM8,000.

10) Payment using checks for the year are:

Expenses Total
(RM)
Payment to suppliers 100,000
Utilities expense 3,000

11) Miscellaneous expense RM4,000 is paid in cash.

REQUIRED:
(i) Show cash account and bank account for the year ending 28 February 2015.

(Answer: Balance c/f RM500, RM500)
(ii) Show the Statement Profit or Loss for the year ended 28 February 2015.

(Answer: Net profit RM66,830)

QUESTION 8 (PSPM 2016/2017)
On 1 January 2015, a beginning balance for Perniagaan Chempaka as follow:

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

On 31 December 2015, balance for Perniagaan Chempaka as follow:

Accounts RM
Bank 110,000
Account Receivable 34,000
Prepaid Insurance 5,000
Inventories 57,000
Equipment 46,000
Accumulated Depreciation – Equipment 18,700
Land 50,000
Account Payable 38,000
Accrued Salaries Expense 8,250
Loan 50,000
Drawings 13,000

REQUIRED:
(i) Calculate beginning capital on 1 January 2015. (Answer: RM120,000)
(ii) Calculate net profit or loss for the year ended 31 December 2015.

(Answer: Net profit RM80,050)

QUESTION 9 (PSPM 2017/2018)
Mustaqim, a small proprietor, operates a grocery store named Perniagaan Mustaqim in
Seremban. He did not keep a complete business records. However, he keeps a cash book
which he considered adequate since most of his business transactions are on cash basis. The
following summary was obtained from his business cash book for the year ended 31
December 2016.

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

RM RM

Beginning balance 5,800 Purchases 10,000

Sales 20,000 Salary expense 1,000

Additional investment by Musaqim 1,000 Rent expense 2,500

Collection of accounts receivable 1,500 Utility expense 800

Miscellaneous expense 1,100

Freight out 1,500

Drawings 2,000

Purchase of equipment 500

Purchase of refrigerator 3,000

Ending balance 5,900

28,300 28,300

Additional information:
1. On 1 January 2016, the assets of Perniagaan Mustaqim are as follows: inventory,

RM2,500; equipment, RM1,500; account receivable, RM1,600 and cash, RM5,800.
2. On 31 December 2016, the balance of the inventory was RM3,000 and the accounts

receivable was RM1,800.
3. The annual depreciation rates for the equipment were 10% and the refrigerator was 5%

per annum using the straight line method.
4. A customer, who was declared bankrupt, was unable to pay his debt of RM450.

REQUIRED:
(i) Show the Statement of Profit or Loss Perniagaan Mustaqim for the year ended 31

December 2016. (Answer: Net profit RM4,950)
(ii) Show the Statement of Financial Position Perniagaan Mustaqim at 31 December 2016.

(Answer: RM15,350)

QUESTION 10 (PSPM 2018/2019)
Cik Nurbayu, the owner of Perniagaan Tudung Titiwangsa, did not keep complete business
records. The financial records on 1 January 2017 showed the following balances:

Cash RM Accounts receivable RM
Equipment 8,500 Accounts payable 6,400
Inventory 2,600 Building 5,350
Prepaid insurance 4,800 Salary payable
3,900 30,000
3,500

Transaction in Cash Book on 31 December 2017 are as follow:

2017 Cash Book RM
RM 2017
Dec. 31 Sales 2,650
Accounts receivable 15,600 Dec. 31 Drawings 4,560
Loans 6,800 Accounts payable 1,200
Utility expensei 8,650
10,000 Salary 6,450
Purchases 1,500
Equipment

Additional information: RM Accounts receivable RM
1. Balances on 31 December 2017: ? Accounts payable 4,200
Building 6,350
Cashi 2,900 Salary payable
Equipment 5,200 30,000
Inventory 2,900 280
Prepaid insurance

2. Discount received from supplier was RM250.
3. Interest on loans not yet recorded was RM380.

REQUIRED:
(i) Prepare the accounts receivable control account and account payable control account.

(Answer: Sales RM4,600, Purchase RM5,810)
(ii) Prepare the Statement of Profit or Loss for Perniagaan Tudung Titiwangsa for the year

ended 31 December 2017. (Answer: Net loss RM620)

QUESTION 11 (PSPM 2019/2020)
The following information is obtained from Perniagaan Matahari for the year ended 31
December 2018:

Cash receipt RM Cash payment RM
Sales 19,800 Puchase 4,750
Account Payable 500
Drawing 300
Salaries Expensei 6,000
Rental Expense 1,400
Utilities Expense 1,000

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

1 January 2018 31 December 2018

Equipment (Cost) 5,630 5,630

Cash 12,780 ??

Inventoryi 0 1,500

Account Payable 750 1,160

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

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

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

(Answer: Net profit RM5,757)
(ii) Prepare Statement of Financial Position as at 31 December 2018.

(Answer: RM28,897)