ACCOUNTING 1

AA015
SESSION 2021/2022

CHAPTER 3 : ACCOUNTING CYCLE

Question 1
The following is some information for Perniagaan Albab for the month of April 2021:
1. The owner, Mai Li, invests RM40,000 in cash in starting a real estate office
operating as a sole proprietorship.

2. Purchased RM500 of supplies on credit.

3. Purchased equipment for RM9,000, paying RM4,000 in cash and signed a 30-day,
RM5,000, note payable.

4. Real estate commissions billed to clients amount to RM4,000.

5. Paid RM800 in cash for the current month’s rent.

6. Paid RM200 cash on account for supplies purchased in transaction 2.

7. Paid for RM600 for advertising for the current month.

8. Paid RM2,500 cash for office salaries and wages.

9. Li withdrew RM1,800 from the business for living expenses.

10. Received a cheque for RM2,500 from a client in payment on account for
commissions billed in transaction 4.

REQUIRED:

Journalise the following business transactions in general journal form. Identify each
transaction by number. You may omit explanations of the transactions.
 ACCOUNTING 1
AA015
SESSION 2021/2022

Question 2

During the month of December 2020, Kemboja Enterprise had completed the following
transactions:

Brought in a vehicle of RM10,000 and cash of RM5,000 into the business.

Dec
1
2 Purchased merchandise goods from Mawar Supplies of RM5,000 with credit
terms of 2/15, n/30.

3 Paid the shop rent in December for cash, RM2,000.

4 Sold merchandise goods for cash, RM9,000.

7 Paid debts in full to Mawar Supplies, less discount.

Sold merchandise goods to Cempaka Enterprise, RM2,500, terms 1/10,

12 n/30.

15 Issued a credit memo to Cempaka Enterprise of RM100 for goods returned.

17 Sold merchandise goods to Rose Shop, RM3,400, terms 2/15, n/30.

19 Bought merchandise goods from Raya Sundries, RM5,000, terms 2/10,

n/30.

20 Cempaka Enterprise settled their debts of RM 1,000 by cheque.

22 Issued a cheque of RM 300 for personal use.

25 Issued a cheque to purchase office furniture of RM 3,000.

REQUIRED:
Record the above transactions into the appropriate journals.
 ACCOUNTING 1
AA015
SESSION 2021/2022

Question 3

The following is some information for Perniagaan Brilliant for the month of October
2020:
Balance as at October 1, 2020:
Accounts Payable Subsidiary Ledgers :
Tariq Store RM 1,500
Gerai Enterprise RM 2,500
General Ledger:
Control Accounts Payable RM 4,000
Transactions during the month of October 2020 were as follows:

Date Transactions

Oct 2 Brought in the owner’s vehicle into the business worth RM 20,000 and
cash of RM 10,000.

4 Purchased merchandise goods from Gerai Enterprise worth RM 1,500 on

credit terms of 2/10, n / 30

8 Purchased merchandise goods from Tariq Store, RM 8,000, on credit

terms,2/15, n / 30

11 Settled debts for merchandise purchased on October 4, with transport

charges of RM 100, by cheque

14 Purchased more merchandise goods from Tariq Store with the same credit
terms for RM 2,000.

22 Paid half of the debts for the transaction on October 8, by cheque

28 Paid utility expense of RM 300 in cash

30 Making cash withdrawals of RM 250 for own use.

REQUIRED:
a. Record all the transactions in the purchases journal and cash payments journal,
where appropriate

b. Prepare control accounts and subsidiary ledgers in the column form.

 ACCOUNTING 1
AA015
SESSION 2021/2022

Question 4

Shown below is the information extracted from the book of Utarid Merchandise for
March 2020:
Balance as at March 1, 2020:

Accounts Receivable Subsidiary General Ledger:

Ledgers:
Bumi Enterprise RM 1,500 Accounts Receivable Control Account RM
Zuhrah Enterprise RM 2,300 3,800
Accounts Payable Subsidiary Ledgers: General Ledger:
Marikh Enterprise RM 1,500 Accounts Payable Control Account
Zuhal Enterprise RM 2,500 RM 4,000

During the month of March 2020 these transactions had taken place:

Date Transactions

Mar 2 Brought home furniture into the business, RM 20,000, and cash RM 10,000.
4 Sold merchandise goods for RM 4,000 to Zuhrah Enterprise, invoice no.007,
terms 2/10, n / 30.
8 Purchased merchandise goods from Zuhal Enterprise worth RM 1,500, credit
terms 2 /10, n /30.
10 Returned RM200 of merchandise goods purchased on March 8 from Zuhal
Enterprise, for not meeting the required specifications.
11 Sold merchandise goods of RM750 to Zuhrah Enterprise with terms 2 /10, n
/30.
14 Purchased goods from Marikh Enterprise, RM 8,000, terms 2/15, n /30.

19 Paid all debts to Zuhal Enterprise in cash.

22 Sold goods to Bumi Enterprise, RM 3,000, that would be paid next month.
30 Purchased more goods from Marikh Enterprise of RM 2,000 on credit
terms 2/15, n / 30.

REQUIRED:

a. Record all the transactions in the sales journal, purchases journal, cash receipts
journal, cash payments journal and the general journal, where appropriate.

b. Prepare control accounts receivable and accounts receivable subsidiary ledgers in

the form of T accounts.

c. Prepare accounts payable control account and accounts payable subsidiary ledgers
in the form of T accounts.
 ACCOUNTING 1
AA015
SESSION 2021/2022

Question 5:

Perniagaan Bina D’Rumah (PBD) is selling household appliances. The following

transactions were extracted from PTB’s book on May 1, 2020.

Accounts RM
Cash 18,000
Accounts receivable– Seraya Sdn Bhd 9,500
Office equipment 11,500
Accounts payable- Cengal Sdn. Bhd 3,000
Capital 30,000
Loan 6,000

Transactions occurred during the month of May 2020:

Date Transaction
May Sold merchandise goods, RM12,000, to Merbau Enterprise with terms
2 2/10, n / 30.
4 Received payment from Seraya Sdn Bhd to settle all debts.
6 Purchased merchandise goods RM8,000 on credit from Meranti
Enterprise with terms 2/10,n/30.
9 Paid transportation costs RM700 for the sale on May 2, 2020
10 Settled all debt to Cengal Sdn. Bhd
11 Received a payment from Merbau Enterprise for the sale on May 2,
2020
13 Purchased shop furniture RM3,800 on credit from Perabot D’Cantek
15 Returned damaged goods purchased from the Meranti Enterprise
RM900.
17 Settled all debts to Meranti Enterprise.

20 Purchased merchandise goods for cash, RM5,400,from Usaha Jaya

Supermarket.
23 Sold merchandise goods RM3,500 to Zaara Shop
25 Paid the employee's salaries of RM1,800.
27 Purchased merchandise goods of RM9,500 from Nyatoh Enterprise.
30 Paid shop rental of RM1,500 for the month of May 2020
REQUIRED:

a. Record all the above transactions to the sales journal, purchases journal, cash
receipts journal, cash payments journal and the general journal (description omitted).
b. Prepare a Trial Balance for PTB as at May 31, 2020.
 ACCOUNTING 1
AA015
SESSION 2021/2022

Question 6

Zaara Trading started a business selling electrical goods such as television sets, radios,
video recorders and mini compos on January 1, 2020. All of these transactions
occurred in January 2020.

Jan Deposited RM10,000 as a starting capital into the bank.

4 Bought furniture shop on credit from Berani Gagal Bhd for RM1,500.

5 Bought electrical goods on credit from Usaha Jaya Bhd,RM30,500,credit terms

2/15,n / 60

10 Returned goods,RM500, to Usaha Jaya Bhd for sending the wrong stuff.

13 Sold electrical goods for cash, RM5,300.

14 Sold electrical goods, RM28,000, to Klick Comey Studio, credit terms 5/10, n/30.

16 Paid 1/3 of the total debt to Usaha Jaya Bhd by cheque.

17 Klick Comey Studio returned damaged goods, RM400.

18 Bought electrical goods for cash RM3,400.

19 Took a television set worth RM1,600 from the store for family use.

23 Klick Comey Studio settled his debts of RM10,000 by cheque.

29 Paid workers with cash, RM500.

REQUIRED :

a. Record all the transactions in the appropriate journals.

b. Post all the journals to general ledgers and related subsidiary ledgers.

c. Prepare a Trial Balance as at January 31, 2020.

 ACCOUNTING 1
AA015
SESSION 2021/2022

Question 7

Shown below are the account balances of Premier Trading on December 31, 2020.

Accounts RM
Capital 17,075
Cash On Hand 629
Inventory as at Jan 1, 2020 500
Purchases 3,500
Sales 6,000
Salary Expenses 1,800
Sales Returns 25
Purchases Returns 20
Sales Discounts 100
Purchases Discounts 80
Rent Expenses 1,138
Photostat and Utilities Expenses 162
Freight In 120
Miscellaneous Expenses 812
Accounts Receivable 2,050
Accounts Payable 1,080
Furniture 2,840
Van 3,000
Cash In Bank 7,579
Additional information; Ending inventory as at December 31, RM300.

REQUIRED:

a. Prepare Trial Balance as at December 31, 2020.

b. Prepare Profit or Loss Statement for the year ended December 31, 2020

c. Prepare Owner Equity Statement for the year ended December 31, 2020

d. Prepare Financial Position Statement as at December 31, 2020.

 ACCOUNTING 1
AA015
SESSION 2021/2022

Question 8

Shown below are the Trial Balance of Zyza Trading on December 2020.

Accounts Debit Credit (RM)

(RM)
Capital 41,500
Cash 20,350
Merchandise Inventory as at January 2019 10,000
Purchases 106,850
Sales 150,000
Salary Expenses 13,065
Sales Returns and Allowances 7,500
Purchased Returns and Allowance 3,750
Rent Expenses 7,250
Insurance Expenses 325
Drawings 2,775
Maintenance expense 5,750
Account Receivable 14,125
Account Payable 6,000
Furniture 10,000
Office Equipment 20,000
Office supplies 825
Overdraf 315
Loan 17,250
Total 218,815 218,815

Ending Inventory as at 31 December 2020 are valued at RM17,750

REQUIRED

a. Prepare a Profit or Loss Statement for the year ended, 2020.

b. Prepare an Owner’s Equity Statement as at December 31, 2020

c. Prepare a Financial Position Statement of as at December 31, 2020.

 ACCOUNTING 1
AA015
SESSION 2021/2022

Question 9
The following information is taken from the book of Hazelcare Business (HB) on
May 31, 2020:

Accounts (RM)
Purchases 234,670
Sales 398,780
Opening Inventories 32,890
Purchases Returns 1,280
Sales Returns 1,870
Freight Out 1,670
Freight In 1,327
Sales Discounts 1,450
Purchases Discounts 1,760
Salary Expenses 27,825
Customs Duties 1,124
Insurance Expenses 3,450
Rent Revenue 6,230
Interest Expenses 1,200
Maintenance Expenses 8,165
Drawings 709
Cash 14,930
Accounts Receivable 13,450
Accounts Payable 18,380
Long-Term Loans 20,000
Capital 148,000
Vehicles 160,800
Office Equipment 88,900

Additional Information:-
Ending inventories are valued at RM31,890.

REQUIRED:

a. Prepare a Profit and Loss Statement for the year ended May 31, 2020.

b. Prepare a Financial Position Statement as at May 31, 2020.