TRIAL PSPM 1 - ACCOUNTING DAY OUT

ACCOUNTING 1 ( AA015)
SEMESTER 1 , SESI 2020/2021
KOLEJ MATRIKULASI KELANTAN
DURATION : 1 HOUR 30 MINUTES

Kindly answer all the question.

1. What would be the adjusted bank balance as at 31 Dec 2020 if the deposit in transit is RM18,240
and outstanding cheque is RM21,590, while the bank balance as recorded in the bank statement
was RM9,480?

A. RM12,830
B. RM6,130
C. RM49,310
D. RM30,350

2. A company recorded its cheque number MY212223 about payment to supplier in its accounting
records as RM98. However, cheque number MY21223 was actually written for RM89 and it is
cleared by bank as RM89. What adjustment needed to the cash balance per cash book?

A. Decrease by RM9
B. Increase by RM89
C. Increase by RM9
D. None Needed

3.
LOKI Bank Bhd
Bank Statement
Acc. No : 1010 1115
SUN Enterprise
5522
Date : 31 May
2020
Cheque Debit Credit Balance
Date Details
No. RM RM RM
2019
May 1 Balance 7220
2 Cheque 2112 790 6430
11 Auto Debit 560 5870

According to the bank statement, auto debit was not recorded in cash book. What is the possible
accounting entries to record the transaction?
 A. Dr. Account Receivable, Cr. Bank
B. Dr. Bank, Cr. Account Payable
C. Dr. Bank, Cr. Dividend Revenue
D. Dr. Insurance Expense, Cr. Bank

4. The company received the bank statement on 30 June 2020 with the balance of RM5,300. The
opening balance for both bank statement and cash book are the same. During the month, the
following differences found :

i. Service charge was not recorded in cash book RM25

ii. Outstanding cheque RM930
iii. Interest revenue from bank RM50
iv. Deposit in transit RM540

What is the ending balance for cash book?

A. RM4,885
B. RM4,910
C. RM4,985
D. RM4,810

5. Strawbery Choc Company gathered the following reconciling information in preparing its October
bank reconciliation:

Cash balance per books, October 31 RM 15,900

Deposits in transit 900
Notes receivable and interest collected by bank 8,400
Bank charge for cheque printing 120
Outstanding cheque 12,000
NSF cheque 1,200
The adjusted cash balance per books on October 31 is
A. RM10,980.
B. RM11,880.
C. RM22,980.
D. RM23,880.

6. Net sales for the month are RM 800,000; bad debts are expected to be 1.5% of net sales. The
company uses the percentage of sales basis. If the Allowance for Doubtful Debt account has a credit
balance of RM 15,000 before adjustment, what is the BALANCE after adjustment?
A. RM 15,000
 B. RM 27,000
C. RM 12,000
D. RM 23,000
7. A business on June 15 sells merchandise on account to Remly Sdn Bhd for RM 1,000, terms 2/10,
n/30. On June 20, Remly returns merchandise worth RM 300. On June 24, payment is received from
Remly for the balance due. What is the amount of cash received?
A. RM 700
B. RM 680
C. RM 686
D. None of the above

8. In 2019, Trendy Sdn Bhd had net credit sales of RM 750,000. On January 1, 2019, Allowance for
Doubtful Debt accounts had a credit balance of RM 18,000 and Accounts Receivable with debit
balance of RM 600,000. During the year, RM780,000 is collected from receivables. Trendy uses 2%
on Accounts Receivable in allocating current year doubtful debt.
What should be the adjusted balance of Allowance for Doubtful debt account as at 31st December
2019?
A. RM 15,000
B. RM 11,400
C. RM 15,600
D. RM 27,000
9. House Sport sells Volleyball equipment. On November 14, they shipped RM4,000 worth of volleyball
uniforms to Kolej Matrikulasi Kelantan, terms 2/10, n/30. On November 21, they received an order from
Kolej Matrikulasi Johor for RM1,500 worth of custom printed ball to be produced in December. On
November 30, Kolej Matrikulasi Kelantan returned RM200 of defective merchandise. House Sport has
received no payments from either school as of month end. What amount will be recognized as net accounts
receivable on the balance sheet as of November 30?
A. RM3,800
B. RM4,000
C. RM5,300
D. RM5,500

10. Valli Company uses the percentage of sales method for recording bad debts expense. For the year, cash sales
are RM700,000 and credit sales are RM2,500,000. Management estimates that 1% is the sales percentage to
use. What adjusting entry will Valli Company make to record the bad debts expense?
A. Bad Debt Expense 32,000
Allowance for Doubtful Accounts 32,000
B. Bad Debt Expense 25,000
Allowance for Doubtful Accounts 25,000
 C. Bad Debt Expense 25,000
Accounts Receivable 25,000
D. Bad Debt Expense 32,000
Accounts Receivable 32,000

11. Syarikat Ke Ef Ci purchased merchandise for the year 2020. The purchases were made at the
following costs:

Beginning inventory of 20 units at RM10 per unit

Mac 25, 2020 40 units at RM11 per unit
June 20, 2020 40 units at RM12 per unit
October 10, 2020 50 units at RM13 per unit

Syarikat Ke Ef Ci practices periodic inventory system. 40 units were sold for the year
of 2020. First In First Out (FIFO) method is applied.

Compute the costs of goods sold.

A. RM 200
B. RM 420
C. RM1 350
D. RM1 570

12. SME Bookstore had 500 units on hand at January 1, costing RM 9 each. Purchases and sales during the
month of January were as follows:
Date Purchases Sales
Jan. 14 380 @ RM15
17 250 @ RM10
25 250 @ RM12
29 260 @ RM17

SME DOES NOT maintain perpetual inventory records. According to a physical count, 365 units were on hand
at January 31.
The cost of the inventory at January 31, under the FIFO method is:
A. RM3,240.
B. RM3,650.
C. RM4,100.
D. RM3,820.

13. At May 1, 2020, AEON Company had beginning inventory consisting of 200 units with a unit cost of RM7.
During May, the company purchased inventory as follows:

800 units at RM7

500 units at RM9
 The company sold 500 units during the month for RM12 per unit. AEON uses the average cost method. The
value of AEON’s inventory at May 31, 2020 is
A. RM 6,400.
B. RM 7,667.
C. RM 5,600.
D. RM 4,333.

14. At May 1, 2020, LOTUS Company had beginning inventory consisting of 200 units with a unit cost of
RM7. During May, the company purchased inventory as follows:

800 units at RM7

500 units at RM9
The company sold 500 units during the month for RM12 per unit. LOTUS uses the average cost method.
LOTUS’s gross profit for the month of May is
A. RM2,167.
B. RM2,000.
C. RM1,500.
D. RM4,333.

15. A company just starting business made the following four inventory purchases in June:

June 1 150 units RM 390

June 10 200 units 598
June 15 200 units 630
June 28 150 units 510
RM 2,128
A physical count of merchandise inventory on June 30 reveals that there are 200 units on hand. Using
the FIFO inventory method, the amount allocated to cost of goods sold for June is
A. RM540.
B. RM668.
C. RM1,460.
D. RM1,588.

16. Erina Sdn Bhd purchased equipment and incurred the following cost :

Cash price RM24,000

Sales taxes RM 1,200
Insurance during transit RM 200
Installation and testing RM 400
Total costs RM25,800

What amount should be recorded as the cost of the equipment?

A. RM 24,000
B. RM 25,200
C. RM 25,400
D. RM 25,800
 17. On July 1, a machine with a useful life of 5 years and a residual value of RM 8,000 was purchased
for RM 160,000. What is the depreciation expense in year 2 under straight line method?
A. RM 30,400
B. RM 15,200
C. RM 25,920
D. RM 34,000

18. Vehicle that cost RM80,000 and has accumulated depreciation of RM60,000 is sold for RM12,000.
The journal entry would include a
A. Debit to Loss on Disposal RM20,000.
B. Debit to Loss on Disposal RM8,000.
C. Credit to Gain on Disposal RM8,000.
D. Credit to Accumulated Depreciation RM60,000.

19. A company decides to exchange old equipment with a book value of RM81,000 (RM150,000 cost
less accumulated depreciation of RM69,000) plus RM129,000 cash for new equipment (similar asset).
The trade in value of the old equipment is RM90,000. The entry to record the new equipment would
include a debit to

A. Equipment (new) for RM210,000.

B. Equipment (old) for RM150,000.
C. Equipment (new) for RM9,000.
D. Equipment (new) for RM219,000.

20. ABC Sdn Bhd has a photostate machine with the costs RM45,000 and has accumulated depreciation
of RM44,000. The company decide to sell the machine to other company with the price of RM 2,000.

What is the result of the disposal transaction?

A. No gain or loss
B. Gain on disposal RM1,000
C. Loss on disposal RM1,000
D. Loss on disposal RM2,000

21.On January 1, 2020, ELON JAYA Company, a calendar-year company, issued RM1,600,000 of notes
payable, of which RM400,000 is due on January 1 for each of the next four years. The proper balance sheet
presentation on December 31, 2020, is
A. Current Liabilities, RM1,600,000.
B. Long-term Debt, RM1,600,000.
C. Current Liabilities, RM800,000; Long-term Debt, RM800,000.
D. Current Liabilities, RM400,000; Long-term Debt, RM1,200,000.

22. On October 1, 2020, DoRaMo Company issued an RM800,000, 10%, nine-month interest-bearing note. If
the DoRaMo Company is preparing financial statements at December 31, 2020, the adjusting entry for
accrued interest will include a:
A. Credit to Notes Payable of $20,000.
B. Debit to Interest Expense of $20,000
C. Credit to Interest Payable of $40,000.
D. Debit to Interest Expense of $30,000.
23. WANDA General Store has total receipts for the month of RM45,990 including sales taxes. If the sales tax
rate is 5%, what are WANDA's sales for the month?
A. RM43,691
B. RM43,800
C. RM48,290
D. It cannot be determined.

24. BORRIS Company borrowed RM 800,000 from NOV Bank on January 1, 2019 in order to expand its
mining capabilities. The five-year note required annual payments of RM208,349 and carried an annual
interest rate of 8.5%. What is the amount of expense BORRIS must recognize on its 2020 income
statement?
A. RM68,000
B. RM56,070
C. RM43,127
D. RM49,659

25. Autumn Company purchased a building on January 2 by signing a long-term RM630,000 mortgage with
monthly payments of RM5,400. The mortgage carries an interest rate of 10 percent.
The entry to record the first monthly payment will include a
A. Debit to the Cash account for RM5,400.
B. Credit to the Cash account for RM5,250.
C. Debit to the Interest Expense account for RM5,250.
D. Credit to the Mortgage Payable account for RM5,400.

26.Sharukh Khan Company compiled the following financial information as of December 31st 2020:

Service Revenues RM150,000

Owner’s Equity (01/01/2020) RM120,000

Motor Vehicle RM80,000

Operational Expenses RM180,000

Notes Payable RM50,000

Bank RM90,000

Drawings RM20,000
Bank Loan RM 70,000

Supplies RM40,000

Accounts Payable RM40,000

Accounts Receivable RM80,000

The owner's equity on December 31st 2020 is

 A. RM130,000
B. RM180,000
C. RM200,000
D. RM260,000

27. Accounts Receivable on 31 December 2020 RM140,000

Accounts Receivable on 1 January 2020 RM70,000

Cash Received From customer RM90,000
Sales Discount RM3,000
Purchase Discount RM4,000
Bad Debt Write Off RM2,000
Payment to supplier RM45,000

Calculate total credit sale for 2020.

A. RM 119,000
B. RM 120,000
C. RM 165,000
D. RM 169,000

28. Here is the information of a retailer who does not keep his accounting records according to the double
entry system for the year ended 31 December 2020.
RM
Prepaid Salary as at 1 January 2020 220
Cash payment for salary 1400
Salary payable as at 31 December 2020 1100

Calculate utilities expense for the year ended 31 December 2020.

A RM 80
B RM1,510
C RM1,730
D RM2,280

29. ADIL is a sole trader who does not keep full accounting records. The following details relate to his
transactions with credit customers and suppliers
 for the year ended 31st August 2020.

RM

Accounts receivables, 1st September 2019 4,000

Accounts payables, 1st September 2019 6,000
Cash received from customers 400,000
Cash paid to suppliers 360,000
Sales Discount 4,000
Purchase Discount 7,200
Accounts receivables 31st August 2020 10,000
Accounts payable 31st August 2020 14,000

What figure should appear in ADIL’s statement of profit or loss for the year ended 31st
August for purchase ?
A. 410,000
B. 375,200
C. 406,000
D. 413,200
30. Puan. Nurhaliza did not keep the account book completely. The following information was obtained on 31
December 2020.

2020 RM
January 1 Unearned Rental Revenue 560
Received Cash For Rental From Customer 1080
December 31 Accrued Rental Revenue 320
What is the total amount of rental revenue recorded in the Income Statement for the year ended 31
December 2020
A RM 200
B RM840
C RM1,320
D RM1,960