ACCOUNTING. From the following information provided by the proprietor of the business, Jeremy, you are required to prepare:

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Darlene Simmons
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1 Question 1 From the following information provided by the proprietor of the business, Jeremy, you are required to prepare: a. Trading and Profit and Loss Account for the year ended 31 December 20x1 (13 marks) b. Balance Sheet as at that date (12 marks) Advertising Bad Debts 300 Bank Overdraft 2,400 Cash on Hand 100 Carriage Inwards 66 Drawings Jeremy Discount Allowed Discount Received Furniture & Fittings General Expenses Interest Expenses Insurance Expense Land & Buildings Mortgage on Premises Motor Cars & Trucks Purchases Repairs to Buildings Sundry Debtors Sundry Creditors Stock at 1 January 20x1 Stock at 31 December 20x1 Sales Wages & Salaries (Total 25 marks) RM 504 8,000 1, , ,600 3,840 9,200 61, ,200 13,188 15,170 14,976 98,370 17,070 Page 1 of 5

2 Question 2 Sally keeps her petty cash book on the imprest system. The imprest figure was set at RM500. On 1 December 20x1 the balance of petty cash brought forward was RM115. The following transactions took place during December 20x1: 20x1 Dec 1 Drew cash from bank to restore the imprest 3 Bus fare RM12 5 Paid RM18 to Peter this was to refund an overpayment on his account in the sales ledger 7 Stamps RM33 11 Motor vehicle repairs RM34 13 Stationery RM47 16 Petrol RM30 17 Postage stamps RM30 19 Train fare reimbursed RM40 21 Petrol RM60 24 Stationery RM41 26 Miscellaneous expenses RM25 29 Parcel post charges RM20 31 Travelling expenses RM32 Required: Draw up Sally s petty cash book, using the following analysis columns: Postage Travelling expenses Motor vehicle expenses Stationery Miscellaneous expenses Ledger accounts Balance the account at 31 December 20x1, bring down the balance of cash in hand at that date, and show the amount of cash drawn from the bank to restore the imprest on 1 January 20x2. (25 marks) Page 2 of 5

3 Question 3 Joe commenced business as a dealer selling stationery. The following transactions took place during the month of December 20x1. December 1 Commenced business with cash in hand RM5,000 and cash at bank RM15,000 3 Purchased goods by cheque 5 Cash sales 7 Purchased goods on credit from Cam Trading 10 Sold goods on credit to Karim 12 Returned goods to Cam Trading as goods supplied are of different specifications 20 Withdrew cash from bank for personal use 24 Bought furniture by cheque 26 Withdrew goods for personal use 27 Paid wages in cash RM 5,000 1,500 3,500 1, ,200 1, Required: Record the general journal entries in the books of Joe. (20 marks) Page 3 of 5

4 Question 4 You are required to record the transactions in the three-column-ledger. Transactions for December 20x1: Dec 1 Started business with cash in hand RM1,000 and cash at bank RM2,000 4 Bought goods, RM1,000 from Perniagaan Mat 5 Returned damaged goods to Perniagaan Mat, RM Sold goods for cash RM Received an invoice from Perniagaan Sri Bahagia, RM1,000 for goods bought. 15 Paid Perniagaan Sri Bahagia, RM900 by cheque. 20 Mr Tan withdrew RM100 cash for personal use. 26 Sold goods for cash RM Sold goods and received cheque RM2, Settle amount owed to Perniagaan Sri Bahagia in full, by cheque. (20 marks) Page 4 of 5

5 Question 5 a. Which of the following items is not a basic accounting element? A. expense B. liability C. owner's equity D. asset b. Which of the following is not an accounting transaction? A. goods destroyed by fire B. owner withdraws cash for own use C. credit purchase from supplier D. order accepted and contract signed c. Which of the following errors can be detected by trial balance? A. a repeat posting for the double entry B. omission of a debit or credit amount C. using of wrong class of account D. addition in same amount for the double entry d. Which of the following errors cannot be detected by trial balance? A. omission of a debit or credit entry in posting B. wrong addition of debit and credit in trial balance C. omission of an account from trial balance D. reversal of debit and credit entries e. The debit and credit in accounting mean A. debit is in left-hand side, credit is in right-hand side B. debit is asset, credit is liability C. debit is owing by, credit is owing to D. debit is owing to, credit is owing by (Total 10 marks) 000 Page 5 of 5

FINANCIAL ACCOUNTING II

FINANCIAL ACCOUNTING II Question 1 You have been asked to sort out the accounts of a client - Mr Soh, a trader. You collect the following information in respect of the year ended 31st December 2006: Assets and Liabilities at