KOLEJ MATRIKULASI KEDAH

ACCOUNTING 1 - AA015
SESSION 2021/2022
TRIAL PSPM

THIS PAPER CONSISTS OF 30 QUESTIONS.

TIME: 1 HOUR 30 MINUTES

Please answer all the question given.

1. Sofy Sdn. Bhd. gathered the following reconciling information in preparing its
July bank reconciliation:
Cash book balance at 31 July RM 33,500
Deposits in transit 2,200
Account receivable collected by bank 5,200
Bank charge for cheque book 50
Outstanding checks 7,250
NSF check (from customer) 580
The adjusted cash book balance on July 31 is
A RM33,020 B RM28,450
C RM39,230 D RM38,070

2. Happy Sun Sdn. Bhd. had checks outstanding totaling RM19,200 on its June
bank reconciliation. In July, Happy Sun Sdn. Bhd. issued checks totaling
RM88,900. The July bank statement shows that RM81,500 in checks cleared the
bank in July. A check from one of company’s customers in the amount of
RM3,300 was also returned marked "NSF." The amount of outstanding checks
on July bank reconciliation of Happy Sun Sdn. Bhd. should be
A RM7,400 B RM23,300
C RM26,600 D RM29,900

3. The following information is March bank reconciliation of Heak Seng Sdn. Bhd.:
Balance per bank statement RM7,640
Outstanding checks RM1,700;
Deposits in transit RM2,600;
NSF check RM130 (from customer);
Bank service charge RM40;
Cash balance per books RM8,710.
As a result of this reconciliation, the company will

A reduce its bank account by RM40.

B reduce its bank account by RM170.
C reduce its bank account by RM900.
D increase its bank account by RM90.

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4. If a check correctly written and paid by the bank for RM854 is incorrectly
recorded on the company’s books for RM845, what is the adjusting entry to
make the correction?

A Dr. Account payable RM9

Cr. Bank RM9

B Dr. Bank RM9

Cr. Account payable RM9

C Dr. Cash RM9

Cr. Bank RM9

D Dr. Bank RM854

Cr. Account payable RM854

5. The cash book balance was RM41,250 before reconciliation. The bank
statement does not include outstanding cheque of RM7,150 made on the last
day of the month. The bank statement shows a collection by the bank of
RM2,960 and a customer’s check for RM1,100 was returned because it was
NSF. A customer’s check for RM1,380 was wrongly recorded at credit side on
the company’s book, and a check written for RM318 was recorded as RM381.
The adjusted balance in the cash book was
A RM45,933. B RM44,553.
C RM44,427. D RM41,793.

6. Aniq Amzar Resources has the following balance on January 1 2020.

Accounts Receivable RM74,000
Allowance for Doubtful Accounts RM8,200

For the year ended December 31 2020, the following information were obtained:
Total sales (including cash sales 30%) RM700,000.
Payment by debtors RM340,000
Sales return RM7,900
Bad Debts written off RM3,000
It is the business policy to provide 2% allowance for doubtful debts on the
accounts receivable balance at the end of the year.
What is the amount of sales to be debited in the accounts receivables?

A RM210,000 B RM484,400
C RM490,000 D RM700,000

7. Flamingo Company show the net sale for the year is RM1,300,000 and bad
debts are expected to be 1.7% of net sales. The company uses the percentage-
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 of-sale basis. If the allowance for doubtful debts account is credit balance of RM
5,800 before adjustment, what is the balance after adjustment?
A RM5,800 B RM16,300
C RM22,100 D RM27,900

8. Handsome Sdn. Bhd. unadjusted trial balance includes the following normal
balance:
Accounts Receivable (before write off) RM740,000.
Allowance for Doubtful Accounts RM14,400
Bad debts written off RM7,800
Bad debts are estimated to be 5% of balance accounts receivable. What is the
amount of bad debt expense will the company record?
A RM22,100 B RM22,600
C RM30,010 D RM30,400

9. At the year-end 2020, Daniel Darwish Trading (DDT) has a accounts receivable
balance of RM130,000 and allowance for doubtful debts of RM6,000. He wishes
to write off an uncollectible debt of RM1,700 in respect of his debtor which had
been death. DDT wishes to maintain his allowance for receivables at 9% of
accounts receivable.
What balances will be shown in his statement of financial position at the year-end
for accounts receivable and the allowance for doubtful debts

A Accounts Receivable RM128,300; Allowance for Doubtful Debts RM7,247

B Accounts Receivable RM 128,300; Allowance for Doubtful Debts RM11,547
C Accounts Receivable RM 128,300; Allowance for Doubtful Debts RM
13,247
D Accounts Receivable RM 130,000; Allowance for Doubtful Debts RM
11,700

10. Accounts Receivables ending balance:

2019: RM280,000
2020: RM310,000
Allowance for doubtful debts ending balance:

2019: RM28,000
2020: RM31,000

What is Net Realizable value for Accounts Receivables should appear in the
Statement of Financial Position for 2020?

A RM279,000 B RM252,000
C RM282,000 D RM310,000
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11. Delightful Discs has the following inventory data:
Nov. 1 Inventory 30 units @ RM6.00 each
8 Purchase 120 units @ RM6.45 each
17 Purchase 60 units @ RM6.30 each
25 Purchase 90 units @ RM6.60 each

A physical count of merchandise inventory on November 30 reveals that there

are 100 units on hand.
Ending inventory under FIFO periodic inventory system is
A RM657.00 B RM631.50
C RM1,269.00 D RM1,295.00
12. Baker Bakery Company just began business and made the following four
inventory purchases in June:
June 1 150 units RM
1,04
0
June 1 200 units 1,560

June 1 200 units 1,680

June 2 150 units 1,320

RM5.600
A physical count of merchandise inventory on June 30 reveals that there are
210 units on hand. Using the FIFO periodic inventory method, the amount of
costs of goods sold for June is
A RM1,824 B RM1,508
C RM3,776 D RM4,092

13. Company Y has the following inventory data:

August 1 Beginning inventory 20 units at RM10 = RM200
8 Purchases 130 units at RM15=RM1,950
17 Sale 80 units
25 Purchases 30 units at RM20= RM600
30 Sale 60 units
Assuming that a periodic inventory system is used, what is ending inventory
(rounded to 2 d.p) under the average cost method for August?
A RM641.33 B RM611.11
C RM800.00 D RM500.00

14. Simpson Inc. purchased inventory as follows:

Jan. 5 500 units at RM10.00
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 Jan. 15 1,000 units at RM15.00
Jan. 25 200 units at RM20.00
What is the average unit cost of inventory?
A RM14.12 B RM15.00
C RM13.00 D RM15.83

15. The Boxwood Company sells blankets for RM60 each. The following was taken
from the inventory records during May. The company had no beginning
inventory on May 1.

Date Blankets Units Cost

May 3 Purchase 5 RM20
10 Sale 3
17 Purchase 10 RM24
20 Sale 6
23 Sale 3
30 Purchase 10 RM30

Assuming that the company uses the perpetual inventory system, determine
the COST OF GOODS SOLD for the month of May using the FIFO inventory
cost method.
A RM364 B RM372
C RM268 D RM292

16. The machine was purchase for RM25,000 by cash. The additional incurred
were transportation cost RM1,200, installation cost RM1800, yearly premium
insurance RM250
What is the amount to be debited to machine account?
A RM25,000 B RM26,200
C RM28,000 D RM28,250

17. Equipment with a cost of RM150,000 has an estimated salvage value of

RM30,000 and an estimated life of 4 years. It is to be depreciated by the
straight-line method. What is the amount of accumulated depreciation for the
second full year?
A RM30,000. B RM37,500.
C RM60,000. D RM75,000.

18. Top Copy Shop bought equipment for RM240,000 on January 1, 2019. Jack
estimated the useful life to be 10 years with no salvage value, and the reducing
balance method of depreciation will be used. What is the amount of
depreciation expense for 2020 if the depreciation rate is 20% per annum?
A RM21,600 B RM24,000.
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 C RM38,400. D RM48,000.

19. A plant asset with a cost of RM450,000 and accumulated depreciation of

RM350,000 is sold for RM120,000. What is the amount of the gain or loss on
disposal of the plant asset?
A RM20,000 loss. B RM20,000 gain.
C RM100,000 loss. D RM120,000 gain

20. A motor vehicle that cost RM144,000 was disposed of by trading-in a new
vehicle which costs RM160,000. The accumulated depreciation and the fair
value of the old vehicle were RM120,000 and RM36,000 respectively. The
entry to record this event would NOT include
A Debit motor vehicle RM160,000.
B Debit Accumulated Depreciation RM120,000
C Credit Motor vehicle RM144,000.
D Credit bank RM36,000.

21. Julie Co borrows RM88,500 on September 1, 2019 from Lotus Bank by

signing a 12%, 1-year note payable. What is the accrued interest at
December 31, 2019?
A RM2,655 B RM3,540
C RM4,425 D RM10,620

22. Reez Co. has total sales of RM145,000 under warranty. The company
estimates 1% of the sales might be returned by customer for repair. The
company has replaced the goods cost RM1,100 under warranty. What is the
amount of warranty expense that would be recorded?
A RM1,100 B RM1,439
C RM1,450 D RM2,550

23. Ramona ltd issued RM1,000,000 of 10%, 10 year bond on 1 April 2018. What
is the interest expense at the end of 2018
A RM100,000 B RM83,333
C RM75,000 D RM25,000

24. Morgan Company’s receipts for February amounted to RM38,160. If the

sales tax rate is 6%, what amount must be remitted to the state for
February's sales taxes?
A RM1,908 B RM2,289.60
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 C RM2,160 D RM36,000

25. West County Bank agrees to lend Drake Builders Company RM400,000 on
January 1. Drake Builders Company signs a RM400,000, 6%, 6-month note.
What is the adjusting entry required if Drake Builders Company prepares
financial statements on March 30?

A Interest Expense
12,00
12,000 0
Interest Payable….........................................
B Interest Expense
12,00
12,000 0
Cash …..........................................................
C Interest Expense 6,000
Interest Payable…......................................... 6,000
D Interest Payable 6,000
Interest Expense…....................................... 6,000

26. Azali Trading’s assets and liabilities as at 1 January 2020 are as follows:
RM
Van 20,000
Inventory 10,000
Account Receivable 500
Prepaid expense 100
Bank 40,000
Account payable 2,000

At the end of 2020, the assets and liabilities are as follows:

RM
Van 11,800
Fixtures 5,000
Inventory 8,400
Account Receivables 6,000
Account Payables 4,000
Bank 34,000

He had drawn RM1,000 in cash during the period. What was Azali Trading’s
profit or loss for the year?

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 A RM6,400 loss B RM6,400profit
C RM8,400 loss D RM8,400profit

27. Payments for insurance during the year, of RM21,900, includes an amount of
RM5,400 paid for a year ending four months after the Statement of financial
position date. The previous year prepaid insurance was RM900. What is the
insurance expense in the year?
A RM19,200 B RM21,000
C RM17,400 D RM51,000

28. Hisham started a business by investing RM10,000 into a business bank

account.
At the end of his first year’s trading he had earned a profit of RM5,000 and had
the following assets and liabilities:
Non-current assets RM20,000
Current assets RM15,000
Current Liabilities RM 8,000
During the year he had withdrawn RM2,000 from the business. How much
additional capital had he introduced in the year?
A  RM 20,000 B RM 24,000
C RM 10,000 D RM 14,000

29. The following information is related to account payable. Calculate the value of
purchases:

Opening balance RM142,600

Cash payment RM542,300
Discount received (purchase discount) RM 13,200
Purchase return RM 27,500
Closing balance RM137,800

A  RM302,600 B RM506,400
C RM523,200 D RM578,200

30 The following information is relevant to the calculation of the sales figure for
Alpha, a sole trader who does not keep proper accounting records:
Opening account receivables RM 29,100
Cash received from customer and bank-in RM381,600
Expense paid out from cash received before bank-in RM6,800
Bad debts written off RM7,200
Sales return RM2,100
Discount allowed to customer (sales discount) RM9,400
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 Cash sales RM112,900
Closing account receivables RM38,600

The figure which should appear in Alpha’s income statement for sales is:

A  RM525,300 B  RM511,700
C  RM529,500 D  RM510,900

END OF QUESTION PAPER

MCQ ANSWER SHEET

TRIAL PSPM AA015: ACCOUNTING 1
SEM 1, 2021/2022

STUDENT’S
NAME
TUTORIAL
GROUP

2
1 11
1
2
2 12
2
2
3 13
3
2
4 14
4
2
5 15
5
2
6 16
6
9
 2
7 17
7
2
8 18
8
2
9 19
9
3
10 20
0

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