Question 1

Puan Nabila is the owner of Teguh Trading. She has asked you to prepare the financial
statements for 2013 based on the following trial balance as at 31 December 2013.

Debit (RM) Credit (RM)

Accounts receivable and Accounts payable 46,300 34,900
Bank 22,300
8% fixed deposit 24,000
Land (at cost) 64,500
Fixtures and fittings (at cost) 9,800
Motor vehicles (at cost) 25,000
Inventories as at 1 January 2013 38,000
Purchases and Sales 129,000 220,900
Capital 123,700
Commission received 2,500
Accumulated depreciation as at 1 January 2013
Fixtures and fittings 1,950
Motor vehicles 15,500
4% bank loan 35,500
Salaries expenses 28,000
Carriage outwards 3,200
Carriage inwards 660
Return inwards 1,400
Discounts 3,160 5,500
Allowance for doubtful debts as at 1 January 2013 270
Salesman’s commission 2,000
General expenses 12,900
Advertisement 14,500
Water and electricity 3,500
Rental 12,500
440,720 440,720

Additional Information:

1. The closing inventories were valued at RM47,450.

2. Depreciation is to be provided as follows:

Non-current Asset Rate Method

Motor vehicles 20% Straight line method, yearly basis
Fixtures and fittings 10% Reducing balance method, yearly basis

3. Allowance for doubtful debt is to be increased by RM630.

4. Rental still accrued amounted to RM2,500.

5. RM400 of salesman commission paid is for the next accounting period.

6. The business has not received any interest on fixed deposit yet.
7. RM4,000 salaries expenses was paid in advance.

8. Puan Nabila had withdrawn RM600 by cheque to purchase some old furniture for her
personal use.

9. An additional amount of cash for RM10,000 was brought into the business to be put in
as capital. No record was made of it.

10. General expenses amounting to RM500 has been wrongly recorded. It should be
transferred to water and electricity.

Required:

a. The Statement of Profit or Loss for the year ended 31 December 2013.
(16 marks)

b. The Statement of Financial Position as at 31 December 2013.

(14 marks)
(Total: 30 marks)

Question 2

The trial balance below showed the accounts’ balances of Liza Enterprise which is wholly
owned by Puan Liza as at 31 December 2014.

Particulars Debit Credit

( RM) (RM)
Purchases and sales 180,000 220,000
Discount allowed and discount received 2,550 400
Returns inwards and returns outwards 9,000 13,500
Carriage outwards 1,050
Carriage inwards 600
Inventory at 1 January 2014 36,000
Advertisement 4,900
Dividend received 1,500
Electricity 1,500
Commissions 2,100 7,000
Insurance 3,700
Rentals 11,750 2,700
Salaries 20,500
Allowance for doubtful debt 300
Accumulated depreciation:
Machinery 1,500
Motor vehicle 25,500
Accounts receivable and accounts payable 121,000 134,000
Drawings 3,000
Cash 750
Bank 10,200
Capital 167,200

Loan from Bank Simpanan Malaya 165,000

 Machinery 6,000
Motor vehicles 75,000
Investments 9,000
Freehold premises 240,000
738,600 738,600

Additional information:

1. Inventory as at 31 December 2014 is RM105,000.

2. Rent received is for the period from 1 January 2014 to March 2015.

3. RM300 electricity was paid in advance, while rental expenses RM750 was owing at
the end of the year.

4. Puan Liza had withdrawn RM1,500 cheque and RM3,500 goods for her family use.

5. Allowance for doubtful debts is to be increased by RM500.

6. Additional bad debt to be written off was RM200.

7. Insurance amounting RM300 was still outstanding at the end of the accounting
period.

8. The loan from Bank Simpanan Malaya was obtained on 1 May 2014. Interest on loan
of 5% per annum was still outstanding at the end of the year.

9. Current year depreciation to be charged is as follow;

- Machinery RM600
- Motor vehicles RM9,900

Required:

a. Prepare a statement of profit or loss for the year ended 31 December 2014.
(16 marks)

b. Prepare a statement of financial position as at 31 December 2014.

(14 marks)
Note: Answers are to be stated to the nearest RM.
(Total: 30 marks)

Question 3

Puan Mona Liza is the owner of Mona Enterprise. The financial year end of the business is
on 31 December annually. Below is the trial balance extracted from the books of Mona
Enterprise as at 31 December 2015.
Debit Credit
(RM) (RM)
Purchases and sales 52,000 109,200
Inventory as at 1 January 2015 6,500
Drawing 7,800
Capital as at 1 January 2015 61,360
Cash in hand 3,900
Bank overdraft 5,200
Discount allowed and discount received 1,040 1,560
Returns inwards and returns outwards 3,900 3,120
Carriage inwards 2,080
Carriage outwards 4,160
Rent 15,600
Wages and salaries 23,400
Insurance 1,820
General expenses 520
Electricity and telephone expenses 1,300
Furniture and Fittings at cost 44,200
Office Equipment at cost 39,000
Accumulated Depreciation – Furniture and Fittings 1,820
Accumulated Depreciation – Office Equipment 2,600
Accounts receivables and accounts payables 16,640 8,320
Allowance for Doubtful Debts as at 1 January 2015 2,080
Bank Loan 26,000
Interest Expense 1,300
Commission revenues 3,900+1040
225,160 225,160

Additional information:

1. Insurance prepaid for the year was RM260.

2. Puan Mona Liza took RM500 cash for her daughter’s wedding ceremony.

3. Commission revenue was accrued amounting RM1,040 at the end of the year.

4. Interest expense accrued is RM260.

5. RM200 electricity bill was erroneously recorded as general office expenses.

6. Closing inventory as at 31 December 2015 was RM10,400.

7. Bad debts of RM840 are to be written off and the allowance for doubtful debts is to
be adjusted at 10% of net accounts receivables.

8. Depreciation on furniture and fittings was provided at 5% on straight line method,

yearly basis while the office equipment was provided at 10% on reducing balance
method, yearly basis.

Required:

a. The statement of profit or loss for the year ended 31 December 2015.
(18 marks)
b. The statement of financial position as at 31 December 2015.
(12 marks)
(Total: 30 marks)
Question 4

Below is the Trial Balance of MATAF Trading as at 31 December 2016:

MATAF Trading
Trial Balance as at 31 December 2016

List of accounts Debit (RM) Credit (RM)

Office equipment at cost 30,000

Motor vehicles at cost 150,000
Accumulated depreciation: Office equipment 12,000
Accumulated depreciation: Motor vehicles 28,500
Inventory at 1 January 2016 15,000
Sales 200,000
Purchases 50,000
Insurance expenses 4,000
Electricity, water and telephone bills 5,000
Custom duty 2,000
Carriages 5,700
Motor vehicle expenses 6,000
Return inwards 500
Return outwards 600
Discount allowed 450
Discount received 500
Advertising expenses 3,400
Rent 24,000
Staff salaries 28,800
Stationery expenses 500
Staff sales commissions 3,500
Capital 213,250
Accounts receivable 50,000
Accounts payable 10,000
Allowance for doubtful debt 3,000
Bank 75,000
Drawings 7,000
Fixed deposit (10% per annum) 60,000
Bank loan – CHIM Bank (10% per annum) 50,000
Interest received on fixed deposit 3,000

TOTAL 520,850 520,850

Additional information:

1. Closing inventory as at 31 December 2016 was valued at RM5,000.

2. Accrued electricity and water was RM800 and insurance prepaid was RM1,500 as at
31 December 2016.

3. The owner took of RM800 cash for his personal use.

4. The amount of carriages includes RM2,200 carriage inwards.

5. Allowance for doubtful debt is to be adjusted to RM1,000.

6. Half yearly interest on fixed deposit has not been received until 31 January 2017.

7. Depreciation is to be provided as follows:

Office equipment - 20% per annum using the straight line method
Motor vehicles - 10% per annum using the reducing balance method

8. Loan from CHIM Bank was taken on 1 January 2016 and the interest on the loan has
not yet been paid.

Required:

a. The Profit or Loss Statement for the year ended 31 December 2016; and
(18 marks)

b. The Statement of Financial Position as at 31 December 2016.

(12 marks)

Note 1: Use vertical format presentation for both statements and show all calculations.

Note 2: Calculate to the nearest RM.

(Total: 30 marks)

Question 5

Sarahani is the owner of SH Trading, the business dealing with wholesaler of electrical
appliances. Below is the trial balance extracted from the books of SH Trading as at 31
December 2013.

Particulars Debit (RM) Credit (RM)

Capital as at 1 January 2013 96,548
Drawings 13,350
Inventories as at 1 January 2013 12,870
Accounts Receivable 8,400
Accounts Payable 7,170
Returns inwards 772
Returns outwards 604
Furniture and Fittings 18,720
Plant and Machinery 70,000
Cash at bank 11,380
Discount received 405
Discount allowed 195
Wages 3,460
Salaries 7,950
Electricity and water 510
Sales 101,061
Purchases 63,228
Stationeries 225
 Insurance 3,600
Accumulated Depreciation as at 1 January 2013:
Furniture and Fittings 1,872
Plant and Machinery 7,000
214,660 214,660

Additional information:

1. One of the accounts receivable returned defective good amounting RM110 to the
business. This transaction was not recorded in the books yet.

2. Allowance for doubtful debts of 5% was to be provided on the net accounts receivable.

3. The closing inventories were valued at RM6,500.

4. Prepayment of insurance premium and wages were RM150 and RM300 respectively.

5. Depreciation for the year is to be provided as follows:

Furniture and Fittings at 10%, straight line method, yearly basis

Plant and Machinery at 10%, reducing balance method, yearly basis.

6. The owner took goods amounting RM400 for her personal use.

7. The accruals of electricity and salaries were RM100 and RM200 respectively.

8. A long term loan from Bank Niaga amounted to RM50,000 was received by cheque on
1 June 2013. The 4% interest on loan is still accrued at the end of the year.

Required:

c. The Statement of Profit or Loss for the year ended 31 December 2013.
(15 marks)

d. The Statement of Financial Position as at 31 December 2013.

(15 marks)
Note: Calculate to the nearest RM
(Total: 30 marks)

Question 6

The trial balance below was extracted from the books of Riang Ria Trading as at 31
December 2014.

List of accounts Debit (RM) Credit (RM)

Purchases and sales 300,000 500,000
Returns inwards and outwards 1,000 540
Opening capital 122,000
 Drawings 4,800
Office equipment (cost: RM52,000) 50,000
Furniture and fittings (cost: RM33,200) 16,040
Opening inventories 32,000
Cash 8,760
Bank 25,960
Accounts receivable and accounts payable 65,000 40,900
Investments and Bank loan 80,000 10,000
Dividend on investment 2,000
Bank charges 1,480
Carriages expenses 5,000
Rentals received 6,000
Discounts 400 1,000
Printing and stationery 1,500
Repairs and maintenance 3,700
Electricity and water 600
Salaries and wages 81,200
Miscellaneous expenses 5,000
Total 682,440 682,440

Additional information:

1. Inventories as at 31 December 2014 were valued at RM42,000.

2. Depreciation is to be provided as follows:

Non current assets Method of depreciation Depreciation rate

Office equipment Straight line balance 5% yearly basis
Furniture and fittings Reducing balance 10% yearly basis

3. Interest on loan at 8% per annum was still accrued on 31 December 2014.

4. The dividend on investment was fully received for the year.

5. The accruals and prepayments for the period were as follows:

Accruals Prepayments
Printing and stationery RM500 Repairs and maintenance RM700
Electricity and water RM400 Salaries and wages RM1,200

6. The carriage expenses comprise of 60% carriage outwards and 40% carriage inwards.

7. The owner took RM600 cash from the business to buy his clothes.

8. Allowance for doubtful debts was to be adjusted at 5% of net accounts receivable.

There were no bad debts to be written off during the year.

Required:

a. A statement of profit or loss for the year ended 31 December 2014.

(17 marks)

b. A statement of financial position as at 31 December 2014.

(13 marks)
 (Total: 30 marks)
Question 7

PAK RAMLI Trading supplies frozen foods to customers around Kuala Selangor. The
following trial balance was extracted from the books of PAK RAMLI Trading as at 31
December 2015.
  Debit (RM) Credit (RM)
Inventory as at 1 January 2015 45,800  
Capital as at 1 January 2015   568,900
Cash at bank 112,400  
Cash in hand 12,500  
Accounts receivables and accounts payables 84,800 72,500
Water and electricity 30,500  
Return outwards   2,480
Return inwards 4,200  
Duty on purchases 2,200  
Transportation inwards 3,420  
Purchases and sales 541,300 775,400
Rentals 28,100 35,500
Furniture and fittings 118,500  
Office equipment 125,000
Motor vehicles 560,000
Accumulated depreciation as at 1 January 2015:
Furniture and fittings 19,700
Office equipment 25,000
Motor vehicles 20,000
Allowance for doubtful debt   4,940
Stationeries 13,700  
Salaries 122,680  
Motor vehicles expenses 114,580  
Transportation outwards 3,540  
Drawings 2,500  
Commissions 15,500 16,800
15% Fixed deposit 120,000  
5% SMM bank loan   520,000
  2,061,220 2,061,220

Additional information:

i. Inventory as at 31 December 2015 was RM34,890.

ii. A credit purchases from Ayam Gold Frozen worth RM3,550 was not yet recorded
anywhere in the books.

iii. Part of the motor vehicle expenses, RM10,200, was for owner’s private car.

iv. Depreciation for the year is to be provided as follows:

Motor Vehicles 20% on net book value, yearly basis

Office Equipment 10% on cost, yearly basis
Furniture and Fittings 10% on cost, yearly basis
v. Suziana, one of the accounts receivables died in an accident in October 2015. The
balance in her account amounted to RM1,200 need to be written off as bad debt.

vi. It is the policy of the business to provide 5% allowance for doubtful debt on the
outstanding accounts receivables.

vii. Fixed deposit was invested on 1 April 2015. The interest received for the year 2015
was not yet recorded in the books of account.

viii. A bill for water and electricity amounted to RM1,250 was not yet paid.

ix. Loan from SMM bank was approved on 1 August 2015 and the interest on loan has
yet to be paid as at year end.

Required:

e. The Statement of Profit or Loss for the year ended 31 December 2015.
(18 marks)

f. The Statement of Financial Position as at 31 December 2015.

(12 marks)
Note: Calculate to the nearest RM.
(Total: 30 marks)