PSPM MODEL 3 AA015/ KMM Session 2019/2020

QUESTION
KMM

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 PSPM MODEL 3 AA015/ KMM Session 2019/2020

SECTION A [45 marks]

ANSWER ALL QUESTIONS

QUESTION 1 [15 marks]

a) State two (2) users of financial accounting information. Give two (2) examples of each users of
accounting information and give one (1) importance of accounting information for each user.
(5 marks)

b) Identify the generally accepted accounting principle in each of the following cases (each case is
separate). State whether the principle complied or not complied.

(i) Mr. Ryan believes straight line depreciation methods currently used by the business can be
converted to declining balance method at any time.

(ii) Repair expenses of vehicles for Marju Enterprise in July 2018 amounting RM18,000. This
amount includes RM800 the business owner personal car repair expenses.

(iii) Ms. Mama, has given a consultation to one of her customer in March. Her customer promised to
pay the cost of the consultation in May. Ms. Mama recorded the services revenue in her business
book in March.
(3 marks)

c) (i) List the steps in the accounting cycle. (4 marks)

(ii) Define the following source documents that used in the business:
1) Receipt
2) Payment voucher
3) Bank statement (3 marks)

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 PSPM MODEL 3 AA015/ KMM Session 2019/2020

QUESTION 2 [15 marks]

a) Identify the following items according to types of adjustments (e.g prepaid expense, unearned
revenue, accrued revenue, or accrued expense)
i. Services performed but not recorded total RM1,000.
ii. Supplies of RM300 have been used.
iii. Utility expenses of RM225 are unpaid.
iv. Services related to unearned service revenue of RM260 were perform (4 marks)

b) Explain two (2) uses of cash book. (2 marks)

c) (i) Define accounts receivable and list four (4) situations bad debt can happen. (5 marks)
(ii) List two (2) methods to account bad debts. (2 marks)

d) Explain the meaning of inventories and give one (1) type of inventory. (2 marks)

QUESTION 3 [15 marks]

a) (i) List the types of non-current assets and give one (1) example for each type. (3 marks)
(ii) List two (2) examples of cost may be incurred in purchasing a factory machinery other than the
cash price. (2 marks)

b) Explain the difference between current liability (certain) and current liability (estimated) and give one
(1) example of each liability. (4 marks)

c) Classify the following transaction into current liability, non-current liability and non-liability
i. Loan from bank for 3 years
ii. Note payable for 60 days
iii. Prepaid insurance
iv. Accrued salary
v. Current portion of long-term debt
vi. Unearned revenue (3 marks)

d) Explain what is incomplete record and list two (2) methods of calculate the profit or loss for
incomplete record. (3 marks)

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 PSPM MODEL 3 AA015/ KMM Session 2019/2020

SECTION B (85 marks)

ANSWER ALL QUESTIONS

QUESTION 1 [22 marks]

(a) Must A and Co. (MAC) received the bank statement for the month of June 2019 that shows a different
balance with cash book balance. The following is a Bank Statement and Cash Book (bank column)
BANK STATEMENT
Date Description Cheque no. Debit Credit Balance
2019 RM RM RM
June, 1 Balance b/f 4480
1 Cheque 3349 1200 3280
2 Cheque 3351 2 500 780
5 Deposit 900 1680
8 Deposit 1315 2995
17 Debit Instruction - Utilities expense 600 2395
18 Cheque 3352 640 1755
22 Cheque 3353 2 530 (775)
23 Dividend - Hema Company 1380 605
25 Credit transfer- Commission 800 1 405
26 Cheque 3355 1 200 205
27 Deposit 50 255
28 Bank Charges 20 235

Cash Book (bank column only)

Date Particulars Amount Date Particulars Cheque Amount
No
2019 RM 2019 RM
June 1 Balance b/f 3 280 June 6Purchases 3351 2 500
8 Sales 900 11Insurance 3352 640
10 Bella 1 315 14Freight in 3353 2 350
16 Zaskiah 450 18Chin Chang Bhd 3354 870
20 Rusdy 1 300 25Kasdap 3355 1 200
25 Lailah 100 28Syarikat Air 3356 70
Johor
30 Balance c/f 765 30 Salary 3357 480
8110 8 110

Additional information:
(i) All entries in the bank statement are correct.
(ii) A cheque received on 25th June 2019 was returned by the bank due to non-sufficient fund.

REQUIRED:
Prepare bank reconciliation as at June 30, 2019. (8 marks)

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 PSPM MODEL 3 AA015/ KMM Session 2019/2020

(b)
The following information was obtained from Perniagaan Always A (PAA) as at December 31, 2017.

RM
Accounts Receivable 1,000,000
(Less) Allowance For Doubtful Account 60,000
940,000

The transactions occurred regarding Accounts Receivable during 2018 were as follows:
RM
Credit sales 2,600,000
Cash received from Accounts Receivable 2,300,000
Accounts receivable written off 65,000
Accounts receivable recovery 25,000

Allowance of doubtful account is 5% of the accounts receivable balance.

REQUIRED:
(i) Prepare adjustment entries to record bad debt on December 31, 2018. (7 marks)
(ii) Show bad debt expense account and allowance for doubtful account for the year ended December
31, 2018. (7 marks)

QUESTION 2 [15 marks]

Target A Enterprise (TAE) sells and distributes magazine around Tangkak, Johor. The beginning inventory
is 12 units at RM350 per unit. Sales and purchase transaction for March 2019 are as follows:

Date Item Unit Price Per Unit

(RM)
March 8 Sales 3 500
14 Purchase 15 340
23 Sales 10 550
27 Sales 4 550
31 Purchase 6 330

REQUIRED:
(i) Calculate the value of ending inventory and total cost of goods sold on 31st March if the periodic
inventory system and the First in First out (FIFO) method is applied. (5 marks)
st
(ii) Calculate the value of ending inventory and total cost of goods sold on 31 March if the perpetual
inventory system and average method is applied. (10 marks)

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 PSPM MODEL 3 AA015/ KMM Session 2019/2020

QUESTION 3 [30 marks]

(a) Syarikat Oh My A (SOMA) purchased an equipment at a cost price of RM18,000 on January 1, 2017.
The equipment has a residual value of RM2,000 and its useful life is 4 years. SOMA use reducing
balance method at 50% to calculate the depreciation expense.

REQUIRED:
(i) Prepare depreciation schedules for 2017 and 2018 (4 marks)
(ii) Show depreciation expense account and accumulated depreciation account for 2017 and 2018.
(4.5 marks)

(b) Mr Q, owners of Perniagaan Triple A (PTA) has decided to change the old washing machine to the new
dryer machine to meet the high demand. The following information is related to the transactions:

Items Washing Machine Dryer Machine

Cost RM85,000 RM100,000
Date of acquisition 1 January 2015 1 May 2019
Residual value RM3,000 RM5,000
Annual depreciation rate 15% 20%

Additional information:
1. All fixed assets are depreciated using the straight-line method.

2. The dryer machine supplier agrees to accept the washing machine with a trade allowance of
RM2,000.
3. This business applies a full year depreciation expense for all assets used at the end of the
financial year. There is no depreciation charge on the assets at the year of disposal.
4. The business accounting period ends on December 31 of each year.

REQUIRED:
Prepare the journal entries on 1 May 2019 to record the purchase of drying machine (6.5 marks)

c) Perniagaan Straight A (PSA) has borrowed RM50,000 from Bank Perwira on 1 July 2018 by signing a
note payable for one year at a rate of 10% per annum. The financial year ends on December 31 of each
year.

REQUIRED:
(i) Prepare the journal entries for 2018. (8 marks)
(ii) Prepare the journal entries to record the payment of notes payable on the maturity date on June 30,
2019. (7 marks)

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 PSPM MODEL 3 AA015/ KMM Session 2019/2020

QUESTION 4 [18 marks]

Cik Addah runs a small business, AA Plus Enterprise that selling girl’s toys in Segarmart. She did not keep
a proper account of her business. The following information has been found for the company in 2018:

1. Cik Addah has a balance of cash in hand RM2,600, inventory RM3,000, accrued rental RM500 and
prepaid insurance RM1,850 on 1st January 2018.

2. The balance of account receivable on 1stJanuary is RM7,000 while the ending of account receivable
on December 31, 2018 is RM8,300. The cash receipt from the customer is RM7,100.

3. All the purchase of merchandise is made on credit. The balance of account payable on 1 stJanuary is
RM4,000 while the ending of account payable on December 31, 2018 is RM7,200. The payment to
the supplier for 2018 is RM890.

4. Cik Addah had taken RM850 to buy her parents’ medicine for the year. She also has received
RM1,800 dividend from Bank of Commerce.

5. Others receipt and payment of cash for 2018 are as follow:

Item (RM)
Sales 400
Insurance (including RM245 for January 2019 premium). 260
Miscellaneous expense 300
Rental expense 670

6. Cik Addah has received a discount of RM700 and also have given a discount of RM1,080 for the year
ended 31 December 2018.

7. The business vehicles have purchased on 2016 with the cost price of RM45,000. The annual
depreciation is at 20%.

8. The rental amounted RM120 has not been paid on December 31, 2018.

9. Cik Addah has bring additional RM1,900 in cash into her business for the year ended 31 December
2018. She has taken one of the toys worth RM150 as a birthday present for her niece.

10. Ending inventory as at 31 December 2018 is RM5,400

REQUIRED:
(i) Show cash account, accounts receivable and accounts payable. (9.5 marks)
(ii) Prepare the statement of profit or loss for the year ended 31 December 2018. (8.5 marks)

“Push yourself, because no one else is going to do it for you”

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