REVISION ACCOUNTING I

SECTION A: MULTIPLE CHOICE QUESTIONS

1. Which of the following is not a type of Asset?

A. Cash
B. Mortgage
C. Accounts Receivable
D. Premises

2. Which of the following is not a version of the accounting equation?

A. Assets = Liabilities+Beginning capital+Investments+Revenue-Expenses-Draws

B. Resources in business = Resources by owner + Resources supplied by others
C. Assets = Liabilities + Owner’s equity
D. All of the listed answers are versions

3. Which of the following statement is TRUE?

A. A debit increases liability and a credit decreases liability

B. A debit increases an asset while a credit decreases an asset
C. A debit increases revenue and a credit decreases revenue
D. A debit decreases expenses and a credit increases expenses

4. RM150 cash is received for commission earned by the business. Which of the
following double entry is correct?

A. Debit Commission received RM150 ; Credit Cash RM150

B. Debit Revenue earned RM150 ; Credit Cash RM150
C. Debit Cash RM150 ; Credit Commission received RM150
D. Debit Bank RM150 ; Credit Commission received RM150

5. Given the following, calculate costs of goods sold.

RM
Opening inventory 1,500
Closing inventory 2,200
Purchases 4,000
Return outwards 600
Carriage outwards 200

A. RM2,500
B. RM2,900
C. RM2,700
D. RM2,800

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REVISION ACCOUNTING I

6. Which of the following transactions would t be entered in the General Journal?

A. Purchases of goods by cash for business use

B. Sale of goods on credit to new customers
C. Purchase of machinery on credit for business use
D. Return of goods to suppliers

7. A CONTRA entry in the cash book would include

A. transferring cash in bank into the cash in hand

B. transferring the discounts to the accounts in the general ledger

C. totaling up the bank and cash columns at the end of each month

D. withdrawing cash from bank account

8. The accounting equation can be stated as:

A. Expenses = Liabilities – Capital
B. Assets – Liabilities = Capital
C. Liabilities = Revenue + Capital
D. Capital = Assets + Liabilities

9. All of the following are assets except_______________.

A. creditors C. debtors
B. cash D. equipment

10. Transferring the amount from the journal to the ledger is called ______.
a. trial balance c. posting
b. journalizing d. credit

11. The additional column on the debit side of a three-column cash book is used to record
________.
A. discount receive. C. trade discounts
B. discount allowed D. returns inwards.

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12._________ is added to the cost of purchases because it relates to the costs of goods
sold.

A. Carriage inwards
B. Carriage outwards
C. Return outwards
D. Return inwards

13. Which of the following statement is TRUE?

A. Assets, expenses and drawings accounts are debited for increases.
B. Liability, revenue and drawings are accounts debited for increases.
C. Assets, expense, and owner capital accounts are debited for increases.
D. The word debit means to increase and the word credit means to decrease.

14. Trade receivables’ personal accounts are found in __________.

A. sales ledger
B. general ledger
C. purchases ledger
D. purchases journal.

15. The following is not a final account except ______________.

A. cash flow statement

B. expenses account
C. statement of financial position
D. trial balance

16. Which of the following statements regarding double entry system is FALSE?
A. An asset is increased by a debit and decreased by a credit
B. An expense is increased by a credit and decreased by a debit
C. A liability is decreased by a debit and increased by a credit
D. A revenue is increased by a credit and decreased by a debit

17. In which circumstance will there certainly be a profit?

a. Goods are sold at prices below the purchase price
b. Total expenses exceed total revenues
c. Goods are sold at prices higher than the purchase price and there are no
expenses
d. Goods are sold at prices higher than the purchase price and there are expenses

18. Decreases in capital result from

A. a net loss during the period/drawings
B. owner investments.
C. a net income during the period.
D. both B and C.
PAT0045 FINANCIAL ACCOUNTING 5 DECEMBER
2011

19. The double entry for a return inwards from a debtor is:
A. Debit sales account ; Credit returns inwards account
B. Debit sales account ; Credit debtor’s account
C. Debit returns inwards account ; Credit sales account
D. Debit returns inwards account; Credit debtor’s account

20. Debit notes issued by us are first entered in

A. the Returns Outwards Account.
B. the Returns Inwards Account.
C. the Returns Inwards Journal.
D. the Returns Outwards Journal.

21. The total of the ‘Discounts Received’ column in the Cash Book is posted to
A. the debit side of discounts received account.
B. the credit side of the discounts received account.
C. the Purchases Ledger.
D. the Discounts Received Ledger.

22. YCL Trading purchased RM10,000 worth of telephone for cash. The __________
account is __________ for RM10,000 and the cash account is credited for
RM10,000.
A. office equipment; debited
B. office equipment; credited
C. office expense; debited
D. office expense; credited

KY, LSH, SS 3/4

 ACCOUNTING

STRUCTURED QUESTIONS

Question 1

Below are the balances extracted from the general ledger of Teguh Sdn Bhd as at 30 June
2023.

DEBIT CREDIT
BALANCE BALANCE
RM RM
Purchases and Sales 150,000 400,000
Return inwards and Return outwards 3,500 8,000
Carriage inwards 1,500
Carriage outwards 2,000
Custom duty 20,000
Repairs 4,000
Motor vehicles (cost) 100,000
Premises 300,000
Cash and Bank overdraft 10,000 25,000
Fixtures and Fittings (Cost) 15,000
Wages and salaries 99,000
Discount allowed and Discount received 3,000 12,000
Commissions received 13,000
Rental 30,000 2,000
Insurance 25,000
Trade receivables and Trade payables 18,000 4,000
Long Term Loan 70,000
Short Term Loan 3,000
Inventory 1 July 2022 6,000
Inventory 30 June 2023 7,000
Capital, 1 July 2022 250,000

REQUIRED:

a) Prepare the Statement of Profit or Loss for the year ending 30 June 2023. 348000

b) Prepare the Statement of Financial Position as at 30 June 2023.

Question 2

2
 ACCOUNTING

P&B
Trial Balance as at 31 December 2023
Debit (RM) Credit (RM)
Capital 34,635
Drawings 246
Purchases and sales 34,945 51,256
Returns 178 200
Repairs of machinery 500
Inventory 1 January 2023 9,248
Carriage inwards 1,517
Carriage outwards 1,784
Insurance on goods 987
General expenses 571
Wages and salaries 5,285
Rent 2,465
Discounts allowed 200
Debtors and creditors 9,000 8,550
Machinery 16,570
Fixtures and Fittings 8,650
Bank 2,495
94,641 94,641
Note:
Inventory on 31 December 2023 is RM 6,900.

REQUIRED

a) Draw up the Statement of Profit and Loss Account for the Year Ending 31
December 2023.

b) Draw up the Statement of financial position as at 31 December 2023.

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Net profit 676 and the net asset 35065