DIA1113 PRINCIPLES OF ACCOUNTING 1

SECTION A [40 MARKS]

Answer ALL question in this section in the answer booklet provided.

QUESTION 1

PART I
Complete the following accounting equation;
Assets Liability Equity
1. RM 34,500 ? RM20,000
2. ? RM4,200 RM50,000
3. RM80,000 RM32,400 ?
4. RM120,600 ? RM81,000
5. ? RM12,300 RM40,000

(5 marks)
PART II
Listed below are the account balances as at 31 December 2021.

RM
Purchases 56,106
Sales 80,370
Stock as at 1 Jan 2019 10,650
Wages 250
Cash in Hand 444
Discount allowed 410
Discount received 269
Balance at bank 7,325
Drawing 720
Carriage inwards 234
Carriage outward 586
Motor Van 15,000
Equipment 5,800
Electricity 267
Petrol and toll 1,235
Debtor 4,100
Creditors 2,788
Sales Return 120
Purchases Return 580
Insurance 2,110
Capital 21,350

Required
Prepare Trial Balance from the account balances above. (15 marks)

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DIA1113 PRINCIPLES OF ACCOUNTING 1

QUESTION 2

State what account to be debited and account to be credited for the above transaction in the
answer booklet. (20 marks)

No. Transaction description Debit Credit

1 Start a business with RM50,000 cash at bank.
2 Withdraw RM2,000 cash from bank.
3 Purchase equipment RM4,500 by cheque
4 Purchase goods by cash RM1,200.
5 Sales goods on credit to Henry RM2,600.
6 Pay salaries by cheque RM3,000.
7 Received payment from Henry RM1,200 by cheque.
8 Purchase goods on credit from Ahmad RM4,000.
9 Withdraw RM300 cash for personal use.
10 Sales goods by cash RM500.

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DIA1113 PRINCIPLES OF ACCOUNTING 1

SECTION B [60 MARKS]

Answer any THREE (3) out of five (5) questions in the answer booklet.

QUESTION 1

Siva has the following assets and liabilities as at 31 December 2021:

RM
Creditors 2,800
Equipment 6,200
Motor 7,300
Inventory 8,100
Debtors 4,050
Cash at bank 9,100
Cash in hand 195

During the January 2022, the following transaction arose:

i. He bought equipment on credit RM110.
ii. He bought inventory by cheque RM380.
iii. He paid to creditors by cheque RM1,150.
iv. Debtors paid him RM640 by cheque and RM90 by cash.

Required
Prepare a Financial Position as at 31 January 2022 after all the transactions above have been
completed. (20 marks)

QUESTION 2
Record the below transactions in a three-column cash book using the cashbook template
provided. (20 marks)

Apr 1 Opening Balance for Cash in hand – RM3,100

Opening Balance for Cash at bank – RM20,400
3 Pay rental deposit RM5,000 by cheque.
4 Bought furniture for cash RM580.
6 Purchase goods by cheque RM400.
8 Contribute more capital in bank RM10,000.
9 Pay to Rajen by cheque his account RM4,000 and get 10% discount.
10 Cash purchases RM500.
15 Received cash from Mona RM2,100 and allowed her RM50 discount.
17 Jeric paid his debts RM800 by cheque less 10% discount.
20 Pay electricity by cash RM430.
24 Took RM200 cash for personal use.
27 Paid Lim for full settlement of his account RM3,500 by cheque and received 10%
discount.
28 Sales goods RM9,000 and received cheque.
30 Withdraw cash from bank RM3,000 for business use.

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DIA1113 PRINCIPLES OF ACCOUNTING 1

QUESTION 3
The following is the trial balance of Green Lantern Enterprise as at 31 December 2021.
Dr (RM) Cr (RM)
Inventory 1 Jan 2021 52,800
Sales 276,400
Purchases 141,300
Carriage inwards 1,350
Carriage outwards 5,840
Return outwards 2,408
Wages & salaries 63,400
Business rates 3,800
Electricity expenses 714
Commission paid 1,930
Insurance 1,830
Sundry expenses 208
Buildings 125,000
Account Receivable 45,900
Account payables 24,870
Furniture 1,106
Cash at bank 30,420
Cash in hand 1,276
Drawings 37,320
Capital 210,516
514,194 514,194

Inventory as at 31 December 2021 was RM48,100.

Required:
Prepare an Income Statement for the year ended 31 December 2021 and the Statement of
Financial Position at that date. (20 marks)

QUESTION 4

PART I

The following are extracts from the cashbook and the bank statement of Denny.

Cashbook
2020 Dr RM 2020 Cr RM
Apr 1 Balance b/d 154 Apr 8 Javier 182
Apr 8 Ahmad 94 Apr 21 Samsonite 35
Apr 14 Chan Ent 113 Apr 28 Raju 74
Apr 27 David 265 Apr 31 Balance c/d 335
626 626

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DIA1113 PRINCIPLES OF ACCOUNTING 1

Bank Statement
Dr Cr Balance
2020 RM RM RM
Apr 1 Balance b/d 154
Apr 11 Ahmad 94 148
Apr 12 Javier 182 (34)
Apr 16 Bank charges 45 (79)
Apr 18 Chan Ent 113 34
Apr 24 Samsonite 35 (1)
Apr 29 Credit transfer: TAC 55 154

Required
(a) Write up the cashbook up to date and state the new balance as on 30 April 2021.
(5 marks)
(b) Draw up a bank reconciliation statement as on 30 April 2021. (5 marks)

PART II
Classify the below expenditure either it is Revenue Expenditure or Capital Expenditure.
(10
marks)

1. Cost of buying new premises.

2. Purchase of extra filings cabinets for sales office.
3. Cost of repairs to photocopy machine.
4. Cost of painting existing office building.
5. Cost of extension to the premises.
6. Cost of road tax for new van.
7. Cost of road tax for existing van.
8. Repair and maintenance of existing van.
9. Cost of installing new machine.
10. Cost of painting to the new extension premises.

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DIA1113 PRINCIPLES OF ACCOUNTING 1

QUESTION 5

The following is a summary of Petty cash transaction of Tadika Bestari Ceria for March 2022.

2022
Mar 1 The cashier gives RM500 in cash to the petty cashier as the starting imprest of petty cash.
RM
3 Purchase A4 paper 56.00
4 Salmah – toll claim 20.00
5 Purchase cleaning equipment 24.60
9 Purchase stationary 15.30
11 Melina – travel claim 31.80
14 Makcik Bedah - Cleaning wages 30.00
18 Payment of the amount owing to Marisa 33.50
21 Petrol 54.50
24 Purchase stationaries 9.40
27 Refund of overpayment by parents, Alan 40.30
28 Husin– travel claim 52.40
30 Makcik Bedah – cleaning 30.00

Starting 1st April 2022, they decided to increase the imprest amount to RM700 per month.

Required
Open and post the analysed petty cash book for the period 1 March 2022 to 1 April 2022.
Balance the account and show the imprest reimbursement entry on 1 April 2022. Please use the
petty cashbook template provided. (20 marks)

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