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This paper has content 2 sections. Answer all the questions.

SECTION A: SHORT ESSAY

1. Define revenue and expenses. Give at least three examples each.

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2. Define :

 Sales

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 Purchases

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3. What is the different with cash discount and trade discount?

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4. Explain the important of the time card?

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5. What is the different between cash book and pass book?

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SECTION B: MULTIPLE QUESTION

1. Four type of the day book

A. Purchase day book, purchase return day book, cash book, journal book
B. Purchase day book, journal book, sales day book, sales return day book
C. Purchase day book, purchase return day book, sales day book, cash book
D. Purchase day book, purchase return day book, sales day book, sales return day book

2. In 14 Feb 2014 Jim Sdn Bhd paid us by cheque. How many Jim Sdn Bhd want to pay us.

A. RM 2422.50
B. RM 2550.00
C. RM 2295.00
D. RM 2167.50
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3. The owners of the business take inventory for her own use. What are the ledger account entries to
record this?
A. Debit drawing, credit purchases
B. Debit drawing , credit inventory
C. Debit inventory , credit drawing
D. Debit capital , credit sales

4. A suppliers account in a customer’s book, has a credit balance of RM 8,000. What does this means?
A. The suppliers owes RM 8,000
B. The suppliers has paid RM 8,000
C. The customers owes the suppliers RM 8,000
D. The customers has paid the suppliers RM 8,000

5. The owner of a business has taken goods for personal use but not recorded this in the books.
Which journal entries must be made at the end of the year?
Debit Credit
a) Drawing Purchases
b) Drawing sales
c) Purchases Drawing
d) sales Drawing

6. In triple column cash book, cash withdrawn from bank for office use will appear in
A. Debit in the cash column only
B. Credit in the bank column only
C. Debit in the cash column and credit in the bank column
D. Debit in the bank column and credit in the cash column

7. Ail is a creditor. What is the following mean?

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A. Sold goods on credit to debtor RM 500.

B. Sold goods on credit to creditor RM 500.
C. Bought goods on credit from debtor RM 500.
D. Bought goods on credit from creditor RM 500.

8. Y’s account appears in the ledger of X as follows:

Jan 1 balance b/d 100 Jan 10 bank 100

Jan 20 sales 400 Jan 31 balance c/d 400
500 500

Which statement is true?

A. On 1 January Y was owed RM 100 by X.
B. On 10 January Y paid RM 100 into the bank.
C. On 20 January Y supplied goods RM 400 to X.
D. On 31 January Y was a trade receivable of X for RM 400.

9. Cabdury Ltd is the creditor, in the following transaction we should be credited

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A. Bank account
B. Cash account
C. Debtor account
D. Creditor account

10. Which is a personal account?

A. Wages
B. Office computer
C. Trade receivable
D. Plant and machinery

11. Acorn Oil paid the full settlement RM 97,200 to us by cheque.

A. Debit bank account RM 108,000 and credit Acorn Oil RM 108,000

B. Debit cash account RM 108,000 and credit Acorn Oil RM 108,000
C. Debit cash account RM 97,200, discount allowed RM 10,800 and credit Acorn Oil RM 108,000
D. Debit bank account RM 97,200, discount allowed RM 10,800 and credit Acorn Oil RM 108,000

12. The following account appears in the ledger Ahmed.

Sara account
2006 Debit Credit Balance
June 01 balance 100 dr
14 sales 300 400 dr
16 Bank 100 300 dr
18 sales return 25 275 dr
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Which statement is true?

A. Ahmed owed sara RM 100 on 1 June 2006

B. Sara owed Ahmed RM 275 on 18 June 2006
C. Sara sold goods to Ahmed on 14 June 2006.
D. Ahmed returned goods to sara on 18 June 2006

13. In accounting debit means

A. Decrease in asset
B. Increase in liability
C. Increase in capital
D. An entry on the left hand side of an account

14. Mathew purchased goods costing RM 15,000 at 2% trade discount and 3% cash discount. Mathew will
immediately pay for the goods
A. RM 14,259
B. RM 14,700
C. RM 14,360
D. RM 14,600

15. The following incomplete account appears in Singh’s sales ledger.

Bashir account
2006 Debit Credit Balance
June 01 balance 800 dr
5 sales 620 ?
12 sales return 30 ?
29 bank 800 ?
What was the balance on Bashir’s account 30 June?
A. RM 590 credit
B. RM 590 debit
C. RM 1010 credit
D. RM 1010 debit

16. Jimmy started his business on 1 January. During January he made cash sales of RM 7,550 and issued
credit sales invoices for RM 6,200 of which RM 5,240 had been paid. Find the total sales.
A. RM 6,200
B. RM 20,990
C. RM 10,510
D. RM 13,750
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17. Cash in hand brought forward from last month will be recorded in the cash book
A. On debit side of the bank column
B. On debit side of the cash column
C. On credit side of the bank column
D. On credit side of the cash column

18. Top Height Company reported the following balances at June 30, 20X8:
Sales RM 13,960
Sales Returns RM 260
Sales Discounts RM 310
Cost of goods Sold RM 7,400
Find out the Net sales
A. RM 19,790
B. RM 13,530
C. RM 12,960
D. RM 13,390

19. A credit sales of RM 1,500 is made on March 25, terms 2/10, n/30, on which a return of RM 300 is
granted on March 28. What amount is received as payment in full on April 1?
A. RM 1,500
B. RM 1,470
C. RM 1,200
D. RM 1,176

20. Cheque deposited into bank but noticed by bank the cheque is dishonored. Which entries record this
transaction?
A. Debit debtor account and credit bank account
B. Debit debtor account and credit cash account
C. Debit bank account and credit debtor account
D. Debit bank account and credit creditor account
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21. A contra entry in the cash book means that:

A. Proprietor invested additional funds into business
B. Proprietor withdrawn money from bank for office use
C. Business’s creditor id the debtor for the business too
D. Proprietor withdrawn money from bank to pay private rent expenses

22. Which would not appear in a sales ledger control account?

A. Credit sales
B. Bad debts written off
C. Provisions for doubtful debt
D. Debtor’s cheque dishonored

23. The sales day book is:

A. A book of prime entry for recording all sales.
B. A book of prime entry in which cash are first recorded
C. A book of prime entry in which credit sales are first recorded
D. A summary of sales of both goods held for sale and those acquired for use in business

24. Cash taken from business by the proprietor will credited

A. Cash
B. Bank
C. Stock
D. Drawing

25. Which side of a control account would you find returns inwards?
A. The debit side of the sales ledger control account
B. The credit side of the sales ledger control account
C. The debit side of the purchase ledger control account
D. The credit side of the purchase ledger control account

26. Carl sells goods to Yell on credit. Yell found that some goods are damaged. Which document will Carl
then send to Yell?
A. Invoice
B. Debit note
C. Credit note
D. Office receipt
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27. Peter is a customer of Paul. On 1 May Peter owed Paul RM 250.

Transactions during May were as follows.
Sales RM 1,470
Sales return RM 80
Discount allowed RM 20
Cheque received RM 930
What was the debit balance on Peter’s account in the books of Paul on June?
A. RM 440
B. RM 460
C. RM 690
D. RM 710

28. Which of the following account will have a balance on debit side?
A. Bank loan account
B. Capital account
C. Return Inward account
D. Sales account

29. Which is the kinds of cash book

A. Cash, bank, petty cash

B. Cash, bank, discount allowed
C. Cash, bank, discount received
D. Single column, double column, three column

30. The debtor control account contains a number of incorrect entries.

Debtor Control Account
RM RM
Opening balance 180,000 Credit sales 140,000
Cheque from customer 160,000 Dishonored cheque 4,000
Bad debt 2,000
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Discount received 4,000

Closing balance 190,000
340,000 340,000
What should the closing balance be on the debtors control account when the error are corrected?
A. RM 150,000
B. RM 154,000
C. RM 160,000
D. RM 162,000

31. The total liabilities of Titan Co. are RM 34,000. The total assets of the company are three times the
amount of its total liabilities. What is the amount of owner’s equity?
A. RM 34,000
B. RM 68,000
C. RM 102,000
D. RM 136,000

32. On 9 May Leslie bought goods with a list price of RM 5,200. The goods were subject to a trade discount
of 15% and a cash discount of 5% for settlement within 30 days. Leslie paid on 20 May. How much
Leslie paid in the date?
A. RM 5,200
B. RM 4,940
C. RM 4,420
D. RM 4,199

33. A business purchase goods on credit for RM 8,900, less 20% trade discount, with a cash discount of 10%
if received in full within 28 days.
How much will the business pay if it cannot settles within 28 days?
A. RM 8,900
B. RM 8,010
C. RM 7,120
D. RM 6,408
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34. What is the closing balance in the purchase ledger control account?

A. RM 6,716
B. RM 11,906
C. RM 18,096
D. RM 20,716

35. The amount owed by Bryan to suppliers at the start of the period was RM 4,500. During the period,
credit purchase worth RM 87,200 and makes payments out of his bank account RM 102,000 which
mainly related to settling amount owing to suppliers – but RM 15,000 of this total relates to private
expenses. What would be the balance on Bryan’s purchase ledger control account for the end of the
period?
A. RM 4,700
B. RM 19,300
C. RM 19,700
D. RM 10,300

36. Edmund owed his suppliers RM 6,800 at the start of the period. During the period he made credit
purchases of RM 12,512 and made payment to suppliers totally RM 8,800.
What is the balance of Edmund’s supplier account at the end of the period?
A. RM 3,712
B. RM 10,512
C. RM 12.512
D. RM 19,312

37. Anson purchases goods on credit with a list price of RM 280. The supplier gives him a trade discount of
15% and also offers a cash discount of 10% for payment within 30 days. What is the amount that
Anson will debit to his purchase account?
A. RM 252.00
B. RM 238.00
C. RM 214.20
D. RM 210.00
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38. Jen started her business on 1 January 2012.

What would be the balance of the sales account in the general ledger at the end of January?
A. RM 16,460
B. RM 11,960
C. RM 11,250
D. RM 6,750

39. Mei Ling, a customer bought goods RM 5,000 on credit at Home Ltd. The supplier give Mei Ling 5% of
trade discount and 5% of cash discount if payment make within 30 days. Mei Ling pay the payment
after 30 days?
What is the amount that Mei Ling Pays to Home Ltd?
A. RM 4,750.00
B. RM 4,500.00
C. RM 4,512.00
D. RM 4,510.55

40. The following is a petty cash book transactions for a week:

Petty cash is maintained using the imprest system. What is the cashier should be pay at the end of the
week?
A. RM 600
B. RM 365
C. RM 235
D. RM 220
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41. The company makes a payment by cheque to Trust Children and was record in the cash book as RM
1,600. What adjustment is needed to the balance as per cash book?

A. Increase by RM 200
B. Decreased by RM 200
C. Increase by RM 1,600
D. Decreased by RM 1,600

42. A company recorded its Aug 15 receipts on its books as RM 165. However, the receipts were actually
RM 156. The deposit slip for the bank was prepared correctly as RM 156. What adjustment is needed
to the balance as per cash book?
A. Increase by RM 9
B. Decreased by RM 9
C. Increase by RM 156
D. Decreased by RM 156

43. On 14 Oct 2018, RM 5,000 deposit in the bank account was entered twice in the cash book. Identify the
correct adjustment in cash book.
A. RM 5,000 will be debited
B. RM 5,000 will be credited
C. RM 10,000 will be debited
D. RM 10,000 will be credited
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44. What is the balance for the following:

A. RM 77, 638
B. RM 110,773
C. RM 193,508
D. RM 200,000

45. Which of the following statements is incorrect?

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

46. Which of the following is incorrect?

A. i and ii
B. i and iii
C. ii and iv
D. iii and iv

47. A cash book that is used to record the small payment of cash is generally referred as
A. Petty cash book
B. Single cash book
C. Two column cash book
D. Three column cash book
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48. On 1 May Happy Ltd had an overdraft of RM 1,144. On 2 May he was notified by the bank that
a cheque, RM 133, received from debtor had been discoursed. On the same day cash sales
RM 950, were into the bank. These were entered in the cash book. What was the balance
brought down in the bank column of Happy Ltd cash book on 3 May?
A. RM 327 debit
B. RM 327 credit
C. RM 1,961 debit
D. RM 1,967 credit

49. Yee Ling purchase goods on credit with a list price of RM 988. The supplier gives him a trade
discount of 12% and also offers a cash discount of 5.5% for payment within 30 days. What is
the amount that Yee Ling will debit to his purchase account?
A. RM 988.00
B. RM 821.62
C. RM 933.66
D. RM 869.44

50. What is the value of outstanding amounts owing to suppliers at end of the period?

A. RM 4,500
B. RM 5,090
C. RM 7,900
D. RM 12,990
E. 1,700