Professional Documents
Culture Documents
INSTRUCTIONS TO CANDIDATES
3. Please submit your HANDWRITTEN answers in ONE (1) pdf file. Name the pdf file according
to the following format: name_group_subjectcode.
4. Please make sure EVERY page of your answer sheets contains the followings information:
i) Name
ii) Student ID
iii) Group
(1 mark)
2. From a legal point of view, which type of business organization has a separate legal entity from
its owners, where the owners are not personally liable for the debts of the business?
A. Company
B. General Partnership
C. Sole Proprietorship
D. None of the above
(1 mark)
A. Banker
B. Business Owner
C. Potential Investor
D. Creditor
(1 mark)
4. Which of the following is considered a business transaction that should be recorded in the books
of a business?
A. Sales account
B. Purchase account
C. Return Inwards account
D. Return Outwards account
(1 mark)
8. Eureka Trading purchased goods having a list price of RM10,000. A trade discount of 10% and
the credit term is 2/10 net 30. The purchase transaction occurred on 30th Sept 2021. Cash
payment to settle the account was made on 8th October 2021. Calculate the cash payment made
by Eureka Trading.
A. RM9,000
B. RM8,820
C. RM10,000
D. RM1,000
(1 mark)
9. Which of the following action is considered as error affecting the trial balance:
A. Ali the bookkeeper of Moon Trading, recorded depreciation expense of Motor Vehicle in
the Motor Vehicle account instead of Depreciation for Motor Vehicle account.
B. Jazzy Enterprise recorded credit sales of Aimi Trading in Aimee Trading account.
C. Aqis Enterprise sold goods worth RM1,000 but the clerk unintentionally issued a sales
invoice of RM10,000.
D. HIG Trading bought goods on credit from Jazzy Enterprise, but the business only
recorded a single record for the transaction in the Purchase account.
(1 mark)
10. Nazili Enterprise runs a business selling prawn crackers. The following records made by the
business in preparing its trial balance are wrong, EXCEPT:
A. The business recorded the amount invested as capital in the debit column of the trial
balance account.
B. The business recorded the actual amount paid RM200 for utility expenses in the debit
column of the trial balance instead of amount stated in the utility expenses invoice
RM300.
C. The business recorded the balance of carriage outwards account in the credit column of
the trial balance account.
D. The business recorded the credit balance of the bank account in the credit column of the
trial balance account.
(1 mark)
PART 2
Bow & Arrow Trading is a business that buys and sells archery gear owned by Phulan. The
financial statement of Bow & Arrow Trading was prepared based on the assumption that the
business will continue to operate in the future. The company bought a shoplot located in
Pekan Machang worth RM100,000 in 2018. Today, the market price for the shoplot is
RM170,000. Therefore, Phulan has recorded the asset accordingly at its market price of
RM170,000.
Phulan records personal cash withdrawals from his business as expenses in the books of Bow
& Arrow Trading. The business reports its financial performance at regular time intervals
depending on its needs.
The measurement used by Bow & Arrow Trading to record its business transactions is in
Ringgit Malaysia (RM). Bow & Arrow Trading will only recognise sales in its accounting
records when m onies ar e r eceived f r om t heir cust om er s even thoug h goods have
alr ead y been sent t o t he cust om er .
Required:
1. Explain the THREE (3) accounting concepts that are violated by the business.
(3 marks)
SECTION B
Below are the transactions that took place in the month of August 2021 for Bobby Enterprise:
No Transaction
1 The owner brought cash into the business amounted to RM10,000.
3 The owner brought his own motor vehicle into the business worth RM3,000.
5 Purchased an office equipment by cash amounted to RM5,000.
7 Cash sales worth RM350.
10 The business bought a computer set worth RM5,000 on credit.
14 Paid rental RM300 by cash.
17 Received cheque for sales worth RM650
22 Purchased goods on credit worth RM3,000 from YB Trading.
26 Deposit RM4,000 cash into the bank.
30 Owner took RM500 cash from the business to pay his son's school fees.
Bobby Enterprise uses the periodic inventory system to record the inventories.
Required:
Analyse the effects for the above business transactions on asset, liability, capital, revenue,
and expense.
(10 marks)
Note: Use the format given below to answer the above questions.
Example: On August 1, the owner invested RM10,000 cheque into the business.
Date Effects
Aug Increase Decrease
1 Asset: Cash
Owner Equity: Capital
SECTION C
On 1 October 2021, Cik Lisa decided to register Lalisa Enterprise, an electrical shop in her
hometown, Kota Bharu Kelantan. As at 1 November 2021, the business has the following
balances:
RM
Capital 66,200
Account Receivable - Naz Enterprise 2,550
Account Payable-Sudara Trading 1,600
Bank 58,900
Cash 6,350
For the month of November 2021, the following transactions took place:
Date Transactions
November
2 Lalisa Enterprise purchased a batch of rice cooker and kettles on credit from
Lion Mas costing RM16,500 with a credit term of 2/15, n/30.
9 An invoice with a value of RM1,700 was issued to Kedai Kek Timah for sale
of chiller and coffee maker. The credit term for the sales 2/15, n/60.
12 Kedai Kek Timah returned coffee maker worth of RM200 due to faulty.
19 A cheque with a value of RM1,500 was received from Naz Enterprise as part
of the business settlement.
20 Cik Lisa Lisa took electrical dough mixer worth RM1,300 for her personal use.
21 An official receipt was issued to Kedai Kek Timah for cash received relating
to the transaction made on 9 November 2021.
27 Cik Lisa used her own money amounting of RM500 to buy office supplies.
28 Rose Sdn Bhd settled its account by cheque.
Required:
a. Prepare the THREE (3) column ledger to record the above transactions.
b. Prepare a Trial Balance as at 30 November 2021.
(Total: 25 marks)
(TOTAL: 50 MARKS)