Tunku Puteri Intan Safinaz School of Accountancy

BKAL1013 Business Accounting

First Semester 2021/2022 (A211)

Lecture Group : O
Group No: Group 2
Tutorial : Tutorial 2
Topic: Topic 5

Prepared For:
Dr. Robiah Bt Abu Bakar

NO NAMA NOMBOR MATRIK

1 NG HAN SIANG 286506

2 TAN MING HUI 286528
3 FOO YOKE SHIAN 286593
4 NUR AFRINA AHMAD AMLI BT ABDULLAH 286635
5 OOI JIA LE 286658

Date of Submission : December 2021

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 BKAL1013 BUSINESS ACCOUNTING
SEMESTER A211
TUTORIAL 2: CHAPTER 5
LAST DATE OF SUBMISSION: SUNDAY 12 DECEMBER 2021

 PART (A): 

1. A buyer has to pay for a transportation cost on purchased merchandise if the term is:
A. FOB destination.
B. COD destination.
C. FOB shipping point.
D. COD shipping point.

2. When a corporation sells merchandise and the terms are FOB shipping point and pays the
shipping costs, the seller would record the transportation costs with the following entry:  
A. debit Cash, credit Accounts Receivable. 
B. debit Accounts Receivable, credit Sales. 
C. debit Accounts Receivable, credit Cash. 
D. debit Merchandise Inventory, credit Accounts Payable. 
 
3. Multiple-step Income Statement:  
A. shows gross profit but not income from operations. 
B. shows both gross profit and income from operations. 
C. shows neither gross profit nor income from operations. 
D. shows income from operations but not gross profit. 
 
4. A sales invoice included the following information: merchandise price, RM12,000;
transportation, RM500; terms 2/10, n/eom, FOB shipping point. Assuming that a credit for
merchandise returned of RM600 is granted prior to payment, that the transportation is
prepaid by the seller, and that the invoice is paid within the discount period, what is the
amount of cash received by the seller?  
A. RM11,662 
B. RM11,672 
C. RM12,250 
D. RM11,172  

5. Merchandise with an invoice price of RM15,000 is purchased with terms of 3/10, n/45,
FOB shipping point. Transportation costs paid by the buyer were RM162. What is the cost
of the merchandise purchased if payment is made during the discount period?  
A. RM14,712.00 
B. RM14,707.14 
C. RM15,162.00 
D. RM15,000.00  

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6. When a corporation sells merchandise and the terms are FOB shipping point and pays the
shipping costs, the seller would record the transportation costs with the following entry:  
A. debit Accounts Receivable, credit Cash. 
B. debit Cash, credit Accounts Receivable. 
C. debit Accounts Receivable, credit Sales. 
D. debit Merchandise Inventory, credit Accounts Payable. 

7. A merchandiser purchases inventory on account under a perpetual inventory system with

terms of 3/15, n/45. The merchandiser would:  
A. Debit Purchase Discounts on date of purchase if the discount is not taken 
B. Credit Inventory on date of payment if discount is taken 
C. Debit Purchase Discounts on date of purchase if the discount is taken 
D. Credit Inventory on date of payment if discount is not taken 

8. The credit term which allowed a 6% discount if payment is made within 15 days, net
amount due within 30 days is:  
A. 15/6, n/15 
B. 6/eom, n/15 
C. 6/15, n/30  
D. 6/6, n/30   

9. Which account would the seller debit when the purchaser takes advantage of credit terms
within the discount period? 
A. Sales discounts 
B. Purchase discounts 
C. Purchase returns and allowances 
D. Sales returns and allowances 
 
10. Firas sold merchandise on account to Fatin, RM15,000, terms FOB shipping point, n/45. 
The cost of the goods sold was RM9,000. Firas paid the RM1,000 shipping costs. In
Fatin’s journal entry, what should be recorded? 
   RM                 RM 
A. Account Receivable 16,000  Sales 16,000 
B. Cost of Goods Sold 16,000   Inventory 15,000 
C. Inventory 16,000  Account Payable 16,000 
D. Inventory 15,000   Account Payable 15,000 

11. The beginning balance in its inventory account is RM1,500 and the ending balance is
RM1,000. Cost of goods sold is RM6,500. What was the amount of inventory purchased
during the year? 
A. RM500 
B. RM6,000 
C. RM7,000 
D. RM7,500 
 

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Use the following information to answer question 12 to 16:

The following transactions were completed by Sihat Ceria Enterprise during March 2021. Sihat
Ceria Enterprise uses the perpetual inventory system.
March 1 Purchased RM65,000 of merchandise on account from manufacturer,
Oxxon , terms 3/10, n/30, FOB shipping point.

6 Returned RM3,000 of the merchandise purchased on March.

9 Paid to Oxxon for the purchase on 1 March less the return and discount.

18 Sold merchandise on account to Perniagaan Murni, RM12,000, terms

2/10, n/30, FOB shipping point was RM200. The cost of merchandise
sold was RM4,000.

27 Received payment from Perniagaan Murni for the sale on 18 March.

12. What is the amount of purchase discount received from Oxxon on 9 March 2021?
A. RM6,000
B. RM1,850
C. RM1,950
D. RM1,860

13. What is the amount of cash required to pay Oxxon on 9 March 2021?
A. RM56,000
B. RM60,140
C. RM62,000
D. RM60,050

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14. The journal entry to record the transaction on 18 March 2021 is:
A. Debit Account Receivable RM12,000
Credit Sales RM12,000
Debit Cost of Merchandise Sold RM8,000
Credit Merchandise Inventory RM8,000
B. Debit Account Receivable RM12,000
Credit Sales RM12,000
Debit Cost of Merchandise Sold RM4,000
Credit Merchandise Inventory RM4,000
C. Debit Account Receivable RM12,000
Credit Sales RM12,000
D. Debit Account Receivable RM4,000
Credit Sales RM4,000
Debit Cost of Merchandise Sold RM12,000
Credit Merchandise Inventory RM12,000

15. What is the amount of cash received from Syarikat Murni on 27 March 2021?
A. RM11,760
B. RM12,000
C. RM3,920
D. RM4,000

16. What is the amount of transportation cost paid by Sihat Ceria Enterprise on 18 March
2021?
A. RM200
B. RM400
C. RM100
D. RM0

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PART (B): QUESTION 1

The following were selected from among the transactions completed by Aish Works during
December of the current year. 
 
Dec 3.  Purchased merchandise on account from Tania Enterprise, list price RM24,000,
trade discount 25%, term FOB shipping point, 2/10, n30, with prepaid
transportation cost of RM615 added to the invoice. 
 
5.  Purchased merchandise on account from Mama Enterprise, RM10,250, terms FOB
destination, 2/10, n30. 
 
6.  Sold merchandise on account to Melati Borong, list price RM18,000, trade
discount 35%, terms 2/10, n30. The cost of merchandise sold was RM8,250. 
 
7.  Returned RM1,800 of merchandise purchased on 5 December from Mama
Enterprise. 
 
13.  Paid Tania Enterprise on account for purchase of 3 December, less discount. 
 
15.  Paid Mama Enterprise on account for purchase of 5 December, less return of
December 7 and discount. 
 
16.  Received cash on account from sale of 6 December to Melati Borong, less
discount. 
 
19.  Sold merchandise on MasterCard, RM39,500. The cost of the merchandise sold
was RM23,700. 
 
22.  Sold merchandise on account to LCW Resources, RM11,300, terms 2/10, n30. The
cost of the merchandise sold was RM6,700. 
 
23.  Sold merchandise for cash, RM17,680. The cost of the merchandise sold was
RM9,100. 
 
28.  Received merchandise returned by LCW Resources from sale of 22 December,
RM2,000. The cost of the returned merchandise was RM1,100. 
 
31.  Paid MasterCard service fee of RM1,050. 
 
REQUIRED: 
 
Journalise the transactions. 

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Aish Works :

General Journal
Debit Credit
Date Description
RM RM

Dec. 3 Merchandise Inventory [24000-(24000*25%)+615] 18615

Accounts Payable-Tania Enterprise 18615
(Purchased merchandise on account, terms FOB
shipping point)

5 Merchandise Inventory 10250

Accounts Payable-Mama Enterprise 10250
(Purchased merchandise on account, terms FOB
destination)

6 Accounts Receivable-Melati Borong [18000- 11700

(18000*35%)]
Sales 11700
(Sold merchandise on account to Melati Borong)

Cost of Merchandise Sold 8250

Merchandise Inventory 8250
(Recorded cost of merchandise sold to Melati
Borong)

7 Accounts Payable- Mama Enterprise 1800

Merchandise Inventory 1800
(Recorded the return of merchandise inventory)

13 Accounts Payable-Tania Enterprise 18615

Cash 18255
Merchandise Inventory [24000- 360
(24000*25%)*2%]
(Paid Tania Enterprise on account for purchase of 3
December)

15 Accounts Payable-Mama Enterprise (10250-1800) 8450

Cash 8281
Merchandise Inventory (8450*2%) 169
(Paid Mama Enterprise on account for purchase of
5 December, less return of December 7 and
discount. )

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 Debit Credit
Date Description
RM RM

16 Cash 11466
Sales Discounts (11700*2%) 234
Accounts Receivable-Melati Borong 11700
(Received cash on account from sale of 6 December
to Melati Borong, less discount)

19 Cash 39500
Sales 39500
(Sold merchandise on MasterCard)

Cost of Merchandise Sold 23700

Merchandise Inventory 23700
(Recorded cost of merchandise sold)

22 Account Receivable-LCW Resources 11300

Sales 11300
(Sold merchandise on account to LCW Resources)

Cost of Merchandise Sold 6700

Merchandise Inventory 6700
(Recorded cost of merchandise sold to LCW
Resources)

23 Cash 17680
Sales 17680
(Sold merchandise for cash)

Cost of Merchandise Sold 9100

Merchandise Inventory 9100
(Recorded cost of merchandise sold)

28 Sales Returns & Allowances 2000

Account Receivable-LCW Resources 2000
(Received merchandise returned by LCW Resources
from sale of 22 December)

Merchandise Inventory 1100

Cost of Merchandise Sold 1100
(Recorded cost of the returned merchandise by
LCW Resourses)

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 Debit Credit
Date Description
RM RM
31 Credit Card Expense 1050
Cash 1050
(To record service fee on credit card sales for 19
December)