TSUN JIN HIGH SCHOOL

SECOND SEMESTER FINAL EXAMINATION 2022

Senior Middle One

BOOKKEEPING AND ACCOUNTS

Date : 17 October 2022

Time : 8:00 a.m. – 10:00 a.m. (120 minutes)
Scope : Petty Cash Book, Accrual & Prepayment,
Bad Debts & Allowance for Doubtful Debts,
Depreciation and Disposal of Non-Current Assets

INSTRUCTIONS TO CANDIDATES

1. This subject comprises two sections:

Section A: Multiple-choice questions (20%)

Section B: Subjective questions (80%)

2. Section A answers must use pencil to draw in the “O” sheet given.

3. Section B consist of 4 questions, answer all the questions.

4. All necessary workings must be shown.

5. Do not copy the questions, but the answer to each question should be clearly numbered.

6. Begin each answer on a fresh page.

7. Use only blue or black ball-point pen for writing except draw line.

8. Electronic calculators may be used for calculation.

9. Arrange the answer scripts in numerical order and tie them together.

10. This paper consists of 9 printed pages.

DO NOT TURN OVER THIS PAGE UNTIL YOU ARE TOLD TO DO SO

( Name : ______________________ Class No. : _______ Class : ________ )

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Section A: Multiple-Choice Questions (20%)
(Choose the correct or the best answer.)

1. Which of the following transactions will be recorded in Petty Cash Book?

I. Bought computer for office use.

II. Claims for meal allowance.
III. Paid for office cleaning.
IV. Paid for office insurance.

A I, II B I, IV
C II, III D III, IV

2. The following information were extracted from the Petty Cash Book of Cool Trading
during the month of January 2

RM
1 January 2020:
Total receipt from chief cashier 120
1 January – 31 January 2020:
Total payment 80
1 February 2020:
Balance b/d 40
How much will be reimbursed at the beginning of the month of February, if Cool
Trading decided to increase the petty cash float to RM 200 started from February 2020 ?
A RM 40 B RM 120
C RM 160 D RM 200

3. Which of the following is not an advantage of the Petty Cash Book?

A Petty expenses are impractically paid by cheque.
B It makes it easier to cross-reference the Cash and Bank accounts.
C It reduces the number of postings for small expenses in Cash Book.
D It enables the division of labour as junior staff can be put in charge of the Petty
Cash Book.

4. Expenses recorded in the Petty Cash Book are posted to _________.

A the debit side of Cash Book.
B the credit side of Cash Book.
C The debit side of expenses accounts in General Ledger.
D The credit side of expenses accounts in General Ledger.

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5. The balance of the Petty Cash Book is a/an _____________.

A Assets B Income
C Expenses D Liabilities

6. Which principle shows that the income should be recorded when goods are
sold regardless of whether cash has been received or not?
A Accrual Basis B Cash Basis
C Imprest System D Double Entry System

7. Which of the following balances will be classified as Current Assets?

A Accrued Stationery
B Unearned Commission Income
C Accrued Commission Expenses
D Accrued Interest On Fixed Deposit

8. On 1 February 2021, Jane rents a shop in Johor Bahru for business purpose with
RM 1,000 per month. At the end of the accounting period, she paid the total payments
which included RM 3,000 for the next period.

How much is the rental expenses paid for the year ended 31 December 2021?

A RM 11,000 B RM 12,000
C RM 13,000 D RM 14,000

9. If unearned incomes are not adjusted at the end of the accounting period, what are the
effects on Income Statement?
A Income will be overstated.
B Income will be understated.
C Income will be remain unchanged.
D Income will not be affected.

10. Which of the following are true?

I An accrued expense is a payable in the next year.
II An accrued expense is an amount paid in advance.
III An accrued expense is an amount received in advance.
IV An accrued expense is an amount owing at the end of the period.

A I, II B II, III
C II, IV D I, IV
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11. Which of the following is true about bad debts recovered?
A It will increase the Accounts Receivable account.
B It will decrease the Accounts Receivable account.
C It will have no effect on Accounts Receivable account.
D It will not be recorded in Accounts Receivable account.

12. Which of the following is not the effect that will take place if allowance for
doubtful debts is decreased?

A Decrease allowance expenses.

B Credit balance in Profit and Loss account.
C Lesser closing balance of the allowance account.
D Net accounts receivable are greater than previous year.

13. The following information extracted from Sun Trading as at 31 December 2021:
RM
Trade Receivables 7,000
Allowance For Doubtful Debts, 1 January 2021 415
Sun Trading decided to write off RM 100 and the allowance for doubtful debts was
decrease in the sum of RM 70. What will be the percentage charged on the net accounts
receivable for the year of 2021?

A 1% B 5%
C 6% D 8%

14. Which of the following is best describe of Bad Debts?

A The total amount of credit sales recorded in Financial Statement.

B The amount of debts which is definitely uncollectible by a business.
C An estimate of debts that are not expected to be collected by a business.
D Debts that are unexpectedly repaid by a trade receivable after the debts have
been written off previously

15. The following information extracted from Trial Balance of Jay Trading as at
31 December 2021:
Debit (RM) Credit (RM)
Sales (Included RM 14,000 cash sales) 26,000
Returns 2,000 6,000
The policy of the business was to make an allowance for doubtful debts of 2% on
total credit sales yearly. Calculate the allowance for doubtful debts on 31 December 2021.

A RM 520 B RM 440
C RM 200 D RM 160

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16. Which of the following is not a reason of reduce in value of non-current assets.
A Obsolescence B Passage of time
C Repairs D Physical deterioration

17. Which of the following expenses will not be considered as cost of non-current assets?
A Cost of installation
B Maintenance of non-current assets
C Import Duty
D Delivery and handling charges on non-current assets

18. Rose Trading sudden changes from the straight line method of depreciation to the
revaluation method. Which of the following accounting concept has not been applied?

A Prudence B Matching
C Consistency D Historical Cost.

19. The following information extract from the books of Q Motor Trading
1 January 2021 31 December 2021
RM RM
Tools and Equipment 1,500 1,900
Q Motor Trading purchased a tools and equipment RM 700 during the financial year of 2021.
How much is the depreciation of tools and equipment should be recorded in
Profit and Loss Account?

A RM 200 B RM 300
C RM 400 D RM 1,700

20. Woo bought a motor vehicles RM 50,000 on 1 January 2011. He decided to depreciate
the motor vehicles with 20% per annum on cost. On 31 October 2021,
he sold the motor vehicles to Weng Trading with a price of RM 1,200. What is the amount
of gain or loss on disposal of motor vehicles for the year ended 31 December 2021?

A RM 1,200 (gain) B RM 1,200 (loss)

C RM 2,200 (gain) D RM 2,200 (loss)

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Section B: Subjective Questions (80%)

consist of 4 questions, answered all the 4 questions.

Question 1 (20%)

Extracted opening balances from Marco Enterprise on 1 January 2021:

Debit Credit
RM RM
Motor Vehicles Expenses 950
Rental Income 4,000
Stationery 250
Interest Income 1,050
Fixed Deposit (interest due on 30 April each year) 45,000

During the year 2021:

Dr. Bank Summary Cr.

RM RM
Rental Income 18,000 Motor Vehicles Expenses 4,450
Interest Income 1,575 Stationery 630

Year-end adjustments for 2021:

1) Motor Vehicles Expenses RM 300 was remains unpaid as at 31 December 2021.

2) The annual rental income was RM 24,000 for the year 2021.

3) After the stock-take on 31 December 2021, the cabinet still keep the unused stationery
worth RM 195.

4) Marco has renewed the fixed deposit agreement with an interest annual rate of 4% on
1 May 2021.

A) You are required to assist Marco to open the following accounts and made all necessary
entries (included adjusting and closing entries) for the year 2021:

i. Motor Vehicles Expenses

ii. Rental Income
iii. Stationery
iv. Interest Income

B) Prepare the extracts Income Statement for the year ended 31 December 2021 to
show the incomes and expenses value should appear in the statement.

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Question 2 (20%)

Gynee Trading operates as a retails business for several years in Kuala Lumpur. Gynee normally
sold goods to customers on credit, she has accumulated 50 credit customers. Gynee Trading
accounting year ended 31 December.

The following information related to her credit customers:

For the year 2019: Trade Receivables balance as at 31 December was RM 39,000

After the trial balance was prepared, the following issues were
taken place:

1) a debt of RM 2,500 was treated as irrecoverable.

2) received a cheque of RM 1,000 from an ex-customer to paid off
his debt which has been written off in year 2017.

For the year 2020: Trial Balance as at 31 December shown Trade Receivables Balance
as RM 40,000.

During the year RM 1,800 debts had been written off and bad debts
recovered was RM 500.

For the year 2021: Closing Balance of Trade Receivables was RM 28,000.

There were no bad debts or bad debts recovered for this year.

Additional Information:

Gynee Trading has started to make allowance for doubtful debts from year 2019 at 5%
on net trade receivables balance constantly.

You are required to:

a) prepare the following accounts for the years of 2019 to 2021 for the above adjusting entries
and closing entries:

1) Bad Debts
2) Bad Debts Recovered
3) Allowance for Doubtful Debts

b) prepare an extracts Income Statement for the year ended 31 December 2020.

c) prepare an extracts Statement of Financial Position as at 31 December 2021.

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Question 3 (20%)

Alda Stationery Shop commenced its business since 2013 in Klang Velley. The following
information related to its non-current assets:

1) Alda owned a premises cost RM 200,000 which bought on 1 January 2015.

2) The fixtures and fittings (display racks):

Rack Type A Rack Type B Rack Type C

Bought 2 units Bought 2 units Bought 3 units
Date of Purchase: 1 Jan Date of Purchase: 1 Jul Date of Purchase: 1 Apr
2018 2019 2020
Cost RM 3,500 each Cost RM 4,000 each Cost RM 2,000 each

The depreciation policies of Alda Stationery Shop for premises and fixtures and fittings:

i. Premises based on its estimated useful life of 50 years with no scrap value.
ii. Fixtures and Fittings are using reducing balance method to depreciate the asset
utilisation for each year at the rate of 10% p.a.

You are required to:

a) show the calculation of depreciation on premises per annum and the accumulated
depreciation as at 31 December 2021.

b) show the calculation of depreciation charge on fixtures and fittings for the year 2018 to
year 2021 and Accumulated Depreciation as at 31 December 2021.

c) prepare the extracts Statement of Financial Position as at 31 December 2021.

(shows the non-current assets section only)

Note: Any decimal amount should be rounded to the nearest RM 1.

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Question 4 (20%)

The following information extracts from the books of Clarence & Co. related to the motor van
Movement:

Opening Balance on 1 January 2021:

Motor Van at cost RM 180,000.

Accumulated Depreciation of Motor Van RM 86,250

Details information in the non-current assets registrar:

Van 1 Bought in 1 Jan 2017 cost RM 70,000

Registered plate no.: VAG 6543

Van 2 Bought in 1 Jan 2018 cost RM 110,000

Registered plate no.: VGJ 9238

On 1 Jan 2021, Clarence trade in Van 1 with Ian Automobile for a new Van (Van 3) according to
the following terms and condition:

Van 3 Cost RM 90,000

Registered plate no.: VJA 6053

Trade in value of Van 1 was RM 25,000

Any balance settled by cheque payment.

Additional information:
1) The business depreciates the motor van at 15% p.a. on straight line basis and estimate
that all motor vans will have RM 5,000 scrap value each.

You are required to:

a) prepare the following accounts for the year 2021 to record the above transactions
taken place:

i. Motor Van
ii. Depreciation of Motor Van
iii. Accumulated Depreciation of Motor Van
iv. Disposal of Motor Van

b) prepare the extracts Statement of Profit or Loss for the year ended 31 December 2021
shows the effects on the above issue.

= End Of Questions Paper =

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Model Answer for Final Exam:

Multiple Choice Questions

1 2 3 4 5 6 7 8 9 10
C C B C A A D D A D

11 12 13 14 15 16 17 18 19 20
C D B B C C B C B A

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Subjective Questions

Question 1

In the books of Marco Enterprise:

General Ledger
A)
(i) Motor Vehicles Expenses
2021 RM 2021 RM
Dec 31 Bank 4,450 Jan 1 Balance b/d 950
31 Balance c/d 300 Dec 31 Profit and Loss 3,800
4,750 4,750
2022
Jan 1 Balance b/d 300

(ii) Rental Income

2021 RM 2021 RM
Dec 31 Profit and Loss 24,000 Jan 1 Balance b/d 4,000
Dec 31 Bank 18,000
31 Balance c/d 2,000
24,000 24,000
2022
Jan 1 Balance b/d 2,000

(iii) Stationery
2021 RM 2021 RM
Jan 1 Balance b/d 250 Dec 31 Profit and Loss 685
Dec 31 Bank 630 31 Balance c/d 195
880 880
2022
Jan 1 Balance b/d 195

(iv) Interest Income

2021 RM 2021 RM
Jan 1 Balance b/d 1,050 Apr 1 Bank (w1) 1,575
Dec 31 Profit and Loss 1,725 Dec 31 Balance c/d (w2) 1,200
2,775 2,775
2022
Jan 1 Balance b/d 1,200

B)
Marco Enterprise
Extracts Income Statement for the year ended 31 December 2021
RM RM
Expenses Incomes
Motor Vehicles Expenses 3,800 Rental Income 24,000
Stationery 685 Interest Income 1,725

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Question 1 answer

Workings:

(w1) Interest Income received = RM 45,000 x 3.5% = RM 1,575

𝑅𝑀 1,575
** Interest Rate on 2020/2021 = x 100 = 3.5%
𝑅𝑀 45,000

8
Opening Accrued Interest Income = RM 1,575 x = RM 1,050
12

(w2) Interest on fixed deposit

RM
Fixed Deposit amount 45,000
x Interest Rate 4%
Interest Income for 2021/2022 1,800
8
x Accrued Income portion 12
Accrued Interest Income 1,200

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Question 2

Gynee Trading

a)
(1) Bad Debts
2019 RM 2019 RM
Dec 31 Trade Receivables 2,500 Dec 31 Profit and Loss 2,500
2020 2020
Dec 31 Trade Receivables 1,800 Dec 31 Profit and Loss 1,800

(2) Bad Debts Recovered

2019 RM 2019 RM
Dec 31 Profit and Loss 1,000 Dec 31 Trade Receivables 1,000
2020 2020
Dec 31 Profit and Loss 500 Dec 31 Trade Receivables 500

(3) Allowance for Doubtful Debts

2019 RM 2019 RM
Dec 31 Balance c/d 1,825 Dec 31 Profit and Loss (w1) 1,825
2020 2020
Dec 31 Balance c/d 2,000 Jan 1 Balance b/d 1,825
Dec 31 Profit and Loss-increase 175
2,000 2,000
2021 2021
Dec 31 Profit and Loss-decrease 600 Jan 1 Balance b/d 2,000
31 Balance c/d 1,400
2,000 2,000
2022
Jan 1 Balance b/d 1,400

b)
Gynee Trading
Extracts Income Statement for the year ended 31 December 2020
RM RM
Expenses Income
Bad Debts 1,800 Bad Debts Recovered 500
Allowance for Doubtful Debts 175

c)
Gynee Trading
Extracts Statement of Financial Position as at 31 December 2021
RM RM
Current Assets
Trade Receivables 28,000
Less: Allowance for Doubtful Debts (1,400)
26,600

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Workings:

(w1) Allowance for Doubtful Debts

RM
Trade Receivables 39,000
Less: Bad Debts (2,500)
36,500
x Allowance Rate 5%
Allowance for Doubtful Debts 2019 1,825

Trade Receivables 40,000

x Allowance Rate 5%
Allowance for Doubtful Debts 2020 2,000

Adjustment for 2020 = RM 2,000 – RM 1,825 = RM 175 (increase in allowance)

Trade Receivables 28,000

x Allowance Rate 5%
Allowance for Doubtful Debts 2021 1,400

Adjustment for 2021 = RM 1,400 – RM 2,000 = (RM 600) [decrease in allowance]

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Question 3

Alda Stationery Shop

a) Calculation of Depreciation Charge for Premises

𝐶𝑜𝑠𝑡−𝑆𝑐𝑟𝑎𝑝 𝑉𝑎𝑙𝑢𝑒
Depreciation of premises = 𝑈𝑠𝑒𝑓𝑢𝑙 𝐿𝑖𝑓𝑒

𝑅𝑀 200,000−𝑅𝑀 0
= 50 𝑦𝑒𝑎𝑟𝑠

= RM 4,000 per annum

Accumulated Depreciation of Premises

on 31 December 2021 = RM 4,000 x 7 years (2015 – 2021)

= RM 28,000

b) Calculation of Depreciation Charge for Fixtures and Fittings

Depreciation for 2018: Rack Type A = RM 7,000 x 10% = RM 700

Depreciation for 2019: Rack Type A = RM 6,300 x 10% = RM 630

6
Rack Type B = RM 8,000 x 10% x = RM 400
12
= RM 1,030

Depreciation for 2020: Rack Type A = RM 5,670 x 10% = RM 567

Rack Type B = RM 7,600 x 10% = RM 760
9
Rack Type C = RM 6,000 x 10% x = RM 450
12
= RM 1,777

Depreciation for 2021: Rack Type A = RM 5,103 x 10% = RM 510

Rack Type B = RM 6,840 x 10% = RM 684
Rack Type C = RM 5,550 x 10% = RM 555
= RM 1,749

Accumulated Depreciation of fixtures and fittings

on 31 December 2021

= RM 700 + RM 1,030 + RM 1,777 + RM 1,749

= RM 5,256

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c)
Gynee Trading
Extracts Statement of Financial Position as at 31 December 2021
RM RM
Non-Current Assets
Premises at cost 200,000
Less: Accumulated Depreciation of Premises (28,000)
172,000
Fixtures and Fittings at cost 21,000
Less: Accumulated Depreciation of Fixtures and Fittings (5,256)
15,744

Workings:

(w1) Cost of fixtures and fittings on 31 December 2021

Rack Type A RM 3,500 x 2 = RM 7,000

Rack Type B RM 4,000 x 2 = RM 8,000

Rack Type C RM 2,000 x 3 = RM 6,000

RM 21,000

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Question 4
Clarence & Co.
a)
(i) Motor Van
2021 RM 2021 RM
Jan 1 Balance b/d 180,000 Jan 1 Disposal of Motor Van 70,000
1 Disposal of Motor Van 25,000 Dec 31 Balance c/d 200,000
1 Bank 65,000
200,000 270,000
2022
Jan 1 Balance b/d 200,000

ii) Depreciation of Motor Van

2021 RM 2021 RM
Dec 31 Accumulated Depreciation Dec 31 Profit and Loss 28,500
of Motor Van (w2) 28,500
28,500 28,500

iii) Accumulated Depreciation of Motor Van

2021 RM 2021 RM
Jan 1 Disposal of Motor Van 39,000 Jan 1 Balance b/d 86,250
Dec 31 Balance c/d 75,750 Dec 31 Depreciation of Motor Van 28,500
114,750 114,750
2022
Jan 1 Balance b/d 75,750

iv) Disposal of Motor Van

2021 RM 2021 RM
Jan 1 Motor Van 70,000 Jan 1 Accumulated Depreciation
of Motor Van (w1) 39,000
1 Motor Van –trade in value 25,000
Dec 31 Profit and Loss
-loss on disposal 6,000
70,000 70,000

b)
Clarence & Co.
Extracts Statement of Profit or Loss for the year ended 31 December 2021
RM RM
Expenses Income
Depreciation of Motor Van 28,500
Loss on Disposal of Motor Van 6,000

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Workings:

(w1) Accumulated Depreciation for Van 1 (transfer to disposal account):

Depreciation charge for Van 1 = Depreciable Value x 15%

= (RM 70,000 - RM 5,000) x 15%

= RM 65,000 x 15%

= RM 9,750 (depreciation per annum)

Accumulated Depreciation for Van 1 on 1 Jan 2021

= RM 9,750 x 4 years (2017 - 2020) = RM 39,000

(w2) Depreciation Charge for year 2021

= [(RM 110,000 – RM 5,000) + (RM 90,000 – RM 5,000)] x 15%

= RM 190,000 x 15%

= RM 28,500

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