Bookkeeping Pre-UEC Set 1 – Paper 1
1. Which of the following account has a debit balance?
A. Loan From Ahmad
B. Loan From Bank
C. Loan To Employee
D. Mortgage Loan
2. Boon contributed his personal fixed deposit balance into the business bank account. What will be the
effect of the transaction in the books of Boon?
A. Increase in Assets; Decrease in Liabilities
B. Increase in Assets; Increase in Capital
C. Decrease in Assets; Increase in Liabilities
D. Decrease in Assets; Decrease in Capital
3. Which of the following statements are correct?
I Nominal accounts are closed and transferred to profit and loss account at the accounting year end.
II Real accounts should be carried forward to the next accounting period during year end.
III Debtors and creditors are impersonal accounts.
IV Nominal accounts are temporary accounts.
A. I, II and III
B. I, II and IV
C. I, III and IV
D. II, III and IV
4. Which of the following day book records the credit note received from creditors?
A. Purchases Day Book
B. Sales Day Book
C. Returns Inwards Day Book
D. Returns Outwards Day Book
5. Accounting cycle started with
A. Source Documents
B. Ledger
C. Journal
D. Trial Balance
6. What was the possible reason for the below entry?
Cash Book
Discounts Cash Bank Discounts Cash Bank
Allowed Received
RM RM RM RM RM RM
Ali – Refund 200
A. Cash refund to customer due to overpayment
B. An error corrected for cash account
C. Discount allowed refunded
D. Cash refund from supplier due to overpayment
7.
- It is a reduction of the list price
- It is usually provided to the regular customer.
- It is given when the customer buys goods in bulk.
Which of the following refers to the statements above?
A. Trade Discount
B. Cash Discount
C. Discounts Allowed
D. Discounts Received
8. What will be the effect if prepaid expenses are not adjusted at the end of a year?
A. Asset and net profit will be understated
B. Asset and net profit will be overstated
C. Liability and net profit will be understated
D. Liability and net profit will be overstated
9. The following is the balances extracted from Dahlia Enterprise’s books as at 31 December 2023:
Trade Receivable RM39,600
Allowance For Doubtful Debts, 1 January 2023 RM1,800
It is the policy of Dhalia Enterprise to provide 5% of allowance for doubtful debts on trade receivable.
Calculate the amount of allowance for doubtful debts that will be recorded in Statement of Profit or
Loss for the year ended 31 December 2023.
A. Debit RM180 B. Credit RM180
C. Debit RM1,980 D. Credit RM1,980
10. “Purchases of equipment amounting to RM520 was posted to purchases account.”
Identify the type of error of the above statement
A. Error of Principle
B. Error of Commission
C. Error of Original Entry
D. Reversal Error
11.
RM
Cash Book Balance (Before Adjustment) 5,500 Dr
Bank Statement Balance ?
The Bank Statement balance does not agree with the bank balance of the Cash Book. The difference is
due to the interest of fixed deposit of RM200 and the bank charges of RM80. What is the bank balance
statement?
A. 5,380 Dr
B. 5,380 Cr
C. 5,620 Dr
D. 5,620 Cr
12. Zi Jia and Wei Yik are in partnership. Zi Jia drew out RM480 on 1 September 2022, RM1,200 on 30
November 2022 and RM600 on 1 March 2023. The financial year was ended on 30 June 2023. Interest
on drawings is 5% per annum. Calculate the total amount of interest charged on Zi Jia’s drawings.
A. RM55.50
B. RM65.00
C. RM70.00
D. RM114.00
13. Which of the following is not the factors that give rise to the goodwill?
A. Reliable goods and services
B. Good customers relationship
C. Large amount of capital
D. Experienced management team
14. Joveen is a trader who sells goods at the mark-up of 20%. The value of closing inventory on 31
December 2023 is RM27,550, while the purchases during the year was RM122,050. Calculate the value
of sales in the year of 2023.
A. RM94,500
B. RM110,250
C. RM113,400
D. RM118,125
15. The following was extracted from the books of Gan Manufacturer:
RM
Purchases of Raw Material 13,000
Manufacturing Wages 8,500
Royalties 20,000
Opening Work-In-Progress, At Production Cost 2,800
Closing Work-In-Progress, At Production Cost 1,600
Water and Electricity (60% Factory; 40% Office) 10,000
Calculate prime cost.
A. RM21,500
B. RM41,500
C. RM48,700
D. RM52,700
16. Which of the following was regarded as a revenue receipt for a sport club?
A. Donation to buy sport equipment
B. Entrance fees to upgrade machinery
C. Subscription fees to pay wages for club workers
D. Government grants for extension of clubhouse
17. What basis does the building’s insurance most probably apportioned to respective departments in
Departmental Accounts?
A. Sales
B. Purchases
C. Number of Workers
D. Floor Area Occupied
18. If the del credere commission was given to the consignee, in the case of the uncollectible from the
debtors will to be borne by the
A. Supplier
B. Consignee
C. Consignor
D. Consignee and Consignor
19. Which of the following will not be recorded in branch inventory account under a centralised branch
system provided goods sent to branch from head office was at cost?
A. Cash sales by branch
B. Trade discounts granted on slow moving goods
C. Sales return from branch customers
D. Loss of goods in fire
20. How should we treat the gain on bargain purchases in the buyer’s book?
A. It is recognised as a gain in Income Statement and eliminated immediately.
B. It is recognised as an intangible asset in the Statement of Financial Position.
C. It is recognised as an expense in the Profit and Loss account.
D. There are no entries needed in the buyer’s book.
Bookkeeping Pre-UEC Set 1 – Paper 2
Question 1
Xuan Sdn Bhd has authorised share capital of RM1,500,000 which consist of ordinary shares of RM1
each and 5% preferred shares of RM1 each. The accounting year end of the company ends at 31
December annually. The balances extracted as at 31 December 2022 were as follows:
RM
8% Loan Notes 200,000
Ordinary Share Capital (RM1 per share) 500,000
Share Premium 100,000
General Reserve 120,000
Assets Replacement Reserve 50,000
Retained Profits 220,000
During the year ended 31 December 2023, the following transactions took place.
2023
Mar 1 Issuance of remaining half of ordinary shares at RM0.50 premium. The application
was oversubscribed by 2.0 times. RM0.30 per share was paid on application.
15 RM0.70 per share (including premium) will be paid on allotment stage. Application
for ordinary shares were allotted as followed:
- 100,000 applications were rejected and refund will be made
- 200,000 applications were allotted in full
- 300,000 applications were allotted on the basis of one share for every three applied
- Remaining balance was allotted on pro-rata basis
18 Amount due on allotment was received and refund was made to unsuccessful
applications. Excess applications monies which were not refunded was to be offset
against the amount due on allotment.
25 First call was made on ordinary shares and RM0.20 per share payment was fully
received.
30 Second and final call was made on ordinary shares and the remaining balance
payment was fully received.
Apr 1 Issuance of 30% of authorised 5% preferred shares on par. Only 70% of 5%
preferred shares were subscribed. RM0.20 per share was paid on application.
15 5% preferred shares were allotted and RM0.60 payment was made for share
allotment.
25 First and final call was made on 5% preferred shares and RM0.20 per share payment
was fully received.
Nov 1 Further issuance of RM100,000 8% loan notes at 95 per cent. Application of
RM150,000 was received and payment was made in full on application.
15 8% loan notes were allotted and refund was made on unsuccessful applicants.
25 Interim ordinary share dividend on 5% was paid. New shares issued during the
year will be entitled to interim dividend payment for the year.
2023
Dec 18 Preferred shares dividend during the year was paid out.
31 Net profit for the year amounted to RM45,200. Directors of the company proposed
the followings:
- Transfer RM10,000 to general reserve
- Transfer RM5,000 to asset replacement reserve
- Final dividend of RM0.20 per share on ordinary shares
(New shares issued during the year will be entitled to final dividend payment
for the year)
You are required to:
(i) Record Journal Entries for Issuance of Shares and Loan Notes
(ii) Calculate Interim and Final Dividend for Ordinary Shares
(iii) Calculate Dividend for 5% Preferred Shares
(iv) Prepare Statement of Change in Equity for the Year Ended 31 December 2023
Question 2
Alvin Shop had the following balances in its trade receivable and trade payable control accounts as at
1 January 2023:
RM
Balance As At 1 January 2023:
Trade Receivable Ledger Control – Debit 95,400
Trade Receivable Ledger Control – Credit 320
Trade Payable Ledger Control – Debit 140
Trade Payable Ledger Control – Credit 54,100
Allowance For Doubtful Debts 3,750
Transactions As At 31 December 2023:
Cheque Receipts From Customers (Including Bad Debts Recovered RM400) 765,200
Cheque Payments To Suppliers 588,400
Cash Receipts From Customers 24,200
Cash Payments To Suppliers 16,100
Cash Refund From Supplier For Overpayment 210
Cash Refund To Customer For Overpayment 170
Returns From Trade Customers 1,200
Returns To Trade Suppliers 2,700
Irrecoverable Debts Written Off 3,800
Carriage Charged By Trade Suppliers 850
Carriage Charged To Trade Customers 720
Cash Discounts Allowed 1,500
Cash Discounts Received 2,500
Bill Issued To Trade Customers Accepted 25,000
Bill Received From Trade Suppliers Accepted 18,000
Customer’s Cheque Dishonoured (RM100 Cash Discount Allowed) 1,900
Total Sales (RM10,560 Cash Sales) 954,300
Total Purchases (RM32,000 Cash Purchases) 632,700
Bill Accepted By Customers Discounted With Bank and Dishonoured 5,000
Noting Charges For Dishonoured Discounted Bill 150
Cheque Payment For Retirement Of Accepted Bill Received From Trade Suppliers 4,200
Discount Received From Retired Bill 200
Interest Charged By Trade Suppliers For Overdue Account 380
Legal Fees Charged To Trade Customers 2,900
Set Off Between Trade Receivable and Trade Payable Ledger 25,400
Increase In Allowance For Doubtful Debts 150
Trade Receivable Ledger Control – Credit 810
Trade Payable Ledger Control – Debit 1,450
a) You are required to:
i. Prepare Trade Receivable Ledger Control and Trade Payable Ledger Control Account for
the year ended 31 December 2023.
ii. Statement of Financial Position (Extract) As At 31 December 2023.
b) State two reasons on why a purchases ledger control account has a debit balance.
Question 3
The following was the information extracted from the books of Kah Chun as at 31 March 2023:
Assets RM Owner’s Equity and Liabilities RM
Freehold Building 180,000 Capital, 1 April 2022 220,000
Machinery 65,000 Net Profit For The Year 33,500
Tools And Equipment 32,000 Drawings 400
Trade Receivable 3,000 Trade Payable 4,200
Inventory 2,800 Accrued Wages 3,500
Cash 2,400 Bank Loan 20,000
Prepaid Rent 1,000 Bank Overdraft 8,200
Allowance For Doubtful Debts 100
Suspense 2,900
Kah Chun had found the following errors during the closing of books:
i. A credit note issued to customer for returned of RM650 worth of goods entered in sales
return day book as RM560.
ii. Payment of rent on cash of RM900 had been incorrectly entered as a receipt of rent on
cash in the books.
iii. Cash drawings of RM400 had been entered correctly in cash book but had not been
entered in another account.
iv. The purchases day book had been overcast by RM120.
v. Insurance expenses paid by cheque of RM1,250 was incorrectly recorded in the books
as RM1,520 for both the account concerned.
vi. Allowance for doubtful debts of RM100 had been created during the year. Only credit
entry had been recorded in the books.
vii. The total of the discount received column in cash book had been undercast by RM70.
viii. RM2,500 of loan to employee account had not been posted to the trial balance.
ix. All the accrued wages had been settled in full by owner’s personal saving. This
transaction had been overlooked.
You are required to prepare:
a) Journal entries to correct the above errors (Narrations Not Required);
b) a Suspense Account;
c) a Statement of Corrected Net Profit for the above errors;
d) a Revised Statement of Financial Position As At 31 March 2023
Question 4
On 1 July 2023, Heng had the following balances on his personal accounts:
Trade Receivable Amount (RM) Trade Payable Amount (RM)
Kenny 3,750 Joe 3,500
Marcus 700
Amin 375
2023
Jul 1 Received Marcus’s acceptance (Bill 1) for RM700 at two months. The bill was
discounted at his bank and incurred charges of RM40.
4 Heng drew a bill of exchange (Bill 2) on Amin for RM375 at one month from sight.
5 Drew a two months bill (Bill 3) for RM1,750 and a three months bill (Bill 4) for
RM 1,900 to Kenny in full settlement of his debts. All the bills were duly accepted
by Kenny and received by Heng.
6 Endorsed and transferred the acceptance (Bill 3) to Joe in part payment of the
amount due to him.
15 Paid Joe a cheque of RM1,200 and accepted a one-month bill (Bill 5) for the
balance.
Aug 4 Bill 2 was paid on due date.
5 Prior to the due date of Bill 5, Heng desired to retire the bill. Joe agreed and allow
a rebate of RM 25.
Sep 1 Bill 1 was returned by the bank as dishonoured. The bank had paid noting charges
RM55.
2 Heng drew a new bill (Bill 6) on Marcus plus the noting charges for a further period
of one month. Interest of RM60 incurred.
5 Bill 3 was paid on due date.
Oct 2 Bill 6 was returned as dishonoured on due date and noting charges RM50 incurred.
5 Bill 4 was met on maturity.
12 Marcus declared bankruptcy; his debt was written off immediately
You are required to prepare and balance off the following account in the books of Heng to record
the above information for the year ended 31 December 2023 (Day of Grace Not Considered):
(a) All the Personal Account
(b) Bill Receivable Account
(c) Bill Payable Account
(d) Bank Account (Debit Balance as at 1 July 2020: RM15,000)
(e) Discounting Charges Account
(f) Bad Debts Account
(g) Interest Income Account
Question 5
Carina is in business operating a hairdresser salon and a beauty salon. The following are the records
she managed to compile for the year ended 31 December 2023:
RM
Fixtures and Fittings, At Cost 20,000
Equipment, At Cost
- Hairdressing 10,000
- Beauty Salon 5,000
Accumulated Depreciation, 1 January 2023
- Fixtures and Fittings 2,000
- Equipment (Hairdressing) 1,500
- Equipment (Beauty Salon) 750
Inventory, 1 January 2023
- Hairdressing 2,000
- Beauty Salon 1,000
Purchases
- Hairdressing 10,700
- Beauty Salon 5,800
Sales
- Hairdressing 60,000
- Beauty Salon 40,000
Wages
- Hairdressing 8,000
- Beauty Salon 4,500
Water and Electricity 3,600
Advertising 2,500
Insurance 2,000
Rent 10,000
General Expenses 1,600
Printing and Stationery 500
Capital, 1 January 2023 50,000
Drawings 4,000
Cash At Bank 80,150
Trade Receivable 6,200
Trade Payable 4,100
Cash On Hand 800
Loan From Jenny 20,000
Additional Information:
i. The closing inventory for hairdressing department and beauty salon department was RM2,400
and RM1,000 respectively.
ii. The depreciation charges for fixtures and fittings were 10% per annum on straight line method
while depreciation charges for equipment was 20% per annum on reducing balance method.
iii. Carina agreed with the employees to pay the December 2023 overtime wages in January 2024.
This amounted to RM850 to hairdressers and RM600 to beauty technicians.
iv. Rent was paid for ten months period only during the year.
v. Allowance for doubtful debts of 2% was to be created on trade receivable.
vi. The shop area is divided 75% for hairdressing and 25% for the beauty salon. It was decided to
apportion insurance, rent and depreciation of fixtures and fittings between the departments on the
basis of floor area.
vii. Water and electricity, advertising and general expenses were to be apportioned between the
departments on the basis of the sales value.
viii. Printing and stationery as well as allowance for doubtful debts were to be apportioned equally
between the departments.
ix. During the financial year, goods from beauty salon department of RM500 were transferred for
use in hairdressing department.
You are required to prepare:
a) Departmental Income Statement for the year ended 31 December 2023 in vertical form with
three columns, namely “Hairdressing”, “Beauty Salon” and “Total”.
b) Statement of Financial Position as at 31 December 2023.
Question 6
The following was the Receipts and Payments Account for Joy Sport Club for the year ended 31 December
2023:
Receipts RM Payments RM
Balance b/d 9,000 Sports Equipment 12,000
Subscriptions 20,000 Wages 18,000
Restaurant Sales 40,800 Water and Electricity 4,200
Donations 60,000 Equipment Repairs 3,900
Government Grants 10,000 Restaurant Accounts Payable 26,400
Competition Receipts 5,000 Competition Prizes 3,500
Income From Investment 100 General Expenses 4,000
Sales Of Sports Equipment 500 Fixed Deposit 20,000
Investment 10,000
The following was the balances of the club:
1 January 2023 31 December 2023
RM RM
Freehold Club Premises 60,000 60,000
Sports Equipment 20,000 ?
Subscription In Advance 4,200 4,600
Subscription In Arrear 3,300 2,800
Water and Electricity Outstanding - 300
Prepaid General Expenses 100 -
Fixed Deposit 30,000 ?
Restaurant Inventory 5,000 6,500
Restaurant Accounts Payable 2,000 4,400
Additional Information:
i. The old sports equipment was sold off on 1 February 2023. The old sport equipment had cost of
RM5,000 and was fully depreciated.
ii. The new sports equipment was bought on 1 March 2023.
iii. Depreciation was charged at the rate of 20% per annum on reducing balance basis. No depreciation
was to be charged on non-current assets in the year of disposal.
iv. One-third of wages are to be allocated to restaurant staff.
v. Placement of fixed deposit was made on 1 July 2023 and interest of 3% per annum was earned from
fixed deposit. The interest on fixed deposit for the year was still outstanding.
vi. Investment was performed on 1 January 2023 and paid a return of 2% per annum.
vii. Donations received for the year were to be used for extension of club premises.
viii. Government grants received for the year were spread evenly over 10 years as club’s revenue item.
You are required to prepare:
(a) Restaurant Trading Account for the year ended 31 December 2023
(b) Income and Expenditure Account for the year ended 31 December 2023
(c) Statement of Financial Position as at 31 December 2023