1.At the beginning of the year, Rahman Marketing had total assets of RM450,000 and owner's equity of RM192,000. During the year, assets increased by RM72,000 and liabilities decreased by RM84,000. What is the owner's equity at the end of the year? a) RM366,000 b) RM258,000 c) RM348,000 d) RM462,000 2.The total of all the current assets of Intelligent Bhd is RM300,000. The following information is also available from the trial balance of the company. The only other current asset not included in the information above is cash and bank balance. What is the value of the cash and bank balance? Trade receivables Trade payables Bank borrowings Prepaid expense Office equipment RM85,500 RM16,400 RM150,000 RM12,000 RM39,000 a) RM163,500 b) RM202,500 c) RM152,900 d) RM232,600 3.Mr Mohan sold goods to Mr Raju for RM900. Mr Mohan also offered a further discount of RM50 for spot payment of cash. Mr Raju took delivery of goods by paying cash. What is the journal entry to record this transaction in the books of Mr Mohan? a) Dr Cash account RM850, Dr Discount allowed account RM50; Cr Sales account RM900 b) Dr Cash account RM900; Cr Sales account RM850, Cr Discount received account RM50 c) Dr Account receivable - Mr Raju RM900; Cr Sales account RM900 d) Dr Cash account RM850; Cr Sales account RM850 4.On 5 May 2014, Tomas pays a rent bill of RM3,600 for the 18 months ended on 30 June 2015. What is the charge to the statement of profit or loss and the amount to be carried in the statement of financial position in respect of rent for the year ended 31 March 2015 a) RM3,000 with prepayment of RM600 b) RM2,400 with accrual of RM1,200 c) RM3,000 with accrual of RM600 d) RM2,400 with prepayment of RM600 5.On 1 January 2014, a small company had an allowance of doubtful debts of RM1,000. During 2014, debts of RM600 were written off and RM80 was paid by the liquidator of a company whose debts had been written off completely in 2013. At the end of 2014, it was decided to adjust the allowance to RM900. What is the total expense for irrecoverable debts that should be included in the statement of profit or loss for 2014? a) RM420 b) RM780 c) RM580 d) RM620 6.A company acquired a new minicomputer system for RM50,000 on 1 November 2014. The computer's estimated useful life is five years, at the end of which it is expected to have a scrap value of RM4,550. The company's financial year ends on 31 March and straight-line depreciation is applied on a time-apportioned basis. What is the depreciation charge on the computer in statement of profit or loss for the year ended 31 March 2015? a) RM9,090 b) RM10,000 c) RM4,167 d) RM3,788 7.Pearl has trade receivables at the year-end amounting to RM150,000. An irrecoverable debt of RM3,500 is to be written off. Pearl has an opening allowance of doubtful debts of RM1,000 and wishes to maintain an allowance of 5% of year-end accounts receivable. What is the balance carried down on the allowance of doubtful debts account after dealing with the above item? a) RM10,825 b) RM6,325 c) RM7,325 d) RM3,825 8.A company pays rent quarterly in arrears on 1 January, I April, 1 July and 1 October each year. The rent was increased from RM90,000 per year to RM120,000 per year as from 1 October 2012. What rent expense and accrual should be included in the company's financial statements for the year ended 31 January 2013? a) Rental expense RM100,000; Accrual RM10,000 b) Rental expense RM100,000 ; Accrual RM20,000 c) Rental expense RM97,500 ; Accrual RM20,000 d) Rental expense RM97,500 ; Accrual RM10,000 9. An invoice to Richard has been entered in the sales account as RM350, when in fact the correct amount was RM530. The sales account have been posted for the month and the receivables ledger entries had been made. Which of the following procedures should be adopted to correct the position? a) Dr Receivable - Richard RM180; Cr Sales account RM180 b) Dr Receivable - Richard RM360 ; Cr Sales account RM360 c) Dr Sales account RM180 ; Cr Receivable - Richard RM180 d) Dr Sales account RM360 ; Cr Receivable - Richard RM360 10. Gamma purchases a motor vehicle on 30 September 2011 for RM15,000 on credit. Gamma has a policy of depreciating motor vehicles using the reducing balance method at 15% per annum, O-rata in the years of purchase and sale. What are the correct ledger entries to record the purchase of the vehicle at 30 September 2011 and what is the depreciation charge for the year ended 30 November 2011? a) Dr Payable RM15,000 ; Cr Motor vehicle - cost RM15,000 ; Depreciation charge RM2,250 b) Dr Motor vehicle - cost RM15,000; Cr Payable RM15,000 ; Depreciation charge RM375 c) Dr Payable RM15,000 ; Cr Motor vehicle - cost RM15,000 ; Depreciation charge RM375 d) Dr Motor vehicle - cost RM15,000 ; Cr Payable RM15,000 ; Depreciation charge RM2,250 11. In a period, sales are RM140,000, purchases RM75,000 and other expenses RM25,000. What is the figure for profit for the year to be transferred to the capital account? a) RM140,000 b) RM75,000 c) RM40,000 d) RM65,000 12.A business starts trading on 1 September 20X0. During the year, it has sales of RM500,000, purchases of RM250,000 and closing inventory of RM75,000. What is the gross profit for the year? a) RM250,000 b) RM675,000 c) RM325.000 d) RM175,000 13.Mario's trial balance includes the following items: non- current assets RM50,000, inventory RM15,000, payables RM10,000, receivables RM5,000, bank RM110,000. What is the figure for current assets? a) RM160,000 b) RM190,000 c) RM130,000 d) RM180,000 14. Yusuf enters into the following transactions in his first month of trading: What is the total entry to the credit side of the cash T-account? (1) Buys goods for cash for RM380. (2) Pays RM20 in sundry expenses. (3) Makes RM1,000 cash sales. (4) Receives a bank loan of RM5,000. (5) Pays RM2,600 for fixtures and fittings a) RM6,380 b) RM3,000 c) RM2,620 d) RM6,000 15. A business sells $100 worth of goods to a customer, the customer pays $50 in cash immediately and will pay the remaining $50 in 30 days' time. What is the double entry to record the sale? a) Debit receivables $50, debit cash $50, credit sales $100 b) Debit sales $100, credit receivables $50, credit cash $50 c) Debit cash $50, credit receivables $50, credit sales $50 d) Debit sales $100, credit cash $100 16. Jenny's payable ledger shows opening balance of RM600 at 1 August. During the month she purchased goods worth RM1,200 on credit and RM500 on cash. Beside she paid RM1,000 to suppliers. What will be the amount of the closing balance of her payable ledger? a) RM1,300 b) RM700 c) RM800 d) RM200 17. Wincent's trial balance at 30 September 2020 includes the following balances: Trade receivables RM75,943 ; allowance for doubtful debts RM4,751. How should these balances be reported in Wincent's statement of financial position as at 30 September 2020? a) An asset of RM71,192 b) An asset of RM75,943 and a liability of RM4,751 c) A liability of RM71,192 d) A liability of RM75,943 and an asset of RM4,751 18. At 1 July 2019, a company's allowance for doubtful debts was RM48,000. At 30 June 2020, trade receivables amounted to RM838,000. It was decided to write-off RM72,000 of these debts and adjust the allowance for doubtful debts to RM60,000. What are the final amounts for inclusion in the company's statement of financial position at 30 June 2020? a) Trade receivables RM838,000; allowance for doubtful debts RM60,000 net balance RM778,000 b) Trade receivables RM766,000; allowance for doubtful debts RM60,000 ; net balance RM706,000 c) Trade receivables RM766,000 : allowance for doubtful debts RM108,000, net balance RM658,000 d) Trade receivables RM838,000 : allowance for doubtful debts RM108,000; net balance RM730,000 19. Ali sells a machine for RM50,000 cash on 30 April 2020. The machine cost RM100,000 when it was purchased and has a carrying value of RM65,000 at the date of disposal. What are the journal entries to record the disposal of the machine? a) Dr Accumulated depreciation RM35,000: Dr Loss on disposal RM15,000 : Dr Cash RM50,000 : Cr Non- current assets -cost RM100.000 b) Dr Accumulated depreciation RM65,000 ; Dr Loss on disposal RM35,000 : Cr Non-current assets -cost RM100,000 c) Dr Accumulated depreciation RM35,000 ; Dr Cash RM50,000 : Cr Non-current assets RM65,000 : Cr Profit on disposal RM20,000 d) Dr Non-current assets RM65,000: Dr Accumulated depreciation RM35,000 : Cr Cash RM50,000 : Cr Profit on disposal RM50,000 20. At 1 July 2020, a company had prepaid insurance of RM8,200. On 1 January 2021, the company paid RM38,000 for insurance for the year to 30 September 2021. What figures should appear for insurance in the company's financial statements for the year ended 30 June 2021? a) Insurance expense RM27,200 ; Prepayment RM19,000 b) Insurance expense RM39,300: Prepayment RM9,500 c) Insurance expense RM36,700 ; Prepayment RM9,500 d) Insurance expense RM55,700 ; Prepayment RM9,500 21. A company has sublet part of its offices and in the year ended 30 November 2020 the rent receivable was RM8,400 per year until 30 June 2020 and RM12,000 per year from 1 July 2020. Rent was paid quarterly in advance on 1 January, April, July and October each year. What amounts should appear on the company's financial statements for the year ended 30 November 2020? a) Rent income RM9,900 : RM2,000 in sundry payables b) Rent income RM9,900 : RM1,000 in sundry payables c) Rent income RM10,200 : RM1,000 in sundry payables d) Rent income RM9,900 : RM2,000 in sundry receivables 22. A trial balance is made up of a list of debit balances and credit balances. Which of the following statements is correct? a) Every debit balance represents an expense b) Assets are represented by debit balances c) Liabilities are represented by debit balances d) Income is included in the list of debit balance