MORE REVISION – STUDY WEEK
QUESTION 1
Faridah is a newly appointed accountant assistant for The Putra Enterprise. Upon comparing
the bank statement and the cash book of the business for the month of October 2023, she
found that there were differences cash book and bank statement as shown below:
BANK BAHAGIA
Bank Statement as at 31 October 2023
Date Particulars Debit Credit Balance
(RM) (RM) (RM)
October 1 Balance 2,679.00 CR
2 299513 250.00 2,429.00 CR
3 Deposit 543.00 2,972.00 CR
6 Bank services charges 50.00 2,922.00 CR
9 463029 173.00 2,749.00 CR
12 463028 356.00 2,393.00 CR
17 Standing order 166.00 2,227.00 CR
20 Deposit 580.00 2,807.00 CR
23 463030 259.00 2,548.00 CR
23 463032 190.00 2,358.00 CR
25 Credit transfer 468.00 2,826.00 CR
30 463033 342.00 2,484.00 CR
Cash Book Tasek Enterprise
Date Particulars Total Date Particulars Cheque Total
(RM) no. (RM)
Oct. 1 Balance b/f 2,150.00 Oct. 15 Purchases 463030 200.00
2 Sales 543.00 18 KL Trading 463031 160.00
18 Suria Ent. 420.00 19 Purchases 463032 190.00
24 Hanny Ent. 580.00 22 Sykt. Bumi 463033 342.00
30 Raja Ent. 583.00 28 Rental 463034 1,940.00
30 Balance c/f 1,444.00
4,276.00 4,276.00
Additional information:
1. Payment cheque no.463030 amounting to RM259.00 was wrongly recorded in the cash
book as RM200.00.
2. Cheque no. 299513 in the bank statement was wrongly debited by the bank. The
cheque actually belongs to Puteri Enterprise.
3. Cheque from Suria Ent. is returned by the bank and stated as “Non-sufficient fund”.
REQUIRED:
i. Prepare a Bank Reconciliation Statement for Putra Enterprise as at 31 October 2023.
ii. Prepare journal entries to record the adjustment.
QUESTION 2
Padu Sdn. Bhd. began its operations on 1 January 2022. During its first two years of
operation, the company completed a number of transaction involving credits sales, account
receivables collections and bad debt. These transactions are summarized as follows:
2022
1. Sales on credit was RM320,000.
2. Received RM285,000 cash in payment of accounts receivable.
3. Sales return was RM1,360.
2023
1. Sales on credit was RM335,000.
2. Sales return was RM1,200.
3. Write-off RM1,870 uncollectable account receivable.
4. Received RM271,000 cash in payment of account receivable.
5. In adjusting entry for the year ended 31 December 2023, the company estimated
that 2% of the account receivable would be uncollectible.
REQUIRED:
i. Prepare journal entries to record bad debts written-off in 2023.
ii. Show Accounts Receivable and Allowance for Doubtful Account for the year ended 31
December 2023.
iii. Prepare journal entries to record the adjustment of Accounts Receivable if the
company estimated that 1.5% on net credit sales would be uncollectible.
QUESTION 3
The following information is obtained from Badrul Sdn. Bhd. record on 1st April 2023 :
Account RM
Equipment (cost) 180,000
Accumulated depreciation – Equipment 88,000
Equipment’s depreciation is at a rate of 10% per annum using the straight-line method.
Depreciation is charged on yearly basis and no depreciation is charged at the disposal date.
Badrul Sdn. Bhd’s accounting period ends every 31st December.
Additional information :
1. On 1st March 2023, Badrul Sdn. Bhd sold one of the equipment at price RM27,000. The
equipment is bought on 1st January 2018 at cost RM66,000 and residual value RM4,000.
2. On 1st August 2023, Badrul Sdn. Bhd. purchased a new equipment worth RM48,000.
This purchase is done by exchange one of the old equipment with cost of RM32,000 and
book value of RM12,000. Badrul Sdn. Bhd. receives trade-in allowances of RM15,000.
Payment is made in cash.
REQUIRED:
i. Prepare journal entries to record the transaction on 1 st March and 1st August 2023.
(Omit explanation)
ii. Prepare journal entries to record depreciation expenses in the financial year ended
31st December 2023. Show all the calculations. (omit explanation)
iii. Prepare the extract of the Statement of Financial Position as at 31 December 2023.
ANSWER
QUESTION 1
Putra Enterprise
Bank Reconciliation Statement
31 October 2023
RM RM
Balance as per bank statement 2,484
(+) Deposit in transit:
Raja Ent. 583
Error 250 833
3,317
(-) Outstanding cheque:
Cheque no. 463031 160
Cheque no. 463034 1,940 (2,100)
Adjusted balance as per bank statement 1,217
Balance as per cash book 1,444
(+) Credit transfer 468
1,912
(-) Bank service charges 50
Standing order 166
Non-sufficient fund 420
Error – Purchases (259 – 200) 59 (695)
Adjusted balance as per cash book 1,217
ii.
Date Accounts Debit (RM) Credit (RM)
Aug. 31 Bank 468
Accounts Receivable 468
Bank Service Charge Expense 50
Bank 50
Accounts Payable 166
Bank 166
Accounts Receivable 420
Bank 420
Purchases 59
Bank 59
QUESTION 2
(i)
Date Accounts Debit Credit
(RM) (RM)
2023
Dec. 31 Bad Debts Expense 1,870
Account Receivable 1,870
(ii)
Accounts Receivable
RM RM
Balance b/f 33,640 Sales Return 1,200
Sales 335,000 Bad Debts Expense 1,870
Cash 271,000
Balance c/f 94,570
368,640 368,640
Allowance For Doubtful Debt
RM RM
Balance c/f 1,891.40 Bad Debts Expense 1,891.40
(2%x94,570)
1,891.40 1,891.40
(i)
Date Accounts Debit Credit
(RM) (RM)
2023
Dec. 31 Bad Debts Expense (1.5% x 333,800) 5,007
Allowance for Doubtful Debts 5,007
QUESTION 3
(i)
Date Accounts Debit Credit
(RM) (RM)
2023
March 1 Cash 27,000
Accumulated Depreciation-Equipment * 31,000
Loss on Disposal (27,000 – 35,000) 8,000
Equipment 66,000
* [10% x (66,000 – 4,000) x 5]
Aug. 1 Equipment (new) 48,000
Accumulated Depreciation – Equipment (old) * 20,000
Equipment (old) 32,000
Cash/Bank (48,000 – 15,000) 33,000
Gain on Disposal (15,000 – 12,000) 3,000
* (32,000 – 12,000)
(ii)
Date Accounts Debit Credit
(RM) (RM)
2023
Dec. 31 Depreciation Expense – Equipment 13,000
Accumulated Depreciation – Equipment 13,000
[10% x (180,000 – 66,000 + 48,000 – 32,000)]
(iii)
Badrul Sdn. Bhd.
Extract Statement of Financial Position (Extract)
As at 31 December 2023
ASSETS RM
Property, Plant and Equipment
Equipment (180,000 – 66,000 + 48,000 – 32,000) 130,000
(-) Accumulated Depreciation – Equipment (88,000-31,000- (50,000)
20,000+13,000)
Total Property, Plant and Equipment 80,000
