ANSWER ALL QUESTIONS

1. Note payable interest RM200 recorded by the bank, what correction need to be made?
A. Cash book Add RM 200
B. Cash book Less RM200
C. Bank Statement Add RM 200
D. Bank Statement Less RM200
2. Nasariya Sdn Bhd wrote a cheque for RM221 and it cleared by the bank for RM221. However, the company recorded the cheque in its Cash
account as RM112. How is the difference of RM109 handled on the bank reconciliation?
A. Added RM109 to the cash book balance
B. Deducted RM109 from the cash book balance
C. Added RM109 to the bank balance
D. Deducted RM109 from the bank balance.
3. Bataras bank reconciliation statement shows cheques deposited but not credited by bank of RM4,000 and cheques issued but not presented
by suppliers of RM7,000. His bank balance as per Cash Book is RM112,000. Balance as per bank statement is
A. RM109,000
B. RM 105,000
C. RM 119,000
D. RM 123,000
4. Ending balance of bank statement of Honey Gain is RM6,000 (credit), outstanding cheques amounted RM 2,500 and the total of
deposit in transit is RM 1,000 . Calculate the adjusted bank statement balance in the statement of bank reconciliation?
A. RM 9,500
B. RM 8,500
C. RM 4,500
D. RM 2,500
5. At April 30, Dorale Company has the following bank information: cash balance per bank RM2,500; outstanding cheque RM385; deposits in
transit RM260; credit memo for interest RM50; bank service charge RM15. What is Dorale’s adjusted cash balance on April 30?
A. RM2,375
B. RM2,440
C. RM2,500
D. RM2,660
6. Mai mana Corporation's unadjusted trial balance includes the following balances (assume normal balances) : Accounts Receivable =
RM850,000 Allowance for Doubtful Debts Accounts = RM18,000. Bad debts are estimated to be 5% of Account receivables. What amount of bad debt
expense will the company record?
A. RM18,000
B. RM24,500
C. RM41,600
D. RM42,500
7. In 2020, Yasin Company had credit sales of RM1,050,000 and granted sales discounts of RM25,000. On January 1, 2020, Allowance for
Doubtful Accounts had a credit balance of RM26,400. During 2020, RM43,000 of uncollectible accounts receivable were written off. Past experience
indicates that 3% of net credit sales become uncollectible. What should be the adjusted balance of Allowance for Doubtful Accounts at December 31,
2020?
A. RM14,150
B. RM14,900
C. RM31,500
D. RM47,350
8. During 2020, Ballantyn Inc. had sales on account of RM189,000, cash sales of RM78,000, and collections on account receivables of

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RM162,000. In addition, they collected RM1,275 which had been written off as uncollectible in 2019. As a result of these transactions, the change in the
accounts receivable balance indicates a
A. RM25,725 increase .
B. RM27,000 increase .
C. RM103,725 increase.
D. RM105,000 increase
9. Using the percentage-of-receivables balance, the uncollectible accounts for the year is estimated to be RM33,000. If the balance for the
Allowance for Doubtful Accounts is a RM5,000 credit before adjustment, what is the amount of bad debt expense for the period?
A. RM5,000
B. RM28,000
C. RM33,000
D. RM38,000
10. 1 Jan Allowance for doubtful debts RM500, 31 Dec Allowance for doubtful debts RM400. How should the decrease in the allowance be
treated in the Profit and Loss account? *
A add RM400 to expenses
B add RM500 to expenses
C deduct the RM100 increase in allowance from expenses
D add the RM100 decrease in allowance to Gross Profit
11.

A. RM19,250.
B. RM71, 200.
C. RM188,700.
D. cannot be determined
12. Chang Company took a physical inventory at December 31, 2020 and determined that RM 3 ,990,000 of goods were on hand. Included in
the count was inventory of RM700,000 on consignment from Keiko Company. On December 30, Chang sold and shipped f.o.b. destination RM820,000
worth of inventory. These goods arrived at the buyer's place of business on January 2, 2021. What amount should Chang report for inventory on its
December 31, 2020 statement of financial position?
A. RM3,990,000.
B. RM4,110,000.
C. RM3,410,000.
D. RM4,810,000
13. The following information was available from the inventory records of Queen Company for July:

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A. RM27,000.
B. RM2 9,400.
C. RM31,200
D. RM31,500.
14. Nolvo Company uses the periodic inventory system. For February 2020, the beginning inventory consisted of 2 ,000 units that cost RM65
each. During the month, the company made two purchases: 8,000 units at RM68 each and 3,000 units at RM72 each. Nolvo sold 10,000 units during
the month of February at RM110 per unit. Using the average cost method, what is the amount of ending inventory at February 28, 2020?
A RM207,270.
B RM210,000.
C RM205,380.
D RM204,990.
15. Ted's Used Cars uses the specific identification method of costing inventory. During March, Ted purchased three cars for RM8,000,
RM10,000, and RM13,000, respectively. During March, two cars are sold for RM11,000 each. Ted determines that at March 31, the RM13,000 car is still
on hand. What is Ted's gross profit for March?
A RM3,000.
B RM4,000.
C RM1,000.
D RM9,000.
16. Borrows RM 50,000 from CIMB Bank by signing a 9-month, 5% note. How much total interest expense for this note?
A. RM 625
B. RM 1,250
C. RM 1,875
D. RM 2,500
17. On June 1, Perniagaan Serina borrows RM 150,000 from Third Bank on 6-month, 8% notes payable. Which is the correct journal on June 1?
A. Debit Notes Payable RM 150,000 ; Credit Bank RM 150,000
B. Debit Bank RM 150,000 ; Credit Notes Payable RM 150,000
C. Debit Notes Payable RM 12,000 ; Credit Bank RM 12,000
D. Debit Bank RM 12,000; Credit Notes Payable RM 12,000
18. Rahul Company does not segregate sales and sales taxes. Total cash for April 15 is RM 25,680, which includes a 7% sale tax. Determine
sale tax for April 15.
A RM 1, 680.00
B RM 24,000.00
C RM 1,797.60
D RM 23,882.40
19. Delta Company sell merchandise under 60-day warranty for defective. Based on past experience, Beta estimates that 3% of the unit sold will
become defective during the warranty period. Hanagement estimates that the average cost of repairing a defective unit is RM15. The units sold for
November are 30,000 units. Calculate warranty liability for November.
A. RM 81,000
B. RM 27,000
C. RM 45,000
D. RM 13,500
20. An asset was purchased on 1 July 2017 for a cash price of RM104,000. It is a policy of the business to depreciate its assets using the
Reducing Balance method at the rate of 15% per annum on a yearly basis. Calculate the asset's net book value on 31 December 2019, assuming that
the business closes its account on that date.
A. RM63,869
B. RM63,877

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C. RM63,883
D. RM63,889
21. A machine was purchased at the cost of RM50,000 on 1 September 2012 and was depreciated at 12% per annum usingmonthly basis.
What is the accumulated depreciation until 31 December 2013 if the company uses the reducing balance method for depreciation?
A. RM5,760
B. RM7,760
C. RM8,950
D. RM9,020
22. A machine was purchased at the cost of RM50,000 on 1 September 2012 and was depreciated at 12% per annum using monthly basis. If
the machine was sold at RM40,000 on 1 January 2015, find the profit or loss (Assume the straight line depreciation method is used)
A Loss RM3,000
B Loss RM4,000
C Profit RM3,000
D Profit RM4,000
23. Yasmin Company bought a computer for RM 4,500. The estimated useful life of the asset was 4 years. At the end of fourth year, the scrap
value of the asset was RM500. What is the carrying amount of the asset at the beginning of period three if Yasmin used the straight line method of
depreciation?
A. RM1,125
B. RM2,250
C. RM1,500
D. RM2,500
24. What is the gain or loss arising from disposal of a machine bought at the cost of RM20,000, with accumulated depreciation of RM5,600 and
trade in value of RM12,000?
A Gain 1,500
B Gain RM2,400
C Loss RM 1,500
D Loss RM2,400
25. On January 1. 2020, Key Company, a calendar-year company, issued RM250,000 of notes payable, of which RM62,500 is due on January 1
for each of the next four years. The proper statement of financial position presentation on December 31, 2020, is
A. Current Liabilities : Notes Payable RM250,000.
B Non Current Liabilities : Notes Payable RM250,000.
C. Current Liabilities: Notes Payable RM62,500; Non Current Liabilities : Notes Payable RM187,500.
D. Current Liabilities: Notes Payable RM187,500; Non Current Liabilities: Notes Payable RM62,500
26. Using the information given, compute the ending capital as at 31 December 2020.
A RM37,160

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B RM28,310
C RM27,190
D RM8,850
27. Bea Rona started a business on 1 June 2020 with 77,000 as capital. On 31 May 2021, she found that her capital increased by RM 88,000.
During the year ended 31 May 2021, Bea Rona also withdrew RM6,600 cash for her personal purpose and transferred RM7,700 from her private saving
account to the current account of the business.Calculate the net profit for the year ended 31 May 2021.
A RM9,900
B RM12,100
C RM86,900
D RM89,100
28. Using the information given, compute the amount of credit sales for the year 2020.

A. RM24, 200
B. RM22,600
C. RM12,600
D. RM11,000
29. Based on information given, calculate the amount utility expenses for the year ended 31 December 2020.

A RM140
B RM 500
C RM 590
D RM 660
30. Based on the information given, calculate the amount of purchase returns in the month of January 2020.

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A RM2, 250
B RM4,470
C. RM5,530
D. RM7,800

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