REVISION 1 PSPM 1 2021/2022

Question (1 – 10) based on the following information:

The Cash Book balance of Zamani Enterprise is different from the business’ Bank
Statement balance on 30 April 2018.

CASH BOOK (bank column)

Date Details Total Date Details Cheque No. Total

2018 RM 2018 RM

April 1 Balance b/f 8010 April 1 Drawings 126201 680

10 Sales 880 15 Rental 126202 1500

14 Bella 150 18 Lee Stores 126203 300

26 Zaki 230 27 Zimat Stores 126204 420

28 Mahmud 450 28 Gopal 126205 320

Company

30 Balance c/f 6 500

9 720 9 720

BANK STATEMENT
Date Description Cheque No Debit Credit Balance

2018 RM RM RM

April 1 Balance b/f 8 090

1 Cheque 126200 80 8 010

2 Cheque 126201 680 7 330

8 Cheque book 15 7 315

17 Cheque 126202 1500 5 815

18 Deposit 880 6 695

22 Cheque 126203 300 6 395

23 Dividend 220 6 615

25 Deposit 150 6 765

26 Bank Charges 10 6 755

27 Insurance 220 6 535

28 Cheque 126204 402 6 133

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Additional information:
i. The amount of cheque issued (cheque number 126204) to Zimat Stores is incorrectly
recorded in cash book.
ii. All of the entries in the Bank Statement are correct.

1) What is the cash balance per cash book?

A. RM6,133
B. RM6,500
C. RM8,010
D. RM8,090

2) How much the cash balance per bank statement

A. RM6,133
B. RM6,500
C. RM8,010
D. RM8,090

3) How much the outstanding cheque for Zamani enterprise

A. RM680
B. RM320
C. RM230
D. RM450

4) How much the deposit in transit of Zamani enterprise

A. RM680
B. RM320
C. RM230
D. RM450

5) What is the amount of un-sufficient fund for Zamani enterprise?

A. RM680
B. RM320
C. RM230
D. Nil

6) What is the adjusted bank balance for the reconciliation statement?

A. RM6,133
B. RM6,500
C. RM8,010
D. RM6493

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7) What is the adjustment entry for the cash book?

A. Dr. Bank service charge RM15

Dr. Bank Charges RM10
Dr. Insurance expense RM220
Cr. Bank RM245
(To record bank service charge, bank charges and expenses)

Dr. Bank RM238

Cr. Dividend revenue RM220
Cr. Account payable – Zimat Stores RM18
(To record dividend revenue and correction error)

B. Dr. Bank service charge RM15

Dr. Insurance expense RM220
Cr. Bank RM235
(To record bank service charge, bank charges and expenses)

Dr. Bank RM238

Cr. Dividend revenue RM220
Cr. Account payable – Zimat Stores RM18
(To record dividend revenue and correction error)

C. Dr. Bank service charge RM15

Dr. Bank Charges RM10
Cr. Bank RM25
(To record bank service charge, bank charges and expenses)

Dr. Bank RM238

Cr. Dividend revenue RM220
Cr. Account payable – Zimat Stores RM18
(To record dividend revenue and correction error)

D. Dr. Bank service charge RM15

Dr. Bank Charges RM10
Dr. Insurance expense RM220
Cr. Bank RM245
(To record bank service charge, bank charges and expenses)

Dr. Bank RM220

Cr. Dividend revenue RM220
(To record dividend revenue and correction error)

8) On 31 December 2019, the balance of account receivable for Maimunah Enterprise is

RM56,000. As of the date, a debtor name Zainab is unable to pay her debt amount
RM2,500. What is the journal entry for uncollectible debt?

A. Dr. Bad debt expenses RM56,000, Cr. Account Receivable-Zainab RM56,000

B. Dr. Bad debt expenses RM2,500, Cr. Account Receivable-Maimunah RM2,500
C. Dr. Bad debt expenses RM56,000, Cr. Account Payable-Maimunah RM56,000
D. Dr. Bad debt expenses RM2,500, Cr. Account Receivable-Zainab RM2,500

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9) Based on the information provided calculate the expense of bad debts for the
accounting period of the current year.
Balance b/d allowance for doubtful debt RM600
Balance c/d accounts receivable RM250,000
Estimated uncollectible debt 1% of balance Account Receivable

A. RM600
B. RM2,500
C. RM1,900
D. RM250,000

10) Based on the answer from question 9, what is the journal entry for bad debt expense
for the current year.

A. Dr. Bad debt expense RM1,900, Cr. Account receivable RM1,900

B. Dr. Allowance for doubtful debt RM1,900, Cr. Account receivable RM1,900
C. Dr. Bad debt expense RM2,500 Cr. Allowance for doubtful debt RM2,500
D. Dr. Bad debt expense RM1,900, Cr. Allowance for doubtful debt RM1,900

11) Choose the correct journal entry to record bad debts recovery.

A. Dr. Account Receivable, Cr. Bad debt expense (to record re-establish
account receivable), Dr. Cash, Cr. Account Receivable
(to record the cash receipt)

B. Dr. Account Receivable, Cr. Bad debt recovery (to record re-
establish accaount receivable), Dr. Cash, Cr. Account Receivable
(to record the cash receipt)

C. Dr. Account Receivable, Cr. Bad debt recovery (to record re-establish
account receivable), Dr. Cash, Cr. Account Payable (to record the cash
receipt)

D. Dr. Bad debt expense, Cr. Account Receivable (to record re-establish
account receivable), Dr. Cash, Cr. Account Receivable (to record the
cash receipt)

12) Based on the following information, calculate the balance c/d of the account
receivable for Hamdan company.
Balance b/d account receivable RM50,000
Credit sales RM250,000
Cash receipt from customer RM180,000
Bad debt write-off RM3,500
Bad debt recovery RM2,800

A. RM116,500
B. RM50,000
C. RM3,500
D. RM250,000

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13) Based on the information provided calculate the expense of bad debts for the
accounting period of the current year.
Balance b/d allowance for doubtful debt RM600
Balance c/d accounts receivable RM150,000
Credit sales RM200,000
Estimated uncollectible debt 1% of credit sales

A. RM600
B. RM150,000
C. RM2,000
D. RM1,500

14) Based on the answer to question 13. Show the balance of accounts receivable &
accounts for the Allowance for doubtful debt in the statement of financial position for
the current accounting period.

Syarikat ABC
Statement of Financial Position (extracted)
As at 30th June 2020
RM
Account Receivable ?
Deduct: Allowance for doubtful debt ?
Net realisable value ?

A. Account Receivable RM150,000, Allowance for doubtful debt RM2,000,

Net realisable value RM148,000
B. Account Receivable RM150,000, Allowance for doubtful debt RM600,
Net realisable value RM149,400
C. Account Receivable RM200,000, Allowance for doubtful debt RM2,600,
Net realisable value RM150,000
D. Account Receivable RM150,000, Allowance for doubtful debt RM2,600,
Net realisable value RM147,400

Question (15 – 19) based on the following statement. The inventory information from
Syarikat Awani in April 2020. Syarikat Awani use periodic system and First-in First-Out
(FIFO) method in valuing their business inventory. All purchases and sales transactions are
on credit.

Date Transactions Units

April 1 Beginning inventory 100 units @ RM10
10 Purchases 80 units @ RM11
18 Sales 90 units @ RM40
20 Purchases 70 units @ RM12
26 Sales 50 units @ RM45

The total sales value was RM5,850

The operating expense for the business was RM1,250

15) How much the ending inventory units.

A. 100
B. 110
C. 150
D. 40

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16) How much the inventory cost
A. RM840
B. RM440
C. RM1,280
D. RM1,000

17) How much the cost of goods sold

A. RM1,440
B. RM1,000
C. RM1,280
D. RM2,720

18) How much the gross profit

A. RM1,440
B. RM5,850
C. RM4,410
D. RM1,110

19) How much the net profit or loss for Syarikat Awani.

A. RM4,410
B. RM1,250
C. RM3,160
D. RM5,850

Question (20 – 23) Based on statement of Syarikat Awani, if Syarikat Awani using
Weighted Average Cost (WAC) method calculate the costs below.

20) How much the cost per unit inventory

A. RM10
B. RM12
C. RM10.88
D. RM10.50

21) How much the ending inventory cost

A. RM880
B. RM1,280
C. RM2,750
D. RM1,196.80

22) How much the cost of goods sold

A. RM1,440
B. RM1,000
C. RM1,523.20
D. RM1,196.80

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23) How much the net profit

A. RM3,076.80
B. RM1,250
C. RM3,160
D. RM1,510

24) Based on the answer in no. 19 and no. 23 which method show the higher net profit
for Syarikat Awani.

A. FIFO
B. LIFO
C. WAC
D. Material

25) Based on statement Syarikat Awani, what is the journal entry for the purchases and
sales of merchandise?

A. Dr. Purchases RM1,720

Cr. Cash RM1,720
(To record purchases)

Dr. Account receivable RM5,850

Cr. Sales RM5,850
(To record sales)

B. Dr. Purchases RM1,720

Cr. Account payable RM1,720
(To record purchases)

Dr. Cash RM5,850

Cr. Sales RM5,850
(To record sales)

C. Dr. Purchases RM1,720

Cr. Cash RM1,720
(To record purchases)

Dr. Cash RM5,850

Cr. Sales RM5,850
(To record sales)

D. Dr. Purchases RM1,720

Cr. Account Payable RM1,720
(To record purchases)

Dr. Account receivable RM5,850

Cr. Sales RM5,850
(To record sales)

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26) A machine has been purchased on January 1, 2016. The cost of the asset is
RM50,000. The residual value is RM5,000 and useful lives is 5 years. By using the
straight-line method, calculate depreciation expense at December 31, 2020.

A. RM9,000
B. RM5,000
C. RM45,000
D. RM50,000

27) Based on the information in question 26, calculate the depreciation expense of the
machine for the accounting period 31 December 2020 by using reducing balance
method with the rate given 40%.

A. RM1,480
B. RM2,592
C. RM20,000
D. RM12,000

28) Based on the answers to questions 26 and 27 which is a depreciation method that
shows low depreciation expenses for year 2020.

A. Straight-line method
B. Reducing balance method
C. Sum of the Years’ Digit Method
D. Activity Based Method

29) Mutiara Sdn. Bhd. purchased a machine on January 1, 2015 worth RM25,000. The
machine estimated useful life of 5 years and no residual value. The machine is
depreciated using the straight-line method. On 31 December 2017, the machine was
discarded.

Calculate accumulated depreciation for this machine on 31 December 2017

A. RM25,000
B. RM15,000
C. RM5,000
D. RM1,000

30) Based on question 29, determine the gain or loss on the disposal of the machine.

A. Gain RM10,000
B. Loss RM10,000
C. Gain RM15,000
D. Loss RM15,000

31) Pearl Bhd. purchased a vehicle on January 1, 2017, RM50,000. Estimated useful life
of 5 years and no residual value. The vehicle is depreciated using the straight-line
method. On January 1, 2020, vehicle sold at a price of RM10,000.

Determine the gain or loss on selling this vehicle on January 1, 2020.

A. Gain RM30,000
B. Loss RM30,000
C. Loss 20,000
D. Loss RM10,000

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Question (32 – 35) based on information below:
On 31 December 2019, Maharaja Bhd. reported the non-current assets as follows:

Maharaja Bhd.
Statement of Financial Position
As at December 31, 2019
RM RM
Land 250,000
Buildings 1,500,000
(-) Accumulated depreciation – Buildings (562,500) 937,500
Equipment 300,000
(-) Accumulated depreciation – Equipment (150,000) 150,000
Total Non-current Assets 1,337,500

The company uses the straight-line method to calculate depreciation for buildings and
equipment. The building estimated to have a 40 years useful life and equipment is
estimated to have a 10 years useful life.

The following transactions occurred related to non-current asset for 2020.

March 1 Purchased land for RM50,000 on cash.

March 31 Exchange old equipment cost RM50,000 that was purchased on 1
January 2015. Trade-in allowance for the old equipment was
RM10,000. The new equipment is obtained at the price of RM60,000.

32) Record journal entries for transaction March 1, 2020.

A. Dr. Purchases RM50,000, Cr. Cash RM50,000

B. Dr. Land RM60,000, Cr. Cash RM60,000
C. Dr. Land RM50,000, Cr. Cash RM50,000
D. Dr. Land RM50,000, Cr. Account payables RM50,000

33) Calculated the gain or loss on disposal on March 31, 2020.

A. Gain RM26,250
B. Loss RM16,250
C. Loss RM13,750
D. Loss RM23,750

34) Calculated the cash paid for exchange old assets with new asset on March 31, 2020.

A. RM16,250
B. RM50,000
C. RM60,000
D. RM10,000

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35) What are the values must we put in the blank boxes for Statement of Financial
Position as at December 31, 2020?

Maharaja Bhd.
Statement of Financial Position
As at December 31, 2020
RM RM
Land
i.
Buildings 1,500,000
(-) Accumulated depreciation – Buildings (600,000) 900,000
Equipment ii.
(-) Accumulated depreciation – Equipment
iii. iv.
Total Non-current Assets
v.

A. i. RM300,000, ii. RM310,000, iii. RM150,000, iv. RM180,500 & v. RM1,380,500

B. i. RM300,000, ii. RM310,000, iii. RM154,500, iv. RM155,500 & v. RM1,355,500
C. i. RM300,000, ii. RM310,000, iii. RM26,500, iv. RM180,500 & v. RM1,380,500
D. i. RM250,000, ii. RM310,000, iii. RM129,500, iv. RM180,500 & v. RM1,380,500

Question (36 – 39) based on the following information. On 1 January 2019, Etiqa Sdn. Bhd.
issued 8% bond, RM300,000. The bonds will mature on 1 January 2024. Interest on the
bonds will be paid twice a year, on 1 July and 1 January. Financial year ended 31
December each year.

36) Show journal entries to record the issuance of bonds

Date Accounts & Descriptions Debit (RM) Credit

(RM)
A. 2019
January 1 Bank 300,000
Notes payable, 8% 300,000
(to records issuance of bond)
B. 2019
January 1 Bank 300,000
Bonds payable, 8% 300,000
(to records issuance of bond)
C. 2019
January 1 Bank 300,000
Account payable, 8% 300,000
(to records issuance of bond)
D. 2019
January 1 Bank 300,000
Loan, 8% 300,000
(to records issuance of bond)

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37) Show journal entries to record interest on 1 July 2019.

Date Accounts & Descriptions Debit Credit

(RM) (RM)
2019
A. July 1 Interest expense 12,000
Bank 12,000
(to records payment interest of bond payable)
B. 2019
July 1 Interest payable 12,000
Bank 12,000
(to records payment interest of bond payable)
C. 2019
July 1 Interest revenue 12,000
Bank 12,000
(to records payment interest of bond payable)
D. 2019
July 1 Accrued Interest 12,000
Bank 12,000
(to records payment interest of bond payable)

38) Show adjusting journal entries on 31 December 2019.

Date Accounts & Descriptions Debit (RM) Credit (RM)

A. 2019
December Interest expense 12,000
31 Interest payable 12,000
(to records interest expense of bond
payable)
B. 2019
December Interest expense 12,000
31 Cash 12,000
(to records interest expense of bond
payable)
C. 2019
December Cash 12,000
31 Interest payable 12,000
(to records interest expense of bond
payable)
D. 2019
December Interest payable 12,000
31 Cash 12,000
(to records interest expense of bond
payable)

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39) Show journal entries on the maturity date on 1 January 2024.

Date Accounts & Descriptions Debit Credit

(RM) (RM)
A. 2024
January 1 Bond payable 300,000
Interest expense 12,000
Bank 312,000
(to records payment of bond payable and
interest expense on the maturity date)
B. 2024
January 1 Bond payable 300,000
Interest payable 12,000
Bank 312,000
(to records payment of bond payable and
interest expense on the maturity date)
C. 2024
January 1 Notes payable 300,000
Interest payable 12,000
Bank 312,000
(to records payment of bond payable and
interest expense on the maturity date)
D. 2024
January 1 Notes payable 300,000
Interest expense 12,000
Bank 312,000
(to records payment of bond payable and
interest expense on the maturity date)

Question (40 – 42) based on the following information. On 1 April 2019, Ukhuwah Sdn.
Bhd. signs a RM100,000 10% notes payable with Bank Islam for 6 months. Accounting
period ended 30 June each year.

40) Show a journal entry on 1 April 2019.

Date Accounts & Descriptions Debit (RM) Credit (RM)

A. 2019
April 1 Bank 100,000
Account payable, 10% 100,000
(to records issuance of notes payable)
B. 2019
April 1 Bank 100,000
Insurance payable, 10% 100,000
(to records issuance of notes payable)
C. 2019
April 1 Bank 100,000
Notes payable, 10% 100,000
(to records issuance of notes payable)
D. 2019
April 1 Bank 100,000
Bonds payable, 10% 100,000
(to records issuance of notes payable)

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41) Show a journal entry to record interest payable on 30 June 2019.

Date Accounts & Descriptions Debit Credit

(RM) (RM)
A. 2019
June 30 Interest expense 2,500
Interest payable 2,500
(to records interest expense of notes
payable)
B. 2019
June 30 Interest expense 2,500
Cash 2,500
(to records interest expense of notes payable)
C. 2019
June 30 Interest payable 2,500
Cash 2,500
(to records interest expense of notes payable)
D. 2019
June 30 Interest expense 2,500
Notes payable 2,500
(to records interest expense of notes payable)

42) Show journal entries on the maturity date of 30 September 2019.

Date Accounts & Descriptions Debit Credit

(RM) (RM)
A. 2019
September Bonds payable 100,000
30 Interest expense 2,500
Interest payable 2,500
Bank 105,000
(to records payment of notes payable and
interest expense on the maturity date)
B. 2019
September Account payable 100,000
30 Interest expense 2,500
Interest payable 2,500
Bank 105,000
(to records payment of notes payable and
interest expense on the maturity date)
C. 2019
September Notes payable 100,000
30 Interest expense 2,500
Interest payable 2,500
Bank 105,000
(to records payment of notes payable and
interest expense on the maturity date)
D. 2019
September Notes payable 100,000
30 Interest expense 5,000
Bank 105,000
(to records payment of notes payable and
interest expense on the maturity date)

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Question (43 – 44) based the following statement. Here are transactions for Sarikei Sdn.
Bhd. for the year ended 31 December 2019.

i) Make a loan with signed a notes at 1 April 2019, RM550,000 from Bank
Muamalat at an interest rate of 6% for 5 years.
ii) The company’s policy to estimate for product warranty, 3% of annual sales. The
annual sales in 2019 is RM350,000.

43) Show adjusting journal entries to record interest at the end of 2019.

Date Accounts & Descriptions Debit Credit

(RM) (RM)
A. 2019
December Interest expense 24,750
31 Cash 24,750
(to records interest expense of notes payable)
B. 2019
December Interest expense 24,750
31 Interest payable 24,750
(to records interest expense of notes
payable)
C. 2019
December Interest payable 24,750
31 Cash 24,750
(to records interest expense of notes payable)
D. 2019
December Interest expense 24,750
31 Waranty payable 24,750
(to records interest expense of notes payable)

44) Show journal entries to record warranty expenses for the year 2019.

Date Accounts & Descriptions Debit Credit

(RM) (RM)
A. 2019
December Warranty expense 10,500
31 Cash 10,500
(to records warranty expense)
B. 2019
December Warranty expense 10,500
31 Warranty payable 10,500
(to records warranty expense)
C. 2019
December Warranty expense 10,500
31 Sales 10,500
(to records warranty expense)
D. 2019
December Account receivable 10,500
31 Warranty payable 10,500
(to records warranty expense)

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Question (45 – 60) based on the following information:
Deena Sdn. Bhd. runs a business school and sports equipment. Deena Sdn. Bhd. did not
keep a proper account of her business. Assets and liabilities as at 1 January 2019:
RM
Beginning inventory 3,000
Accounts receivable 7,000
Accounts payable 4,000
Furniture (Cost RM45,000) 27,000
Cash 600
Electricity payable 500
Prepaid insurance 1,850
Additional information:
i. Bank
Bank
Receipts RM Payments RM
Balance b/f 2,000 Insurance 260
Sales 400 Telephone 300
Accounts receivable 7,100 Electric 670
Account payable 890
Air conditioner 850
Balance c/f 6,530
9,500 9,500

ii. All receipts and payments by check except commissions are received in cash.
iii. Commission received from Abee Sdn. Bhd. RM1,800
iv. Purchase discount of RM700 and sale discount of RM1,080.
v. On 31 December 2019, the balance of accounts payable RM7,200 and accounts
receivable RM8,300.
vi. Depreciation furniture is 20% at cost.
vii. Electricity expense payable in December 2019, RM120.
viii. Insurance expense paid including January 2020, RM245.
ix. Ending inventory as at 31 December 2019 RM5,400.
x. Added capital, RM1,900 in cash into business.
xi. Taken a stationary RM150 for her children’s.
xii. Purchase of air condition is for residence.

45) Calculate beginning capital as at 1 January 2019.

A. RM54,950
B. RM36,950
C. RM41,450
D. RM34,950

46) Calculate total sales for the year 2019.

A. RM9,480
B. RM9,880
C. RM8,300
D. RM7,000

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47) Calculate total purchase for the year 2019.

A. RM4,090
B. RM4,000
C. RM7,200
D. RM4,790

48) Calculate the current electricity expense for the year 2019.

A. RM670
B. RM290
C. RM120
D. RM500

49) Calculate the current insurance expense for the year 2019.

A. RM260
B. RM245
C. RM1,865
D. RM1,850

50) Calculate the depreciations expense for the year 2019.

A. RM18,000
B. RM27,000
C. RM45,000
D. RM9,000

51) Calculate the cost of goods sold for the year 2019.

A. RM1,690
B. RM2,390
C. RM1,540
D. RM2,240

52) Calculate the gross profit for the year 2019.

A. RM8,340
B. RM7,260
C. RM6,860
D. RM8,190

53) Calculate the operating expense for the year 2019.

A. RM20,455
B. RM1,230
C. RM10,230
D. RM11,455

54) Calculate the net profit / net loss for the year 2019.

A. Loss RM4,195
B. Profit RM4,195
C. Profit RM2,395
D. Loss RM2,395

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55) Calculate balance c/d of cash account as at 31 December 2019.

A. RM2,400
B. RM2,500
C. RM600
D. RM4,300

56) Calculate ending capital as at 31 December 2019.

A. RM36,950
B. RM38,850
C. RM34,555
D. RM35,455

57) Calculate total current assets at 31 December 2019.

A. RM20,455
B. RM20,475
C. RM21,075
D. RM24,775

58) Calculate total non-current assets as at 31 December 2019.

A. RM18,000
B. RM27,000
C. RM45,000
D. RM36,000

59) Calculate total current liabilities as at 31 December 2019.

A. RM7,200
B. RM120
C. RM4,500
D. RM7,320

60) What is the total liabilities and owner’s equity Deena Sdn. Bhd.

A. RM7,320
B. RM42,755
C. RM35,455
D. RM18,000

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