Professional Documents
Culture Documents
ID Name
Question 1
Tom, a sole trader, has incurred the following transactions for the month ended
31 December 2015
2015
Dec 1 Tom deposited 74,000 in the bank and invested goods worth 12,000
to start the trading business.
2 Tom bought an office building for 7,000 by check.
2 Bought goods on credit from the following persons: T Jimmy 2,100;
M Mum 2,340; G Man 6,600.
3 Cash sales 14,750
5 Paid wages and salaries by cheque 5,900
7 Sold goods on credit to: P Pee 24,200; T Hon 5,800; S Tee 23,200
9 Withdrew 5,000 by cheque from the bank for family travel.
11 Bought goods on credit from: K Kong 12,500; P Magi 4,100.
12 Paid carriage charges 1,120 in cash for purchase made on December 11.
15 Tom invested his personal motor vehicle into the business. K Mark personally
bought the motor vehicle 54,000 3-year ago. The current market value was
26,500.
17 Received cheque by selling goods to: K Kenny 7,300; H Hon 8,900
19 S Tee returned goods 2,720 to us and paid the balance by cheque
21 Paid general expense in cash 120 and carriage outward 900 by cheque.
22 Returned goods 40 to G Man.
24 Paid motor expenses 1,880 in cash.
28 Johnson lent us 4,000 by cash
29 Owner withdrew 3,400 by cheque for personal use
30 Bought furniture; partly paying by cheque 1,200 and partly 1,200 on credit
from Ken Furniture Ltd.
31 The current market value of the office building, which was bought on 2 December
worth 12,000.
31 After carefully analyzing the family traveling expenses incurred on December 9,
there was evidence to confirm that 40% of traveling times was used for business
purposes.
Required: Enter the above transactions for the month of December and balance off all the
accounts. (Total=10 marks)
Question 2
GIX Max Collection, a branded office equipment trading business, has extracted the
following balances from its ledger on year-end 28 February 2015.
Office equipment 22,800
Purchase 390,000
Return Inward 2,500
Furniture and fittings 22,400
Motor expenses 7,700
Return Outward 6,200
Carriage inward 5,300
Rent received 12,000
Inventory, 1 March 2014 45,300
Wages and salaries 135,300
Rent 135,000
Drawings 24,000
Telephone bill 10,400
Motor vehicles 220,300
Carriage outward 3,400
Bank 27,400
Accounts receivable 60,200
Accounts payable 110,430
Commission received 21,100
Rates 3,100
Business rate 900
Sales 665,500
Capital ?
Additional information:
1. Inventory at 28 February 2015 98,000
Required:
Prepare an income statement for the year ended 28 February 2015 and statement of
financial position as at that date
(Total=10 marks)
NOTE:
ID Name
Question One
The following information relates to Mr. Johnsons business:
Required:
Prepare a statement of financial position as at 31 December 2016 and give the net profit as at the
date.
(10 marks)
Question Two
Mr. Tom, the owner of a small business selling and repairing cars which you patronize, has just
received a copy of his accounts for the current year.
He is rather baffled by some of the items and he has asked you to explain certain points of
difficulty to him. This you have readily agreed to do. His questions are as follows:
(a) What is meant by the term asset? My 20-year mechanical experience and skill is an
asset to the business but it does not seem to have been included in the financial
statement.
(b) The house I live in cost RM130000 five years ago and is now worth RM360000, but that
is not included in the financial statements either.
(c) Why do amounts for vehicles appear under both non-current asset and current asset
headings?
(d) Why is the bank and cash figure in the statement of financial position different from
net profit for the year shown in the income statement?
Required:
Answer each of his questions in terms which he will be able to understand (For better
answers, include accounting concept in your explanation.
(10 marks)
NOTE: