Question 1

A) Define the following term:

1. Allowance for doubtful debt.
2. Accrued expenses.
3. Residual value.
4. Invoice

b) The following are the rules of accounting that should be followed in preparation of all accounts and financial statements. Discuss each of the following.

i. Accrual.

ii. Consistency.

iii. Prudence.

QUESTION 2

(a) Mr Zakwan, a watch dealer, set up a shop by the name Syarikat Zn Watch Sdn Bhd on 1 March 2021. He brought in cash RM100,000 and a used car, valued at RM30,000 for business use.

The following financial transactions occurred in the month of March 2021.

March 1	Opened a current account at Maybank and banked in office cash RM80,000
3	Paid RM1000 being rental of the shop by cheque. Bought shop fittings worth RM5,000 from Talita Furnishing Centre; paid by cheque.
4	Invoice received from : Zenith Bhd. List price RM8,200, trade discount 2% Seiko Bhd. List price RM9,800, trade discount 1%
6	Cash sales of RM750, paid to bank
10	Received RM50 in cash from the customer for watch repairs
13	Received a credit note from Zenith Bhd for a goods returned; listed price RM600.
17	Credit sale worth RM2,400 to Mr Ahmar
19	Purchased a van for RM27,500 on credit from Lee Used Car Sdn Bhd and paid RM2,000 by cheque for installing air-condition unit in the van
22	The owner took a watch at a cost of RM450 and give it as a present to his son.
24	Received a cheque from Mr Ahmar as settlement of his account after deducting 2% discount.
27	Paid RM210 in cash for office expenses.

REQUIRED:

Journalise the above transactions.

QUESTION 3

a) Prepare a trial balance in the books of Gemilang Sdn Bhd as at 31 December 2021.

Item	RM
Sales	100,000
Purchases	45,000
Return inwards	100
Return outwards	140
Carriage outward	330
Opening inventory	1,200
Closing inventory	2,200
Electricity, telephone and water	200
Discount allowed	130
Discount received	180
Salary	3,400
Repair and motor vehicle	690
Printing and stationary	300
Account receivable	8,000
Account payable	13,000
Long term loan	10,000
Bank	19,500
Cash	500
Motor vehicle	30,000
Furniture and fittings	20,400
Capital	7,230
Drawing	800

b) Describe TWO (2) types of errors that cause a trial balance to disagree.

c) Explain TWO (2) factors of depreciation.

d) A company purchased a machinery on 1 February 2020 for RM10,000 by cheque. The machinery was estimated to last for 5 years. The accounting year-end of the company is at 31 December.

1. Using the straight-line method, calculate the depreciation expense if the estimated scrap value of the machinery is RM1,000.
2. Prepare the relevant table that show a depreciation charge, accumulated depreciation and net book value for the year 2019 to 2021.

QUESTION 4

Following is the trial balance of Seri Nilam Sdn Bhd as at 31 December 2021.

Particulars	Debit (RM)	Credit (RM)
Inventory (1 January 2019)	5,000
Purchases and sales	40,000	150,000
Carriage Outwards	2,000
Return	200	400
Wages and Salaries	2,200
Rent expenses	1,600
Delivery expenses	300
Discount allowed and discount received	700	600
Insurance	1,400
General expenses	600
Building	80,000
Account receivable and account payable	40,000	11,000
Furniture and fittings	8,000
Cash in bank	15,000
Cash in hand	2,500
Drawing	500
Capital		38,000
	200,000	200,000

The closing inventory was RM12,000

REQUIRED:

i. Prepare Statement of Comprehensive Income for the year ended 31 December 2021.

ii. Prepare Statement of Financial Position as at ended 31 December 2021.