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TIME YOURSELF 1 : ACCOUNTING 1

Total questions: 40

Worksheet time: 54mins

Name
Class
Date
1.

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

2.

How many units were on hand on 31 December 2019 :

a)

12 units

b)

30 units

c)

18 units

d)

15 units

3.

Accounts Receivables :

2019 : RM2800;

2020 : RM3100

Allowance for doubtful debts :

2019 : RM280

2020: RM310

What is Net Realizable value for Accounts Receivables should appear in the Statement of Financial Position for 2020?

a)

RM2520

b)

RM2790

c)

RM2510

d)

RM3410

4.

Assume that the company is using periodic inventory system and FIFO method, what is the ending inventory costs?

a)

RM216

b)

RM288

c)

RM312

d)

RM368

5.

Accounts Receivables :

Year 1 : RM10,000

Year 2: RM12,000

Allowance for doubtful debts is 5% of Accounts Receivables.

What is the amount of the bad debts expenses to be charged in the Profit and Loss account for the second year?

a)

RM100

b)

RM600

c)

RM500

d)

RM400

6.

What is the cost of goods sold if the periodic inventory system and Weighted Average method is used ?

a)

RM2,071

b)

RM2,101.65

c)

RM2,101.60

d)

RM2,143

7.

A machine was purchased at the cost of RM50,000 on 1 September 2019, residual value RM2,000 and was depreciated at 12% per annum using monthly basis. What is the accumulated depreciation for the year ended 31 December 2020, if the company is straight line method.

a)

RM12,000

b)

RM11,520

c)

RM8,000

d)

RM7,680

8.

Assuming the periodic inventory system and Weighted Average method is used, what is the gross profit?

a)

RM869

b)

RM838.40

c)

RM838.65

d)

RM797

9.

Mia trading owns machinery that costs RM60,000. It is the policy of the business to charge depreciation over its useful life of 5 years. At the end of its useful life, it is estimated that its residual value is RM4,000. What is depreciation expense during the year.

a)

RM12,000

b)

RM12,800

c)

RM11,200

d)

RM800

10.

What is the ending inventory in units as at 18 October 2020?

a)

27

b)

14

c)

15

11.

Jon Dan Tee (JDT) Company borrowed RM70,000 on December 1, a 6 month, 6% notes. At December 31, when the accounting period ended, the adjustment entries are _____________.

a)

Dr. Interest expense RM2,100 ; Cr Bank RM2,100

b)

Dr. Interest expense RM2,100 ; Cr Interest payable RM2,100

c)

Dr. Interest expense RM350 ; Cr Bank RM350

d)

Dr. Interest expense RM350 ; Cr Interest payable 350

12.

A new machine at the price of RM45,000 and was given the trade discount of 10%. The transportation cost of RM1,000 and installation cost of RM1,500 were also paid. What is the cost of the machine?

a)

RM38,000

b)

RM40,500

c)

RM43,000

d)

RM52,200

13.

ETIQA Takaful Insurance collected a premium of RM18,000 for a one year insurance policy on April 1, 2020. How much will be the amount should be ETIQA Takaful Insurance report as a current liability for an Unearned Service Revenue at December 31?

a)

RM0

b)

RM4,500

c)

RM13,500

d)

RM18,000

14.

MasWings Airlines Bhd issued RM900,000, 8% 10 year bonds on January 1, 2020 at face value. Interest is payable annually on January 1. Select the suitable journal entry to record issuance of the bonds.

a)

debit bank RM900,000; credit bonds payable RM900,000

b)

debit bank RM900,000 ; credit bonds RM900,000

c)

Debit Bonds RM900,000 ; credit bank RM900,000

d)

Debit Bonds payable RM900,000 ; credit Bank RM900,000

15.

Assuming that the company will updated the inventory every time there is a movement in their inventory, calculate the ending inventory cost as at 18 October 2020, using FIFO method?

a)

RM58.50

b)

RM128.50

c)

RM70

d)

RM138.50

16.

A landlord receives RM12,000 in advance for a 6-month lease to a tenant for a warehouse she owns on August 31.

What is the entry for the landlord on August 31?

a)

Debit: Unearned Rental Revenue

Credit: Cash

b)

Debit: Rental Revenue

Credit: Cash

c)

Debit: Cash

Credit: Rental Revenue

d)

Debit: Cash

Credit: Unearned Rental Revenue

17.

An asset was purchased on 1 July 2018 for cash of RM104,000. It is a policy of the business to depreciate its asset using the reducing balance method at the rate of 15% per annum on yearly basis. Calculate the asset's net book value on 31 December 2020, assuming that the business closes its account on that date.

a)

RM63,869

b)

RM63,877

c)

RM63,883

d)

RM63,889

18.

ABCD Bank agrees to lend Drake Builders Company RM400,000 on January 1. Drake Builders Company signs a RM400,000, 6%, 6-month note. What is the adjusting entry required if Drake Builders Company prepares financial statements on March 30?

a)

Dr. Interest Expense RM12,000

Cr. Interest Payable RM12,000

b)

Dr. Interest Expense RM12,000

Cr. Bank RM12,000

c)

Dr. Interest Expense RM6,000

Cr. Interest Payable RM 6,000

d)

Dr. Interest Payable RM6,000

Cr. Bank RM6,000

19.

Assuming that the company will updated the inventory every time there is a movement in their inventory, calculate the cost of goods sold for the transaction on 11 October 2020, using weighted average method?

a)

RM52

b)

RM63.50

c)

RM70

d)

RM63.56

20.

The Coldon Company issued RM300,000 of 10% bonds on January 1, 2019. The bonds are due January 1, 2024, with interest payable each July 1 and January 1. The bonds are issued at face value. Prepare Coldon's journal entries for July 1 interest payment

a)

Debit Interest expense RM30,000 ; Credit Bank RM30,000

b)

Debit Interest expense RM30,000; Credit Interest payable RM30,000

c)

Debit Interest expense RM15,000; Credit Bank RM15,000

d)

Debit Interest expense RM15,000; Credit Interest payable RM15,000

21.

Additional information :

Mr Logan had made drawings of RM800 and brought a computer worth RM1,500 from home for business use.

Calculate the total capital as at 30 April 2020.

a)

RM7,300

b)

RM8,100

c)

RM8,800

d)

RM10,300

22.

Determine the current year purchases from the following information relating to a business.

Total accounts payable beginning balance RM28,500; Total cash payment to supplier RM46,800; Total accounts payable ending balance RM14,800.

a)

RM3,500

b)

RM18,300

c)

RM33,100

d)

RM60,500

23.

MasWings Airlines Bhd issued RM900,000, 8% 10 year bonds on January 1, 2020 at face value. Interest is payable annually on January 1. Select the suitable journal entry to record the redemption of bonds at maturity date.

a)

Debit Bonds payable RM900,000

b)

Debit Interest expense RM72,000

c)

Debit Interest payable RM72,000

d)

Credit Bank RM900,000

e)

Credit Bank RM972,000

24.

The following information relates to ZZZ Business.

#Capital on 1 January 2019 is RM10,000

#Capital on 31 December 2019 is RM50,000

#Additional capital is RM10,000

#Drawings is RM500


Compute the net profit or loss for the year ended 31 December 2019.

a)

RM49,500 net profit

b)

RM30,500 net profit

c)

RM30,500 net loss

d)

RM40,500 net loss

25.

The following are the assets and liabilities of BB Enterprise, a retailer on 31 April 2020 :

Vehicles RM20,000

Accounts Receivable RM8,000

Accounts Payable RM4,500

Inventories RM11,200

Rental payable RM560


Determine the amount of capital as at 30 April 2020.

a)

RM28,260

b)

RM32,140

c)

RM34,140

d)

RM35,260

26.

Bea Rona started a business on 1 June 2020 with 68,000 as capital. On 31 May 2021, she found that her capital increased by RM70,000. During the year ended 31 May 2021, Bea Rona also withdrew RM5,500 cash for her personal purpose and transferred RM6,700 from her private saving account to the current account of the business.

Calculate the net profit for the year ended 31 May 2021.

a)

RM800

b)

RM3,200

c)

RM68,800

d)

RM71,200

27.

Based on information given, calculate the amount utility expenses for the year ended 31 December 2020.

a)

RM140

b)

RM500

c)

RM590

d)

RM660

28.

The bank reconciliation statement shows an adjusted cash balance per cash book of RM2,470, unpresented cheques amounting to RM858 and a credit balance of RM1,198 as per the bank statement. What is the amount of the deposit in transit?

a)

RM4,526

b)

RM2,810

c)

RM2,310

d)

RM414

29.

Based on the information given, calculate the capital as at 31 March 2020.

(a)  

30.

What is the amount of sales to be included in the accounts receivables?

a)

RM70,000

b)

RM75,000

c)

RM85,000

d)

RM100,000

31.

Based on the information given, calculate the amount of purchases for the year ended 30 June 2020.

a)

RM2,100

b)

RM3,500

c)

RM4,300

d)

RM5,600

e)

RM7,800

32.

If the ending balance in the bank statement is RM3,500 Dr, unpresented cheques RM200 and outstanding deposits total RM400, the final balance in the business's bank account is:

a)

RM3,700 Dr

b)

RM3,700 Cr

c)

RM3,300 Dr

d)

RM3,300 Cr

33.

What is the journal entry to record credit sales?

a)

Dr. Accounts Receivable RM100,000; Cr. Sales RM100,000

b)

Dr. Sales RM100,000; Cr. Accounts Receivable RM100,000

c)

Dr. Accounts Receivable RM70,000; Cr. Sales RM 70,000

d)

Dr. Accounts Receivable RM63,000; Cr. Sales RM 63,000

34.

A payment of RM6,500 by cheque was wrongly recorded on the debit side of the cash book.

a)

Bank reconciliation item : error (cash book) payment overstated

b)

Bank reconciliation item : error (cash book) payment understated

c)

Bank reconciliation item : error (bank) payment overstated

d)

Bank reconciliation item : error (bank) payment understated

35.

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 RM1,500

b)

Gain RM2,400

c)

Loss RM1,500

d)

Loss RM2,400

36.

What is the ending balance of allowance for doubtful debts as at 31 December 2019?

a)

RM1,150

b)

RM690

c)

RM650

d)

RM520

37.

Based on the information given, calculate the amount of credit sales for the year ended 30 June 2020.

a)

RM14,800

b)

RM13,600

c)

RM9,200

d)

RM8,000

e)

RM5,600

38.

On 7 April 2020, you received the bank statement for March and found that a RM12,000 cheque, which was drawn on 10 March 2020 and paid to creditor, had not been presented to the bank.

a)

Bank reconciliation item : Add to cash book balance

b)

Bank reconciliation item : Less to cash book balance

c)

Bank Reconciliation item, Add to bank balance

d)

Bank Reconciliation item, less from bank balance

39.

A car at cost of RM20,000 and residual value of RM2,000 is expected to be used for five years. What is the accumulated depreciation for year 5, if straight line method is used.

a)

RM3,600

b)

RM4,000

c)

RM18,000

d)

RM20,000

40.

A machinery was purchased for RM10,000. The transportation cost incurred RM400 and an additional RM1,200 was paid to have it installed, ready for its intended use. After being used for 3 months, it broke down and had to be repaired at a cost of RM200. In the statement of financial position at the end of the period, the cost of the machinery would be shown as

a)

RM10,400

b)

RM10,200

c)

RM11,400

d)

RM11,600

e)

RM11,800