You are on page 1of 6

Universiti Tunku Abdul Rahman Bachelor of Commerce (Hons) Accounting Bachelor of Business Administration (Hons) Banking & Finance

Bachelor of Finance (Hons) Year 1 Semester 1 Faculty of Business and Finance Department of Commerce & Accountancy UBAF1013 Financial Accounting Framework I

Tutorial 5 - Questions
(1a) Which of the following explains the purpose of trial balance? (Woods, F., 2007, p.65) A B C D (1b) Which of the following would result an imbalance in trial balance? (Woods, F., 2007, p.396) A B C D Correct entries with different amount Error of omission Off setting error Error of commission to evaluate the performance of a business to test & ensure double entry is intact to compute total profit or loss of a business for financial projection & budgeting purposes

(1c) Which of the following are debited to the trial balance? I. Expenses A (1d) The total of the sales journal is posted to the .. (Woods, F., 2007, p.306) A B C D (1e) Purchase day book is the(Woods, F., 2007, p.148) A B C D (1f) What is the name of the book of original entry used to record purchase of fixed assets on credit? A B C D Purchase journal General journal Purchase ledger Fixed assets register book of prime entry for credit purchases book of prime entry for credit notes received from supplier book of prime entry for credit notes raised book of prime entry for cash payment made for sales debit of the individual debtors account credit of the individual creditors account debit of the Sales account credit of the Sales account I & II II. Inventory B III. Return inward C III. Return outward D I, III & IV

I & III

I, II & III

(1g) A credit note issued by a vendor means A B (1h) Ali sends back $200 worth of damaged goods to James. In which book of prime entry will James record this transaction? A B (1i) Ms. Jane donated a few boxes of canned drinks for charity fund raising purpose. Where would be the above transaction be recorded in her business record? A General journal B Cash book C Sales journal D Return Outward journal Purchases returns journal General journal C D Sales returns journal Cash book buyer is under charged buyer purchases additional stock C D buyer is overcharged buyer settles his account

(2) Golden Cinema owns movie cinema in Bercham. Its owner, Qaqa Charles, plan to have second cinema theatre in Station 18 very soon. The following transactions were engaged by Golden Cinema in the first months of its business: June 1 Qaqa invested RM60, 000 personal cash in the business by depositing that amount in a bank account under the companys name. 2 Purchase office supplies, RM1, 800, paying RM1, 000 in cash and the balance on account.

3 Paid RM40, 000 cash to purchase a piece of land in Station 18 for a cinema site. 5 Borrowed RM220, 000 from the bank to finance the construction of the new cinema theatre in Station 18. Qaqa signed a note payable to the bank in the name of Golden Cinema. 7 Received RM20,000 cash from tickets sales 1 Paid employee salaries, RM2, 800. 5 1 Paid creditor on account, RM800. 6 1 Withdrew RM3, 000 from the business for personal use. 7 Required: Journalise the transactions for June. (Explanation is not required) (3) The journal of Hilmi Enterprise is as follows:
Date Journal Accounts and Explanation Post Debit .Ref (RM) 6,000 6,000 270 270 2,630 2,630 4,200 4,200 1,400 1,400 270 270 220 220 Page 7 Credit (RM)

2004 July 2 Cash Hilmi, Capital 9 Supplies Account Payable 11 Account Receivable Service Revenue 14 Rent expense Cash 22 Cash Account Receivable 27 Account Payable Cash 31 Utilities Expense Account payable

Required: a) Briefly explain the transaction for each of the journal entry b) Post the transactions to the ledger

(4) Journalised the following transactions of LEK Enterprise, who deals with buying & selling of fitness equipments:
(a) Bought a photostat machine for $4,000 from Orange Co. on credit; (b) Sold a used scanner to Azam in cash, $3,000; (c) Mr. Lek, took some of his merchandise amounting to $500 for use of

his wife at home; (d) Invoice received from Mikes Workshop for repair work done on delivery van, costing $100; (e) Owner brought in additional mini van ($25,000) to improve delivery efficiency; (f) Charged LZ Partners interest $200 for overdue account. (5) Show the journal entries necessary to record the following items: (Woods, F., 2007, p.190) 2011 Apr 1 4 9 12 18 30 Bought fixtures on credit from Bell and Co RM1,153. We take goods costing RM340 out of the business stock without paying for them. RM68 of the goods taken by us on 4 April is returned back into stock by us. We do not take any money for the return of the goods. Helen Khoo owes us RM640. She is unable to pay her debt. We agree to take some computer equipment from her at that value and so cancel the debt. Some of the fixtures bought from Bell and Co, RM42 worth, are found to be unsuitable and are returned to them for full allowance. Office equipment bought on credit from Furniture Today Ltd for RM1,710.

You might also like