Part A

Queen started her business, Queen Yoga and Gym Centre on 1 January 2024. The following transactions occurred in March and April 2024 and was recorded by Queen to be updated into the accounts book:

Date                                                               Activities

Mar 1    Hired a new gym coach at RM3,000 per month.

3    Purchased gym equipment costing RM10,000 and paid RM1,500 by cash. The remaining balance was on account.

5    Pay full settlement on last month’s payable.

8    Received RM3,200 from Syarikat Mesra, a debtor, for last month’s yoga training.

The bill was dated 27 February 2024.

10    Purchase supplies on account amount RM2,400.

12    Signed  a  loan  agreement,  borrowing  RM15,000  from  Public  Bank  for  1  year.

Received cash on the same day.

15    Paid RM5,000 on gym equipment purchased on March 3.

19    Billed RM3,600 to Hotel Jasmine on yoga lesson provided to their staff.

21    Received advertising bill amounted RM1,800 for business advertising in social media.

28    Received cash RM6,000 from customers on yoga lesson performed.

30    Paid cash for rent RM1,500, yoga trainer fee RM3,000, monthly telephone and internet subscription fee RM186 and petrol RM200.

31    Emergency cash withdrawal of RM350 due to personal use. Apr 1    Paid advertising bill dated on March 21.

Given below are the ending account balance as at 29 February 2024:

Accounts                  Amount (RM)                  Accounts                  Amount (RM)

Cash                                                       4,230    Equipment                                           15,000

Accounts receivable                              3,200    Accounts payable                                  2,680

Supplies                                                    540    Queen, Capital                                     20,290


Based on the details provided for Queen Yoga and Gym Centre,

(i)        Journalise all business transactions that incurred in the month of March 2024. Create new  accounts  if  required.  (Note:  State  “No  entry”  for  non-business  and  unrelated activities.)                                                                                                        (14 marks)

(ii)       Prepare the T-account for Cash, Accounts Receivable and Service Revenue Accounts.

(Note: Prepare in T-account format.)                                                               (5 marks)

Part B

Donna Fashion Designs is a business owned by Donna, a professional fashion designer. The account balances extracted from the  Statement of Profit or Loss  at 31 January 2024 are as follows:


Accounts                                                     Balance (RM)

Design Fee Revenue                                                                                              18,000

List of expenses:

Depreciation expense Insurance expense Food expenses Salaries expense Telephone charges Maintenance expense








Part A

Jayanthi, the accounts clerk working for Suresh Delivery Services has journalised and posted all the transactions incurred in the year ended 31 December 2023. The accounts balance are listed as follows:

Accounts                                      Amount (RM)

Accumulated Depreciation – Office Equipment                           4,000

Suresh, Capital                                                                             50,450

Prepaid Insurance                                                                          3,600

Petrol and Diesel Expense                                                             1,450

Service Revenue                                                                        102,200

Salaries Expenses                                                                         60,000

Motor Vehicles – Van                                                                  80,000

Accumulated Depreciation – Motor Vehicle                               32,000

Unearned Service Revenue                                                            9,900

Bank                                                                                             24,500

Office Equipment                                                                           8,000

Supplies                                                                                         2,200

Upkeep of Van                                                                               5,600

Office Expenses*                                                                         13,200

*Note: Office expenses includes utilities, office maintenance and rent expenses.

Below  are  additional  information  provided  by  Suresh  when  finalising  the  accounts  at  31

December 2023:

  1. The prepaid insurance paid was for 3 years starting from 1 June 2023. b. 30% of the unearned service revenue was performed and earned.
  2. The total supplies used was RM500.
  3. Van repair amounted RM1,500 was accrued and subsequently paid on 5 January 2024. e. A bill amounted RM345 for service performed was not recorded in the accounts.
  4. The depreciation rates for motor vehicle and office equipment were 10% per year. The depreciation was charged every year at the end of December. There is no additional property, plant and equipment during the year.


Assume you are Jayanthi and the instructions received from Suresh; the business owner, are as follows:

(i)        Prepare the adjusting entries based on the information provided from (a) to (f). Show all workings. (Note: Create new accounts where ever necessary.)                 (12 marks)

(ii)       Prepare  the  Adjusted  Trial  Balance  for  the  year  ended  on  30  April  2024.  Show  all workings. (Note: Prepare using the proper format.)                                     (7.5 marks)

Part B

Mrs. Chong was checking the company’s trial balance with totals that agree and discovered several transactions were wrongly updated in the books. Below are selected account balances of Chong Packaging Services for the month of October 2023:

Account Titles                               RM                      Account Titles                          RM

Packaging Supplies                           3,000    Packaging Service Revenue                       11,680

Accounts Receivable                        7,000    Rent Expenses                                              2,300

Supplies Expenses                               886    Utilities Expenses                                         1,056

Cash                                                35,890    Accounts payable                                         3,175

Below are the errors discovered by Mrs. Chong in the accounting records for the month of

October 2023:

  1. Packaging supplies on hand were actually amounted RM3,200.
  2. A service revenue amounted RM800 was wrongly billed to customer for RM80. c. RM300 for utilities was wrongly posted to rent expenses account.
  3. RM1,000 cash received from a debtor was wrongly debited to cash at RM100 and credited to packaging service revenue at RM100.


(i)        Journalise the correcting entries for the month of October 2023. Show all workings.

(3 marks) (ii)       Compute the adjusted balance for Packaging Service Revenue.                        (1 mark)

(iii)      Describe any THREE (3) weaknesses of a trial balance with totals that agree.

.                      (1.5 marks) (Total: 25 marks)


(i)        Determine the normal balance of the revenue accounts and expenses accounts either debit or credit.                                                                                                     (1 mark)

(ii)       Based on the balances, compute the net profit or loss for the month of January 2024.

(Note: Show all workings.)                                                                                (2 marks)

(iii)      On 1 January 2024, Donna, Capital Account showed a normal balance of RM13,750.

During the month of January 2024, Donna made an additional investment of RM5,000 into the business and withdrawn RM1,800 for personal use.

Based on the additional information above, prepare the Statement of Changes in Equity at 31 January 2024. (Note: Prepare in the proper reporting format.)              (3 marks)

(Total: 25 marks)


Part A

(i)        Briefly  explain  how  revenue  and  expenses  are  recognised  under  accrual  basis  of accounting.                                                                                                         (2 marks)

(ii)       List and define the types of adjusting entries categorised under deferrals and accruals. (2 marks)

Part B

Winner Cleaning Company is a laundry cleaning service business. Below is the finalised trial balance of Winner Cleaning Company for the first quarter ended 31 March 2024.

Winner Cleaning Company

Adjusted Trial balance as at 31 March 2024

Accounts Titles                                                       Note          Debit (RM)      Credit (RM)

Shoplot building                                                                                 300,000

Machine and equipment                                                                       47,960

Furniture                                                                                                 6,400

Accumulated depreciation – Shoplot

building                                                                                                                          30,000

Accumulated depreciation – Machine and

equipment                                                                                                                       14,388

Accumulated depreciation – Furniture                                                                             3,840

Goodwill                                                                                            132,000

Short term investments                                               a                     106,280

Property investments                                                  b                     369,500

Accounts receivables                                                                             2,172

Prepaid maintenance                                                                            18,000

Cleaning supplies                                                                                   5,088

Cash                                                                                                     21,870

Loan payables                                                             c                                               158,000

Loan interest payable                                                                                                       1,068

Accounts payable                                                                                                             2,108

Unearned service revenue                                                                                                1,575

Win, Capital                                                                d                                               804,521

Win, Drawings                                                                                          875

Cleaning service revenue                                                                                               40,500

Rent income                                                                e                                                   9,000

Advertising expense                                                                               1,080

Depreciation on property, plant and

equipment                                                                                               1,859

Maintenance fee expenses                                                                     4,800

Insurance expenses                                                                                6,000

Upkeep of machines                                                                               1,600

Salaries expenses                                                                                 32,000

Accounting fees                                                                                        900

Cleaning supplies expenses                                                                   3,124

Utilities expenses                                                                                   1,092

Loan interest expenses                                                f                         2,400

RM1,065,000    RM1,065,000

Additional notes:

  1. The short term investments consists of short term bonds and shares. b. The property investment is for long term.
  2. 20% of loan payable is to be paid  within the next quarter  and the  remaining in the subsequent quarters.
  3. The capital is the opening balance amount.
  4. Rent income received from renting out company’s machine.
  5. Total loan interest charged during the year as per loan statement.


Show workings and prepare the following financial report for the first quarter ended 31 March 2024:

(i)        Statement of Profit or Loss.                                                                           (7.5 marks) (ii)       Classified Statement of Financial Position.                                                 (13.5 marks)

(Total: 25 marks)


Part A

The  finalised  account  balances  extracted  from  the  Adjusted  Trial  Balance  of  Max  Talent

Trainers, a training and workshop business centre as at 30 April 2024 are as follows:

Account Titles              Amount


Account Titles              Amount


Traveling and accommodation expense

103,800   Office administrative expense


Advertising expense                    18.600    Max, drawings                              4,125

Trainer salaries expense            198,200    Depreciation expense                    5,600

Entertainment expense                   8,712    Supplies                                       33,945

Staff training payable                    3,144    Tutoring income                          48,250

Accumulated depreciation

– Equipment

25,200    Equipment                                   56,000

Repairs expense                             9,600    Unearned fee revenue                 14,000

Insurance expense                        24,000    Machine rent expense                 15,790

Training fee revenue                  680,000    Repairs payable                             1,000

Staff training                                69,144    Cash                                            37,650

Supplies expense                         72,360    Max, capital                                11,181

Fees receivables                             9,816    Account payables                        13,775

Prepaid machine rent                     4,728


Assume that Max Talent Trainers Centre closes its accounts end of April annually, prepare the: (i)        Closing entries at 30 April 2024.                                                                  (10.5 marks) (ii)       T-account for Max, Capital.                                                                              (2 marks) (iii)      Post Closing Trial Balance at end of April 2024.                                              (7 marks)

Part B

(i)        Briefly explain how journal contributes to the recording process in accounting.(3 marks)

(ii)       Determine whether the following accounts either debit or credit when increases. a.   Unearned rent revenue

  1. Prepaid advertising
  2. Accumulated depreciation – Motor vehicles d. Sundry payable
  3. Tina, Drawings (2.5 marks) (Total: 25 marks)

(Grand Total: 100 marks)

Answers to Above Questions on Business Accounting

Answer 1: The journal entries for all the transactions that are incurred in the month of March 2024 are indicated below:


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