Chapter one

Intruduction of Bookkeeping

A. Objective of Bookkeeping

1. To keep the records of a business operation .

2. To ascertain the profit or loss of a business for a particular

period.

3. To show thw financial position of a business at a particular

date to find out what is owns and owes.

4. To provide useful accounting information for decision making

of a business.

B. Difference of Bookkeeper and an Accountant

Bookkeeper
a. Keeps the source documents
that flow into the business.

Accountant
a. Rewiews the detailed
bookkeeping transactions and
summaries to detect errors

b. Makes entries in the books

or omissions .

for the transactions of the

business.

b. Presents the interprets the

summarized financial

c. Organise the record data .

information to the
management.

d. Prepares reports at the end

of a period.

c. Explains the difference

between the actual
performance and the
forecast result of the
business.

d. Forecast the future growth

of the business.
e. Sets up te internal control
system to assist daily
operation of the business and
to prevent fraud .

Chapter 2

Rules od Debit and Credit and

General Ledger

A. General ledger
Dr.
Date

Title of account
Particulars

Folio

Amount

Date

Cr.
Particulars

Folio

Amount

B. Accounting Elements

a. Assets

Motor vehicles
fixture and fitting
office equipment
Inventory ,
Accounts Receivable

b. Liabilities

Bank , Cash ,
Accounts Payable

c. Equity / Owners equity

Bank overdraft, Bank laon

Capital

d. Income

(capital + net profit Drawings )

Sales
interest received
Commission received
3

e. Expenses

Purchases
wages and salaries , rent
insurance

C. Important Notes

DR..

CR.

Assets

Liabilities

Expenses

Income

D. The Relationship between the Dr and Cr.

1. Assets --- increased

2. Assets ---- decreased

Liabilities ----- increased

Liabilities ----- decreased

3. Both Assets -------- one increased , one decreased

4. Both Liabilities -----

one increased , one decreased

E. Example

Transaction

Accounts
to be

a) Goods were

Accounts
Reasons

to be

Reasons

debited
Cash

Assets

credited
Sales

Income

Amin

Assets

Sales

Income

Purchases

Expenses

Cash

Assets

Cash

Assets

Capital

Equity

Bank

Assets

Amin

Assets

sold for cash.

b

Goods sold to

Amin on credit
.

c) Goods were
purchased for
cash
d

Additional

capital was
introduced
into the
business in
cash .

e) Received
cheque from
Amin for full
settlement.

f) Cash was

Cash

Assets

Bank

Assets

Purchases

Expenses

Ng

Liabilities

drawn from
bank .
g) Goods
purchased
from Ng on
credit

F. Double Entries

1. Amin started his business on 1 Jan 2015 , his transaction were

shown as follows:
2015
Jan 1

Started business with capital RM 5000 in cash.

Purchases 4 tables for cash RM300 each.

11

Sold 2 table foe cash RM400

15

Sold 2 more tables for cash RM 500 each.

16

Bought another table for cash RM500.

19

Sold the 2 remaining tables for cash RM600 each.

25

Paid the general expenses for cash RM 400.

You are required to shown the above transaction by using doubli

entry in Amin s General Ledger and balance off all the accounts .
6

In the book of Amin :

Capital
2015

RM

Jan 31 Balance c/d

5000

2015

RM

Jan 1 Cash
Feb 1 balance

5000
b/d

5000

Cash
2015

RM

2015

5000

Jan 1

11 Sales

800

15 Sales
19 Sales

Jan 1

Capital

RM
Cash

5000

Purchases

1200

1000

16

Purchases

500

1200

25

General Exp

400

31
8000

Balance

c/d

900
8000
7

2015
Feb 1 Balance b/d

900

Purchases
2015
Jan 9

RM
Cash

16 Cash

2015

RM

1200 Jan 31 Balance c/d

1700

500
1700

1700

Sales
2015
Jan 31 Balance c/d

RM

2015

3000

Jan 13

Cash

800

15

Cash

1000

19

Cash

1200

3000

RM

3000

General Expenses
2015

RM

2015

RM
8

Jan 31

Cash

Feb 1 balance

400
b/d

Jan 1

Balance c/d

400

400

G. Trial Balance

10

11

12

13

14

Chapter 3

Income statement

Company 's Name

Income statement
For the year ended 31 December 2015
RM
Opening Inventory
Purchases
Less: Returns outwards
Discount Received

RM
xx

xx

Add : Carriage Inwards

xx

Wages on Packing

xx

Duty Import

xx

Net Sales

Cost of Purchases

xx

Cost of goods available for sale

xx

Less : Closing Inventory

(xx)

Cost Of Sales

xx x

Gross Profit / Gross Loss

RM
xx

Discount Allowed

(xx)
xx

Sales
Less : Returns Inwards

(xx)

Net Purchases

RM

(xx)
(xx)
xxx

xx
xxx

xxx

Carriage Outwards

xx

Gross Profit

xx

Wages and Salaries

xx

Commission

xx

Bad Debts

xx

Rental Income

xx

Insurance

xx

Rent

xx

Interest on loan

xx

General Expenses

xx

Motor Vehicle Expenses

xx

Net Profit / Net Loss

xx
xxx

xxx

15

16

Chapter 4

Statement Of Financial Position

Company ' s Name

Statement Of Financial Position
As at 31 December 2015
RM

RM

Non-Current
Assets

RM

RM

Owner's Equity

Office Equipment
Furniture And
Fitting

xx

Lands And Building

xx

Opening Capital
Add : Net Profit \Less:
Net Loss

xx
xx

xx
xx

Less: Drawings
Current Assets

xx

(xx)

Closing Capital

xx

Inventory
Account
Receivable

xx
xx

Non-Current Liabilities

Cash At Bank

xx

Mortgage Loan

xx

Cash At Hand

xx

Bank Loan

xx

xx

xx

Current Liabilities

xxx

Account Payable

xx

Bank Overdraft

xx

xx
xxx

17

18

Chapter 5 Documents Used In Bussiness Transaction

A. Source of documents

1. Letter of Inquiry
2. Quotation
3. Purchases Order
4. Advice Note
5. Delivery Note
6. Invoice ( purchase Invoice )
7. Debit Note
8. Credit Note
9. Official Receipt
10. Statement Of Account
11. Bank-in Slip
12. Cash bill
13. Invoice (Sales Invoice)
14. Payment Voucher
6 to 14 need to record in book

19

B. Record of the documents

i) Original ------- Invoice --- Purchases

Debit Note --- Purchases ( under charges )
Credit Note -- Purchases Returns
Official Receipt ---- Pay $$

ii) Duplicate ------ Invoice --- Sales

Debit Note --- Sales ( under charges )
Credit Note -- Sales Returns
Official Receipt ---- Receive $$

iii) Bank-in Slip ----- Put $$ in bank

iv ) Payment Voucher --- pay $$

Chapter 6

Journals
20

A. Types of Journals

1. Purchases Journal
2. Sales Journal
3. Purchases Returns Journal ( Returns Outwards )
4. Sales Return Journal ( Returns Inwards )
5. Cash Book
6. General Journal

B. General Journal
21

Date

Particulars

Foli

Debit

Credit

RM

RM

o
2015
Jan 1

Cash

GL2
Capital

5000

GL1

5000

( Being cash invested to

start the business )
2

Motor Vehicle

GL3

Cash

GL2

4000
4000

( Being purchase of a
Motor Van by cash )

General Ledger
Capital
2015
Jan 1

F
Cash

RM

GJ1

5000

RM

GJ1

4000

Cash
2015
Jan 1

Capital

RM

2015

5000

Jan 2

Motor
Vehicle

22

C. Purchases Journal

Purchases Journal
Date
2015
Jan 3

Inv. No
187

Particulars

Folio

Shanti
Less : 10% Trade

Details
RM
500

PL 1

( 50 )

Discount
Jan 4

186

Jan 6

200

450

Benny

200

Less : 10% Trade

(20)

Discount

PL2

Shanti

31

180
800

Less : !0 % Trade
Discount

Amount

( 80)
PL1

720

Purchases Account GL1

1350

Transferred to

23

Purchases Ledger
Shanti
2015

Folio

RM

Jan-03 Purchases

PJ1

450

6 Purchases

PJ1

720

Benny
2015
Jan-01

Jan-04 Purchases

RM
PJ1

180

General Ledger
Purchase
s
2015

RM

Jan- Total for the

31 Month

1350

$$

---- credit side

Purchases Account -- debit side

24

D. Sales Journal

Date

Inv.

Particulars

Folio

Details

Amount

No
2015
Feb 2

265

RM
Kassim
Less : 10% Trade

600
SL 1

( 60 )

540

SL1

200

200

Discount
4
6

285
395

Kassim

400

Micheal

(60 )

Less : !5 % Trade
Discount
31

SL2

Transferred to
Sales Account

340

GL2

1060

25

Sales Ledger

Kassim
2015

Folio

RM

Sales

SJ1

540

4 Sales

SJ 1

200

Feb 2

Michael
2015
Feb 6

Sales

Folio

RM

SJ1

340

General Ledger
Sale
s
2015
Feb-28

RM
Total for the
mth

1060

26

$$

---- debit side

Sales Account --

Credit side

E. Purchases Returns Journal

Purchase Returns Journal

Date
2015

Inv. No

Jan 23

86

Particulars

Folio

Shanti

30

23

31

(5)
PL 1

45

Benny

20

Less : 10%

(2)

Trade Discount

PL2

Transferred to

18
63

Purchase
returns Account

Amount

50

Less : 10%
Trade Discount

Details
RM

GL3

27

Purchases Ledger

Shanti
2015
Jan
Purchases
23

Folio

RM

2015

Folio

RM

PRJ 1

45

JanPurchases
03

PJ1

450

6 Purchases

PJ1

720

Returns

Benny
2015
Jan
Purchases
30

PRJ 1

18

JanPurchases
04

RM
PJ1

180

Returns

General Ledger

Purchases Returns
2015

Folio

RM
28

JanTotal for the mth

31

PRJ1

63

---- debit side

Purchases Returns Account -Credit side

F. Sales Returns Journal

Sales Returns Jouanal

Date
2015

Inv. No

Feb 23
26

45
85

Particulars

Folio

Kassim

SL 1

31

Amount
60

50

Michael

(5 )

Less : 10%
Trade Discount

Details
RM

SL2

45

Transferred to
Sales returns
Account

105
GL4

29

Sales Ledger
Kassi
m
2015

Folio

RM

Sales

SJ1

540

4 Sales

SJ 1

200

Feb 2

2015
Feb-23 Sales Returns

Folio

RM

SRJ1

60

Folio

RM

SRJ1

45

Michael
2015
Feb 6

Sales

Folio

RM

SJ1

340

2015
Feb-26 Sales Returns

General Ledger

Sales Returns
30

2015
Feb28

Total for the

mth

Folio

RM

SRJ 1

105

---- credit side

Sales Returns Account --Debit

side
G. Document and the Journal

1. Purchase Invoice ---- Purchases Journal

$

2. Sales Invoice --- Sales Journal

$

3. Credit Note Received ---- Purchases Returns Journal

4. Cerdit Note to the customer -- Sales Returns Journal

31

5. Cash Bill / Official Receipts / payment voucher

----- Cash Book
6. Petty Cash Voucher ---- Petty Cash Book

7. Journal Voucher --- General Journal

Chapter 7

Cash Book

A. Cash Book

32

 Dr. Cash
Cash Particulars -- Bank

Dr. Bank
Bank Particulars Cash

Cr Bank

contra ( c)

Bank s Particulars -- Cash

Cr Cash

contra ( c)

Cash s Particulars -- Bank

B. Transfer To the Ledger

Dr. Cash / Bank ------- Cr. General Ledger

Cr. Cash / Bank -------- Dr. Generl Ledger

33

 Cr.

Dr.

Chapter 8

Petty Cash Book

34

A. Transfer to the General Ledger ( Reimbursement at the

beginning of the month )

35

Chapter9 Bad Debts & Allowance for the Doubtful Debts

36

A. Bad Debts
On January 2015 , goods of RM200 were sold to Wee. He paid
RM150 by cheque on 5 March 2015.
He was unable to settle the remaining balance at the end of the
accounting year ended 31 December 2015.
You are required :
a) Wee
b) Bad Debts
c) Income Statement
Wee
201
5
Jan-01 Sales

RM
200

201
5
Mar 5
Dec
31

Bank
Bad
Debts

200

RM
150
50
200

Bad
Debts
201
5
Dec
31

RM
Wee

50

201
5
Dec
31

RM
Profit and
Loss

50

Bad Debts

50
50

Income Statement
For The Year ended 31
December
RM
50

B. Bad Debts Recover

37


On 1 May 2015 , Ali paid RM200 for a debt which had already
written off as bad on 8 March 2015.
You are required to prepare all the relevant accounts for the year
ended 31 December 2015

Al
i
201
5
Jan01 Balance
May
Bad
1
Debts

RM
200
200

201
5
Mar 8
May
1

RM
Bad
Debts

200

Cash

200

Cash
201
5
May
1

RM
Ali

200

Bad
Debts
201
5
Mar
8

Ali

RM

201
5

200

May 1

RM
Ali

200

38


A debts RM 500 of Tan Company had been written off as bad in
year 2014 , and it was subsequently recoverd at the end of year
2015.
You are required to prepare all the relevant accounts for the year
ended 31 December 2014 and year 2015
Tan Company
2014

RM

Balance
Jan-01 b/d
2015
Dec
31

Bad Debts
Recover

2015
Dec
Tan
31
Company

2015
Dec
Tan
31
Company

2015
Dec
Profit and
31
Loss

500

500

201
4
Dec 31
201
5
Dec
31

RM
Bad
Debts

500

Cash

500

Cash
RM
500

Bad
Debts
RM
500

Bad
Debts
Recover
RM
500

2015
Dec
Profit and
31
Loss

2015
Dec
Tan
31
Company

RM
500

RM
500

39

Bad Debts

Income Statement
For the year ended of 31
December 2015
RM
Bad Debts
500
Recover

RM
500

C. Allowance For Doubtful Debts

( Account Receivable - Bad Debts ) x %

Allowannce for Doubtful Debts
i--- Increased Expences
ii--- decreased Income

Statement Of Financial Position

Account Receivable

40

 Allowance For Doubtful Debts

Account

Receivable

RM 50,000

The management of the company decided to charge 5% of the

total accounts receivable . The accounting year is on 31 December

2014
Jan-01 Balance c/d

Allowance for Doubtful

Debts

Current Assets
Account
Receivable

Allowance for Doubtful

Debts
RM
2014
250 Dec
0
31
Profit and Loss
2015
Jan- Balance
01 b/d

RM
250
0
250
0

Income Statement
For the year ended of 31
December 2015
RM
250
0

Statement Of Financial
Position
As at 31 December 2014
RM
50000
41

Allowancw for Doubtful

debts

(2500
)
47500

Working : RM 50,000 x 5% = RM2500

Increased of Allowance For Doubtful Debts

Account

Receivable

RM 50,000

Allowance for Doubtful debts

RM

700

The management of the company decided to charge 3% of the

total accounts receivable . The accounting year is on 31 December

2014
Jan-01

Balance c /d

Allowance for Doubtful

Debts

Allowance for Doubtful Debts

RM
2014
150
0
Jan 1
Balance b/d
Dec
31
Profit and Loss
150
0
2015
Jan-01 Balance b/d

RM
700
800
1500
1500

Income Statement
For the year ended of 31
December 2015
RM
150
0

Statement Of Financial Position

42

Current Assets
Account
Receivable
Allowancw for Doubtful
debts

As at 31 December 2014
RM
50000
(1500 )
48500

Working : RM 50,000 x 3%

RM1500- RM700

= RM 1500

= RM 800 ( Increased)

Decreased of Allowance For Doubtful Debts

Account

Receivable

RM 20,000

Allowance of Doubtful debts

RM

900

The management of the company decided to charge 3% of the

total accounts receivable . The accounting year is on 31 December

20
14
Jan01
Dec
Balance c
31
/d

Allowance for Doubtful Debts

20
RM
14
300

Jan 1

Balance b/d

600
900

RM
900

900
2015
Jan-01

Balance b/d

600

Income Statement
For the year ended of 31
December 2015
43

RM
Allowance for Doubtful
Debts

Current Assets
Account
Receivable
Allowancw for Doubtful
debts

600

Statement Of Financial
Position
As at 31 December 2014
RM
20000
(600)
19400

Working : RM 20,000 x 3%
= RM600

Chapter 10

RM 600 RM 900
= - RM 300 (decreased)

Control Accounts

44

A.Important Notes

$$

Sales Control Account

Balance b/d

$$

Balance(minority) b/d

2 Purchases control

3. refund

--Contra

---- 1 . Cash Sales

2. Provision for bad debts
45

3. Bad debts recover

$$

Purchases Control Account

Balance(minority) b/d

$$

Balance b/d

2 Sales control -- contra

2 refund

---- 1 . Cash Purchases

Chapter 11

Non- Current Assets & Depreciation

A. Method

1. Straight line Method

Depreciation =

Cost
Useful Life

or

Cost Scrap value

Useful Life

or
Cost x % of depreciation
46

( Cost Scrap value ) x % of depreciation

2. Reducing Method / Diminishing

Opening Carrying Amount x % of depreciation
(Cost Accumulated depreciation )

x % of depreciation

B. Calculation
Aman bought a Van at a cost of RM18000 on 1 Jan 2010. He
estimated the scrap value of the van would be RM 2000 after 4
years . You are required to calculate the depreciation for 4 years
using : a) straight line method
b) reducing bLnce method at 50 % per annum

End

Cost

Annual Depreciation

of
Straight

Reducing

Accumulated
Depreciation
Straight
Reducing

Carrying Amount
Straight

Reducing

47

2010

balance
RM

line

balance

line

balance

1800

line
RM

4000

9000

4000

9000

14000

9000

8000

13500

10000

4500

12000

15750

6000

2250

16000

16875

2000

1125

(18000x50%
2011

1800

)
4500

4000

0
2012

(9000x50% )

1800

4000

2250

2013

(4500x50% )

1800

4000

1125

(2250x50%)

straight line method

Cost
Useful Life

Depreciation --- =
=

180002000
4

= 4000
C. Accounting Entries

( Accumulated Depreciation is not

opened)

2010
Jan-01

Bank

Motor vehicle Account

RM
2010
Dec
18000
31
31
18000

2011

RM
Depreciation
Balance c/d

4000
14000
18000

2011

48

Jan-01

Balance
b/d

14000

Dec
31
31

Depreciation
Balance c/d

14000
2012
Jan-01

Balance
b/d

10000

14000
2012
Dec
31
31

Depreciation
Balance c/d

10000
2013
Jan-01

Balance
b/d

Jan-01

Balance
b/d

2013
6000

Dec 31
31

Depreciation
Balance c/d

Dec 31
2011
Dec 31

Motor
Vehicle
Motor
Vehicle

Dec 31
2013
Dec 31

Motor
Vehicle

6000

4000

2010
Dec
31

Profit and Loss

4000

4000

2011
Dec
31

Profit and Loss

4000

4000

2012
Dec
31

Profit and Loss

4000

4000

2013
Dec
31

Profit and Loss

4000

2012
Motor
Vehicle

4000
2000

2000

Depreciation
Of Motor
Vehicles
RM

2010

4000
6000
10000

6000
2014

4000
10000

RM

Income Statement
For the year ended of 31
December 2010
RM
Depreciation of Motor
Vehicle

4000
Income Statement
For the year ended of 31
December 2011
RM
49

Depreciation of Motor
Vehicle

4000
Income Statement
For the year ended of 31
December 2012
RM

Depreciation of Motor
Vehicle

4000
Income Statement
For the year ended of 31
December 2013
RM

Depreciation of Motor
Vehicle

4000

Statement of Financial
Position
As at 31 December 2010
N0n-Current
Assets
Motor Vehicle

RM
14000

Statement of Financial
Position
As at 31 December 2011
N0n-Current
Assets
Motor Vehicle

RM
10000

Statement of Financial
Position
As at 31 December 2012
N0n-Current
Assets
Motor Vehicle

RM
6000
Statement of Financial
Position
As at 31 December 2013

N0n-Current
Assets

RM
50

Motor Vehicle

2000

B. Accumulated Depreciation is opened

Motor vehicle Account

RM
2010

2010
Jan-01 Bank
2011
Balance
Jan-01 b/d
2012
Balance
Jan-01 b/d
2013
Balance
Jan-01 b/d
2014
Balance
Jan-01 b/d

2010
Dec
31
2011
Dec
31
2012
Dec
31
2013
Dec
31

18000

18000

18000

18000

Dec 31
2011
Dec
31
2012
Dec
31
2013
Dec
31

Balance c/d

RM
1800
0

Balance c/d

1800
0

Balance c/d

1800
0

Balance c/d

1800
0

18000

Depreciati
on Of
Motor
Vehicles
RM
Motor
Vehicle

4000

Motor
Vehicle

4000

Motor
Vehicle

4000

Motor
Vehicle

4000

2010
Dec
31
2011
Dec
31
2012
Dec
31
2013
Dec
31

RM
Profit and Loss

4000

Profit and Loss

4000

Profit and Loss

4000

Profit and Loss

4000

51

Accumulat
ed
Depreciati
on Of
Motor
Vehicles
201
0
Dec
31
201
1
Dec
31

RM
Balance
c/d

4000

2010
Dec
31

RM
Depreciation

4000

Dec 31 Balance b/d

Dec
31
Depreciation

4000

2011
Balance
c/d

8000
8000

2012
Dec
Balance
31
c/d

2012
12000

Dec 31 Balance b/d

Dec
31
Depreciation

12000
2013
Dec
Balance
31
c/d

4000
8000

8000
4000
1200
0

2013
16000

Dec 31 Balance b/d

Dec
31
Depreciation

16000

1200
0
4000
1600
0

2014
Dec 31

Balance b/d

1600
0

52

Income Statement
For the year ended of 31 December
2010
RM
Depreciation of Motor
Vehicle
4000
Income Statement
For the year ended of 31 December
2011
RM
Depreciation of Motor
Vehicle
4000
Income Statement
For the year ended of 31 December
2012
RM
Depreciation of Motor Vehicle
4000
Income Statement
For the year ended of 31 December
2013
RM
Depreciation of Motor
Vehicle
4000
Statement of Financial
Position
As at 31 December 2010
N0n-Current
Assets
Motor Vehicle
Less : Accumulated
Depreciation

RM
18000
(4000)
14000
Statement of Financial
Position
As at 31 December 2011

N0n-Current
Assets
Motor Vehicle
Less : Accumulated
Depreciation

RM
18000
(8000)
10000
53

Statement of Financial
Position
As at 31 December 2012
N0n-Current
Assets
Motor Vehicle
Less : Accumulated
Depreciation

RM
18000
(12000)
6000
Statement of Financial
Position
As at 31 December 2013

N0n-Current
Assets
Motor Vehicle
Less : Accumulated
Depreciation

RM
18000
(16000)
2000

C. Depreciation Is not Opened

2010
Jan-01 Bank
2011
Jan-01 Balance

Motor vehicle Account

RM
2010
Balance
18000
31 c/d
2011
18000 Dec
Balance

RM
1800
0
1800
54

b/d
2012
Balance
Jan-01 b/d
2013
Balance
Jan-01 b/d
2014
Balance
Jan-01 b/d

2010
Dec
31
2011
Dec
31

18000

18000

31
2012
Dec
31
2013
Dec
31

Balance
c/d

Balance
c/d

1800
0

Balance
c/d

1800
0

18000

Accumula
ted
Depreciati
on Of
Motor
Vehicles
RM
Balance
c/d

c/d

4000

8000

2010
Dec
31
2011
Dec 31
Dec
31

RM
Profit and Loss

4000

Balance
b/d

4000

Profit and Loss

8000
2012
Dec
Balance
31
c/d

2012
12000

Dec 31
Dec
31

Balance
b/d
Profit and Loss

12000
2013
Dec
Balance
31
c/d

4000
8000

8000
4000
12000

2013
16000

Dec 31
Dec
31

Balance
b/d
Profit and Loss

16000

12000
4000
16000

2014
Dec 31

Balance
b/d

16000

55

Income Statement
For the year ended of 31 December
2010
RM
Accumulated
Depreciation

4000
Income Statement
For the year ended of 31 December
2011
RM

Accumulated
Depreciation

4000
Income Statement
For the year ended of 31 December
2012
RM

Accumulated
Depreciation

4000
Income Statement
For the year ended of 31 December
2013
RM

Accumulated
Depreciation

4000

56

Statement of Financial
Position
As at 31 December 2010
N0n-Current
Assets
Motor Vehicle
Less : Accumulated
Depreciation

RM
18000
(4000)
14000
Statement of Financial
Position
As at 31 December 2011

N0n-Current
Assets
Motor Vehicle
Less : Accumulated
Depreciation

RM
18000
(8000)
10000
Statement of Financial
Position
As at 31 December 2012

N0n-Current
Assets
Motor Vehicle
Less : Accumulated
Depreciation

RM
18000
(12000)
6000
Statement of Financial
Position
As at 31 December 2013

N0n-Current
Assets
Motor Vehicle
Less : Accumulated
Depreciation

RM
18000
(16000)
2000
57

Chapter 12

End-of-period Adjustment

A. Income and Expenses

Income
1. Rent Received

Expenses
1. Insurance

2. Commission Received

2. Rental

3. Interest on Fixed Deposit

3. Salaries

4. Dividend

4. Electricity

Expenses -- --- Current Liabilities

--- Current Assets

58

Income --- --- Current Assets

---- Current Liabilities

---

Accrued

In Arrear

---

Prepaid

In Advance

B. Accounting Entries

198

Car Expenses
RM
1985

RM
59

5
Dec
31

Cash(1250 x 3/4)

31

Balance c/d

938
68

Balance
Jan-01 b/d
Dec
31
Profit and Loss

1016

104
912
101
6

1986
Balance
Jan-01 b/d

1985
Dec
31
Profit and Loss
31 Balance c/d

Rent
Receiva
ble
RM
6000
1000

1985
Balance
Jan-01 b/d
Dec
31
Cash

7000

68

RM
500
650
0
700
0

1986
Balance
Jan-01 b/d

100
0

60

Rent Payable
RM
1987

1987
Jan-02
Mar 28
Jun-30
Sept-30

Cheque
Cheque
Cheque
Balance
c/d

750
750
750

Sept-30

Profit and Loss

RM
300
0

750
300
0

3000
1988
Oct 1

1987
Sept-30
Sept-30

Profit and Loss

(1200 x 5/120
Balance c/d

Rent
Receiva
ble
RM
500

1987
May 2
Aug 1

Balance b/d

Cheque
Cheque

100
600

75
0

RM
300
300
600

1988
Oct 1

Balance

100
61

b/d

Chapter 13

Manufacturing Acoount

(Work- in - progress at PRIME COST )

Company'sname
Manufacturing Account
for the year ended 31 December 2015
RM

RM

Raw Meterial
Opening Stock
Purchases
Less: Return Outwards

xx
xx
(xx)
xx

Add: Carriage Inwards

xx

xx
xx

Less : Closing Stock

(xx)
xx

Less : Scrap Sales

(xx)

Raw Material Consumed

xxx

Direct Labour
Direct wages / manufacturing wages

xx

Direct Expenses
Royalties

xx

Work-in progress (at Prime Cost )

Opening stock
Less : closing stock

xx
(xx)

Prime Cost

xx
xxx

Factory Overhead
Indirect wages

xx

62

Factory expenses

xx

Electricity

xx

Water

xx

Factory power

xx

Depreciation of machinery
Loose Tools (opening stock + purchases - closing
stock)

xx
xx

xx

Factory Cost of Production

Factory Profit ( transfer to profit and loss
Account )

xx

Standard Cost of Production

xx

xx

63

64

Raw Meterial
Opening Stock
Purchases
Less: Return Outwards
Add: Carriage Inwards
Less : Closing Stock
Less : Scrap Sales
Raw Material Consumed
Direct Labour
Direct wages / manufacturing wages
Direct Expenses
Royalties

Prime Cost
Factory Overhead
Indirect wages
Factory expenses
Electricity
Water
Factory power
Depreciation of machinery
Loose Tools (opening stock + purchases - closing stock)
Work-in - progress ( at Faoctory cost )
Opening Stock
Less: Closing Stock

65

66

67

Example :

68

69

Solution :

70

71

72