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SPM Accounting Format Library

Every account, journal, cash book and financial statement format in SPM Prinsip Perakaunan: the blank format with headings as in the DSKP, what each part is for, one filled example and common layout errors.

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Form 4

4. Books of Prime Entry

Purchases Journal Format

The Purchases Journal is a special journal in the books of prime entry used to record only credit purchases of goods meant for resale. It is the first record made before the total is posted to the debit of the Purchases account in the ledger at the end of the period. Cash purchases and purchases of non-trade assets are not recorded here.

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General Journal Format

The General Journal is one of the books of prime entry that records transactions unsuitable for the special journals, such as opening entries, credit purchase or sale of non-current assets, correction of errors and closing entries. It shows the account to be debited and the account to be credited together with the amounts and a short narrative, before the transaction is posted to the ledger.

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Sales Journal Format

The Sales Journal is a special journal within the Books of Prime Entry that records only credit sales of trade goods. It serves as a book of prime entry before transactions are posted to the ledger, where each debtor is debited individually and the total is credited to the Sales Account at the end of the period.

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Purchases Returns Journal Format

The Purchases Returns Journal is a special journal in the Books of Prime Entry that records all returns of goods to suppliers arising from credit purchases. It is used when a business returns damaged, wrongly delivered or unsatisfactory goods, supported by the Credit Note received from the supplier. The total of this journal is transferred to the credit side of the Purchases Returns Account in the ledger.

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Sales Returns Journal Format

The Sales Returns Journal is a special journal that records only trade goods returned by debtors (credit customers). It is used when a business receives back goods it had sold on credit, and its source document is the credit note issued by the business. The monthly total of this journal is posted to the debit side of the Sales Returns Account in the ledger.

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Two-Column Cash Book Format

The Two-Column Cash Book is a book of prime entry that records all cash receipts and payments together with bank transactions in one book. It has two amount columns (Cash and Bank) on each side and acts at the same time as a book of prime entry and a ledger (the Cash account and the Bank account). It is used when a business keeps both cash in hand and a bank account, and it also records contra entries between cash and bank.

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Three-Column Cash Book Format

The Three-Column Cash Book is a book of prime entry that also serves as a ledger account, recording all cash and bank receipts and payments together with cash discount columns. It is used when a business deals in both cash and cheques, and it replaces the Cash Account and Bank Account in the ledger. The discount columns are memorandum columns that are only totalled and then posted to the Discount Allowed and Discount Received accounts.

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Petty Cash Book Format (Imprest System)

The Petty Cash Book (Imprest System) is a book of prime entry that records all small, frequent petty payments such as postage, stationery and fares. Under the imprest system the petty cashier is given a fixed float at the start of a period, and at the end of the period the amount spent is reimbursed so the float is restored to its original amount. It reduces the load on the main Cash Book and classifies petty spending by type through analysis columns.

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7. Financial Statements of a Sole Proprietorship without Adjustments

Trading Account Format

The Trading Account format is the first part of the income statement and calculates a business's gross profit for a financial period. It is used when preparing the financial statements of a sole proprietor to deduct the cost of sales from net sales. It is prepared at the end of the financial period after the revenue, expense and inventory accounts have been closed.

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Profit and Loss Account Format

The Profit and Loss Account (statement format) continues from the gross profit transferred from the Trading Account, adds other income and deducts expenses to arrive at the net profit for a financial period. It is used when preparing the Financial Statements of a sole proprietor without adjustments, to close off the revenue and expense accounts at the end of the period.

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Income Statement Format

The Income Statement is a financial statement that combines the Trading Account and the Profit and Loss Account into one vertical format to compute the gross profit and then the net profit of a sole proprietorship. It is prepared at the end of the financial period after revenue, expense and inventory accounts are closed, and it feeds directly into the Statement of Financial Position.

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Statement of Financial Position

The Statement of Financial Position shows the assets, liabilities and owner's equity of a business at a particular date, that is at the end of the accounting period. It is prepared after the Trading and Profit and Loss Account of a sole proprietorship to report the sources of funds (equity and liabilities) and the uses of funds (assets) of the business.

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Form 5

4. Accounting for Partnerships

Profit and Loss Appropriation Account Format

The Profit and Loss Appropriation Account is an extension of the Profit and Loss Account for a partnership that shows how the net profit is shared among the partners. It is used to record interest on capital, partners' salaries and interest on drawings before the remaining profit is divided according to the profit-sharing ratio.

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Partners' Capital Account Format

The Partners' Capital Account is a ledger account that records each partner's permanent capital under the Fixed Capital Method. It is used to record opening capital balances, additional capital introduced and capital withdrawn by partners. It is prepared together with the Current Account when a firm uses the fixed capital method, and its balance is shown under Owner's Equity.

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Partners' Current Account Format

The Partners' Current Account is a ledger account that records dealings between the partnership and each partner under the fixed capital method, kept separate from the Capital Account. The credit side records partners' salaries, interest on capital and share of profit, while the debit side records drawings, interest on drawings and share of loss. Its closing balance is carried to the Statement of Financial Position under Owner's Equity.

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Partnership Statement of Financial Position Format

The Partnership Statement of Financial Position shows a partnership's assets, liabilities and owners' equity on a particular date. It is prepared at the end of the accounting period after the Profit and Loss Account and the Profit and Loss Appropriation Account. Its distinctive feature is that the equity section shows each partner's capital and current account separately.

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