Practice Questions
Practice Questions: Books of Prime Entry
This practice set trains you to record transactions in the General Journal, Special Journals, the three-column Cash Book and the Petty Cash Book from transaction statements and source documents. Attempt each item before checking the answer.
One-hour paid trial · Same-day reply · from RM50/hr
How to practise effectively
- Read each transaction statement, identify the source document (invoice, credit note, receipt, voucher) and decide the correct book of prime entry before recording.
- For the General Journal, always write the debited account first, the credited account indented below it, and include a short narration and the folio column.
- Non-current assets bought or sold on credit go to the General Journal; trade goods on credit go to the Purchases or Sales Journal, not the General Journal.
- In the three-column Cash Book, the discount columns are only totalled (not balanced), while the Cash and Bank columns are balanced to find their closing balances.
Common mistakes to avoid
- Recording credit purchases of trade goods in the General Journal when they belong in the Purchases Journal.
- Forgetting to record contra entries (cash banked) on both sides of the Cash Book with the letter 'C'.
- In the imprest system, miscalculating the reimbursement: the reimbursement must equal total petty expenses so the float is restored to the fixed amount.
- For full ledger accounts and statements, refer to the worked-example sets; here focus only on the books of prime entry.
| Particulars | Folio | Debit (RM) | Credit (RM) |
|---|---|---|---|
| Cash | 2,000 | ||
| Bank | 8,000 | ||
| Vehicle | 30,000 | ||
| Inventory | 5,000 | ||
| Creditor (Zaman Enterprise) | 4,000 | ||
| Capital | 41,000 | ||
| Total | 45,000 | 45,000 |
Capital is the balancing figure (45,000 - 4,000). For full ledger accounts, refer to the worked-example sets.
Practice Questions
Question 1
1. Puan Halimah started the business Kedai Runcit Seri Mutiara on 1 January 2024 with the following assets and liabilities: Cash RM2,000, Bank RM8,000, Vehicle RM30,000, Inventory RM5,000 and creditor Zaman Enterprise RM4,000. Prepare the opening entry in the General Journal.
Answer
Debit: Cash 2,000; Bank 8,000; Vehicle 30,000; Inventory 5,000 (total debit 45,000).
Credit: Creditor (Zaman Enterprise) 4,000; Capital 41,000 (total credit 45,000).
Capital is the balancing figure: 45,000 - 4,000 = 41,000.
Narration: Opening entry of assets, liabilities and capital at the start of the period.
Question 2
2. On 5 March 2024, Bengkel Auto Jaya bought a lift machine worth RM12,000 on credit from Mesra Machinery, and on the same day bought spare parts for resale worth RM3,000 on credit from the same supplier. Record the asset transaction in the General Journal and state the book of prime entry for the trade goods purchase.
Answer
General Journal (non-current asset on credit):
Debit: Machine RM12,000
Credit: Mesra Machinery RM12,000
Narration: Purchase of machine on credit.
The spare parts purchase of RM3,000 (trade goods) is NOT recorded in the General Journal; it goes in the Purchases Journal because the goods are for resale.
Question 3
3. For each of the following transactions of Perniagaan Cahaya, state the most appropriate book of prime entry: (a) sold goods on credit to Kedai Mawar, (b) returned faulty goods to supplier Syarikat Teguh, (c) received a cheque from a debtor, (d) bought goods on credit, (e) paid rent by cheque, (f) a customer returned goods to the business.
Answer
(a) Sales Journal
(b) Purchases Returns Journal
(c) Cash Book (receipts side)
(d) Purchases Journal
(e) Cash Book (payments side)
(f) Sales Returns Journal
Question 4
4. Perniagaan Delima had the following transactions in May 2024: 1 May balances b/d Cash RM500, Bank RM6,200; 3 May received cheque RM980 from debtor Azman in settlement of RM1,000 (discount allowed RM20); 8 May cash sales RM1,500; 12 May paid creditor Bakti by cheque RM1,470 in settlement of RM1,500 (discount received RM30); 20 May banked cash RM800 (contra); 25 May paid wages in cash RM600. Balance the three-column Cash Book and state the Cash and Bank balances and the totals of both discount columns.
Answer
Cash column. Debit: balance b/d 500 + cash sales 1,500 = 2,000. Credit: contra to bank 800 + wages 600 = 1,400. Cash balance c/d = 600 (debit).
Bank column. Debit: balance b/d 6,200 + Azman 980 + contra 800 = 7,980. Credit: Bakti 1,470. Bank balance c/d = 6,510 (debit).
Discount allowed (debit side) = 20; transferred to the debit of the Discount Allowed Account.
Discount received (credit side) = 30; transferred to the credit of the Discount Received Account.
The 20 May contra entry is marked 'C' on both sides.
Question 5
5. Kedai Buku Ilmu uses the imprest system with a fixed float of RM300 on 1 June 2024. Petty expenses during the month: 3 June stamps RM25 (Postage & Stamps); 7 June taxi fare RM18 (Transport); 12 June stationery RM40 (Stationery); 18 June fuel RM30 (Transport); 22 June sugar and tea RM22 (Refreshments); 28 June parcel postage RM15 (Postage & Stamps). Calculate the total of each analysis column, the balance c/d and the reimbursement amount on 1 July 2024.
Answer
Analysis columns:
Postage & Stamps = 25 + 15 = 40
Transport = 18 + 30 = 48
Stationery = 40
Refreshments = 22
Total expenses = 40 + 48 + 40 + 22 = 150.
Balance c/d (30 June) = 300 - 150 = 150.
Reimbursement (1 July) = 150, equal to total expenses, so the float is restored to RM300.
Question 6
6. On 30 June 2024, Mr Faisal, owner of Perniagaan Faisal, took trade goods worth RM400 for family use and took home a printer (asset) worth RM800 for personal use. Record these transactions in the General Journal.
Answer
General Journal:
Debit: Drawings RM1,200
Credit: Purchases RM400 (drawings of trade goods)
Credit: Printer / Equipment RM800 (drawings of non-current asset)
Narration: Drawings of goods and asset by the owner for personal use.
(Total debit 1,200 = total credit 400 + 800.)
Question 7
7. Match each source document of Perniagaan Harmoni with the correct book of prime entry: (a) purchases invoice received, (b) copy of sales invoice issued, (c) credit note received from a supplier, (d) credit note issued to a customer, (e) official receipt issued for cash received, (f) cheque counterfoil / payment voucher.
Answer
(a) purchases invoice: Purchases Journal
(b) copy of sales invoice: Sales Journal
(c) credit note received: Purchases Returns Journal
(d) credit note issued: Sales Returns Journal
(e) official receipt: Cash Book (receipts) / Cash Receipts Journal
(f) cheque counterfoil / voucher: Cash Book (payments) / Cash Payments Journal
What is the difference between the General Journal and Special Journals?
Why are the discount columns in the Cash Book not balanced?
Other resources for this chapter
Need help with Books of Prime Entry?
One-hour paid trial · Same-day reply · from RM50/hr
Book a Trial Class