Level: Intermediate
Intermediate Worked Examples: Books of Prime Entry
Six graded examples covering the General Journal, Special Journals, the three-column Cash Book and the Petty Cash Book. Each shows the debit-credit reasoning and a full, balanced solution.
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Example 1: Opening Entry in the General Journal
Question
Solution plan
Capital = Total Assets - Total Liabilities. Assets = 120,000+45,000+18,000+3,500+22,000+1,500 = 210,000; Liabilities = 9,500+40,000 = 49,500; so Capital = 160,500. In the General Journal all assets are debited (debit balances) while all liabilities and capital are credited (credit balances). Total debit must equal total credit.
| Date | Particulars | Folio | Debit | Credit |
|---|---|---|---|---|
| 1 Jan | Premises | 120,000 | ||
| Motor vehicle | 45,000 | |||
| Inventory | 18,000 | |||
| Debtor: Kedai Aman | 3,500 | |||
| Bank | 22,000 | |||
| Cash | 1,500 | |||
| Creditor: Syarikat Bekalan Jaya | 9,500 | |||
| Bank loan | 40,000 | |||
| Capital | 160,500 | |||
| (Opening entry for assets, liabilities and capital) | ||||
| Total | 210,000 | 210,000 |
Answer
Encik Zulkifli's opening capital is RM160,500. Total debit RM210,000 equals total credit RM210,000, so the opening entry balances.
Where marks are usually lost
Example 2: Various Transactions in the General Journal
Question
Solution plan
(3 May) Credit purchase of a non-current asset: Dr Machinery, Cr supplier. (8 May) Drawings of goods: Dr Drawings, Cr Purchases (not Sales). (15 May) Additional capital other than cash/bank: Dr Office equipment, Cr Capital. (22 May) Credit sale of a non-current asset: Dr Cikgu Rosli (debtor), Cr Motor vehicle.
| Date | Particulars | Folio | Debit | Credit |
|---|---|---|---|---|
| 3 May | Machinery | 15,000 | ||
| Perkakas Mega Sdn Bhd | 15,000 | |||
| (Purchase of machinery on credit) | ||||
| 8 May | Drawings | 800 | ||
| Purchases | 800 | |||
| (Goods taken for personal use) | ||||
| 15 May | Office equipment | 3,200 | ||
| Capital | 3,200 | |||
| (Additional capital in the form of a computer) | ||||
| 22 May | Cikgu Rosli | 8,000 | ||
| Motor vehicle | 8,000 | |||
| (Sale of old vehicle on credit) | ||||
| Total | 27,000 | 27,000 |
Answer
All four transactions are recorded with total debit RM27,000 equal to total credit RM27,000. The drawings of goods reduce Purchases, and the sale of the old vehicle creates the debtor Cikgu Rosli.
Where marks are usually lost
Example 3: Purchases Journal and Sales Journal
Question
Solution plan
The Purchases Journal records only credit purchases of goods; its total is posted to the debit of the Purchases Account. The Sales Journal records only credit sales of goods; its total is posted to the credit of the Sales Account. Each supplier's or customer's amount is posted to their own ledger account.
| Date | Particulars (Supplier) | Folio | Amount |
|---|---|---|---|
| 2 Jun | Kilang Kayu Manis | 4,200 | |
| 10 Jun | Perabot Grosir Sdn Bhd | 6,800 | |
| 18 Jun | Kilang Kayu Manis | 3,500 | |
| 30 Jun | Transfer to Purchases Account (Dr) | 14,500 |
| Date | Particulars (Customer) | Folio | Amount |
|---|---|---|---|
| 5 Jun | Hotel Seri Malam | 7,200 | |
| 14 Jun | Puan Aminah | 2,800 | |
| 25 Jun | Hotel Seri Malam | 5,400 | |
| 30 Jun | Transfer to Sales Account (Cr) | 15,400 |
Answer
The Purchases Journal total RM14,500 is posted to the debit of the Purchases Account; the Sales Journal total RM15,400 is posted to the credit of the Sales Account.
Where marks are usually lost
Example 4: Purchases Returns Journal and Sales Returns Journal
Question
Solution plan
The Purchases Returns Journal (returns outwards) records goods returned to suppliers; its total is posted to the credit of the Purchases Returns Account, and each amount to the debit of the supplier's account. The Sales Returns Journal (returns inwards) records goods returned by customers; its total is posted to the debit of the Sales Returns Account, and each amount to the credit of the customer's account.
| Date | Particulars (Supplier) | Folio | Amount |
|---|---|---|---|
| 6 Jul | Pembekal Elektrik Utama | 650 | |
| 19 Jul | Pembekal Elektrik Utama | 420 | |
| 31 Jul | Transfer to Purchases Returns Account (Cr) | 1,070 |
| Date | Particulars (Customer) | Folio | Amount |
|---|---|---|---|
| 12 Jul | Kedai Serbaneka Ria | 380 | |
| 24 Jul | Encik Daud | 540 | |
| 31 Jul | Transfer to Sales Returns Account (Dr) | 920 |
Answer
The Purchases Returns total RM1,070 is posted to the credit of the Purchases Returns Account; the Sales Returns total RM920 is posted to the debit of the Sales Returns Account.
Where marks are usually lost
Example 5: Three-Column Cash Book
Question
Solution plan
The debit side records receipts; the credit side records payments. Discount allowed goes in the debit-side discount column, discount received in the credit-side discount column (memorandum, not balanced). The 16 Aug contra: Cr Cash, Dr Bank. Balance the Cash and Bank columns separately to get the balance c/d.
| Date | Particulars | Discount | Cash | Bank |
|---|---|---|---|---|
| 1 Aug | Balance b/d | 850 | 12,400 | |
| 3 Aug | Sales | 1,200 | ||
| 5 Aug | Encik Rahman | 100 | 2,000 | |
| 16 Aug | Cash (contra) | 500 | ||
| 25 Aug | Sales | 950 | ||
| Total | 100 | 3,000 | 14,900 | |
| 1 Sep | Balance b/d | 1,900 | 12,600 |
| Date | Particulars | Discount | Cash | Bank |
|---|---|---|---|---|
| 9 Aug | Syarikat Buku Ilmu | 75 | 1,500 | |
| 12 Aug | Wages | 600 | ||
| 16 Aug | Bank (contra) | 500 | ||
| 20 Aug | Rent | 800 | ||
| 31 Aug | Balance c/d | 1,900 | 12,600 | |
| Total | 75 | 3,000 | 14,900 |
Answer
Balance c/d: Cash RM1,900 (debit) and Bank RM12,600 (debit), brought down on 1 September. Total discount allowed RM100 (to the Discount Allowed Account) and discount received RM75 (to the Discount Received Account).
Where marks are usually lost
Example 6: Petty Cash Book (Imprest System)
Question
Solution plan
Imprest system: the petty cashier starts with a fixed amount RM300; at period end, the reimbursement equals total expenditure so the imprest is restored to RM300. Each payment is entered in the Total column and classified into the correct analysis column. The sum of the analysis columns must equal the Total column. Balance c/d = Imprest - Total expenditure.
| Received | Date | Particulars | Total | Stationery | Postage & Stamps | Transport | Sundry |
|---|---|---|---|---|---|---|---|
| 300 | 1 Sep | Bank (imprest) | |||||
| 3 Sep | Postage stamps | 25 | 25 | ||||
| 6 Sep | Bus fare | 18 | 18 | ||||
| 9 Sep | Pens and paper | 42 | 42 | ||||
| 13 Sep | Taxi | 30 | 30 | ||||
| 17 Sep | Envelopes | 15 | 15 | ||||
| 20 Sep | Postage | 22 | 22 | ||||
| 24 Sep | Cleaning | 35 | 35 | ||||
| 27 Sep | Transport | 28 | 28 | ||||
| 30 Sep | Total | 215 | 57 | 47 | 76 | 35 | |
| 30 Sep | Balance c/d | 85 | |||||
| 300 | 300 | ||||||
| 85 | 1 Oct | Balance b/d | |||||
| 215 | 1 Oct | Bank (reimbursement) |
Answer
Total petty expenditure is RM215 (Stationery RM57, Postage & Stamps RM47, Transport RM76, Sundry RM35). Balance c/d RM85 is brought down on 1 October, and the reimbursement of RM215 restores the imprest to RM300.
Where marks are usually lost
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