BHHT 1333 HOSPITALITY ACCOUNTING

Tutorial 1: Introduction

Multiple Choice Questions

1. The main objective of accounting is to_________________________.
A. prepare financial statement
B. reviewing daily record of business transaction
C. Calculate profit or loss of business
D. Provide financial information to users of such information

2. Which of the following item is not a business transaction?

A. Purchase of goods
B. Purchase of an asset for business purpose
C. cash sales
D. purchase computer for son’s birthday

3. A(n)______________ is a business formed by at least two people to unlimited people.

A. Sole proprietorship
B. Partnership
C. Private Limited Company
D. Public Listed Company

3. Identify the following statement whether it is true or false relating to an effective accounting in a business:
(i) Accounting provides an accurate record of all business transactions undertaken by the traders/businesses
over a given period.
(ii) Accounting can be used to determine profit or loss of an organization.
(iii) Accounting provides useful information to managers which will assist them in improving financial
performance and efficiency.
(iv) It provides valuable information to internal users only.
(v) It helps to plan for the future.

Structured Questions
1. What is the difference between Accounting and Book-keeping?

2. List down FOUR (4) users of accounting information and briefly explain its uses to each users.

3. Briefly explain the following types of organization:

a. Sole Proprietorship
b. Partnership
c. Private limited company

4. Complete the following by filling the beginning or the end of the given trading period.
i) 1 August 2009 to ______________ (one year trading period)
ii) 1 March 2009 to ______________ (half-year trading period)
iii) 1 May 2009 to _______________ (quarterly trading period)
iv) ___________ to 31 December 2009 (half-year trading period)
v) ___________ to 31 October 2009 (quarterly trading period)
1
 vi) ___________ to 31 May 2009 (one year trading period)

5. Classify the following items into liabilities and assets.

(a) Loan to Catherine
(b) Bank Overdraft
(c) Fixtures and fittings
(d) Computers
(e) We owe a supplier for inventory
(f) Warehouse we own
(g) Account receivables
(h) Account payables

6. Complete the columns to show the effects of the following transactions:

Effect upon
Assets Liabilities Capital
a) Bought a van on credit RM
8,700
b) Repaid by cash a loan owed to
Duff RM 10,000.
c) Bought goods for RM 1,400
paying by cheque.
d) The owner puts further RM
4,000 cash into the business.
e) A debtor returns to us goods
worth RM 150. We agree to
make an allowance for them.
f) Bought goods on credit RM
760.
h) We pay a creditor RM 1,150
by cheque.

2
 BHT1333 HOSPITALITY ACCOUNTING 1

Tutorial 2 – Double Entry Bookkeeping 2. Identify the debit and credit items from the following list:

1. Identify the modes of business ownership and the type of business Assets/ Liabilities/
Dr/
activities of each of these organisations: Item Equity/ Revenue/
Cr
Expenses
Type of Rental paid
Mode of business
Business name business
ownership Motor vehicles
activity
Huat Air-Con Service Premises
Klinik Dr. Marks dan Rakan Office equipment
Ming & Linda Cakehouse Salaries paid
Ambank Assurance Berhad Sales
Kampar Frozen Food Sdn Commission received
Bhd Capital
Ternaga Mini Market
Payables
IJM Construction Berhad
Receivables
PriceWaterhouseCoopers
Bank
Cash
Inventories
Purchases
Carriage inwards
Carriage outwards
Profit
Loss
Insurance paid
Commission paid
Discount received
Drawings
 BHT1333 HOSPITALITY ACCOUNTING 2

3. Show the double entry effect of each transaction below:

Double entry effect of transaction:
Assets/ Liabilities/ Equity/ Increase / Amount Title of ledger
Revenue/ Expenses Decrease (RM) account
Dr
Owner brought in his own savings of RM50,000 for business use
Cr
Dr
Bought a motor vehicle by cheque RM28,000
Cr
Dr
Acquired inventories of RM34,000 on credit
Cr
Dr
Obtained a bank loan from CIMB Bank for RM88,000
Cr
Dr
Purchased an equipment costing RM15,000, paying a deposit of
Cr
RM750 by cash, with the remainder to be settled within 2 months
Cr
Dr
Owner withdrew cash totalling RM2,300 for his own expenses
Cr
Dr
Sales to a customer who paid by cheque RM5,000
Cr
Dr
Sales to another customer RM6,000 on credit 30 days
Cr
Dr
Paid staff salaries by cheque RM2,800
Cr
Collected a cheque RM6,000 from customer above, to whom Dr
inventories were sold on credit term Cr
Issued a cheque of RM6,000 to the supplier of equipment bought Dr
above Cr
 BHT1333 HOSPITALITY ACCOUNTING 3

Section 3:

Question 1

The following transactions are extracted from the book of Idris Trading for
the month of April 2010:

April 2010
1 Started the business with cash RM20,000 as capital.
4 Acquired tables and chairs RM2,400 for office use on credit
term.
8 Purchased goods RM4,000 by cash.
11 Cash sales RM1,600.
12 Purchased goods from Baba Enterprise RM7,000 on credit term.
16 Credit sales of goods RM2,700.
18 Bought a van RM20,000 for business use. Cash RM10,000 paid
and the remaining to be settled within two months.
23 A customer paid cash RM1,300 to settle his debts.
28 Cash RM2,200 paid to supplier.
29 Idris withdrew cash RM400 for personal usage.

Required:
Prepare the journal entries to show the double entries of all the transactions
above.
 BHT1333 HOSPITALITY ACCOUNTING 4

Section 4: Extra exercise questions (for students’ own practice)

Question 2 Question 3

Fatimah extracted the following transaction for the month of May 2010: Prepare the journal entries to show the double entries of the following
transactions of Gaya Trading:
May 2010
1 Started the business with cash RM1,000 and bank account of March 2010
RM19,000 as capital. 1 Started business with RM59,000 in the bank and RM1,000
3 Bought computer RM3,600 from Syarikat Cerah Sdn. Bhd. on cash.
credit term. 2 Bought stationery by cheque RM750.
7 Purchased goods RM6,000 from Daya & Co on credit term. 3 Bought goods on credit from Smart Warehouse RM10,100.
9 Received cheque RM2,600 from sales on cash term. 4 Sold goods for cash RM3,400.
12 Issued a cheque RM3,000 for purchases of goods on cash term. 5 Paid insurance by cash RM290.
16 Issued a cheque RM5,700 to Daya & Co., as settlement of 7 Bought a computer on credit from Tech Trader RM4,000.
purchases above, after deducting a discount received of RM300. 8 Paid miscellaneous expenses by cash RM50.
17 Sales of goods RM4,000 to Era Enterprise on credit term. 10 Sold goods on credit RM6,300 to Bina Construction.
21 Fatimah withdrew cash RM200 for family use. 14 Paid wages by cash RM350.
24 Issued a cheque RM2,000 to Syarikat Cerah Sdn. Bhd. as 17 Paid rent by cheque RM2,250.
partial settlement of amount owing.
20 Received cheque RM4,000 from Bina Construction.
27 Received cheque RM3,800 from Era Enterprise, as settlement
of sales above, after deducting discount allowed of RM200. 21 Paid Tech Trader by cheque RM4,000.
28 Miscellaneous expense RM280 paid by cash. 23 Bought goods on credit from Savemart RM2,500.
25 Sold goods on credit to Flora Trader RM6,450.
Required: 31 Paid Savemart by cheque RM1,250.
Prepare the journal entries to show the double entries of all the transactions
above.
BHT1333 HOSPITALITY ACCOUNTING 1

Tutorial 3 – Double Entry System h. Received rental in cash in

respect of sublet premises.
i. Paid a cheque for service
1. Complete the following table: rendered by advertising agency.
Account debited Account credited j. Paid for machinery expenses by
a. Bought goods for cash cheque.
b. Bought goods on credit k. Bought machinery on credit
from Fast Suppliers. from James.
c. Bought Van on credit l. Received cash being
from Thomas. commission on sales.
d. Sold goods to Anne and m. Received interests for the money
received cheque. deposited in the bank ad cash
e. Sold goods on credit to being credited in the bank
John Ltd. account.
f. Sold motor vehicle for
cash.
g. Goods sold were returned
by Micheal, a customer.
h. Returned defective goods
to Omar Brothers, a
supplier.
i. Paid Fast Supplier by
cheque.

2. Complete the following table

Account to be Account to be
debited credited
a. Bought stationery for cash
b. Bought stationery on credit from
Yu Trading.
c. Paid wages in cash.
d. Paid cheque for interest on loan.
e. Paid for repair of motor vehicle
by cheque.
f. Paid insurance in cash.
g. Paid cash for rental of premises.
BHT1333 HOSPITALITY ACCOUNTING 2

Structured questions 2. Record the following transactions into the appropriate accounts in
1. On 1st May 2014, Lee began business by contributing the following the ledger of Lucky Rent-A-Car Enterprise. Balance off the account
assets: and extract a Trial Balance as at 31st July 2014.
Cash at bank RM 20,000 2014
Furniture RM 8,000 July
Delivery Van RM 12,000 1 Trader started business with cash at bank RM 100,000 and premises
RM 40,000
Open T-accounts for Lee to record the above balances. Record the following 2 Transferred from bank account to cash account in the office RM
transactions in the relevant accounts in Lee’s books. 5,000.
8 Bought a second-hand car by cheque. RM 25,000.
2014 10 Paid for repairs with cash RM 120.
May 12 Cash Sales for two weeks RM 3,700.
1 Obtained loan amounted to RM 7,000 from Sime Finance and 16 Purchased a car on credit from Len & Co. RM 25,000.
money being deposited to bank account. 20 Adam owed RM 3,100 for the car-rent service.
5 Purchased goods on credit from Edward RM 8,500. 24 Bought a car by cheque. RM 15,000
8 Purchased a computer costing RM 5,000 for business use. A deposit 27 Paid cash for car repairs and maintenance. RM 350.
of RM 2,000 was paid by cheque. The balance is to paid to Digital 29 Paid Len & Co. Cheque. RM 25,000.
Ltd in 60 days. 30 Paid assistant in cash RM 600.
11 Purchased goods by cheque RM 3,000. 31 Drew out cash for own use. RM 500.
15 Cash sales banked in RM 900.
20 Credit sales to John RM 1,200.
24 Paid RM 1,000 principal and RM 150 interest to Sime Finance by
cheque.
26 Proprietor withdrew furniture for private use RM 400.
29 Paid bank charges by cheque RM 100.
30 Cash Sales RM 3,000, in which RM 2,000 was used to pay wages.
The balance was banked in.
31 Edward was paid in full by cheque.
Tutorial 4 – Financial Statement

1. Transfer all the balances in Trial Balance below to Income Statement

& Balance Sheet.
Mohan Trading
Mohan Trading Statement of Comprehensive Income for the year ended 31 December 2009
Trial Balance as at 31 Dec 2009 RM RM RM
Debit Credit Sales
RM RM Less: Cost of goods sold
Inventories @ 1 Jan 2009 21,950
Office equipment 20,000
Motor vehicles 60,000
Trade receivables 26,000
Bank 18,000 Less:
Trade payables 18,500 Gross Profit
Drawings 14,000
Loan 50,000 Add: Income
Sales 475,000
Purchases 400,000
Carriage outward 5,600
Discount received 3,800 Less: Expenditure
Discount allowed 4,000
Salaries 35,000
Capital 57,250
604,550 604,550
Net Profit
Additional information:
Closing inventory as at 31 Dec 2009 amounted to RM10,950.
Mohan Trading
Statement of Financial Position as at 31 December 2009

RM RM RM
Non-current assets

Current assets

Less: Current liabilities

Net current assets/(liabilities)

Financed by:
Capital as at 1 January 2009
Add:

Less:
Capital as at 31 December 2009

Non-current liabilities
Section 3

Question 1(0414)

Chan, a sole trader, has given you the following trial balance for the year ended 31 December 2013.

Dr Cr
RM RM
Carriage outwards 6,400
Carriage inwards 3,330
Returns 4,700 7,050
Inventory as at 1 January 2013 90,190
Purchases 200,400
Sales 330,200
Salaries and wages 54,860
Rent 28,000
Insurance 1,640
Motor expenses 1,620
Office expenses 4,300
Water and electricity 1,890
General expenses 1,560
Motor vehicles 130,000
Office equipment 45,800
Fixtures and fittings 32,000
Trade receivables 50,280
Trade payables 32,420
Cash at bank 16,600
Drawings 24,100
Capital 328,000
697,670 697,670

Additional information:

1. Inventory as at 31 December 2013 was RM110,500.

Required:

(a) Prepare the Income Statement for the year ended 31 December 2013.

(b) Prepare the Statement of Financial Position as at 31 December 2013.

Question 2 (0214)

LING MAY, a sole trader, has given you the following trial balance for the first year of trading, ending 30 June
2013.

Dr Cr
RM RM
Carriage outwards 5,400
Carriage inwards 2,330
Returns 4,700 5,150
Inventory as at 1 July 2012 92,690
Purchases 201,400
Sales 329,000
Salaries and wages 53,760
Rent 28,800
Insurance 1,540
Motor expenses 2,920
Office expenses 5,300
Water and electricity 1,890
General expenses 1,560
Motor vehicles 150,000
Office equipment 45,800
Fixtures and fittings 32,000
Trade receivables 47,280
Allowance for receivables 1,960
Trade payables 29,120
Cash at bank 17,360
Drawings 20,500
Capital 350,000
715,230 715,230

Additional information:

1. Inventory as at 30 June 2013 was RM120,500.

Required:

(a) Prepare a statement of comprehensive income for the year ended 30 June 2013.

(b) Prepare the Statement of Financial Position as at 30 June 2013.

BHT1333 HOSPITALITY ACCOUNTING 1

Tutorial 5 – Cash Book

Question 1 (0414)

Selina, a sole trader, maintains a three column cash book in respect of her business. The following
are the transactions during October 2013.

2013
Oct
1 Cash balance brought forward from September 2013 (Dr) 18,500
Bank balance brought forward from September 2013 (Cr) 3,000
5 Paid cheque to Kasio Company after receiving a cash
discount of RM 140. 6,860
8 A customer, Hisham, settled the amount owing by him with a
cheque, after receiving a RM 360 discount for prompt payment. 11,640
13 Paid
, , Beng Huat cash for amount outstanding after receiving a
cash discount of RM 200. 4,800
18 Received cheque from Saiful as full settlement of the RM
12,000 outstanding. 11,500
19 Received cash from Isabel, after giving a RM 200 cash discount. 9,800
20 Paid cheque as full settlement of amount of RM 8,000 owing to
ZZ Enterprise. 7,400
22 Sold goods for cash. 25,000
24 Cash drawings. 18,000
26 Paid rental by cheque. 700
28 Paid salaries by cheque. 17,000
31 Cash paid into the bank. 3000

Required:

Record the above transactions for the month of October 2013 in a three column Cash Book for
Selina Enterprise.
BHT1333 HOSPITALITY ACCOUNTING 2

Question 2
The cash book of Ms Anna showed the following balances on 1st January 2014.

Cash in hand RM 1000

Bank Overdraft RM500

The transactions that took place in the month of January 2014 were:
Jan 2 Received cheque from Mickey RM525
5 Paid office rent in cash RM200
10 Paid Hanson RM300 by cheque in full settlement of his account of
RM325
12 Received RM250 cash for sale of old furniture
13 Paid Janey RM1,023 by cheque in full settlement of her account of
RM1,050
15 Paid wages in cash RM350
17 Received cheque for RM500 from Billy
19 Paid RM40 in cash for stationery
20 Paid wages in cash RM100
23 Withdrew RM200 from bank for office use
26 Paid RM425 by cheque for cash purchase of goods for resale
28 Received RM460 cash from Paul in full settlement of his account of RM500,
paid into bank the same day

Required:

Prepare the 3-column cash book for the month of January 2014 and balance it at 31 January,
bringing the balances down at 1 February 2014.
BHT1333 HOSPITALITY ACCOUNTING 1

Tutorial 6 – Bank Reconciliation

Question 1 (APR15)
(a) The following summary cash book relates to Mark Low, a sole trader, for the month of
March 2015.

Cash Book
£ £
Opening Balance b/d 2,654 Payments 3,448
Receipts 5,146 Balance c/d 4,352
7,800 7,800

Additional Information

All receipts are banked and payments made by cheque. On reviewing the detailed cash book as the
new accountant, the following have been discovered.

A credit transfer of £500 from John Smith to Mark Low’s bank account has not been
recorded in the cash book.

A direct debit of £115 for Mark Low’s private pension scheme has not been recorded in
the cash book.

Bank charges of £70 on the bank statement have not been entered in the cash book.

Cheques amounting to £126 entered in the cash book have not yet been presented
for payment to the bank.

An amount of £645 entered on the debit side of the cash book in March is not on the bank
statement for the month.

The bank has credited an amount of £725 to Mark Low’s account in error.

The balance on the bank statement at 31st March 2015 was £4,873.

YOU ARE REQUIRED TO:

(i) Show the adjustments that should be made in the Cash Book.

(ii) Prepare a bank reconciliation statement for Mark Low as at 31st March 2015.
BHT1333 HOSPITALITY ACCOUNTING 2

Question 2 (APR14)

a) Iris Hatch operates a sole proprietor wholesaling business. Iris became very puzzled as to why
the balance on the business bank account in the nominal ledger on 31st January 2014 of £3,655
overdrawn did not agree with the balance shown on the statement received by Iris from the bank
a couple of days later. Upon further investigation, she discovered the following:

I. A telephone account direct debit of £1,470 had not been posted in the business ledgers.

II. A cheque received from Tom Bouncer, a debtor, for £385 included in a lodgement made in
December 2013 had been dishonoured by the bank. No entry had been made in the books of Iris
Hatch’s business for this dishonoured cheque.

III. A lodgement made by Iris in January 2014 for £17,650 had been incorrectly totalled. The
correct lodgement as recorded by the bank was £17,560.

IV. A cheque written by Iris to the value of £3,859 had not yet been presented to the bank for
payment by 31st January 2014.

V. Lodgements at 31st January 2014 of £8,980 had not been recorded by either the bank or by
Iris in the ledgers of her business.

VI. The bank had incorrectly charged Iris Hatch’s business account with a payment of £2,590.

VII. Bank charges of £380 had not been posted in the books of Iris Hatch’s business.

You are required to:

(i) Prepare the revised bank account in the nominal ledger of Iris Hatch’s business.

(ii) Determine the balance on the bank statement at 31st January 2014 by preparing a bank
reconciliation statement.

(iii) Prepare the Journal entry for item [II] above.

BHT1333 HOSPITALITY ACCOUNTING 3

Question 3 (FA1 0414)

Ranjit Singh’s Cash Book (Bank Account) for the month of March 2014 wasas follows:

DRCASH BOOK – Bank Account (March 2014) CR

-------------------------------------------------------------------------------------------------------
Date Details Amount Date Details Cheque Amount
(RM) No. (RM)
-------------------------------------------------------------------------------------------------------
3 Balance b/d 15,200 4 Furniture 71360 4,200
7 Sales 2,500 10 Lim Teck 71361 8,400
13 Rahim 1,800 18 Rent 71362 3,200
20 Cash 3,000 21 Water bill 71363 250
31 Sally Teoh 1,200 27 Raju 71364 1,250
23,700 31 Balance c/d6,400
23,700

The bank statement for the month of March 2014 is follows:

ABC Bank
Statement for the month of March 2014
---------------------------------------------------------------------------------------------------
DateParticularsDepositsWithdrawals Balance

1/3 Balance b/d - - 16,150

4/3 Cheque 71358 - 950 15,200
6/3 Cheque 71360 - 4,200 11,000
11/3 Cash 2,500 - 13,500
13/3 Cheque 1,800 - 15,300
14/3 Cheque 71361 - 8,400 6,900
17/3 Cheque book - 250 6,650
20/3 Cheque 71362 - 3,200 3,450
21/3 Cash 3,000 - 6,450
24/3 Credit transfer 3,400 - 9,850
31/3 Bank charges - 180 9,670
--------------------------------------------------------------------------------------------------

Required:

(a) Starting with the balance carried down in the cash book (bank account) as at 31 March
2014, update the cash book (bank account).

(b) Prepare the bank reconciliation statement as at 31March 2014.

BHT1333 HOSPITALITY ACCOUNTING 1 DEGREE (HOSPITALITY)

Tutorial 6 – The Petty Cash B. Credit entries for expenses

C. Debit entries for cash
Section 1: Multiple choice questions D. Credit entries for cash

1. A petty cash 5. The Imprest System is used to operate the petty cash. The opening
balance is RM200. Total payments from petty cash from the
A. A large amount of float maintained by Petty Cashier period were RM 134. What is the amount of reimbursement to
B. A large amount of float maintained by Cashier. petty cash at the end of the period?
C. A small amount of float maintained by Petty Cashier
D. A small amount of float maintained by Cashier A. RM 200
B. RM 66
2. All of the following statements are true about the Petty Cash Book, C. RM 334
except: D. RM 134
A. It is a part of the double-entry book-keeping system
B. It is used to record payment of suppliers’ invoices 6. The ledger entries that are made every time the petty cashier is
C. It is a book of original entry reimbursed are
D. It is used to record payments of small expenses
Debit Credit
3. Which of the following would be used as source document(s) for A. Petty Cash Book Imprest Account
a Petty Cash Book?: B. Petty Cash Book Cash Book
I. Cheque counterfoil to draw money for office use from bank C. Cash Book Petty Cash Book
account. D. Imprest Account Petty Cash Book
II. Debit note from the insurance company
III. Petty cash voucher
IV. Credit note from supplier
A. I and II
B. I and IV
C. I and III
D. III only

4. The credit entries in the Petty Cash Book are posted to the ledger
as

A. Debit entries for expenses

BHT1333 HOSPITALITY ACCOUNTING 2 DEGREE (HOSPITALITY)

Section 2: 25 Postage 25.00

30 Toll charges 38.00
Question 1 (0214)

A small business uses the Imprest System for its petty cash The Imprest balance was restored on 1 July and 1 August 2013.
transactions.
The Imprest balance is set at RM750. The opening balance on 1 July Analysis columns used by the business are: Stationery, Postage,
2013 was RM370. Cleaning expenses, Travelling expenses and Motor vehicle expenses.
This balance needs to be restored to RM750.
Required:
The following transactions took place during July 2013:
Write up the Petty Cash Book for July 2013 and restore the imprest
July 2013 balance at 1 August 2013.
RM
3 Postage 36.00
3 Travelling 52.00
4 Cleaning 68.00
8 Petrol for delivery van 55.00
9 Travelling 36.00
9 Stationery 65.00
11 Cleaning 52.00
12 Postage 22.00
12 Travelling 38.00
18 Stationery 25.00
18 Cleaning 70.00
19 Postage 22.00
24 Travelling 34.00
25 Parking fees 19.00
25 Cleaning 41.00
BHT1333 HOSPITALITY ACCOUNTING 3 DEGREE (HOSPITALITY)

Question 2 (0510)

Prepare a petty cash book for Blaze Enterprise with analysis columns
for office expenses, motor expenses, cleaning expenses and casual
labour. The cash float is RM350 and the amount spent is reimbursed
on 31 May 2010.

May 2010 RM
1 Ronaldo – casual labour 13
2 Letter headings 22
2 BMW Motors – motor repairs 30
3 Cleaning materials 6
6 Envelopes 14
8 Petrol 8
11 Cristiano – casual labour 15
12 Ronaldinho – cleaner 7
12 Paper clips 2
14 Petrol 11
16 Adhesive tape 1
16 Petrol 9
21 TRD Motor – motor repairs 50
22 Jim – casual labour 21
23 Kelly – cleaner 10
24 Enrique – casual labour 19
25 A4 copy paper 7
26 Audi Auto – motor repairs 21
29 Petrol 12
30 Peter – casual labour 16
BHT1333 HOSPITALITY ACCOUNTING 1

Tutorial 8 – Special Journal

Question 1 (0414)

Michael Tan, a sole trader, made the following purchases and sales for the month of March
2014:

2014 RM
March 3 Sold goods on credit to Balu 1,700
6 Sold goods on credit to Ronnie Lee 750
10 Bought goods on credit from Jamil 1,050
12 Sold goods on credit to Johari 2,100
14 Bought goods on credit from Ah Peng 8,600
18 Goods returned to Jamil 120
20 Bought goods on credit from Wahab 8,800
25 Sold goods on credit to Balu 650
27 Sold goods on credit to Chong 5,770
31 Goods returned byJohari 580
----------------------------------------------------------------------------------------------------

Required:

(a) Show the entries in the Sales Day Book, Purchases Day Book and the Returns Day Books for
the month of March 2014.
(b) Show the following accountsin the general ledger:
(i) Sales Account:
(ii) Purchases Account;
(iii) Return Inwards Account;
(iv) Returns Outwards Account.
BHT1333 HOSPITALITY ACCOUNTING 2

Question 2 (0214)

The following details are the business transactions of Akbar Traders for the month of
December 2013:

Date Transaction Amount

(December (RM)
2013)
2 Credit sale to Lim Hwee 600
3 Credit purchase from Raya Traders 630
6 Lim Hwee returned goods that were sold on 2 Dec. 156
9 Credit sale to Sham 500
12 Returned to Raya Traders goods that were bought on 3 160
Dec.
16 Sham made payment by cheque 280
17 Credit sale to Lim Hwee 360
18 Credit purchase from Baba 189
23 Credit sale to Rambu 620
24 Returned goods to Baba 117
30 Credit sale to Sham 380
31 Rambu returned goods that were sold on 23 Dec. 180

Required:

(a) Enter the above transactions in the :

- purchases day book;
- sales day book;
- return outwards day book and
- return inwards day book.

(b) Post the items to the relevant accounts in the purchases ledger and sales ledger.
BHT1333 HOSPITALITY ACCOUNTING 1 DEGREE (HOSPITALITY)

TUTORIAL 9 – Accounting for Non-current assets

5. In the book-keeping and accounting, the term “depreciation” has a
Section 1: Multiple Choice Questions special meaning. It refers to:

1. The following are characteristics that describe capital expenditure A. The fall in the market value of fixed assets
except: B. the allocation of the cost of fixed assets over its useful life
A. It involves the purchase of new assets. C. the difference between the cost price of a fixed asset and its selling
B. Expenditure to increase the useful life and earning capacity of price when it sold
existing asset. D. money set aside to buy a new machine when the old one is no longer
C. It includes day-to-day expenses to run the business. usable.
D. Capital expenditure is added to the cost of asset to be shown on
the Statement of Financial Position.

2. Which one of the following is not capital expenditure?

A. Freight charges and custom duty
B. Overseas transit insurance
C. Repairs and maintenance of machinery
D. Machine installation and dismantling cost

3. A delivery van was bought on 1 January 2006 at RM80,000. Its

estimated useful life at the time of purchase was 5 years and its scrap
value, RM9000. Using the straight line basis of depreciation, what
would be the accumulated depreciation as at 31 December 2009?
A. RM23,200
B. RM56,800
C. RM71,000
D. RM14,200

4. A machine was bought for RM150,000 on 1 January 2007. The machine

has a useful life of 6 years with RM12,000 scrap value. Using the
reducing balance basis of depreciation at 30%, what would be the net
book value as at 31 December 2009?
A. RM98,550
B. RM81,000
C. RM69,000
D. RM51,450
BHT1333 HOSPITALITY ACCOUNTING 2 DEGREE (HOSPITALITY)

Section 3: Required:

Question 1 (a) Calculate the cost of the machine.

Wayne operates a candy factory in Seremban. The machines in his factory (b) Compute the annual depreciation for the years ended 31 March 2008,
are purchased overseas. On 1 April 2007 he purchased a machine from 2009, 2010, 2011 and 2012 using the following depreciation basis:
Japan costing RM120,000. The machine was delivered to Malaysia on
freight. The transportation cost of RM3,000 and freight insurance of (i) straight line
RM1,200 was borne by Wayne. When the machine landed in Malaysia, (ii) reducing balance basis at the rate of 42% per annum
Wayne paid custom duty of RM3,000.
(c) With your answer in (b) (ii) above, prepare for the years ended 31
Wayne hired an engineer to install the machine within the factory. The March 2010, 2011 and 2012:
engineer told Wayne that in the event Wayne wishes to dismantle the
machine in future, it would cost him RM700. After the installation was (i) Machinery account
completed, the engineer billed him at RM1000. (ii) Depreciation account
(iii) Accumulated depreciation account
Wayne plans to use the machine for 6 years. Every year, the machine would (iv) Statement of Comprehensive Income (extract)
be maintained at a cost of RM350. At the end of year 6, the machine will be (v) Statement of Financial Position (extract)
dismantled and sold off as scrap for RM5,000.
(d) Show the journal entries to record the depreciation charge for the year
For every of his assets, Wayne adopts the policy to make full year ended 31 March 2008 and 2009 using the reducing balance method.
depreciation in the year of purchase and no depreciation in the year of
disposal.
BHT1333 HOSPITALITY ACCOUNTING 3 DEGREE (HOSPITALITY)

Section 4: Extra exercise questions (for students’ own practice) Required:

(a) Record depreciation for the year ended 31 December 2009 in the
Question 1: appropriate book of prime entry (show workings)
(b) Post the entries to the relevant General Ledger accounts
Following is the extracted Trial balance from Tina Enterprise as at 31 Dec
2009. (c) Adjust the Trial Balance, Statement of Comprehensive Income and
Statement of Financial Position (show extracts only)
Trial Balance (extract) as at 31 December 2009
Dr (RM) Cr (RM)
Freehold land 1,000,000
Building at cost 600,000 Question 2:
Accumulated depreciation: Building 60,000
Office equipment at cost 100,000 A car cost RM96,000. It will be keep for 3 years, and then sold for an
Accumulated depreciation: Office equipment 32,000 estimated value of RM24,000.
Furniture & fittings at cost 200,000
Accumulated depreciation: Furniture &fittings 40,000 Required:
Motor vehicles 80,000 Calculate depreciation for each year using:
Accumulated depreciation: Motor vehicles 28,000
(a) Straight line method
Additional information: (b) Reducing balance method, with depreciation rate of 37%
1. Freehold land is not depreciated because its value will appreciate.

2. Office equipment at cost includes RM40,000 of new purchases during

the month of May 2009.

3. Depreciation is to be provided as follows:

 Building at 5% of cost
 Office equipment and Motor vehicles at 25% of cost
 Furniture & fittings at 20% of written down value

4. Full year depreciation is charged in the year of acquisition and no

depreciation is charged in the year of disposal.
BHT1333 HOSPITALITY ACCOUNTING 1

Tutorial 10 – Disposal of Asset

Question 1

Question 2
BHT1333 HOSPITALITY ACCOUNTING 2

Question 3

Reloaded Revolutions Sdn Bhd started its business on 1 July 2006. The company bought a pick-up truck
for RM90,000 on that date. On 1 July 2007, it bought another pick-up truck for RM80,000. In order to
expand its business, it bought a new pick-up truck on 1 January 2008 for RM100,000.

On 1 March 2009, the first pick-up truck that it had bought was unable to operate at its full capacity and
had to be disposed off. It traded in the first pick-up truck for a new pick-up truck at a purchase price of
RM110,000. The trade in value was RM30,000 and the balance was settled by cheque.

The policy of this company is to depreciate all its pick-up trucks using the reducing balance method, at a
rate of 30% per annum based on the month of ownership.

Required:

(a) Prepare ledger accounts for the year ended 30 June 2009:

(i) Pick-up trucks account.

(ii) Accumulated depreciation on the pick-up trucks account.

(iii) Disposal account.

(b) Prepare an extract of the balance sheet as at that date.

BHT1333 HOSPITALITY ACCOUNTING 1

Tutorial 11 – Accounting for Trade Receivables

Question 1
BHT1333 HOSPITALITY ACCOUNTING 2

Question 2
BHT1333 HOSPITALITY ACCOUNTING 3

Question 3
BHT1333 HOSPITALITY ACCOUNTING 1

Tutorial 12 – Year end Adjustment

Question 1
BHT1333 HOSPITALITY ACCOUNTING 2

Question 2

The following is an extract of the Balance Sheet of Aswin Sdn Bhd:

Balance Sheet (extract) as at 30 June 2017

RM
Current assets
Prepaid advertising expenses 1,280
Accrued rental received 2,000

Current liability
Unpaid electricity expenses 120

Receipt and payment account (extract) for the year ended 30 June 2017
Receipts Payments
RM RM
Rent received Advertising
10,000 600
Electricity
1,000

Additional information:
1. Advertising in arrears as at 30 June 2017 amounted to RM200
2. Electricity bill of RM150 has been paid in advance as at 30 June 2017
3. According to the rental agreement, the monthly rental is RM1,000 per month.

Required:
Prepare and balance off the following accounts for the year ended 30 June 2017:
(i) Advertising expenses account
(ii)Rental received account
(iii)Electricity account
(iv) Statement of comprehensive income for the year ended 30th June 2017
(v) Statement of financial position as at 30th June 2017
BHT1333 HOSPITALITY ACCOUNTING 1 DEGREE (HOSPITALITY)

Tutorial 13: Finalised Financial Statements and Closing Entries Additional information:
1. Closing inventory was valued at cost RM26,300 but the market value
Question 1: (Prior year question September 2007 Question 2) was RM29,900
2. A quarter of the wages and salaries was paid to warehouse employees
Maju Jaya Trading extracted the following balances from the business One third of the carriage expenses was to deliver goods to warehouse
ledgers as at 31 August 2010: 3. Received utilities bill RM450 for August 2010, but no payment has
Dr Cr been made
RM RM 4. Insurance premium was paid for the year ended 31 December 2010
Furniture & Fittings 50,000 5. Received rent for the six months ended 30 September 2010
Office Equipment 40,000 6. An additional amount due from Encik Nagendran RM1,600 is to be
Accumulated depreciation: office equipment 8,000 written off as bad debts. Allowance for doubtful debts is to be adjusted
Motor Vehicles 70,000 at 5% of the remaining receivables
Accumulated depreciation: motor vehicles 25,200 7. Depreciation is to be provided as follows:
Drawings 19,100 Furniture & fittings : 20% per annum at cost
Capital 140,000 (Acquired on 1 March 2010)
Loan 25,000 Office equipment : 20% per annum using
Inventory as at 1 September 2009 29,300 straight-line method
Purchases and Sales 89,100 177,300 Motor vehicles : 20% per annum using
Returns 3,800 2,600 reducing-balance method
Carriage 4,500
Wages and salaries 36,000
Discounts 2,300 1,300 Required:
Rent 4,800 (a) Prepare the Statement of Comprehensive Income for Maju Jaya
Interest 1,800 Trading for the year ended 31 August 2010
Insurance 3,600
Utilities 5,000 (b) Prepare the Statement of Financial Position as at that date.
Bad debts 1,900
Trade receivables and payables 46,600 31,300
Allowance for doubtful debts 1,500
Bank 11,000
Cash 3,000
417,000 417,000
BHT1333 HOSPITALITY ACCOUNTING 2 DEGREE (HOSPITALITY)

Question 2: (Prior year question September 2009 Question 2)

Tarcy Enterprise is operated by Priscilla Tam. She provided the following Additional information:
Trial Balance for the year ended 30 June 2009: 1. Closing inventory was valued at RM175,000
Dr Cr 2. Included in the purchases were goods worth RM6,000 which had been
RM RM taken Priscilla for family use. No recording had yet been done
Inventory, 1 July 2008 160,000 3. General expenses accrued was RM500 as at year end
6% Long term loan 200,000 4. Commission received outstanding was RM1,000 as at year end
Water and electricity 4,300 5. Interest on loan has been overlooked by the book-keeper, only partly
Bank 6,000 settled
Capital 1,000,000 6. Allowance for doubtful debts is to be reduced to RM800 as at year end
Carriage inwards 1,800 7. Depreciation charges – Plant and machinery (15% on cost)
Purchases and Sales 956,000 1,254,600 Motor vehicles (20% on reducing balance)
Cash 8,800
Allowance for doubtful debts, 1 July 2008 1,000 Required:
Custom duty 3,000
Trade receivables and payables 136,000 68,000 Prepare the following for Tarcy Enterprisse:
Bad debts 3,700
Carriage outwards 3,000 a) Statement of Comprehensive Income for the year ended 30 June 2009;
Drawings 12,000
Freehold premises 800,000 b) Statement of Financial Position as at 30 June 2009
Motor vehicles 100,000
Plant and machinery 300,000
Accumulated depreciation: motor vehicles 12,000
Accumulated depreciation: plant & machinery 24,000
General expenses 2,200
Interest on loan 3,500
Discounts 600 800
Advertisement 16,000
Returns 4,500 3,000
Salaries 60,000
Commission received 6,000
2,575,400 2,575,400
BHT1333 HOSPITALITY ACCOUNTING 3 DEGREE (HOSPITALITY)

Question 3 - Cash valued at RM1,050

6. An error was found in which one third of the carriage inwards should
Brad Pitt is a stationery retailer. The following is the balance extract from be regarded as carriage outwards
his ledger account as at 30 June 2007: 7. Bank loan interest for the year is still outstanding as at year end

RM RM
Inventory @ 1 July 2006 5,300 Purchases 41,120 Required:
Repairs and maintenance 900 Sales 51,420 (a) Prepare Trial Balance (before making the adjustments in the additional
Salaries and wages 2,300 Returns inwards 1,730 information) for Brad Pitt Stationery Shop as at 30 June 2007;
Premises at cost 70,000 Returns outwards 2,200
Accumulated depreciation Utilities 650 (b) Then prepare Statement of Comprehensive Income for the year ended
: Premises 14,000 Drawings 2,100 30 June 2007; and
Motor vehicles 56,000 Discount allowed 650
Accumulated depreciation Discount received 2,270 (c) Statement of Financial Position as at 30 June 2007
: Motor vehicles 15,540 Advertising 610
Insurance on goods purchased 150 Duty on imports 520
Trade receivables 3,170 Capital 82,350
Trade payables 2,560 Bad debts 400
Allowance for doubtful debts 290 Rent 1,050
Commission received 3,200 Bank overdraft 1,200
5% Long term bank loan 16,000 Cash in hand 3,000
Carriage inwards 660 Carriage outwards 720

Additional information:
1. Inventory at the end of the accounting year was RM6,050
2. Non-current assets are to be depreciated as follows:
- Premises at 10% per annum on straight line
- Motor vehicle at 15% per annum using reducing balance method
3. Salaries and wages outstanding were RM150 and utilities paid in
advance were RM120
4. Bad debts to be written off amounted to RM700 and the owner has
decided to provide an allowance for doubtful debts of 10% as at year
end

5. Drawings made by Brad Pitt for personal use but not recorded in the
books were as follows:
- Goods for resale amounting to RM1,300
BHT1333 HOSPITALITY ACCOUNTING 4 DEGREE (HOSPITALITY)

Section 3: Extra exercise questions (for students’ own practice) Additional information:

1. Inventories as at 30 June 2005 were RM47,342

Question 1: 2. Non current assets are to be depreciated as follows:
Motor vehicles : 20% per annum on cost
The following Trial Balance was extracted from the books of Omega Shoes, Office equipment : 10% per annum on net book value (NBV)
a sole proprietor business, at 30 June 2005: 3. On 30 June 2005, the owner withdrew cash of RM1,250 for household
expenses. No entry has been made in the books.
Dr Cr 4. Utilities in trial balance inclusive an electricity bill covering the period
RM RM 16 June to 15 July 2005 amounting to RM900
Owner’s equity as at 1 July 2004 86,631 5. Allowance for doubtful debts is to be provided at 2% of outstanding
Drawings 8,500 trade receivables
Inventories as at 1 July 2004 54,387 6. The loan was taken on 1 October 2004 and no interest was made during
Bank 153,246 the accounting year
6% Bank loan repayable in 8 years 80,000
Trade receivables and payables 45,329 58,128 Required:
Motor vehicles at cost 60,000
Accumulated depreciation-motor vehicles 6,000 (a) Prepare the Statement of Comprehensive Income of Omega Shoes for
Office equipment at cost 25,858 the year ended 30 June 2005; and
Accumulated depreciation-office equipment 4,858
Sales and Purchases 386,768 600,235 (b) Prepare the Statement of Financial Position as at that date
Returns 4,586 3,854
Discounts allowed and Discount received 15,844 18,129
Bad debts 7,287
Allowance for doubtful debts as at 1 July 2004 678
Rent 18,000
Insurance – motor vehicles 1,452
- inventories 3,626
Carriage outwards 7,295
Salaries and wages 45,853
Printing and stationery 12,587
Utilities 7,895
858,513 858,513
BHT1333 HOSPITALITY ACCOUNTING 5 DEGREE (HOSPITALITY)

Question 2:

The following Trial Balance was extracted from the books of Mr Smith as at Additional information:
30 December 2006:
1. Rent received in arrears as at 31 December 2006 was RM1,000
Debit Credit 2. Insurance includes a total of RM2,000 paid for January and February
RM RM 2007
Sales and Purchases 68,080 215,580 3. Depreciation charges were to be provided as follows:
Returns 220 380 - Motor vehicles at 10% per annum on net book value (NBV)
Inventories as at 1 January 2006 18,400 - Buildings at rate of 1% per annum on cost
Rent received 9,000 4. Electricity charges outstanding for the year amounted to RM590
Building at cost 520,000 5. Allowance for doubtful debts is to be increased by RM500
Advertising expenses 27,600 6. Inventories as 31 December 2006 was RM6,520
Trade receivables and Trade Payables 168,000 100,000
Salaries and wages 68,000
Motor vehicles at cost 100,000
Insurance 24,000 Required:
Sundry expenses 15,000
Accumulated depreciation: Motor vehicles 40,000 Prepare the Statement of Comprehensive Income for the year ended 31
Accumulated depreciation: Buildings 64,000 December 2006 and the Statement of Financial Position for Mr Smith as at
Electricity and water 7,100 that date.
Allowance for doubtful debts 1,200
Discounts 3,000 7,000
Printing and stationery 2,496
Cash in hand 136,000
Bank overdraft 736
Capital 720,000
1,157,896 1,157,896