TIME YOURSELF 1 : ACCOUNTING 1

1 Jan Allowance for doubtful debts RM500

31 Dec Allowance for doubtful debts RM400

How should the decrease in the allowance be treated in the Profit and Loss account?

• add RM400 to expenses

• add RM500 to expenses

• deduct the RM100 increase in allowance from expenses

• add the RM100 decrease in allowance to Gross Profit

How many units were on hand on 31 December 2019 :

• 12 units

• 30 units

• 18 units

• 15 units

Accounts Receivables :

2019 : RM2800;

2020 : RM3100

Allowance for doubtful debts :

2019 : RM280

2020: RM310

What is Net Realizable value for Accounts Receivables should appear in the Statement of Financial Position for 2020?

• RM2520

• RM2790

• RM2510

• RM3410

Assume that the company is using periodic inventory system and FIFO method, what is the ending inventory costs?

• RM216

• RM288

• RM312

• RM368

Accounts Receivables :

Year 1 : RM10,000

Year 2: RM12,000

Allowance for doubtful debts is 5% of Accounts Receivables.

What is the amount of the bad debts expenses to be charged in the Profit and Loss account for the second year?

• RM100

• RM600

• RM500

• RM400

What is the cost of goods sold if the periodic inventory system and Weighted Average method is used ?

• RM2,071

• RM2,101.65

• RM2,101.60

• RM2,143

A machine was purchased at the cost of RM50,000 on 1 September 2019, residual value RM2,000 and was depreciated at 12% per annum using monthly basis. What is the accumulated depreciation for the year ended 31 December 2020, if the company is straight line method.

• RM12,000

• RM11,520

• RM8,000

• RM7,680

Assuming the periodic inventory system and Weighted Average method is used, what is the gross profit?

• RM869

• RM838.40

• RM838.65

• RM797

Mia trading owns machinery that costs RM60,000. It is the policy of the business to charge depreciation over its useful life of 5 years. At the end of its useful life, it is estimated that its residual value is RM4,000. What is depreciation expense during the year.

• RM12,000

• RM12,800

• RM11,200

• RM800

What is the ending inventory in units as at 18 October 2020?

• 27

• 14

• 15