REVISION #1 - PAYABLES

Which of the following accounts is NOT a liability?

• Accounts Payable

• Bills Receivable

• Salaries Payable

• Notes Payable

What is the journal entry to record the recognition of Payables?

• Debit Trade Payables, Credit Purchase

• Debit Bank, Credit Trade Payables

• Debit Purchase, Credit Trade Payables

• Debit Trade Payables, Credit Cash

The difference between the carrying amount of a payables extinguished or transferred to another party and the consideration paid, including any non-cash liabilities assumed, shall be recognised in:

• Statement of Financial Position

• Statement of Profit and Loss

• Statement of Changes in Equity

• Statement of Cash Flow

When an entity should recognize the payables in the book of account? (You may choose more than 1 answer)

• When the entity becomes a party to the contractual provisions of the instrument

• When the entity has legal obligation to pay cash

• When the entity discharges the liability by paying cash to the creditor

• When the entity is legally released from primary responsibility for the liability

What is the journal entry to record the return of raw materials bought on credit in the buyer's books of account?

• Dr Account Payable, Credit Sales Return

• Dr Account Payable, Credit Purchase Return

• Dr Carriage outward, Credit Account Payable

• Dr Purchase Return, Credit Account Payable

Initially, payables should be measured based on

• Market value

• Transaction price

• Amortised cost

• Historical cost

Baba Bhd ordered goods from Tayo Bhd costing RM3,500 on 1 July 20x7. Only 20% of the amount was paid immediately by cheque upon receiving the goods on 3 July 20x7. On 5 July 20x7, Baba Bhd returned the goods to Tayo Bhd amounted to RM300 due to the quality problem. Baba should recognised the trade receivable on:

• 1 July 20x7

• 3 July 20x7

• 5 July 20x7

Baba Bhd ordered goods from Tayo Bhd costing RM3,500 on 1 July 20x7. Only 20% of the amount was paid immediately by cheque upon receiving the goods on 3 July 20x7. On 5 July 20x7, Baba Bhd returned the goods to Tayo Bhd amounted to RM300 due to the quality problem.

What is the amount of trade receivable initially recognised by Baba Bhd?

• RM3,500

• RM2,800

• RM2,500

• RM3,200

Baba Bhd ordered goods from Tayo Bhd costing RM3,500 on 1 July 20x7. Only 20% of the amount was paid immediately by cheque upon receiving the goods on 3 July 20x7. On 5 July 20x7, Baba Bhd returned the goods to Tayo Bhd amounted to RM300 due to the quality problem. On 2 August 20x7, Baba Bhd paid the amount due by cheque.

How much is the amount to derecognise the trade payable from Baba Bhd’s books?

• RM3,500

• RM2,800

• RM2,500

• RM3,200

Baba Bhd ordered goods from Tayo Bhd costing RM3,500 on 1 July 20x7. Only 20% of the amount was paid immediately by cheque upon receiving the goods on 3 July 20x7. On 5 July 20x7, Baba Bhd returned the goods to Tayo Bhd amounted to RM300 due to the quality problem. On 2 August 20x7, Baba Bhd paid the amount due by cheque.

What is the journal entry to derecognize the trade payable?

• Debit Account Payable – Baba Bhd, Credit Bank

• Debit Bank, Credit Account Payable – Tayo Bhd

• Debit Account Payable – Baba Bhd, Credit Cash

• Debit Account Payable – Tayo Bhd, Credit Bank