Obj 1

A company purchased a machine on 1 April 2010 costing RM 22,000. It was estimated to have a five-year life after which it would be scrapped for RM 4,000. The company used the straight line method for the depreciation policy. The company decided to sell it for RM 9,500 on 30 June 2013. What was the result of the disposal?

• Making RM 800 in profit

• Making a loss of RM 800

• Making a loss of RM 1,900

• Making RM 1,900 in profit

A machine, which cost RM 2,600, has an estimated useful life of 5 years and an estimated scrap value of RM 600 at the end of that time. Using a rate of depreciation of 20% per annum, if the reducing balance method is used, the accumulated depreciation after three years will be _________than the straight line method.

• RM 69 higher

• RM 224 lower

• RM 280 lower

• RM 280 higher

Accrued income adjustment made in ledger on balance day is

• Debit: Accrued Income Account

  Credit: Income Account

• Debit: Profit and Loss Account

  Credit: Income Account

• Debit Profit and Loss Account

  Credit: Accrued Income Account

• Debit: Income Account

  Credit: Accrued Income Account

A debit balance brought down on a Rent Account means

• We owe that rent at that date.

• We have paid that rent in advance at that date.

• The total of rental expenses for the current period.

• The total of rental expenses for the previous period.

Which of the following do affect trial balance agreement? (you can tick more than one answer)

• The returns outwards book was undercast by RM 100.

• Sales to Rayne & Co RM 850 were posted to the wrong side of their account.

• A purchased of goods RM 3,900 from MD Co. was entered in error in KD Co. account.

• Bank charges of RM 15 entered in the Cash Book have not been posted to the Bank Charges

A Trial Balance fails to agree by RM 900. Which of the following errors subsequently discovered could have caused the disagreement?

• A machine sold for RM 900 had been credited to the Sales Account.

• A rent payment of RM 900 had been debited to the Insurance Account.

• A sale of goods to Kimberly of RM 900 had been debited to the account of Emily.

• A cheque of RM 900 received from Tommy had been debited to the account of Jason.

Which of the following items are included as prime cost in the Manufacturing Account? (You can tick more than one asnwer)

• Factory power

• Wages of production line

• Carriage inwards on raw materials

• Depreciation of plant and machinery

Which of the following treatment is unreasonable?

• Legacies are added to the accumulated fund.

• Large donations are added to the accumulated fund.

• Small donations are credited to the Income and Expenditure Account.

• Large life membership fees are credited in full to the Income and Expenditure Account.

The subscriptions received in cash during the year 2014 were as follows:

Year Subscriptions

2013 RM 350

2014 RM 2,160

2015 RM 400

On 1 January 2014, there was RM 180 of subscription in advance. On 31 December 2014, the subscription in arrears was RM 200. Find the subscription for the year 2014.

• RM 1,790

• RM 2,540

• RM 2,910

• RM 3,290

When a bill was discounted with bank by drawer, what entries should the acceptor make?

• No entries are needed.

• Debit: Discounting Charges Account

  Credit: Bank Account

• Debit: Bank Account

  Credit: Discounting Charges Account

  Credit: Bills Receivable Account

• Debit: Bills Payable Account

  Credit: Bank Account