Senior 1 Book-keeping

What is the amount of debts which are definitely uncollectible by a business?

• Bad Debts

• Bad Debts Recovered

• Allowance for Doubtful Debts

Which of the following is created as an adjustment to anticipate possible losses?

• Bad Debts

• Bad Debts Recovered

• Allowance for Doubtful Debts

Which is the double entry of Bad Debts?

• Dr Bad Debts;

  Cr Accounts Receivable

• Dr Accounts Receivable;

  Cr Bad Debts

• Dr Bad Debts;

  Cr Profit and Loss

How to record decrease in allowance for doubtful debts?

• Dr Profit and Loss;

  Cr Allowance for Doubtful Debts

• Dr Allowance for Doubtful Debts;

  Cr Profit and Loss

• Dr Accounts Receivable;

  Cr Allowance for Doubtful Debts

The following figures are obtained from a Trial Balance as at 31 December.

Year 1 Accounts Receivable RM10,000

Year 2 Accounts Receivable RM15,000

Calculate the increase of allowance for doubtful debts as at 31 December Year 2 if the business decides to charge 3% on the Accounts Receivable.

• RM150

• RM300

• RM450

What is the formula of straight-line method to calculate depreciation?

• cost x %

• carrying amount x %

• (cost - accumulated depreciation) x %

Assets which require repairs and maintenance usually adopt this method to calculate depreciation. What is the name of this method?

• revaluation

• straight-line

• reducing balance

What is the double entry of Depreciation?

• Dr Depreciation;

  Cr Asset

• Dr Depreciation;

  Cr Accumulated Depreciation

• Dr Depreciation;

  Cr Profit and Loss

How to record the receipt of disposal proceeds of a machinery?

• Dr Bank;

  Cr Machinery

• Dr Disposal of Machinery;

  Cr Machinery

• Dr Bank;

  Cr Disposal of Machinery

Cost of asset: RM5,000

Accumulated depreciation: RM4,000

Selling price: RM2,000

Based on the above information, how much is the gain or loss of disposal of the asset?

• Gain RM1,000

• Loss RM1,000

• Loss RM3,000