WorksheetsREVISION #1 - PAYABLES
Total questions: 10
Worksheet time: 7mins
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
