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REVISION : ACCOUNTING FOR CASH & ACCOUNTING FOR RECEIVABLES

Total questions: 11

Worksheet time: 22mins

Name
Class
Date
1.

If the final balance in the bank statement is RM3,500 Dr, unpresented cheques equal RM200 and deposit in transit total RM400, the final balance in the business's bank account is:

a)

RM3,700 Dr

b)

RM3,700 Cr

c)

RM3,300 Cr

d)

RM3,300 Dr

2.

A payment of RM6,500 by cheque was wrongly recorded on the debit side of the cash book. The correct adjustment is

a)

Cash book,

Dr Cash Cr payment overstated

b)

Cash book,

Dr payment understated Cr Cash

c)

Bank Rec. item, Add to bank balance

d)

Bank Rec. item, less from cash book bal.

3.

Received cheque RM150 recorded by the business but not recorded in the bank statement, what adjustment  need to be made?

a)

cash book +150

b)

cash book -150

c)

bank statement +150

d)

bank statement -150

4.

Paid interest RM150 recorded by the bank but not recorded in the business, what adjustment need to be made?

a)

cash book +150

b)

cash book -150

c)

bank statement +150

d)

bank statement -150

5.

The balance of cash at bank shown in the cash book is RM1,200. The bank statement balance shown RM1,440.


Which can explain the difference?

a)

payment to a supplier, RM120, entered wrong side of the cash book

b)

bank charges, RM240, not in the cash book

c)

cheques to suppliers, RM240, not yet presented to the bank

d)

receipts from customers, RM240, banked but not yet entered in the bank statement

6.

Using the percentage-of-receivables basis, the uncollectible accounts is estimated to be RM33,000. If the balance for the Allowance for Doubtful Accounts is a RM5,000 debit before adjustment, what is the amount of bad debt expense for the period?

a)

RM5,000

b)

RM28,000

c)

RM33,000

d)

RM38,000

7.

A company estimates that RM20,000 of its RM500,000 of account receivable will be uncollectible. Its Allowance for Doubtful Accounts presently has a credit balance of RM8,000. The adjusting entry will include a _____________ to the Allowance for Doubtful Accounts.

a)

debit of RM12,000

b)

credit of RM12,000

c)

debit of RM28,000

d)

credit of RM28,000

8.

A company estimates that RM20,000 of its RM500,000 of accounts receivable will be uncollectible. Its Allowance for Doubtful Accounts presently has a debit balance of RM3,000. The adjusting entry will include a ____________ to Allowance for Doubtful Accounts.

a)

debit of RM3000

b)

credit of RM3000

c)

debit of RM23,000

d)

credit of RM23,000

9.

The business provides for doubtful debts each year at 2% of the accounts receivable balance at the end of the financial year. The balance of the Accounts Receivable Control account is RM45,000. What is the amount of Allowance for Doubtful Debts?

a)

RM900

b)

RM9000

c)

RM450

d)

RM90

10.

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?

a)

RM2520

b)

RM2790

c)

RM2510

d)

RM3410

11.

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?

a)

add RM400 to expenses

b)

add RM500 to expenses

c)

deduct the RM100 increase in allowance from expenses

d)

add the RM100 decrease in allowance to Gross Profit