5.On 1 January 2014, a small company had an allowance of doubtful debts of RM1,000. During 2014, debts of RM600 were written off and RM80 was paid by the liquidator of a company whose debts had been written off completely in 2013. At the end of 2014, it was decided to adjust the allowance to RM900. What is the total expense for irrecoverable debts that should be included in the statement of profit or loss for 2014? a) RM420 b) RM780 c) RM580 d) RM620 6.A company acquired a new minicomputer system for RM50,000 on 1 November 2014. The computer's estimated useful life is five years, at the end of which it is expected to have a scrap value of RM4,550. The company's financial year ends on 31 March and straight-line depreciation is applied on a time-apportioned basis. What is the depreciation charge on the computer in statement of profit or loss for the year ended 31 March 2015? a) RM9,090 b) RM10,000 c) RM4,167 d) RM3,788 7.Pearl has trade receivables at the year-end amounting to RM150,000. An irrecoverable debt of RM3,500 is to be written off. Pearl has an opening allowance of doubtful debts of RM1,000 and wishes to maintain an allowance of 5% of year-end accounts receivable. What is the balance carried down on the allowance of doubtful debts account after dealing with the above item? a) RM10,825 b) RM6,325 c) RM7,325 d) RM3,825 8.A company pays rent quarterly in arrears on 1 January, I April, 1 July and 1 October each year. The rent was increased from RM90,000 per year to RM120,000 per year as from 1 October 2012. What rent expense and accrual should be included in the company's financial statements for the year ended 31 January 2013? a) Rental expense RM100,000; Accrual RM10,000 b) Rental expense RM100,000 ; Accrual RM20,000 c) Rental expense RM97,500 ; Accrual RM20,000 d) Rental expense RM97,500 ; Accrual RM10,000 18. At 1 July 2019, a company's allowance for doubtful debts was RM48,000. At 30 June 2020, trade receivables amounted to RM838,000. It was decided to write-off RM72,000 of these debts and adjust the allowance for doubtful debts to RM60,000. What are the final amounts for inclusion in the company's statement of financial position at 30 June 2020? a) Trade receivables RM838,000; allowance for doubtful debts RM60,000 net balance RM778,000 b) Trade receivables RM766,000; allowance for doubtful debts RM60,000 ; net balance RM706,000 c) Trade receivables RM766,000 : allowance for doubtful debts RM108,000, net balance RM658,000 d) Trade receivables RM838,000 : allowance for doubtful debts RM108,000; net balance RM730,000 19. Ali sells a machine for RM50,000 cash on 30 April 2020. The machine cost RM100,000 when it was purchased and has a carrying value of RM65,000 at the date of disposal. What are the journal entries to record the disposal of the machine? a) Dr Accumulated depreciation RM35,000: Dr Loss on disposal RM15,000 : Dr Cash RM50,000 : Cr Non- current assets -cost RM100.000 b) Dr Accumulated depreciation RM65,000 ; Dr Loss on disposal RM35,000 : Cr Non-current assets -cost RM100,000 c) Dr Accumulated depreciation RM35,000 ; Dr Cash RM50,000 : Cr Non-current assets RM65,000 : Cr Profit on disposal RM20,000 d) Dr Non-current assets RM65,000: Dr Accumulated depreciation RM35,000 : Cr Cash RM50,000 : Cr Profit on disposal RM50,000 20. At 1 July 2020, a company had prepaid insurance of RM8,200. On 1 January 2021, the company paid RM38,000 for insurance for the year to 30 September 2021. What figures should appear for insurance in the company's financial statements for the year ended 30 June 2021? a) Insurance expense RM27,200 ; Prepayment RM19,000 b) Insurance expense RM39,300: Prepayment RM9,500 c) Insurance expense RM36,700 ; Prepayment RM9,500 d) Insurance expense RM55,700 ; Prepayment RM9,500 21. A company has sublet part of its offices and in the year ended 30 November 2020 the rent receivable was RM8,400 per year until 30 June 2020 and RM12,000 per year from 1 July 2020. Rent was paid quarterly in advance on 1 January, April, July and October each year. What amounts should appear on the company's financial statements for the year ended 30 November 2020? a) Rent income RM9,900 : RM2,000 in sundry payables b) Rent income RM9,900 : RM1,000 in sundry payables c) Rent income RM10,200 : RM1,000 in sundry payables d) Rent income RM9,900 : RM2,000 in sundry receivables 22. A trial balance is made up of a list of debit balances and credit balances. Which of the following statements is correct? a) Every debit balance represents an expense b) Assets are represented by debit balances c) Liabilities are represented by debit balances d) Income is included in the list of debit balance