7.A truck was acquired for RM96,000 on 1 Jan 2020. The truck is expected to be replaced with a newer model at the end of its fifth year with a trade-in value estimated to be around RM21,000. The value of the truck and its accumulated depreciation at the end of the third year, are shown as:

A.Truck RM57,600; Accumulated Depreciation RM57,500

B.Truck RM75,000; Accumulated Depreciation RM75,000

C.Truck RM45,000; Accumulated Depreciation RM51,000

D.Truck RM51,000; Accumulated Depreciation RM45,000

8.An office building with an acquisition cost of RM960,000 on 1 April 2019 is depreciated at 10% per annum. The necessary adjusting entry for the period ended at 31 December 2019 is

Debit (RM)Credit (RM)

A.Depreciation ExpenseRM72,000

Accumulated DepreciationRM72,000

B.Depreciation ExpenseRM96,000

Accumulated DepreciationRM96,000

C.Accumulated DepreciationRM72,000Depreciation ExpenseRM72,000

D.Accumulated DepreciationRM96,000Depreciation ExpenseRM96,000

9.The balance in the Office Supplies account before adjustment at 31 December 2019 was RM48,000. A physical check on office supplies has indicated an available balance of RM8,000. The adjusting entry necessary is:

Debit (RM)Credit (RM)

A.Office Supplies ExpenseRM8,000

Office SuppliesRM8,000

B.Office SuppliesRM40,000

Office Supplies ExpenseRM40,000

C.Office Supplies ExpenseRM40,000Office SuppliesRM40,000

D.Office Supplies ExpenseRM48,000Office SuppliesRM48,000