Q1.

A company has a financial year end of 31 December 2021. At 31 December 2020, the company had a prepayment for rates expenditure of RM1,000. On 1 April 2021, the company paid rates of RM4,500 for the 12 months to 31 March 2022. What expense should the company recognize in respect of rates in its statement of profit or loss for its financial year to 31 December 2021?

a. RM4,500

b. RM1,000 c. RM4,375 d. RM5,500

Q2.

Cost: RM100,000 (1 January 2020)

Depreciation: 5 years (Sum of Digit)

Residual value: RM15,000

Disposal date: 31 December 2022

Gain on disposal: RM10,000

Calculate cash received on disposal

a. RM42,000

b. RM59,000

c. RM42,667

d. RM59,667

Q3.

A firm bought a machine for RM30,000 on 1.1.20X1 that was expected to last for 3 years. It was depreciated using the straight line method (with no residual value) on a monthly basis. If the machine was sold for RM3,000 on 30.6.20X3 the entry required for the profit and loss account would be:

a. Dr Machinery disposal RM2,000, Cr Profit & Loss RM2,000 b. Dr Profit & Loss RM1,000, Cr Machinery disposal RM1,000

c. Dr Machinery disposal RM1,000, Cr Profit & Loss RM1,000 d. Dr Profit & Loss RM2,000, Cr Machinery disposal RM2,000

Q4.

A firm has a financial year end of 30 June 2020. At 1 July 2019, the firm had a prepayment for gas of RM1,000. During the year, the company paid bills totalling RM6,000. At 30 June 2020, the directors estimated that the cost of the gas used but not invoiced to the company was RM1,200. What is the expense charge for gas that the company should recognize in its accounts for the year 1 July 2019 to 30 June 2020?

a. RM5,800

b. RM8,200 c. RM6,200 d. RM7,000

Q5.

Annas trial balance did not balance so she opened a suspense account with a balance of RM150 credit. When investigating the difference, she discovered the following errors:

Sales posted on debit RM10,000.

A loss on disposal of a non-current asset of RM7,800 has been recorded in the sundry expense account as RM8,700.

One page of transactions from the purchases day book with a total of RM5,000 has been posted to the payables control account, but no other entry has been made.

What is the balance on the suspense account after Anna has corrected the above errors?

a. RM15,750 b. RM8,950 c. RM13,950

d. RM25,750