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2. The system used for controlling and recording petty cash is called the
A. single entry system B. imprest system
C. double entry system D. Accrual system
3. Petty cash imprest amount is RM400 and trader Chloe set the rule only small
expenses
could be paid by petty cash and the amount should not exceeds 10% of the fixed float.
Which of the following is likely to be paid by petty cash?
A. Rental RM 30 B. Reimbursement claim RM 50
C. Taxi fare claim RM 45 D. Purchases RM 41
4. Which ledger entries are usually made when the petty cashier received the reimburse
amount from chief cashier by cheque?
A. Dr. Petty Cash account Cr. Bank account
B. Dr. Bank account Cr. Petty Cash account
C. Dr. Petty Cash account Cr. Imbursement account
D. Dr. Imbursement account Cr. Petty Cash account
5. The Imprest System is used to operate the Petty Cash. The opening balance is RM 250.
Total payments from petty cash for the period were RM 204. What is the amount of
reimbursement to petty cash at the end of the period?
A. RM 46 B. RM 204
C. RM 250 D. RM 296
1. Which of the following best explains the imprest system of petty cash?
A. An equal amount of cash is transferred to petty cash every month
B. Petty cash reimbursement must be made at the following month
C. The exact amount of petty cash expenditure is reimbursed at intervals to maintain a fixed
float
D. The petty cash total must never fall below the imprest amount
1. Sunshine Food Trading uses the imprest system for petty cash. The petty cash balance at the
end was RM 50. There were also the following petty cash vouchers: electricity and water RM
106, stationery RM 80, cash sales receipts RM 146 and telephone expenses RM 190.
What is Sunshine Food Trading’s imprest amount for the month?
A. RM 230 B. RM 280 C. RM 376 D. RM 522
7. The accounting entry to reimburse a petty cash fund includes a debit to ___________.
A. bank B. cash C. petty cash D. capital
8. The imprest system is used to operate the petty cash. Petty cash funds usually to be
reimbursed _____________.
A. at the end of week B. at the end of month
C. at the end of required period D. at the end of reporting period
7. A particular trade receivable has been declared bankrupt, to write off his account, we
Debit Credit
A. Allowance For Doubtful Debts Bad Debts account
account
B. Trade Receivable account Bad Debts account
C. Bad Debts account Trade Receivable account
D. Bad Debts account Allowance For Doubtful Debts account
9. Which of the following is the best describe “Allowance for Doubtful Debts”?
A. It will decrease the net profit for the year.
B. It is created when a trade receivable becomes insolvent.
C. It is an estimated expense for debts that may become irrecoverable.
D. It takes a certain percentage of the total debtors before bad debts written off.
10. The opening balance of Allowance For Doubtful Debts account is RM 1,000 whereas
the closing balance of the Trade Receivables account is RM 100,000.
What is the amount for Allowance For Doubtful Debts if it is based on 4% of trade
receivables?
A. RM 1,000 B. RM 2,000
C. RM 3,000 D. RM 4,000
11. Which of the following is the most common cause of bad debts?
A. Debtor refused to repayment B. Debtor left the country
C. Debtor declared bankruptcy D. Debtor committed a crime
12. The balance of the Allowance For Doubtful Debts account as at 31 December 2018 was
RM 330 and as at 31 December 2019 was RM 398. The total of outstanding trade
receivables as at 31 December 2019 was RM 42,754. What is the net amount of trade
receivables shown on the Statement Of Financial Position as at 31 December 2019?
A.RM 42,356 B. RM 42,424
C. RM 43,152 D.RM 43,084
13. At the end of the reporting period, Ken discovered that a trade receivable was unable to pay
debt totaled RM 2,430. Hence, he decided to write off the debt.
Which of the following accounts should be debited for RM 2,430 when writing off the debt?
A.Trade Receivables B. Bad Debts
C. Allowance For Doubtful Debts D. Profit And Loss
14. Which one of the following would result from a decrease in allowance for doubtful debts?
A. An increase in net profit B. An increase in gross profit
C. A decrease in net profit D. A decrease in gross profit
1. Allowance for doubtful debts account is a/an
A. Asset account
B. Contra-asset account
C. Nominal account
D. Liability account
1. When a company writes off a bad debt, _____________.
A. total sales amount will decrease
B. total non-current assets will decrease
C. the cash account will decrease
D. the amount of accounts receivable will decrease
1. Which of the following is the most common base used to create allowance for doubtful debts?
A. Credit sales
B. Current assets
C. Credit purchases
D. Current liabilities
1. When a company collects a cheque from a debtor that was previously written off as bad debts,
what should the company do?
A. Credit to Allowance for doubtful debts account
B. Debit to Bad debts account
C. Credit to Bad debts account
D. Debit to Allowance for doubtful debts account
2. How do you record a carriage charges by supplier in Purchases Ledger Control account?
3. Hui Wah buys raw materials from and sells goods to Ka Mun.
The details of the invoices as follows:
Invoice sent by Hui Wah to Ka Mun RM 500 (debit)
Invoice sent by Ka Mun to Hui Wah RM 300 (credit)
Which contra entry is made in the control accounts of Hui Wah’s books?
Debit RM Credit RM
A. Sales Ledger Control 500 Purchases Ledger Control 500
B. Sales Ledger Control 300 Purchases Ledger Control 300
C. Purchases Ledger Control 500 Sales Ledger Control 500
D. Purchases Ledger Control 300 Sales Ledger Control 300
1. Which of the following items would appear on the debit side of the Sales Ledger Control Account?
I Contra Entry II Interest Income
III Dishonoured Cheque IV Overpayment refund
A. I , II , IV
B. I , II , III
C. II , III, IV
D. I, II , III , IV
A. RM100 C. RM200
B. RM300 D. RM400
4. Which one of the following items would increase the amount of Trade Receivable?
A. Dishonoured cheque C. Cash sales
B. Receipts from customers D. Returns inwards
5. What does the closing balance of the Sales Ledger Control Account represent?
A. Total sales C. Credit sales
B. Closing balance of D. Amount owing from
Accounts Payable Accounts Receivable
6. RM 300 debit was entered as RM 30 credit in Purchases ledger control account. What’s its
adjustment in the Purchases ledger control account?
A. RM 330 should be debited C. RM 270 should be debited
B. RM 330 should be credited D. RM 270 should be credited
1. A machine costing RM 22,000 had been sold for RM 5,000, making a gain on disposal of RM
1,800. What is the accumulated depreciation of this machine?
A. RM 25,200
B. RM 17,000
C. RM 18,800
D. RM 15,200
2. All of the followings are needed for calculating depreciation expenses except ___________.
A. carrying amount B. cost of non-current assets
C. residual value D. disposal amount
8. A disposal account is used to record the disposal of a non-current asset. Which of the
following transactions are recorded on the debit side of the account?
A.Cost of the asset and loss on disposal
B. Cost of the asset and gain on disposal
C. Cost of the asset, sale proceeds and loss on disposal
D.Cost of the asset, sale proceeds and gain on disposal
9. Ana bought a motor car costing RM 20,000 and sold it at RM 15,000. At the date of
disposal, the accumulated depreciation of the motor car is RM 8,000. What is the gain or
loss on disposal of the motor car?
A.RM 3,000 gain B. RM 3,000 loss
C. RM 7,000 gain D. RM 7,000 loss
16. A piece of furniture was bought for RM 12,000 on 1 July 2014. Using the straight-line
method of depreciation at a rate of 20% per annum, what would be the net book value
on 31 December 2017?
A. RM 2,400 B. RM 3,600
C. RM 4,800 D. RM 10,800