QUIZ - AA015 TOPIC 10 ACCOUNTING FOR LIABILITIES

QUIZ – AA015 TOPIC 10

ACCOUNTING FOR LIABILITIES

Question 1

 

On 1st Jan. 2020, Murni Corporation applied loan for RM50,000 for 5 years from Oriental Bank at 10% interest rate per annum and signed an agreement as note payable RM20,000 from United  Bank for a period of 3 years at 12% interest rate per annum. For these both loans, interest will be paid annually on every 1st of January.

 

REQUIREMENT:

Prepare journal entries for these dates (round off to the nearest RM)

 

(i)            1 Jan 2020     : made loans with Oriental Bank and United Bank

 

(ii)           31 Dec 2020   : recorded interest expense

 

(iii)          1 Jan 2021     : paid interest

 

(iv)          1 Jan 2023     : payment of the note payable to United Bank (maturity)

 

(v)           31 Dec 2024   : payment loan to Oriental Bank (maturity)

As Salam and Hi everyone... My name is Puan Asmazatul Yusfiziati Binti Mohd Yusof CA(M) or you can call me Madam Fizi. I'm an Accounting lecturer at Negeri Sembilan Matriculation College (KMNS), Kementerian Pendidikan Malaysia. This blog (www.madamfizi.com) was created to share learning materials on the subject of Accounting for Matriculation, Form 6, Foundation, Diploma, Secondary School and related students.