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Japan Chamber of Commerce Bookkeeping Grade 3 | Fixed Assets, Expenses and Taxes 03

1 / 100.0s

Problem 1 ・ Question 1 / 10

A computer for business use is bought for 200,000 yen, payable the following month. Which account is credited?

View explanation

A liability for buying a fixed asset rather than merchandise on deferred terms is recorded as Other payables.

Problem 1 ・ Question 2 / 10

Equipment costing 300,000 yen is bought and 20,000 yen of installation costs is also paid in cash. What is the acquisition cost of the equipment?

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Incidental costs of bringing the asset into use are included in the acquisition cost.

Problem 1 ・ Question 3 / 10

Equipment with an acquisition cost of 600,000 yen, no residual value and a useful life of five years is depreciated on the straight-line method. What is the annual charge?

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600,000 yen ÷ 5 years = 120,000 yen.

Problem 1 ・ Question 4 / 10

Which account is credited when depreciation is recorded by the indirect method?

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Under the indirect method, Depreciation expense is debited and Accumulated depreciation credited.

Problem 1 ・ Question 5 / 10

Equipment with a book value of 80,000 yen is sold for 100,000 yen in cash. Which account is credited for the difference?

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The sale price exceeds the book value by 20,000 yen, giving a gain on sale of fixed assets.

Problem 1 ・ Question 6 / 10

The month's rent of 90,000 yen for a shop is paid in cash. Which account is debited?

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Rent for the current month is recorded on the debit side as the expense Rent expense.

Problem 1 ・ Question 7 / 10

Revenue stamps worth 5,000 yen are bought for cash and used immediately. Which account is debited?

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Revenue stamps that have been used are recorded as Taxes and dues.

Problem 1 ・ Question 8 / 10

Gift certificates worth 10,000 yen are bought as a present for a customer and handed over at once. Which expense account is generally used?

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Costs of gifts to business contacts are recorded as Entertainment expenses.

Problem 1 ・ Question 9 / 10

A customer goes bankrupt and accounts receivable of 50,000 yen brought forward from the previous period become uncollectible. The allowance for doubtful accounts has an ample balance. Which account is debited?

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A bad debt on a receivable arising in a previous period is charged against the allowance already established.

Problem 1 ・ Question 10 / 10

Accounts receivable of 30,000 yen arising in the current period become uncollectible within the same period. Which account is debited?

View explanation

A bad debt in the same period as the receivable arose is recorded as Bad debt losses.