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1. ASSET LORRY 1 LORRY 2 BOOK VALUE RM 99000 RM 87700 ACCUMULATED DEPRECIATION RM 25900 RM 41800 The table above shows the motor vehicle information extracted from Smart Co on 1 January 2014. During the year 2014, asset transactions were recorded as follows: • A new lorry was purchased on 30 April at the cost of RM96,000 from Snow Bhd RM20,000 was paid as deposit to the seller company and the balance was to be settled in the next year. • Lorry 2 was sold at the cost of RM96,000 on 2 November 2014. • Depreciation for the lorry is stated to be at 12% annually using the reducing balance method on a monthly basis. You are required to prepare the following accounts as at 31 December 2014: (a) Lorry Account (b) Accumulated depreciation account (c) Disposal accounT

1. ASSET LORRY 1 LORRY 2 BOOK VALUE RM 99000 RM 87700 ACCUMULATED DEPRECIATION RM 25900 RM 41800 The table above shows the motor vehicle information extracted from Smart Co on 1 January 2014. During the year 2014, asset transactions were recorded as follows: • A new lorry was purchased on 30 April at the cost of RM96,000 from Snow Bhd RM20,000 was paid as deposit to the seller company and the balance was to be settled in the next year. • Lorry 2 was sold at the cost of RM96,000 on 2 November 2014. • Depreciation for the lorry is stated to be at 12% annually using the reducing balance method on a monthly basis. You are required to prepare the following accounts as at 31 December 2014: (a) Lorry Account (b) Accumulated depreciation account (c) Disposal accounT

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. ASSET LORRY 1 LORRY 2 BOOK VALUE RM 99000 RM 87700 ACCUMULATED DEPRECIATION RM 25900 RM 41800 The table above shows the motor vehicle information extracted from Smart Co on 1 January 2014. During the year 2014, asset transactions were recorded as follows: • A new lorry was purchased on 30 April at the cost of RM96,000 from Snow Bhd RM20,000 was paid as deposit to the seller company and the balance was to be settled in the next year. • Lorry 2 was sold at the cost of RM96,000 on 2 November 2014. . • Depreciation for the lorry is stated to be at 12% annually using the reducing balance method on a monthly basis. You are required to prepare the following accounts as at 31 December 2014: (a) Lorry Account (b) Accumulated depreciation account (c) Disposal account.
Transcribed Image Text:1. ASSET LORRY 1 LORRY 2 BOOK VALUE RM 99000 RM 87700 ACCUMULATED DEPRECIATION RM 25900 RM 41800 The table above shows the motor vehicle information extracted from Smart Co on 1 January 2014. During the year 2014, asset transactions were recorded as follows: • A new lorry was purchased on 30 April at the cost of RM96,000 from Snow Bhd RM20,000 was paid as deposit to the seller company and the balance was to be settled in the next year. • Lorry 2 was sold at the cost of RM96,000 on 2 November 2014. . • Depreciation for the lorry is stated to be at 12% annually using the reducing balance method on a monthly basis. You are required to prepare the following accounts as at 31 December 2014: (a) Lorry Account (b) Accumulated depreciation account (c) Disposal account.
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