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Adam Sdn Bhd purchased a van costing RM130,000 for use in its business. The hire purchase agreement with a financial institution took effect from January 2017. The annual hire purchase interest is RM1,500. In 2017, the company paid deposit RM30,000 and capital instalments payments of RM10,000. In 2018, the company paid RM10,000 on instalments based on the hire purchase schedule. Compute capital allowance for the van for YA 2017 and YA 2018.

Adam Sdn Bhd purchased a van costing RM130,000 for use in its business. The hire purchase agreement with a financial institution took effect from January 2017. The annual hire purchase interest is RM1,500. In 2017, the company paid deposit RM30,000 and capital instalments payments of RM10,000. In 2018, the company paid RM10,000 on instalments based on the hire purchase schedule. Compute capital allowance for the van for YA 2017 and YA 2018.

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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Adam Sdn Bhd purchased a van costing RM130,000 for use in its business. The hire purchase agreement with a financial institution took effect from January 2017. The annual hire purchase interest is RM1,500. In 2017, the company paid deposit RM30,000 and capital instalments payments of RM10,000. In 2018, the company paid RM10,000 on instalments based on the hire purchase schedule. Compute capital allowance for the van for YA 2017 and YA 2018.
Transcribed Image Text:Adam Sdn Bhd purchased a van costing RM130,000 for use in its business. The hire purchase agreement with a financial institution took effect from January 2017. The annual hire purchase interest is RM1,500. In 2017, the company paid deposit RM30,000 and capital instalments payments of RM10,000. In 2018, the company paid RM10,000 on instalments based on the hire purchase schedule. Compute capital allowance for the van for YA 2017 and YA 2018.
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