Example 1 Sha Trading bought a motor vehicle on 1 January 2018 for RM32,000 by cheque. The motor vehicle is estimated to last for 5 years and its residual value is RM2,000. The accounting year end of the company is at 31 December. a. Using the straight line method, calculate the depreciation expense. b. Record the transaction for the year ended 31 December 2018 and 2019 a full year's depreciation is charged in the year of purchase. Suggested answer: (RM32,000 - RM2,000) / 5 RM6,000 a. Annual depreciation
Example 1 Sha Trading bought a motor vehicle on 1 January 2018 for RM32,000 by cheque. The motor vehicle is estimated to last for 5 years and its residual value is RM2,000. The accounting year end of the company is at 31 December. a. Using the straight line method, calculate the depreciation expense. b. Record the transaction for the year ended 31 December 2018 and 2019 a full year's depreciation is charged in the year of purchase. Suggested answer: (RM32,000 - RM2,000) / 5 RM6,000 a. Annual depreciation
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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a)journal entries b) ledger entries c) financial statements
![Example 1
Sha Trading bought a motor vehicle on 1 January 2018 for RM32,000 by cheque. The
motor vehicle is estimated to last for 5 years and its residual value is RM2,000. The
accounting year end of the company is at 31 December.
a. Using the straight line method, calculate the depreciation expense.
b. Record the transaction for the year ended 31 December 2018 and 2019 a full
year's depreciation is charged in the year of purchase.
Suggested answer:
(RM32,000 – RM2,000) / 5
RM6,000
a. Annual depreciation
РОСО
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Transcribed Image Text:Example 1
Sha Trading bought a motor vehicle on 1 January 2018 for RM32,000 by cheque. The
motor vehicle is estimated to last for 5 years and its residual value is RM2,000. The
accounting year end of the company is at 31 December.
a. Using the straight line method, calculate the depreciation expense.
b. Record the transaction for the year ended 31 December 2018 and 2019 a full
year's depreciation is charged in the year of purchase.
Suggested answer:
(RM32,000 – RM2,000) / 5
RM6,000
a. Annual depreciation
РОСО
SHOT ON POCO F2 PRO
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