Mekar Plantation Sdn Bhd was incorporated in November 2008 to carry on business of banana plantation. The company makes up its account to 30 June every year. Details of capital expenditure incurred are as follows: Date Expenditure RM 15/01/2012 Clearing of land 80,500 06/05/2012 Planting banana seedlings 50,500 15/07/2012 Purchase of lorry 100,000 20/04/2013 Construction of labour quarters for the plantation workers 28,000 15/10/2013 Construction of storeroom 18,000 1/12/2013 Recreation centre for the plantation workers 6,500 The company sold the plantation to Gadung Sdn Bhd on 31 March 2015 for RM285,500. Gadung Sdn Bhd closes its account on 30 April each year. Required: Calculate the agriculture allowances/charges for Mekar Plantation Sdn Bhd and Gadung Sdn Bhd for all the relevant years of assessment up to year of assessment 2015.
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
Mekar Plantation Sdn Bhd was incorporated in November 2008 to carry on business of banana plantation. The company
makes up its account to 30 June every year. Details of capital expenditure incurred are as follows:
Date Expenditure RM
15/01/2012 Clearing of land 80,500
06/05/2012 Planting banana seedlings 50,500
15/07/2012 Purchase of lorry 100,000
20/04/2013 Construction of labour quarters for the plantation workers 28,000
15/10/2013 Construction of storeroom 18,000
1/12/2013 Recreation centre for the plantation workers 6,500
The company sold the plantation to Gadung Sdn Bhd on 31 March 2015 for RM285,500. Gadung Sdn Bhd closes its
account on 30 April each year.
Required:
Calculate the agriculture allowances/charges for Mekar Plantation Sdn Bhd and Gadung Sdn Bhd for all the relevant
years of assessment up to year of assessment 2015.
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