Question 1 1. Justin is the sole trader of DMK Trading who maintains his non-current assets at cost. On 1 January 2021, he owned the following non-current assets which had been depreciated on a monthly basis. Non-Current Cost Accumulated Depreciation Rate Assets Depreciation RM RM % Premise 420,000 63,000 15% on cost 115,500 16,700 10% on cost Motor vehicle Office equipment 12,000 1,200 5% on cost Current assets Bank 150,000 The accounting year end for the business is on 31 December every year. During the year ended 31 December 2021, the following transactions occurred: i. On 1 July 2021, the company purchase a new motor vehicle of RM65,000 on credit from Nissan Sdn Bhd. II. The business also renovated the premise. A total cost of RM45,000 was paid by issuing a cheque on 1 January 2021. You are required to show the following for the year ended 31 December 2021 Prepare journal entries for the transaction in i and ii. (a) (b) Non-current assets account. Show your working. (b) Accumulated depreciation of non-current assets account. Show your working (C) Extract Statement of Financial Position (extract) as at 31 December 2021.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Question 1
1.
Justin is the sole trader of DMK Trading who maintains his non-current assets at
cost. On 1 January 2021, he owned the following non-current assets which had been
depreciated on a monthly basis.
Non-Current
Cost
Accumulated
Depreciation Rate
Assets
Depreciation
RM
RM
%
Premise
420,000
63,000
15% on cost
Motor vehicle
115,500
16,700
10% on cost
Office equipment
12,000
1,200
5% on cost
Current assets
Bank
150,000
The accounting year end for the business is on 31 December every year. During the
year ended 31 December 2021, the following transactions occurred:
i.
On 1 July 2021, the company purchase a new motor vehicle of RM65,000 on
credit from Nissan Sdn Bhd.
ii.
The business also renovated the premise. A total cost of RM45,000 was paid
by issuing a cheque on 1 January 2021.
You are required to show the following for the year ended 31 December 2021
Prepare journal entries for the transaction in i and ii.
(a)
(b)
Non-current assets account. Show your working.
(b)
Accumulated depreciation of non-current assets account. Show your working
(C)
Extract Statement of Financial Position (extract) as at 31 December 2021.
Transcribed Image Text:Question 1 1. Justin is the sole trader of DMK Trading who maintains his non-current assets at cost. On 1 January 2021, he owned the following non-current assets which had been depreciated on a monthly basis. Non-Current Cost Accumulated Depreciation Rate Assets Depreciation RM RM % Premise 420,000 63,000 15% on cost Motor vehicle 115,500 16,700 10% on cost Office equipment 12,000 1,200 5% on cost Current assets Bank 150,000 The accounting year end for the business is on 31 December every year. During the year ended 31 December 2021, the following transactions occurred: i. On 1 July 2021, the company purchase a new motor vehicle of RM65,000 on credit from Nissan Sdn Bhd. ii. The business also renovated the premise. A total cost of RM45,000 was paid by issuing a cheque on 1 January 2021. You are required to show the following for the year ended 31 December 2021 Prepare journal entries for the transaction in i and ii. (a) (b) Non-current assets account. Show your working. (b) Accumulated depreciation of non-current assets account. Show your working (C) Extract Statement of Financial Position (extract) as at 31 December 2021.
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