Question 4 The books of a business on 1 January 2015 reveal the following balances: RM 10,000 Plant and machinery (at cost) Provision for depreciation on plant and machinery Office equipment (at NBV) Provision for depreciation on office equipment 2,000 1,000 360 Assume that the business has bought both the plant and machinery and the office equipment on 1 January 2013, and that the business decides to continue to depreciate the plant and machinery at 10% per annum on cost and the office equipment at 20% per annum on the diminishing balance method. You are required to show: a. Journal entries to provide for depreciation for both these items for the year ended 31December 2015. b. The provision for depreciation account for plant and machinery in 2015. c. The provision for depreciation account for office equipment in 2015.

Question 4 The books of a business on 1 January 2015 reveal the following balances: RM 10,000 Plant and machinery (at cost) Provision for depreciation on plant and machinery Office equipment (at NBV) Provision for depreciation on office equipment 2,000 1,000 360 Assume that the business has bought both the plant and machinery and the office equipment on 1 January 2013, and that the business decides to continue to depreciate the plant and machinery at 10% per annum on cost and the office equipment at 20% per annum on the diminishing balance method. You are required to show: a. Journal entries to provide for depreciation for both these items for the year ended 31December 2015. b. The provision for depreciation account for plant and machinery in 2015. c. The provision for depreciation account for office equipment in 2015.

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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