You are required to calculate the amount of depreciation to be charged against each financial year ending 31 December 2017, 31 December 2018 and 31 December 2019 using the straight line method and reducing balance method. Show your answer in the following format (per attache)
Question 4
a. Ahmad bought a new equipment at RM120,000 on 1 July 2017. He was
undecided whether to
reducing method at 20% per annum.
The equipment is expected to have no residual value.
You are required to calculate the amount of depreciation to be charged against
each financial year ending 31 December 2017, 31 December 2018 and 31
December 2019 using the straight line method and
Show your answer in the following format (per attache)
b. The following are balances brought forward from 31 December 2018 for KC
Deco Center :
RM RM
Motor Vehicles 100,000
Less : Provision for
depreciation (20,000)
80,000
The motor vehicles were depreciated at 15% per annum using reducing balance
method. KC bought a new vehicle on 1 October 2019, cost of the new vehicle
was RM120,000. You are required to prepare the following accounts for financial
year ending 31 December 2019 :
i. The Motor Vehicle Account
ii. The Provision for Depreciation Account
(11 marks)
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