Question 4a. Ahmad bought a new equipment at RM120,000 on 1 July 2017. He wasundecided whether to depreciate the equipment using straight line method orreducing 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 againsteach financial year ending 31 December 2017, 31 December 2018 and 31December 2019 using the straight line method and reducing balance method.Show your answer in the following format (per attache)b. The following are balances brought forward from 31 December 2018 for KCDeco Center :RM RMMotor Vehicles 100,000Less : Provision fordepreciation (20,000)80,000The motor vehicles were depreciated at 15% per annum using reducing balancemethod. KC bought a new vehicle on 1 October 2019, cost of the new vehiclewas RM120,000. You are required to prepare the following accounts for financialyear ending 31 December 2019 :i. The Motor Vehicle Accountii. The Provision for Depreciation Account(11 marks) Question 4a. Ahmad bought a new equipment at RM120,000 on 1 July 2017.undecided whether to depreciate the equipment using straight line method orreducing method at 20% per annum.He wasThe equipment is expected to have no residual value,You are required to calculate the amount of depreciation to be charged againsteach financial year ending 31 December 2017, 31 December 2018 and 31December 2019 using the straight line method and reducing balance method.Show your answer in the following format :Financial Year endingStraight Line MethodRMReducing Balance MethodRM31 December 201731 December 201831 December 2019(9 marks)b. The following are balances brought forward from 31 December 2018 for KCDeco Center :RM100,000RMMotor VehiclesLess : Provision fordepreciation(20,000)80,000The motor vehicles were depreciated at 15% per annum using reducing balancemethod. KC bought a new vehicle on 1 October 2019, cost of the new vehiclewas RM120,000. You are required to prepare the following accounts for financialyear ending 31 December 2019 :i.The Motor Vehicle Accountji.The Provision for Depreciation Account(11 marks)

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Answered: You are required to calculate the…

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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Question 4
a. Ahmad bought a new equipment at RM120,000 on 1 July 2017. He was
undecided whether to depreciate the equipment using straight line method or
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 reducing balance method.
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)

Question 4
a. Ahmad bought a new equipment at RM120,000 on 1 July 2017.
undecided whether to depreciate the equipment using straight line method or
reducing method at 20% per annum.
He was
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 reducing balance method.
Show your answer in the following format :
Financial Year ending
Straight Line Method
RM
Reducing Balance Method
RM
31 December 2017
31 December 2018
31 December 2019
(9 marks)
b. The following are balances brought forward from 31 December 2018 for KC
Deco Center :
RM
100,000
RM
Motor Vehicles
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
ji.
The Provision for Depreciation Account
(11 marks)

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