Zone Sdn. Bhd. (accounting year ended 30 November), bought Furniture and Fittings on 1st June 2022 for RM10,000. Compute the residual expenditure for the assets for the year of assessment 2022 (Rates for the AA is at 10%). Select one: a. RM3,000 b. RM4,000 c. RM6,000 d. RM7,000 e. Tiada jawapan di atas/ None of the answer above
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.
Zone Sdn. Bhd. (accounting year ended 30 November), bought Furniture and Fittings on 1st June 2022 for RM10,000. Compute the residual expenditure for the assets for the year of assessment 2022 (Rates for the AA is at 10%).
Select one:
a. RM3,000
b. RM4,000
c. RM6,000
d. RM7,000
e. Tiada jawapan di atas/ None of the answer above
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