6. a) Ibu Mertuaku Berhad manufactures paper boxes. The company closes its accounts annually on 31 May, and in its year ended 31 May 2022, the company acquired the following assets: ● ● A lorry was acquired under a hire purchase scheme and the relevant details are as follows: Cost Deposit paid on 10 January 2022 Loan Interest Instalment period (months) First instalment due on RM 210,000 30,000 180,000 2,000 24 1 February 2022 A heavy machine was acquired for RM3,000 and used in the company. A reconditioned van was acquired for RM130,000 to transport their management team. The van was not licensed as a commercial vehicle. On 3 October 2022, the company bought a folding machine for RM120,000. Required: Compute the total capital allowances claimable by Ibu Mertuaku Berhad for the above assets for the year of assessment 2022.
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- Worksheet Devlin Company has prepared the following partially completed worksheet for the year ended December 31, 2019: The following additional information is available: (a) salaries accrued but unpaid total 250; (b) the 80 heat and light bill for December has not been recorded or paid; (c) depreciation expense totals 810 on the buildings and equipment; (d) interest accrued on the note payable totals 380 (this will be paid when the note is repaid); (e) the company leases a portion of its floor space to KT Daniel Specialty Company for 50 per month, and KT Daniel has not yet paid its December rent; (f) interest accrued on the note receivable totals 80; (g) bad debts expense is 70; and (h) the income tax rate is 30% on current income and is payable in the first quarter of 2017. Required: 1. Complete the worksheet. (Round to the nearest dollar.) 2. Prepare the companys financial statements. 3. Prepare (a) adjusting and (b) closing entries in the general journal.J. Mwakisha, a contractor, started business on 1 January 2018. Purchases and disposals of machines over the subsequent three years were as follows: Machine date of purchase cost date of disposal MA 1 1 January 2018 5,000,000 MB 2 1 July 2019 2,500,000 1 June 2020 MC 3 1 October 2020 7,000,000 The machines are depreciated on straight line basis using a rate of 20 per cent per annum. Required: For the years 2018, 2019 and 2020, calculate the depreciation attributable to each year using prorata or time basis.On 1 January 2018, Kyle Trading Sdn. Bhd. purchased a photocopy machine at a price of MYR 800,000. This piece of office equipment is depreciated at a rate of 15% per annum using the straight-line method. Calculate the asset’s net book value on 31st December 2020, assuming that the business closes its account on that date. Select one: A. MYR 580,000 B. MYR 580,000 C. MYR 560,000 D. MYR 240,00
- A company in the manufacturing sector prepares its account to 31.12 annually. In July 2019, the company completed the construction of its own factory as follows: Land - RM580,000 Legal fees for an agreement to purchase land - RM11,000 Legal fees for an agreement with the building contractor - RM10,000 Consultant's fees and building plan - RM80,000 Stamp duty for the purchase of land - RM9,000 Construction cost - RM1,510,000 Required: Calculate the qualifying building expenditure. Select one: A. RM2,200,000 B. RM1,620,000 C. RM1,590,000 D. RM1,600,000Mwakisha, a contractor, started business on 1 January 2018. Purchases and disposals of machines over the subsequent three years were as follows: Machine Date of Cost Date of Purchase Disposal Shs. MA 1 1 January 2018 5,000,000 MB 2 1 July 2019 2,500,000 1 June 2020 MC 3 1 October 2020 7,000,000 The machines are depreciated on straight line basis using a rate of 20 per cent per annum. Required: For the years 2018, 2019 and 2020, calculate the depreciation…Nene crane ltd acquired equipment on January 1 2006 from quality engineering limited under a two year hire purchase agreement.This required an immediate deposit of 32,000 and a further half yearly installment of 32,000 starting on June 30th, 2006. The cash price was GHS 150,880 the company's financial year ends on 31 December. Required: i) Calculate and apportion the Hire Purchase interest over the relevant periods using the sun of the digits method. ii) Show the quality Engineering Account in the books of Nene Crane Ltd.
- Bopha Ltd, a general construction company which is based in Limpopo, has a financial year end of 31 December. Bopha Ltd was in a process of constructing a new plant which was available for use on 1 January 2022. During the 2021 financial year, it withdrew its tractor loader, purchased on 1 January 2018 from normal construction operations, for the period 1 March 2021 to 30 June 2021 and used it in the construction of a new plant. This tractor loader had a carrying amount of 336 000 on 1 January 2021 and is depreciated at a rate 20% on straight line basis. The cost price of the new plant before capitalization is R1 200 000. Calculate the total cost of the new plant as at 31 December 2021. The new plant will be depreciated at 5% per annum on straight line basis when it becomes available for use. 1. R1 196 000 2. R1 140 000 3. R1 256 000 4. R1 200 000 5. R 840 000Sabana S.A acquired specialized equipment on June 28, 2020. Its cost of 17000000, its residual value is 1,800,000.00Its useful life is estimated to be 12 years. The company will depreciate applying the straight-line method from the month following the purchaseThe company carries out annual accounting closings every December 31, uses a business month for its calculations and applies IFRS in a comprehensive manner. On January 1, 2023, the company hires an expert who in his report indicates that the fair value of the equipment is now 30,000,000.00. Sabana S.A revalues its equipment using the Re method expressed and its policy is to transfer a portion of the revaluation surplus to the retained earnings account, as the asset is used.Based on the previous statement, the credit to the surplus item is for:Assume a vat of 15 % One way trader is a registered vat vendor and the financial year end is 31 December 2020.on 1 January 2019 new equipment was bought at cost of R6325 (vat included) the machine has useful life span of 5 years depreciation on machines is calculated on the straight line method What is the depreciation amount?
- Mirza Sdn. Bhd. prepared its accounts on 30 September every year. As at 1 October 2021, the statement of financial position of Mirza Sdn. Bhd. shows the following: Table 1: Cost and Accumulated Depreciation Data for Machinery and Van Details RM Machinery (at cost) 700,000 Accumulated depreciation 210,000 Van (at cost) 410,000 Accumulated depreciation 75,800 During the year ended 30 September 2022, Mirza Sdn. Bhd. bought additional assets. The purchase price for machinery is worth RM170,000 and the van is worth RM94,000. Mirza Sdn. Bhd. depreciated its machinery at 20% per annum using the straight-line method, while for the van at 10% per annum using the reducing balance method. It is the policy of Mirza Sdn. Bhd. to depreciate all assets at the end of the accounting year. All assets were purchased by cheques. Required: (i) Construct the machinery and van account. (ii) Construct accumulated depreciation account for machinery and van. (iii) Illustrate an extract of the…Baggage Solutions Ltd manufactures top of the range luggage bags that are extremely light weight, strong and durable. The company specialises in trolley bags, and these can be sold separately or as part of a set. The company’s financial year end is 31 March. The following information is available as at 31 March 2021. Land and buildings Baggage Solutions Ltd purchased land with a warehouse from Property Direct for R9 444 375, and the transfer of the land and building was concluded on 1 July 2019. The normal payment terms of Property Direct is 2 months after transfer date. The agreement between Baggage Solutions Ltd and Property Direct states that payment for the property should occur on 1 July 2020. The land constitutes 20% of the purchase price of the property. The useful life and residual value of the warehouse is 25 years and R900 000 respectively. On 1 April 2020 the fair value of the property is R8 700 000. Vacuum forming machine The machine was purchased on 1 April 2018, for R525…Baggage Solutions Ltd manufactures top of the range luggage bags that are extremely light weight, strong and durable. The company specialises in trolley bags, and these can be sold separately or as part of a set. The company’s financial year end is 31 March. The following information is available as at 31 March 2021. Land and buildings Baggage Solutions Ltd purchased land with a warehouse from Property Direct for R9 444 375, and the transfer of the land and building was concluded on 1 July 2019. The normal payment terms of Property Direct is 2 months after transfer date. The agreement between Baggage Solutions Ltd and Property Direct states that payment for the property should occur on 1 July 2020. The land constitutes 20% of the purchase price of the property. The useful life and residual value of the warehouse is 25 years and R900 000 respectively. On 1 April 2020 the fair value of the property is R8 700 000. Vacuum forming machine The machine was purchased on 1 April 2018, for R525…