Adam Sdn Bhd purchased a van costing RM130,000 for use in its business. The hire purchase agreement with a financial institution took effect from January 2017. The annual hire purchase interest is RM1,500. In 2017, the company paid deposit RM30,000 and capital instalments payments of RM10,000. In 2018, the company paid RM10,000 on instalments based on the hire purchase schedule. Compute capital allowance for the van for YA 2017 and YA 2018.

Adam Sdn Bhd purchased a van costing RM130,000 for use in its business. The hire purchase agreement with a financial institution took effect from January 2017. The annual hire purchase interest is RM1,500. In 2017, the company paid deposit RM30,000 and capital instalments payments of RM10,000. In 2018, the company paid RM10,000 on instalments based on the hire purchase schedule. Compute capital allowance for the van for YA 2017 and YA 2018.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 5EB: Steele Corp. purchases equipment for $30,000. Regarding the purchase, Steele paid shipping of...

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