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 : Financial Year ending : Straight Line Method Reducing Balance Method RM RM 31 December 2017 31 December 2018 31 December 2019
Ahmad bought a new equipment at RM120,000 on 1 July 2017. He was undecided whether to
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 :
Financial Year ending : Straight Line Method Reducing Balance Method RM RM 31 December 2017 31 December 2018 31 December 2019
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
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