Jade Bhd has a number of motor vehicles and machinery. An extract from its statement of financial position as at 31 December 2012 showed the following. Assets Cost ( RM ) Accumulated Net Book Value depreciation( RM ) ( RM ) _______ ___________ ___________________ _______________ Motor Vehicles 160000 40000 120000 Building 250000 40000 210000 ___________________________________________________________ 410000 80000 330000 ===================================== During the year ended 31 December 2013, the following motor vehicles were acquired and sold: Date of acquisition Cost ( RM ) Date of sale ( RM ) Sales proceed ( RM ) ____________________ ____________ ____________________ _______________ 31 March 2010 22000 31 January 2013 12000 30 September 2013 34000 - - 30 November 2013 42000 - - Additional information: i. An old vehicle which was acquired on 1 January 2011 at a cost of RM 16000 was exchanged for the vehicle acquired on 30 September 2013. The trade-in value was RM 13000. ii. Building was revalued on 1 January 2013 to RM 300000. The building was acquired since 1 January 2005. iii. Depreciation of the motor vehicle is provided at 20% per annum on cost. It is calculated based on monthly ownership while the building is depreciated over its useful life of 50 years. Required: Prepare the following for the year ended 31 December 2013: a) Motor vehicle and building accounts b) Accumulated depreciation account for motor vehicle and building c) Disposal of motor vehicle account d) Show the extract of statement of financial position as at 31 December 2013.

Jade Bhd has a number of motor vehicles and machinery. An extract from its statement of financial position as at 31 December 2012 showed the following. Assets Cost ( RM ) Accumulated Net Book Value depreciation( RM ) ( RM ) _ _ _______ _ Motor Vehicles 160000 40000 120000 Building 250000 40000 210000 _______________________________________ 410000 80000 330000 ===================================== During the year ended 31 December 2013, the following motor vehicles were acquired and sold: Date of acquisition Cost ( RM ) Date of sale ( RM ) Sales proceed ( RM ) _ 31 March 2010 22000 31 January 2013 12000 30 September 2013 34000 - - 30 November 2013 42000 - - Additional information: i. An old vehicle which was acquired on 1 January 2011 at a cost of RM 16000 was exchanged for the vehicle acquired on 30 September 2013. The trade-in value was RM 13000. ii. Building was revalued on 1 January 2013 to RM 300000. The building was acquired since 1 January 2005. iii. Depreciation of the motor vehicle is provided at 20% per annum on cost. It is calculated based on monthly ownership while the building is depreciated over its useful life of 50 years. Required: Prepare the following for the year ended 31 December 2013: a) Motor vehicle and building accounts b) Accumulated depreciation account for motor vehicle and building c) Disposal of motor vehicle account d) Show the extract of statement of financial position as at 31 December 2013.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles

Section: Chapter Questions

Problem 8.1DC

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Jade Bhd has a number of motor vehicles and machinery. An extract from its statement of financial position as at 31 December 2012 showed the following.

Assets Cost ( RM ) Accumulated Net Book Value

depreciation( RM ) ( RM )

_______ ___________ ___________________ _______________

Motor Vehicles 160000 40000 120000

Building 250000 40000 210000

___________________________________________________________

410000 80000 330000

=====================================

During the year ended 31 December 2013, the following motor vehicles were acquired and sold:

Date of acquisition Cost ( RM ) Date of sale ( RM ) Sales

proceed ( RM )

____________________ ____________ ____________________ _______________

31 March 2010 22000 31 January 2013 12000

30 September 2013 34000 - -

30 November 2013 42000 - -

Additional information:

i. An old vehicle which was acquired on 1 January 2011 at a cost of RM 16000 was exchanged for the vehicle acquired on 30 September 2013. The trade-in value was RM 13000.

ii. Building was revalued on 1 January 2013 to RM 300000. The building was acquired since 1 January 2005.

iii. Depreciation of the motor vehicle is provided at 20% per annum on cost. It is calculated based on monthly ownership while the building is depreciated over its useful life of 50 years.

Required:

Prepare the following for the year ended 31 December 2013:

a) Motor vehicle and building accounts

b) Accumulated depreciation account for motor vehicle and building

c) Disposal of motor vehicle account

d) Show the extract of statement of financial position as at 31 December 2013.

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