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 Statement of Financial Position as at 30 September 2022. (iv) Illustrate an extract of the Statement of Profit or Loss for the year ended 30 September 2022.
Mirza Sdn. Bhd. prepared its accounts on 30 September every year. As at 1 October 2021,
the
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
to
Required:
(i) Construct the machinery and van account.
(ii) Construct accumulated depreciation account for machinery and van.
(iii) Illustrate an extract of the Statement of Financial Position as at 30 September 2022.
(iv) Illustrate an extract of the Statement of Profit or Loss for the year ended 30 September
2022.
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