Thanks for the clarification. However, your explanation is not match with the answer given. For example: Rental - RM90k but your explanation is RM82k have to shown in income stztement & prepaid - RM8k have to shown in asset. Besides that, I didn't see any amount reflected in financial position & comprenhensive income for the following additional information as below: vi)In December 2021, the company got the land professionally valued at RM600,000. The company has decided to include this valuation in their financial statement. ix. Provide for the debenture interest and preference dividend outstanding at year end. x. During January 2021, the company realised that the closing inventory at 31 December 2020 was understated by RM7,700. Can you please go through all the info and REDO it. TQ
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
Thanks for the clarification. However, your explanation is not match with the answer given. For example: Rental - RM90k but your explanation is RM82k have to shown in income stztement & prepaid - RM8k have to shown in asset.
Besides that, I didn't see any amount reflected in financial position & comprenhensive income for the following additional information as below:
vi)In December 2021, the company got the land professionally valued at RM600,000. The company has decided to include this valuation in their financial statement.
ix. Provide for the debenture interest and preference dividend outstanding at year end.
x. During January 2021, the company realised that the closing inventory at 31 December 2020 was understated by RM7,700.
Can you please go through all the info and REDO it. TQ
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