Question

Instruction: Answer ALL Questions Super Printz Sdn Bhd prepares the company year end accounts on 31" December annually. The company has the following assets Date of Assets Useful Cost (RM) purchase life (year) 1-7-2017 Motor Vehicles 100,500 1-1-2018 Equipment 5 142,000 1-1-2018 Labelling Machine 65,000 1-1-2018 Land (3/4 acre) 370,000 Additional information: The following transactions occurred during the year 2019 1 April: Purchased the second labelling machine, at cost RM25,000 from Auto Smart Label Sdn Bhd. Super Printz paid RM5,000 by cash and remaining balance by credit/on account. 25 June : Purchased one unit of shop lot office building for RM450,000. The company paid RM45,000 by cheque as deposit and the remaining balance by loan from First Bank 31 Dec: Revaluation of land, RM390,000. 1 The company uses: i) straight line method of depreciation for motor vehicles and equipment. ii) reducing balance method for machine with the rate 10% iii) The company charge no depreciation for asset purchased after day number 15th of the month. All payments and receipts for the above transactions were made through cheque/bank. a) Journaliza the transactions oeur in 2019 (6m) You are required to prepare: bifu ) Depreciation schedule for all non current assets for the company from year of purchase until 31 December 2019. (8 m) C) Journalize all adjusting entries at the end of the year. ( 8m) d) Prepare the non current assets section in statement of financial position (5 m) e) Explain why assets need to be depreciated. Give TWO(2) reasons (4m) MFRS 116 Plant Property and Equipment explain the differences between depreciation, depletion, amortization and impairment. Discuss. (5m)

Answer 1

all answers are properly described in photos attached
- Journal [Past c ] 31/12/19 Depreciation. Alc Dr. ' doo To Motor vehicle Al 11667 i sitt ghi tr To Equipment AC 28400 To Labelling me (1) A/C 5850 To labelling M/C(2) ALC 2500 To office Building ALC 22500 (Being Adj. Entry for Depreciation passed) Profit & Loss Afc To [ Being amt Dr. 70917 Depreciation Alc transfered ] 70917 part (d) [31121197 NON CURRENT ASSET Fixed Asset or weitgras I w as Motor vehicle Equipment Labelling mc (1) Labelling mic (2) Office Building 71333 85100 52650 22500 427500 (nota Total | 659083