Question

Instruction: Answer ALL Questions Question 1 Test bank : TutPPE Florence prepares the company year end accounts on 31" December annually. The following transactions occurred during the year 2017: Date of Assets Useful life Disposal Cost (RM) purchase (year) Value (RM) 1 July 2012 Motor Vehicles 100 100,500 1 Jan 2012 Equipment 8 0 142,000 1 Jan 2012 Labelling Machine 8 0 65,000 The company uses: i) straight line method of depreciation for motor vehicles and equipment. ii) reducing balance method for labelling machine with the rate 10% iii) The company implement month to month basis of depreciation. (Depreciation is calculated based on number of month the assets exist in the business) All payments and receipts for the above transactions were made through cheque/bank. You are required to prepare: a) Depreciation schedule for motor vehicles, equipment and labelling machine from year of purchase until 31 December 2017. b) Prepare the non current assets section in statement of financial position

Answer 1

a) Depreciation schedule for the year 2017
Date of purchase	Assets	Cost (RM)	Months till 31 Dec 17	Useful life (in months)	Depreciation method	Cumulative depreciation till 31 Dec 16	Current year depreciation (2017)
01-Jul-12	Motor Vehicles	100500	66	120	SLM	45225	10050
01-Jan-12	Equipment	142000	72	96	SLM	88750	17750
01-Jan-12	Labelling Machine	65000	72	96	WDV	26618	3838
		307500				160593	31638
Labelling machine depreciation
01-Jan-12	Cost	65000
	Depr for 2012	6500
31-Dec-12	WDV	58500
	Depr for 2013	5850
31-Dec-13	WDV	52650
	Depr for 2014	5265
31-Dec-14	WDV	47385
	Depr for 2015	4739
31-Dec-15	WDV	42647
	Depr for 2016	4265
31-Dec-16	WDV	38382
	Depr for 2017	3838
31-Dec-17	WDV	34544
b) Non current asset in Financial
			RM
Non current asset
a) Property, plant and Equipment (net)			115269