Question

16 A business selling clothes buys two vehicles on 1 January 2015. Each vehicle is priced at RM45,000 and RM87,000 respectively. On 31 October 2017, a vehicle which cost RM87,000 is sold at RM82,000 to Magic Enterprise, Depreciation for vehicles uses the straight line method at the rate of 15% annually You are required to prepare the vehicle account, vehicle accumulated depreciation account and disposal account on 31 December 2017.

Answer 1

Vehicle A/C Amount Date 132000 Particulars Date Particulars 01-Jan-15 To Capital Creditor/ Cash Amount 31-Dec-15 By Balance C/d 132000 Total 132000 Total 132000 01-Jan-16 To Balance b/d 132000 31-Dec-16 By Balance C/d 132000 Total 132000 Total 132000 01-Jan-17 To Balance b/d 132000 31-Oct-17 By Disposal A/c 87000 31-Dec-17 By Balance C/d 45000 Total 132000 Total 132000

Date Particulars 31-Dec-15 To Balance C/d Vehicle Accumulated Depreciation A/C Amount Date Particulars Amount 19800 31-Dec-15 By Depreciaiton of Vehicle 1 of Vehicle 1 6750 31-Dec-15 By Depreciaiton of Vehicle 2| 13050 Total 19800 19800 31-Dec-16 To Balance C/d 119800 Total 01-Jan-16 By Balance b/d 39600 31-Dec-16 By Depreciaiton of Vehicle 1 31-Dec-16 By Depreciaiton of Vehicle 2 6750 13050 Total 139600 Total 01-Jan-17 By Balance b/d 39600 39600 31-Oct-17 To Discposal A/C 36975|31-Oct-17 By Depreciaiton of Vehicle 2 10875 31-Dec-17 To Balance C/d 20250 31-Dec-17 By Depreciaiton of Vehicle 1 6750 Total 57225 Total 57225

Date Particulars 31-Oct-17 To Vehicle A/C Disposal A/C Amount Date Particulars 87000 31-Oct-17 By Accumulated Depreciation A/C Amount 36975 31-Oct-17 To Profit on Sale of Vehicle A/c | 3197531-Oct-17 By Cash/ Bank A/C 82000 Total 118975 Total 118975