Calculation of Carrying Value of Major Machine in August'2017 | ||
Particulars | Amount (in RM) | |
Purchase Amount of Machinery | 800,000.00 | |
Add: | Import Duty | 25,000.00 |
Add: | Freight Charges | 35,000.00 |
Add: | Installation Charges | 10,000.00 |
Add: | Pre- Production Charges | 25,000.00 |
Total Amount to be Capitalized in the Year 2009 | 895,000.00 | |
Less: | Depreciation for the Year 2009 | 84,500.00 |
Less: | Depreciation for the Year 2010 | 84,500.00 |
Less: | Depreciation for the Year 2011 | 84,500.00 |
Less: | Depreciation for the Year 2012 | 84,500.00 |
Less: | Depreciation for the Year 2013 | 84,500.00 |
Total Amount of Asset at the start of 2014 | 472,500.00 | |
Add: | Cost spend to upgrade Machine | 200,000.00 |
672,500.00 | ||
Less: | Depreciation for the Year 2014 | 124,500.00 |
Less: | Depreciation for the Year 2015 | 124,500.00 |
Less: | Depreciation for the Year 2016 | 124,500.00 |
Less: |
Depreciation for the Year 2017 (from Jan'17 to Aug'17 i.e. 8 months) |
83,000.00 |
Carrying Value at the end of August'2017 | 216,000.00 |
Working Note: | ||
1 | Calcuation of Depreciation on Machine as per Straight Line Method | |
Depreciation p.a.= | {[Machine Cost (-) Residual Value]/Life of Machine} | |
[895,000(-)50,000]/10 | ||
84,500.00 | ||
(Here, it has been assumed that the Machinery has been purchased at the | ||
start of the year 2009). | ||
2 | The Amount spent in the year 2012 amounting to RM 50,000 for replacing | |
the component, is to be treated as Revenue Expenditure. Therefore, not | ||
to be added in the value of Machine as it is not adding to the performance | ||
of the machine. | ||
3 | Amount of RM 200,000 spent to upgrade the machine performance by 30% | |
output capacity. Therefore, it shall be treated as Capital Expenditure and | ||
thereby capitalised to the amount of machinery. | ||
(Here, it has been assumed that the amount spend at the beginning of the | ||
year). | ||
Depreciation shall be revised from this year for the remaning period of time | ||
Value as at the beginning of 2014 | 472,500.00 | |
Add: Capitalized Cost | 200,000.00 | |
Value after Capitialization | 672,500.00 | |
Depreciation P.a. for next 5 Years= |
{[Machine Cost (-) Residual Value]/Life of Machine} | |
[672,500(-)50,000]/5 | ||
124,500.00 | ||
4 | The Repair & Maintenance cost p.a. for RM 60,000 shall be treated as Revenue | |
Expenditure. |
Journal Entry:
Bank A/c Dr. 50,000
Profit & Loss A/c Dr. 166,000
To Machine A/c 216,000
(Being Machine Disposed)
Syarikat Berjaya Untung Berhad purchased a major machinery Item from Japan for RM800 000 in 2009...
Pada 31 Disember 2017, Mahligai Berhad mempunyai baki aset loji dan susut nilai terkumpul adalah seperti berikut: At 31 December 2017, Mahligai Berhad's plant asset and accumulated depreciation accounts had the following balances: Aset bukan semasal Non- current Assets Nilai/Value Susut nilai terkumpull Accumulated depreciation RM RM Kaedah susut Hayat nilail bergunal Depreciation Useful life method Tahun/Years Tanah/Land 175,000 Bangunan/Buildings 1,500,000 240,000 Jentera/Machinery 1,125,000 225,000 Garis Lurus Straight line Garis Lurus Straight line Garis Lurus Straight line 10 Paten/Patent 500,000...