QUIZ - AA015 TOPIC 9 Part 2 - ACCOUNTING FOR NON-CURRENT ASSETS

QUIZ AA015 TOPIC 9 - Part 2

ACCOUNTING FOR NON-CURRENT ASSETS

Question 1 (KMM)

(A)

The following information regarding equipment is extracted from the Statement of Financial Position of Meriah Sdn. Bhd. as at 31 December 2020: 

Cost  (RM)	Date purchased	Residual value  (RM)	Useful lives  (years)	Depreciation method
220,000	10 March 2017	30,000	10	Straight line

Meriah Sdn. Bhd. purchased an equipment on 20 April 2021. Cost of the equipment is RM55,000 (excluding insurance in transit RM1,200 and installation RM300) and payment is made by cheque. The equipment is estimated to has a residual value of RM5,000 and useful life of 5 years.

The company’s policy is to calculate depreciation based on yearly basis.

INSTRUCTIONS: 

i.   Prepare journal entries to record purchase of equipment on 20 April 2021.

ii.  Prepare journal entries to record depreciation expenses at 31 December 2021

iii. Show Depreciation Expenses account and Accumulated Depreciation account for the year ended 31 December 2021.

 

(B)

On 1 August 2021, Kelana Sdn. Bhd purchased a new machine, RM70,000 by exchanging the old machine with cash payment RM38,500. The following information relating to old machine: 

Cost of machine	RM54,000
Accumulated depreciation as at 31 December 2020	RM24,300
Annual depreciation	RM8,100

Depreciation is calculated on monthly basis, no depreciation on the disposal date. The business accounting period ends on 31 December of each year.

INSTRUCTIONS:

i.   Show journal entries to record depreciation expense of old machine in the current year until the date of trade-in.                         

ii.  Show journal entries to record the purchase of new machine on 1 August 2021.

QUESTION 2 - KMKN (20 marks)

A.    A vehicle was purchased on 16 March 2021 for RM 75,000. It had a useful life of 5 years and a residual value of RM 5,000. If the straight-line method and monthly basis is used.

Sebuah kenderaan dibeli pada 16 Mac 2021 dengan harga RM75,000. Kenderaan ini mempunyai usia guna dan nilai sisa RM5,000. Jika kaedah garis lurus dan asas bulanan digunakan.

 

Required :

Dikehendaki :

i.                 Determine the depreciation expense for vehicle at 31 December 2021.

Tentukan belanja susutnilai bagi kenderaan pada 31 Disember 2021.

ii.               Prepare journal entry to record depreciation expense. (omit explanation)

Sediakan catatan jurnal bagi merekod belanja susutnilai. (abaikan keterangan)

 

B.    On 15 July 2021, an equipment purchased on 1 April 2018 priced at RM40,000 was sold at RM30,000. Depreciation expense was calculated at 10% from book value using yearly basis.

Pada 15 July 2021 sebuah peralatan yang telah dibeli pada 1 April 2018 dengan harga RM40,000 telah dijual pada harga RM30,000. Belanja susutnilai telah dikira pada 10% atas nilai buku menggunakan asas tahunan.

Required :

Dikehendaki :

Prepare journal entry to record the disposal of equipment.(omit explanation)

Sediakan catatan jurnal untuk merekod pelupusan peralatan. (abaikan keterangan)

 

C.    On 31 December 2020, Kiara Sdn. Bhd. (KSB) indicates information regarding the assets as follows:

Pada 31 Disember 2020, Kiara Sdn Bhd.  (KSB) menunjukkan maklumat berkaitan asset seperti berikut:

 

Fixed Asset Aset Tetap	Cost Kos  (RM)	Accumulated Depreciation Susutnilai Terkumpul (RM)	Depreciation Method Kaedah Susutnilai
Machines Mesin	200,000	80,000	Straight Line (10%) Garis Lurus (10)

 

Depreciation expense recognized in the month of purchase and no depreciation expense in the month of disposal.

Belanja susutnilai diiktiraf dalam bulan belian dan tiada belanja susutnilai dalam bulan pelupusan.

 

 KSB trade-in an old machine with a new one on 1 September, 2021. The old machine  had a cost of RM 45,000 and was purchased on 1 February 2019. The price of the new machine is  RM40,000 and the trade-in allowance amounted to RM 25,000.

 KSB menukar sebuah mesin lama dengan sebuah mesin baru pada 1 September 2021. Kos mesin lama RM45,000 dan telah dibeli pada 1 Februari 2019. Harga mesin baru adalah RM40,000 dan elaun tukar niaga bernilai RM25,000.

 

Required :

Dikehendaki :

 i.           Prepare journal entry to record trade-in of machine.(omit explanation)

  Sediakan catatan jurnal untuk merekod pertukaran mesin. (abaikan keterangan)

 

ii.         Show the extract of Statement of Financial Position as at 31 December 2021.

  Tunjukkan petikan Penyata Kedudukaan Kewangan pada 31 Disember 2021.

 

ANSWER

QUIZ - AA015 TOPIC 9 Part 2 - ACCOUNTING FOR NON-CURRENT ASSETS

As Salam and Hi everyone... My name is Puan Asmazatul Yusfiziati Binti Mohd Yusof CA(M) or you can call me Madam Fizi. I'm an Accounting lecturer at Negeri Sembilan Matriculation College (KMNS), Kementerian Pendidikan Malaysia. This blog (www.madamfizi.com) was created to share learning materials on the subject of Accounting for Matriculation, Form 6, Foundation, Diploma, Secondary School and related students.