QUIZ - AA015 TOPIC 9 ACCOUNTING FOR NON-CURRENT ASSET

QUIZ – AA015 TOPIC 9

ACCOUNTING FOR NON-CURRENT ASSET

 

Question 1

Tanjong Ipoh Sdn Bhd (TISB) provided information related to its business equipment as follows:

 

Equipment	Date of acquisition	Cost	Residual value	Useful life  (year)	Method of depreciation
P	1/1/2019	RM212 000	RM32 000	10	Straight line
Q	1/5/2020	RM196 000	RM24 000	8	Reducing balance (25%)

 REQUIRED:

i. Calculate the depreciation expense for each equipment as at 31 December 2022. (to the nearest value)

(6.5 marks)

ii. If equipment Q was purchased on 1 January 2020, calculate depreciation expenses on 31 december 2020.

(1.5 marks)

Question 2

Murni Entreprise had decided to trade in the old photostate machine to the new machine. The following information related to the transactions.

 

Detail	Old machine	New machine
Cost	RM125,000	RM150,000
Date of possession	June 24, 2017	July 5, 2022
Residual value	RM5,000	RM10,000
Useful live	10 years	8 years

Additional information:

1.   The supplier of new machine had agreed to receive old machine with receiving RM5,000 cash as trade in allowances.

2.  Depreciation expense recorded in accordance during the month of acquisition and not recorded in the month of disposal.

3.     Murni Enterprise accounting period ending on 31^st December.

 

REQUIRED :

i.   Prepare journal entries to record the purchase of new machine on July 5, 2022. (ignore narration)

(3.5 marks)

ii.         Prepare journal entries to record depreciation expense for the year 2022 for new machine. (ignore narration)

(1.5 marks)

ANSWER

 

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.