Mr Keik bought a machine worth RM240,000 on 1 January 2020. He estimates that the wear...

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Mr Keik bought a machine worth RM240,000 on 1 January 2020. He estimates that the wear and tear should follow a reducing balance basis at a depreciation rate of 20% per year. (a) Calculate the depreciation charge for the years 2020 and 2021. (1 mark) (b) Calculate the net book value for the machine from 31 December 2020 to 2022. (3 marks) (c) Prepare the depreciation account for the years ended 31 December 2020 and 31 December 2021. (2 marks) (d) Prepare the accumulated depreciation account for the years ended 31 December 2020 and 31 December 2021. (2 marks) Mr Keik bought a machine worth RM240,000 on 1 January 2020. He estimates that the wear and tear should follow a reducing balance basis at a depreciation rate of 20% per year. (a) Calculate the depreciation charge for the years 2020 and 2021. (1 mark) (b) Calculate the net book value for the machine from 31 December 2020 to 2022. (3 marks) (c) Prepare the depreciation account for the years ended 31 December 2020 and 31 December 2021. (2 marks) (d) Prepare the accumulated depreciation account for the years ended 31 December 2020 and 31 December 2021. (2 marks)

Answer rating: 100% (QA)

SOLUTION Data Provided Cost of machine RM 240000 Depriciation method Reducing balance method Rate ... View the full answer