Sejati Bhd buys new machinery for RM10,000 on 1 January 2018. The machinery is estimated to be
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Sejati Bhd buys new machinery for RM10,000 on 1 January 2018. The machinery is estimated to be used for 5 years. After exactly 3 years, however, the machinery is suddenly sold for RM5,000. Sejati Bhd always provides a full year’s depreciation in the year when assets are purchased and no depreciation in the year when assets are disposed of. Required: Prepare the accumulated depreciation for machinery accounts and machinery disposal accounts for the years 2018, 2019, and 2020:
a. Using the straight-line depreciation method (assume 20% p.a.).
b. Using the reducing balance depreciation method (assume 40% p.a.).
Related Book For
Fundamental financial accounting concepts
ISBN: 978-0078025365
8th edition
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward
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