Round Circle Trading showed the following details of non-current assets as at 31 December 2021. Non-current...

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Round Circle Trading showed the following details of non-current assets as at 31 December 2021. Non-current Cost Carrying asset RM Value Method of Basis Depreciation Depreciation Rate RM Motor 90,000 72,000 Vehicles Straight Line Monthly 20% per annum Machinery 200,000 120,000 Reducing Yearly 15% per Balance annum Additional information: 1. On 6 February 2022, Round Circle Trading purchased a new lorry for business purposes, costing RM94,000 from Motor Maju Trading by credit excluding RM1,000 for road taxes. 2. On 27 April 2022, additional machinery was purchased at RM73,000 excluding the installation cost and transportation charge of RM1,500 on credit from Teras Engineering. 3. Round Circle Trading purchased a new machine on 1 June 2022 worth RM15,000 from Seri Aman Construction by credit. Round Circle Trading showed the following details of non-current assets as at 31 December 2021. Non-current Cost Carrying asset RM Value Method of Basis Depreciation Depreciation Rate RM Motor 90,000 72,000 Vehicles Straight Line Monthly 20% per annum Machinery 200,000 120,000 Reducing Yearly 15% per Balance annum Additional information: 1. On 6 February 2022, Round Circle Trading purchased a new lorry for business purposes, costing RM94,000 from Motor Maju Trading by credit excluding RM1,000 for road taxes. 2. On 27 April 2022, additional machinery was purchased at RM73,000 excluding the installation cost and transportation charge of RM1,500 on credit from Teras Engineering. 3. Round Circle Trading purchased a new machine on 1 June 2022 worth RM15,000 from Seri Aman Construction by credit.

Answer rating: 100% (QA)

To calculate the depreciation expense for each noncurrent asset well first need to determine the dep... View the full answer