1. XYZ bought a motor vehicle costing RM147,000.00 on 18 March 2004. Its Year-End is 31 December. Depreciation is to be provided of 20% per annum on a straight-line basis. Calculate the amount of depreciation for Year-End 31 December 2004 and provide the double entries for the depreciation charge in the accounts.

Question 2 On 30 June 2006, XYZ disposed of the motor vehicle for RM100,000.00. Calculate the gain or loss on disposal of the motor vehicle and provide the relevant accounting entries for the transactions.

Question 3 Nobisco Sdn Bhd has a debt of RM45,600.00 owing by Xion Sdn Bhd for more than 180 days. Attempts to contact the Company has been unsuccessful. The Company decided to write off the debts in its accounts for the year ended 30 September 2004. Provide the double entries for the transaction.

Question 4 If the Company merely makes an allowance for doubtful debts in full for the debts owing, provide the relevant double entries.

Question 5 In relation to Question 3 above, 2 years later, in April 2006, the debtor unexpectedly paid up the debts in full. Provide the double entries for the debts recovered.

Question 6 In relation to Question 4 above, on 15 June 2006, the debtor paid up the debts in full. Provide the double entries for the payment made. Since an allowance for doubtful debts had been made earlier, state the double entries to be made now that the allowance is not required anymore.

Answer rating: 100% (QA)

Answer 1 Depreciation for YearEnd 31 December 2004 Depreciation 20 x RM14700000 RM2940000 The double ... View the full answer