Allcan Trading has the following non-current assets at 31 December 2021. Depreciation (per annum) Reducing balance...
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Allcan Trading has the following non-current assets at 31 December 2021. Depreciation (per annum) Reducing balance 10% Reducing balance 10% Cost (RM) Assets Office equipment Office equipment Purchase Date 240,000 1 September 2020 360,000 30 April 2021 On 1 June 2021, the equipment which was purchased in the year 2020 was traded-in with a new equipment costs RM180,000. Assuming financial year ends at 31 December and the computation of depreciation is based on monthly basis. Required: Prepare the following accounts of the office equipment: a) Office equipment account. b) Depreciation account. c) Accumulated depreciation account. (5 marks) (3 marks) (2 marks) (4 marks) d) Disposal account. Allcan Trading has the following non-current assets at 31 December 2021. Depreciation (per annum) Reducing balance 10% Reducing balance 10% Cost (RM) Assets Office equipment Office equipment Purchase Date 240,000 1 September 2020 360,000 30 April 2021 On 1 June 2021, the equipment which was purchased in the year 2020 was traded-in with a new equipment costs RM180,000. Assuming financial year ends at 31 December and the computation of depreciation is based on monthly basis. Required: Prepare the following accounts of the office equipment: a) Office equipment account. b) Depreciation account. c) Accumulated depreciation account. (5 marks) (3 marks) (2 marks) (4 marks) d) Disposal account.
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Workings 1 Assumed all purchase are in cash except trade in equipment 2 Depreciation Depreciation is expenses account and at the time of year end it i... View the full answer
Related Book For
Accounting Volume 2
ISBN: 978-0176509743
2nd Canadian edition
Authors: James Reeve, Jonathan Duchac, Sheila Elworthy, Carl S. Warren
Posted Date:
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