Calculate the current years depreciation charges for motor vehicles. B: PREPARATION OF FINANCIAL STATEMENTS FOR PUBLICATION PURPOSES

 

Calculate the current year’s depreciation charges for motor vehicles.
 

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B: PREPARATION OF FINANCIAL STATEMENTS FOR PUBLICATION PURPOSES Bauk Consumer Electrical Berhad manufactures a variety of home electrical equipment in Malaysia. The following is the Trial Balance of the company as at 31 December 2021: Sales Cost of sales Selling and distribution expenses Administrative expenses 1. Interim Dividend Interest on loan Interest on debentures Tax paid Inventories as at 31 December 2021 (at cost) Bank Intangible asset Land Building (at cost) Machinery (at cost) Motor vehicle (at cost) Accumulated Depreciation (31 December 2020): Building Machinery Motor vehicles Receivables and Payables Allowance for Impairment of Trade Receivable Rental income 4.5% Bank loan 8% Debentures Retained profit as at 31 December 2020 Ordinary share capital 12% Preference shares capital General reserve Assets Revaluation Reserve as at 31 December 2020 a. Debit RM Building Machinery 562,200 54,800 Motor vehicles Land 100,260 64,800 43,750 16,440 70,400 352,700 424,248 326,250 1,800,000 880,000 386.000 1,223,700 211,750 6,517,298 The depreciation policy of the company is as follows: 5% on cost; yearly basis. 5% on reducing balance; yearly basis. 20% on reducing balance, monthly basis. is not depreciated. Credit RM 1,306,800 440,000 87,320 You are given the following information: The information related to the property, plant and equipment of the company is as follows: 656,198 131,050 15,430 57,200 1,300,000 411,000 422,300 1,200,000 330,000 60,000 100,000 6,517,298 Note: Depreciation on motor vehicles is treated as selling and distribution expenses while depreciation for other property, plant and equipment to be treated as administrative expenses. B: PREPARATION OF FINANCIAL STATEMENTS FOR PUBLICATION PURPOSES Bauk Consumer Electrical Berhad manufactures a variety of home electrical equipment in Malaysia. The following is the Trial Balance of the company as at 31 December 2021: Sales Cost of sales Selling and distribution expenses Administrative expenses 1. Interim Dividend Interest on loan Interest on debentures Tax paid Inventories as at 31 December 2021 (at cost) Bank Intangible asset Land Building (at cost) Machinery (at cost) Motor vehicle (at cost) Accumulated Depreciation (31 December 2020): Building Machinery Motor vehicles Receivables and Payables Allowance for Impairment of Trade Receivable Rental income 4.5% Bank loan 8% Debentures Retained profit as at 31 December 2020 Ordinary share capital 12% Preference shares capital General reserve Assets Revaluation Reserve as at 31 December 2020 a. Debit RM Building Machinery 562,200 54,800 Motor vehicles Land 100,260 64,800 43,750 16,440 70,400 352,700 424,248 326,250 1,800,000 880,000 386.000 1,223,700 211,750 6,517,298 The depreciation policy of the company is as follows: 5% on cost; yearly basis. 5% on reducing balance; yearly basis. 20% on reducing balance, monthly basis. is not depreciated. Credit RM 1,306,800 440,000 87,320 You are given the following information: The information related to the property, plant and equipment of the company is as follows: 656,198 131,050 15,430 57,200 1,300,000 411,000 422,300 1,200,000 330,000 60,000 100,000 6,517,298 Note: Depreciation on motor vehicles is treated as selling and distribution expenses while depreciation for other property, plant and equipment to be treated as administrative expenses.

Answer rating: 100% (QA)

Given The value of motor vehicle on December 31 2021 RM 1223700 and the accum... View the full answer