1. T.Boon started business in year 2019. He bought office equipment costing RM120,000 on 1 November 2019 and a van costing RM150,000 on 1 December 2019.

On 31 December 2020, she bought another van costing RM140,000; and office equipment costing RM120,000 on 1 December 2020.

T.Boon applies the depreciation methods as: Office equipment 20% on cost; while Motor vehicles 10% using the reducing balance basis. Depreciation was calculated on office equipment for each month of ownership, and give a full year’s depreciation on van.

Required:

Show the appropriate items in the extracts of the following for years ended 31 December 2020:

(i) Income Statement (extract)	(6 marks)
(ii) The non-current assets section of the Balance Sheet	(9 marks)

2. On 1 January 2021 the following balances appeared in the books of a trader:- Accrued Rent received: RM1200, Insurance prepaid: RM1,500;

During the trading year, Rent received from tenants amounted to RM159,000, Insurance paid amounted RM24,000.

At 31 December 2021, the following information was obtained:-

Tenants still owed for rent during the year amounted RM4,500 and one quarter of the amount for insurance paid during the year was paid in advance.

Required:

Show the appropriate items in the relevant extracts of the following for the month of December 2021:

(iii) Income Statement (extract) (6 marks) (iv) Balance Sheet (extract) (4 marks)

Answer rating: 100% (QA)

a Working Depreciation exp For office equipment Old Cost 120000 Annual depreciation 120000 20 24000 ... View the full answer