1 Rafiqa Trading purchased a used motor vehicle on 1 April 2020. The total amount paid by cheque consisted of the following: Purchase cost of motor vehicle Carriage inwards Annual insurance Fuel RM 15,000 1,000 2,000 100 The business financial year ends on 31 December each year. Rafiqa Trading depreciates its motor vehicle at the rate of 20% per annum using the reducing balance method based on monthly ownership. On 30 September 2021, the motor vehicle was sold for RM10,000 cash. REQUIRED a) State whether each of the following costs is capital expenditure or revenue expenditure. Give a reason for your answers. The first item has been completed as an example. Cost Purchase cost of motor vehicle Type of expenditure Capital expenditure Reason This is the cost of purchasing a non-current asset which will be kept for over 12 months. Carriage inwards Annual insurance Fuel b) Calculate the total cost of motor vehicle based on (a). (6 marks) (2 marks) c) Calculate the depreciation of motor vehicle for 2020 and 2021. d) Record and balance off the following accounts for 2020 and 2021: Motor vehicles i) ii) iii) Accumulated provision for depreciation of motor vehicles Disposal of motor vehicle (4 marks)