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Arryn Boutique Enterprise had been in operation for two years. Since the boutique started its operation, the business owns several noncurrent assets. To avoid overstating
Arryn Boutique Enterprise had been in operation for two years. Since the boutique started its operation, the business owns several noncurrent assets. To avoid overstating the business assets in financial statements, the business provides depreciation for each of the noncurrent asset that they owned. The followings are the details of the depreciation provided on 31 December 2020. All depreciations are charged on yearly basis. Additional information: (i) Machinery is depreciated at 15% per annum using straight line method. (ii) Reducing balance method imposed for office equipment at the rate of 20% every year. (iii) Depreciation is charged at the rate of 15% per annum for motor vehicles on net book value. Required: (a) Based on the above information, you are required to calculate the annual depreciation for each of the non-current asset for the year ended 2020, 2021 and 2022. (15 marks) (b) Prepare extract of Statement of Profit and Loss and Statement of Financial Position to record the transaction in (a)
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