Question
Coco Sdn. Bhd. depreciates its machinery at the rate of 20% per annum using straight line method, and 10% for its motor vehicle by using
Coco Sdn. Bhd. depreciates its machinery at the rate of 20% per annum using straight line method, and 10% for its motor vehicle by using reducing balance method. The depreciation charged for a full depreciation in the year of purchase but no provision is made in the year of disposal. Financial statements are prepared annually to 31 December: 2017 January 29 Bought machine A which cost RM 54,000 June 28 Bought machine B for RM 38,000. 2018 March 9 Bought motor vehicle C for RM 11,000 and incurred RM 300 for the road tax fee during the purchase. 2019 October 31 Sold machine A for RM 45,000 May 29 Bought machine D for RM 32,000 2020 March 3 Sold machine B for RM 15,000 April 30 Bought motor vehicle E for RM 13,000 Required: Prepare the following ledger accounts for the year ended 31 December 2017 until 31 December 2020. (i) Machinery account (ii) Motor vehicle account (iii) Accumulated depreciation account of machinery (iv) Accumulated depreciation account of motor vehicle (v) Machinery disposal account
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