DEPRECIATION OF NON CURRENT ASSET QUESTION 1 A company bought equipment on 1 February 2018 for RM25,000 by cheque. The equipment is estimated to last for 5 years. The accounting year end of the company is at 31 December. The company used the straight-line method to calculate the depreciation expense. The estimated scrap value of the equipment is RM2,500. Required: 1. Prepare the Statement of Profit and loss and Statement of Financial Position for the year ended 31 December 2018 and 31 December 2019 if a full year's depreciation is charged in the year of purchase. 2. Prepare the Statement of Profit and loss and Statement of Financial Position for the year ended 31 December 2018 and 31 December 2019 using the basis of monthly ownership. QUESTION 2 A company purchased furniture by cheque for RM75,000 on 1 November 2018. Depreciation is charged at the rate of 10 per annum using the reducing balance method. The accounting year end of the company is at 30 June each year. Required: 1. Prepare the Statement of Profit and loss and Statement of Financial Position for the year ended 30 June 2019 and 30 June 2020 if a full year's depreciation is charged in the year of purchase. 2. Prepare the Statement of Profit and loss and Statement of Financial Position for the year ended 30 June 2019 and 30 June 2020 using the basis of monthly ownership