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Nushirwan Arif Abdul Rauf Sdn. Bhd., a construction company in Manir, Kuala Terengganu commenced the business on 1 January 2015. During the five years to
Nushirwan Arif Abdul Rauf Sdn. Bhd., a construction company in Manir, Kuala Terengganu commenced the business on 1 January 2015. During the five years to 31 December 2019, the company bought and sold motor vehicles for use in business as follows: Date of Registration no. Cost Date of disposal Disposal proceeds purchase (RM) (RM) 12 Jan 2015 TAA701 50,000 15 May 2017 18,700 7 June 2017 TBA771 85,000 25 Feb 2019 TCBA777 120,000 The company charge depreciation of its motor vehicles at the rate of 20% per annum on cost with no residual value. A full year's depreciation is provided for motor vehicles bought before 1 July but no depreciation is provided in the year of disposal. Required: Prepare the following accounts, for the period of 1 January 2015 to 31 December 2019: (i). Using the straight line method of depreciation a). Motor Vehicles Account; b). Provision for Depreciation Account; c). Motor Vehicles Disposal Account. (ii). Using the reducing balance method of depreciation a). . Provision for Depreciation Account; b). Motor Vehicles Disposal Account
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