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Q2)Meligai Company's non-current assets opening balance on 1 January 2022 were as follows: Non-Current Asset Equipment Total Cost (RM) 600,000 60,000 Provision for Depreciation
Q2)Meligai Company's non-current assets opening balance on 1 January 2022 were as follows: Non-Current Asset Equipment Total Cost (RM) 600,000 60,000 Provision for Depreciation (RM) 150,000 Furniture & Fitting 32,000 The company policy is to charge depreciation on monthly basis in the year of purchase and in the year of sale. The company depreciates its equipment at a rate of 10% per annum using reducing balance method and fixtures and fittings using straight line method at rate of 20% per annum. During the year to 31 December 2022 the following transactions took place: i) Bought equipment using a company cheque from Silai Sdn Bhd on 1 August 2022. The invoice price is RM22,000 and the installation cost is RM2,000. ii) Sold a furniture on 1 May for RM3,750 by cash. It had been purchased on 1 January 2019 for RM15,000. Required: a) Equipment and Provision for Depreciation for Equipment accounts. b) Fixtures and Fittings, Provision for Depreciation for Fixtures and Fittings and Disposal of Fixtures and Fittings accounts. c) Statement of Financial Position (extract) as at 31 December 2022.
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