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Question 1: Recognition and Depreciation On 31 December 2020, Sunshine Ltd has the following records of acquisition on its property, plant and equipment: Acquisitions for

Question 1: Recognition and Depreciation

On 31 December 2020, Sunshine Ltd has the following records of acquisition on its property, plant and equipment:

Acquisitions for 2019:

No

Property, Plant & Equipment

Date of Purchase

Total Cost (RM)

Scrap Value (RM)

1

Motor Vehicle I

1 January 2019

110,000

10,000

2

Motor Vehicle II

3 April 2019

150,000

30,000

3

Motor Vehicle III

4 July 2019

200,000

20,000

4

Machinery I

3 July 2019

180,000

30,000

5

Land I

1 October 2019

300,000

-

6

Office Equipment I

30 December 2019

80,000

8,000

Acquisitions for 2020:

No

Property, Plant & Equipment

Date of Purchase

Total Cost (RM)

Scrap Value (RM)

1

Office Equipment II

1 February 2020

60,000

5,000

2

Motor Vehicle IV

3 Mac 2020

75,000

5,000

3

Machinery II

14 July 2020

90,000

4,000

4

Machinery III

16 July 2020

80,000

10,000

5

Office Equipment I

30 November 2020

40,000

3,000

The policies on PPE:

  1. Except for land, all types of Property, Plant & Equipment are depreciated using straight line method.
  2. All motor vehicles have an expected useful life of 10 years. Whereas, the machinery and office equipment have and expected useful life of 8 years.
  3. The depreciation is calculated and provided on monthly basis. No depreciation will be provided if the ownership is less than or equal to 15 days in any of the month.

Required:

  1. open up the relevant ledgers to record the transactions in 2019 and 2020.
  2. the extract statement of comprehensive income for the year ended 31 December 2019 and 2020.
  3. the extract of statement of financial position as at 2019 and 2020.

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