QUESTION 2 (20 marks) (25 minutes) Five Star Trading provided the Statement of Financial Position (extract) as at 30 September 2020 as follows: Below is the additional information related to company's non-current asset: (1) On 1 November 2020, Five Star Trading acquired new equipment for RM56,000. After incurring transportation cost of RM1,500 and spending RM2,500 on installing the equipment the company is disappointed when it breaks down and cost RM750 to repair. The total cost of purchase is paid by cheque. (2) Due to obsolescence, Five Star Trading traded in old equipment for new sophisticated equipment on 1 April 2021. The cost of old equipment which was bought on 1 January 2019 for RM54,000 was trade in for RM42,000. This trade in value is to be set-off against the cost of the new equipment. The remaining amount of new equipment cost of RM28,000 was paid by cheque. (3) Depreciation for equipment had been provided at 10 percent per annum on reducing balance method on monthly basis. Required: For the year ended 30 September 2021, prepare: (a) Equipment account. (b) Accumulated depreciation for equipment account. (6 marks) (c) Disposal for equipment account. (8 marks) (d) Statement of Financial Position (extract). (3 marks) (3 marks) Note: All calculations must be rounded up to the nearest Ringgit Malaysia.

QUESTION 2 (20 marks) (25 minutes) Five Star Trading provided the Statement of Financial Position (extract) as at 30 September 2020 as follows: Below is the additional information related to company's non-current asset: (1) On 1 November 2020, Five Star Trading acquired new equipment for RM56,000. After incurring transportation cost of RM1,500 and spending RM2,500 on installing the equipment the company is disappointed when it breaks down and cost RM750 to repair. The total cost of purchase is paid by cheque. (2) Due to obsolescence, Five Star Trading traded in old equipment for new sophisticated equipment on 1 April 2021. The cost of old equipment which was bought on 1 January 2019 for RM54,000 was trade in for RM42,000. This trade in value is to be set-off against the cost of the new equipment. The remaining amount of new equipment cost of RM28,000 was paid by cheque. (3) Depreciation for equipment had been provided at 10 percent per annum on reducing balance method on monthly basis. Note: All calculations must be rounded up to the nearest Ringgit Malaysia