Question 2 Question 2 At I Fehruarv 2022 Giarett fixed asset balances were as follows: Garett's year end is 31 January and his policy for fixed assets is to provide a full year's depreciation in the year of acquisition, and none in the year of disposal. Depreciation is provided at the following rates: Buildings Over 25 years, straight line basis Machinery 20% per annum, reducing balance basis During the year ended 31 January 2023, Garett added an exiension to the buildings at a cost of RM13,600. He also acquired a new machine by paying a cheque for RM9,000 and trading in an old machine for RM11,000. The machine traded in had been acquired in August 2020 for RM22,000. REQUIRED (a) Calculate at 31 January 2023, for (i) Buildings and (ii) Machinery, the: 1. total cost 2. accumulated depreciation 3. net book value (13 marks) (b) Prepare the Machinery Disposals Account for the year ended 31 January 2023. No machine sales took place during the year. ( 4 marks) (c) Briefly explain why depreciation is provided on Buildings and Machinery but not on Frechold Land. (4 marks) (d) Name four causes of depreciation. (4 marks) [25 Marks] Question 2 Question 2 At I Fehruarv 2022 Giarett fixed asset balances were as follows: Garett's year end is 31 January and his policy for fixed assets is to provide a full year's depreciation in the year of acquisition, and none in the year of disposal. Depreciation is provided at the following rates: Buildings Over 25 years, straight line basis Machinery 20% per annum, reducing balance basis During the year ended 31 January 2023, Garett added an exiension to the buildings at a cost of RM13,600. He also acquired a new machine by paying a cheque for RM9,000 and trading in an old machine for RM11,000. The machine traded in had been acquired in August 2020 for RM22,000. REQUIRED (a) Calculate at 31 January 2023, for (i) Buildings and (ii) Machinery, the: 1. total cost 2. accumulated depreciation 3. net book value (13 marks) (b) Prepare the Machinery Disposals Account for the year ended 31 January 2023. No machine sales took place during the year. ( 4 marks) (c) Briefly explain why depreciation is provided on Buildings and Machinery but not on Frechold Land. (4 marks) (d) Name four causes of depreciation. (4 marks) [25 Marks]