Question $3$:

Darryan Enterprise started a small business providing transportation services. He bring his own

car worth RM$80,000$ into the business as at $1^{st}$ January $2022.$ He then purchased two new car

worth RM$70,000$ each by cheque on $1^{st}$ March $2023.$ He will depreciate all cars using straight

line method and expect to use the cars for $5$ years. In June $2023,$ Darryan plans to sell his old

car for cash amounted to RM$45,000.$ He closes his account on the ${30}^{th}$ June yearly.

Required:

a$)$ Open the T$-$account for motor vehicles accounts, Disposal account, and accumulated

depreciation until $30$ June $2019.$

$(9$ marks$)$

b$)$ Please advise Darryan whether to sell or keep his old car. Open disposal account to find

the loss or gain on disposal.

$(5$ marks$)$