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Question 3 Hamdan is a sole trader who provides the following information. Statement of Financial Position ( extract ) as at 1 January 2 0

Question 3
Hamdan is a sole trader who provides the following information.
Statement of Financial Position (extract) as at 1 January 2023
Non-current assets Cost Accumulated
depreciation
Net book
value
RM000 RM000 RM000
Motor Vehicles 704822
On 1 March 2023, Hamdan bought a new motor vehicle for RM16,000.
On 30 April 2023, a motor vehicle which was bought on 1 July 2022 was sold
for a price of RM1,400. The cost of the motor vehicle was RM15,000.
On 30 June 2023, another motor vehicle which was bought on 1 November
2021 cost RM35,000 was completely written off due to a serious road
accident. The insurance company agreed to compensate 70% of the net
book value of the motor vehicle.
...4/-
4 BBM206/03
On 31 August 2023, one more motor vehicle cost RM20,000 bought on 1
February 2020 was traded in with a new motor vehicle costing RM45,000.
Hamdan paid RM32,000 by cheque to settle the full payment of the new motor
vehicle.
Hamdans depreciation policy is as follows:
i. Motor vehicles are depreciated at 20% per annum on cost (an
estimated useful life of all vehicles are 5 years).
ii. To charge a full years depreciation in the year of purchase but no
depreciation is charged in the year of disposal.
Required:
Prepare the following accounts for the year ended 31 December 2023:
a. Motor vehicles account. (4 marks)
b. Provision for depreciation account. (5 marks)
c. Disposal account. (6 marks)

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