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

RM$000$ RM$000$ RM$000$

Motor Vehicles $704822$

$$ On $1$ March $2023,$ Hamdan bought a new motor vehicle for RM$16,000.$

$$ On $30$ April $2023,$ a motor vehicle which was bought on $1$ July $2022$ was sold

for a price of RM$1,400.$ The cost of the motor vehicle was RM$15,000.$

$$ On $30$ June $2023,$ another motor vehicle which was bought on $1$ November

$2021$ cost RM$35,000$ 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.

$..\mathrm{.}4/-$

$4$ BBM$206/03$

$$ On $31$ August $2023,$ one more motor vehicle cost RM$20,000$ bought on $1$

February $2020$ was traded in with a new motor vehicle costing RM$45,000.$

Hamdan paid RM$32,000$ by cheque to settle the full payment of the new motor

vehicle.

$$ Hamdan$$s 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 year$$s 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$)$