Question $3$

Hamdan is a sole trader who provides the following information.

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.

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$)$