QUESTION $3$

PART A

Donna records her bank and cash transactions in a $3-$column Cash Book. On $1$ August $2021,$ she had a cash balance of RM$800$ and a bank overdraft of RM$600.$ The following transactions took place during August $2021$:

$\backslash$table$[[$Date$,$Transaction,RM$],[1,\backslash$table$[[$Received cheque from Jim in full settlement of his balance after$],[$deducting $2\%$ cash discount $($All amounts are pre$-$discount$).]],2,000],[2,$Donna withdrew cash for personal use.,$500],[3,$Sold goods for cash RM$1,100.,1,100],[8,$Paid cash into bank for business use.,$800],[9,$Paid office rental by cheque for month of August $2021.,1,950],[13,\backslash$table$[[$Paid by cheque to Elisa in full settlement of a debt after deducting $2\%],[$cash discount $($All amounts are pre$-$discount$).]],2,000],[20,\backslash$table$[[$Received a cheque from Gilbert, one of the employees who borrowed the$],[$money last month for his mother's medical expenses.$]],500],[21,$Made cash sales which was paid straight into the bank,$1,100],[22,\backslash$table$[[$Received a cheque from Tom in full settlement of his balance after$],[$deducting cash discount of $2\%($All amounts are pre$-$discount$).]],100],[25,$Purchased stationery by cash.,$12,000],[28,\backslash$table$[[$Issued cheque to Christine in full settlement of her balance after$],[$deducting cash discount of $3\%($All amounts are pre$-$discount$).]],1,500],[30,$Paid salaries by cheque.,$],[30,\backslash$table$[[$Issued cheque to Johnny in full settlement of his balance after deducting$],[$cash discount of $3\%($All amounts are pre$-$discount$).]],]]$

Donna has successfully arranged additional overdraft facility of RM$20,000$ with the bank for the working capital.

Page $4$ of $7$

Required

Write up the three$-$column cash book of Donna for the month of August $2021.$

$(15$ marks$)$

PART B

Andrew Enterprise has the following details of machinery:

$\backslash$table$[[\backslash$table$[[$Date of$],[$purchase$]],$Cost $($RM$),$Depreciation,Basis,Rate$],[1$ January $2018,95,000,\backslash$table$[[$Reducing balance$],[$method$]],\backslash$table$[[$Month to$],[$month$]],20\%$ p$.$a$.]]$

During the year of $2020,$ Andrew Enterpise purchased a higher capacity machine as the existing one has much lower capacity:

$\backslash$table$[[$Cost $($RM$),\backslash$table$[[$Installation cost$],[($RM$)]],$Date of purchase$],[85,300,14,700,8$ July$]]$

On $31$ December $2020,$ the machinery which was purchase in $2018$ is disposed for RM$42,000$ for cash.

Required

Prepare the following accounts for the financial period ended $31$ December $2020$:

a$)$ Machinery accounts

$(2$ marks$)$

b$)$ Accumulated depreciation accounts

$(2$ marks$)$

c$)$ Disposal of motor vehicle accounts

$(3$ marks$)$

d$)$ List TWO $(2)$ reasons why depreciation is provided to assets.

$(3$ marks$)$

$($Total Part B $10$ marks$)$