Question 4 a. Ahmad bought a new equipment at RM120,000 on 1 July 2020. He was...

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Question 4 a. Ahmad bought a new equipment at RM120,000 on 1 July 2020. He was undecided whether to depreciate the equipment using straight line method or reducing method at 20% per annum. The equipment is expected to have no residual value. You are required to calculate the amount of depreciation to be charged against each financial year ending 31 December 2020, 31 December 2021 and 31 December 2022 using the straight-line method and reducing balance method. Show your answer in the following format: Financial Year ending: Straight Line Method RM Reducing Balance Method RM 31 December 2020 31 December 2021 31 December 2022 b. The following are balances brought forward from 31 December 2021 for Kitty Deco Center: Motor Vehicles Less: Provision for depreciation (6 marks) RM RM 100,000 (20,000) 80,000 The motor vehicles were depreciated at 15% per annum using reducing balance method. Kitty bought a new vehicle on 1 October 2022, cost of the new vehicle was RM120,000. You are required to prepare the following accounts for financial year ending 31 December 2022: i. The Motor Vehicle Account ii. The Provision for Depreciation Account (9 marks) Question 4 a. Ahmad bought a new equipment at RM120,000 on 1 July 2020. He was undecided whether to depreciate the equipment using straight line method or reducing method at 20% per annum. The equipment is expected to have no residual value. You are required to calculate the amount of depreciation to be charged against each financial year ending 31 December 2020, 31 December 2021 and 31 December 2022 using the straight-line method and reducing balance method. Show your answer in the following format: Financial Year ending: Straight Line Method RM Reducing Balance Method RM 31 December 2020 31 December 2021 31 December 2022 b. The following are balances brought forward from 31 December 2021 for Kitty Deco Center: Motor Vehicles Less: Provision for depreciation (6 marks) RM RM 100,000 (20,000) 80,000 The motor vehicles were depreciated at 15% per annum using reducing balance method. Kitty bought a new vehicle on 1 October 2022, cost of the new vehicle was RM120,000. You are required to prepare the following accounts for financial year ending 31 December 2022: i. The Motor Vehicle Account ii. The Provision for Depreciation Account (9 marks)