Tutorial - Financial Statement with adjustment
*Kindly tutor use Microsoft Excel to do the working and answers for all questions at below.
*Hope tutor use the right format for SOPL & SOFP
Mark Lamb has purchased a new price of equipment to help speed up his production line. The equipment cost RM25,000 and is expected to last for five years. At the end of this period the equipment can be traded in for the value of RM4,000. Required: a Calculate the depreciation on the asset using both methods. b Show the balance remaining on the van at the end of each of the 5 years for each method. C Assume that 30% is to be used for the reducing balance method.A company starts in business on 1 January 2019. Depreciation is at the rate of 25% per cent per annum, using straight line method. complete month's ownership needs one month's depreciation. 2019 Bought two machineries for RM6,900 each on 1 January Required: 10 a) Prepare the machinery account 11 12 b) Prepare the depreciation expenses account 13 14 c) Prepare the accumulated depreciation 15 16 17 18C D Nila opens a business in Petaling Jaya. Below is the trial balance as at 31 December 2019: Debit Credit RM RM Purchase and Sales 142,000 285,560 Discount 580 Return 700 500 Rent and rates 3,600 Capital 87,000 Drawing 5,000 Insurance 300 Bank 161,145 Accounts receivables and accounts payable 4,500 3,625 Office Furniture (cost) 6,700 Accumulated depreciation for office furniture 1,340 Machinery (cost) 20,000 Accumulated depreciation for machinery 3,000 Commission receivable 9.000 Salaries 26,100 Loans - Shahid 5,000 Inventory as at 1 January 2019 12,000 Utilities 9,600 Sundry expenses 2,400 Carriage inwards 800 Allowance for doubtful debts 400 395,425 395.425Straight Line method Depreciation Cost - Residual value Estimated no of useful life Example 1: Abdul buys a machine costing RM48,000 and the machine is expected to be used for 10 years. At the end of the tenth year, the machine is expected to be sold as scrap metal for RM1,000. Required: Calculate the depreciation. Depreciation = % fixed depreciation x original cost Example 2: Bakar buys a new motor vehicle at a cost of RM100,000 and it has been decided that the vehicle is to be depreciated at a rate of 10% per annum on cost. Reducing Balance Method A machine is bought for RM20,000 and depreciation is estimated at 20% per annum on a reducing balance. Required: Calculate for the next five years, the annual depreciation charges, the net book values, and the estimated scrap valueThe Trial Balance of Ahmad and Co as at 31 December 2016 is shown as below: Debit Credit RM RM Capital 10,000 Drawings 100 Machinery 3,000 Allowance for depreciation of Machinery 600 Cash at bank 4,500 10 Cash in hand 100 11 Sales 62,550 12 Purchases 50,000 13 Rent 3,000 14 Salaries 8,000 15 Stock, 1 January 3,000 16 Stationery 2,000 17 Utilities 400 18 Office expenses 300 19 Accounts receivables 2,000 20 Allowance for doubtful debts 150 21 Accounts Payable 2.500 22 Bad debts 100 23 Discount received 500 24 Discount allowed 200 25 Commission received 400 26 76,700 76,700
