Zaida started his business on 1 January 2019. On the same day, he purchased two motor vehicles for RM25,000 each by cheque. On 1 May 2020, he bought another motor vehicle on credit from JMW Sdn Bhd for RM64,500.

He has decided to depreciate the motor vehicles at the rate of 20% per annum on reducing balance basis.

Required:

Prepare for Zaida:

a) Motor vehicle account for 2019 and 2020; (2 marks)

b) Accumulated depreciation account for 2019 and 2020; (4 marks)

c) An extract of statement of profit or loss for the years ended 31 December 2019 and 2020; and (1 mark)

d) An extract of statement of financial position as at 31 December 2019 and 2020.

(3 marks)

[Total: 10 marks]