QUESTION
Berjasa Enterprise, a cleaning service company, commenced trading on January During the three years to December the company bought and sold motor vehicles for use in the business as follows:
tabletableDate ofPurchasetableRegistrationNumberCost RMtableDate ofDisposaltableDisposalProceeds RM February J April May WGM March DAJ
The firm provides for depreciation of its motor vehicles at the rate of per annum of the straight line basis, with no residual value.
A full year's depreciation is provided for motor vehicles bought before July but no depreciation is provided in the year of disposal.
Required:
Prepared in the books of Berjasa Enterprise for the period January to December balancing the accounts each year, the following:
a Using the straight line basis for depreciation:
i Motor Vehicles Account
ii Provision for Depreciation Account
iii Motor Vehicles Disposal Account
b Using the reducing balance basis for depreciation at the rate of per annum:
i Provision for Depreciation Account
ii Motor Vehicles Disposal Account
