90.2K

Verified Solution

Link Copied!

QUESTION 2 (20 marks) (25 minutes) The Statement of Financial Position (extract) of Sharp View Trading as at 31 August 2020 is as follows: Below is the additional information related to the above non-current assets: 1. An auto-refractor machine used to measure a client's refractive error for prescription of eyeglassfs or contact lenses was acquired for RM21,000 on 30 April 2018. Due to lack of cash, the owner disposed this asset. This machine was disposed on 31 October 2020 at a price of RM16,500. 2. A lensometer an instrument used to measure the power of an existing lens was purchased on 30 November 2019 at a cost of RM11,000. This lensometer was traded in on 30 November 2020 with a new lensometer. The purchase price of new lensometer was RM14,000. The trade in value for lensometer was RM9,000 and the remaining amount was paid by cheque. Annual depreciation for machinery had been provided at 10 percent per annum on cost on monthly basis. Required: For the year ended 31 August 2021, prepare: (a) Machinery account. (6 marks) (b) Accumulated depreciation on machinery account. (8 marks) (c) Disposal of machinery account. (6 marks)

QUESTION 2 (20 marks) (25 minutes) The Statement of Financial Position (extract) of Sharp View Trading as at 31 August 2020 is as follows: Below is the additional information related to the above non-current assets: 1. An auto-refractor machine used to measure a client's refractive error for prescription of eyeglassis or contact lenses was acquired for RM21,000 on 30 April 2018. Due to lack of cash, the owner disposed this asset. This machine was disposed on 31 October 2020 at a price of RM16,500. 2. A lensometer an instrument used to measure the power of an existing lens was purchased on 30 November 2019 at a cost of RM11,000. This lensometer was traded in on 30 November. 2020 with a new lensometer. The purchase price of new lensometer was RM14,000. The trade in value for lensometer was RM9,000 and the remaining amount was paid by cheque. Annual depreciation for machinery had been provided at 10 percent per annum on cost on monthly basis. Required: For the year ended 31 August 2021, prepare: (a) Machinery account. (6 marks) (b) Accumulated depreciation on machinery account. (8 marks) (c) Disposal of machinery account. (6 marks)

Answer & Explanation Solved by verified expert

See Answer