Question 1 1. Justin is the sole trader of DMK Trading who maintains his non-current assets at cost. On 1 January 2021, he owned the following non-current assets which had been depreciated on a monthly basis. Non-Current Cost Accumulated Depreciation Rate Assets Depreciation RM RM % Premise 420,000 63,000 15% on cost 115,500 16,700 10% on cost Motor vehicle Office equipment 12,000 1,200 5% on cost Current assets Bank 150,000 The accounting year end for the business is on 31 December every year. During the year ended 31 December 2021, the following transactions occurred: i. On 1 July 2021, the company purchase a new motor vehicle of RM65,000 on credit from Nissan Sdn Bhd. II. The business also renovated the premise. A total cost of RM45,000 was paid by issuing a cheque on 1 January 2021. You are required to show the following for the year ended 31 December 2021 Prepare journal entries for the transaction in i and ii. (a) (b) Non-current assets account. Show your working. (b) Accumulated depreciation of non-current assets account. Show your working (C) Extract Statement of Financial Position (extract) as at 31 December 2021.

Question 1 1. Justin is the sole trader of DMK Trading who maintains his non-current assets at cost. On 1 January 2021, he owned the following non-current assets which had been depreciated on a monthly basis. Non-Current Cost Accumulated Depreciation Rate Assets Depreciation RM RM % Premise 420,000 63,000 15% on cost 115,500 16,700 10% on cost Motor vehicle Office equipment 12,000 1,200 5% on cost Current assets Bank 150,000 The accounting year end for the business is on 31 December every year. During the year ended 31 December 2021, the following transactions occurred: i. On 1 July 2021, the company purchase a new motor vehicle of RM65,000 on credit from Nissan Sdn Bhd. II. The business also renovated the premise. A total cost of RM45,000 was paid by issuing a cheque on 1 January 2021. You are required to show the following for the year ended 31 December 2021 Prepare journal entries for the transaction in i and ii. (a) (b) Non-current assets account. Show your working. (b) Accumulated depreciation of non-current assets account. Show your working (C) Extract Statement of Financial Position (extract) as at 31 December 2021.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 53BE

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