TUTORIAL 2 QUESTION 1 From the following, calculate the value of capital expenditure and revenue expenditure.

RM 12,345 110 341 649 996 432

Purchase of new van Road tax Cost of repainting van each year Insurance Refurbishment of new van Petrol costs

QUESTION 2 On 1 July 20X6 there was a balance of RM600 in the Provision for Doubtful Debts Account and it was decided to maintain the provision at 5% of the debtors at each year-end. The debtors at 30 June for the next three years were: RM 15,000 10,000 10,000

20X7 20X8 20X9

Show the provision for doubtful debts account for the period 1.7.X6 to 30.6.X9

QUESTION 3 The debtors figures below have been extracted from the end of year final accounts of Hope Ltd, for a four year period: 2011 2012 2013 2014 RM4,000 RM6,000 RM6,000 RM3,000

The directors have decided to create a provision for doubtful debts equal to 4% of outstanding debtors at the year-end. Construct the provision for doubtful debts account for this period of time - assuming no prior provision existed in the books of Hope Ltd.

QUESTION 4

A delivery vehicle costs RM25,000 and is expected to last 5 years. At the end of the five years it is expected to have a scrap value of RM2,000. Calculate the deprecation for each year using: (a) (b) Straight-line method Reducing balance method (using a rate of 40%)