ABFA1153 FINANCIAL ACCOUNTING 1 1 May 2019

Tutorial 9 – Accounting for Non-current assets

Section 4: Acc. Dep.: Furniture & Fittings Account
Question 1: 2008 RM 2008 RM
Land Account Jan 1 Bal b/d 4,500
2008 RM 2008 RM Dec 31 Bal c/d 8,775 Dec 31 Depn 4,275
Jan 1 Bal b/d 80,000 Dec 31 Bal c/d 130,000 8,775 8,775
2010 Bank 50,000 2009 2009
130,000 130,000 Jan 1 Bal b/d 8,775
2009 2009 Dec 31 Bal c/d 13,236 Dec 31 Depn 4,461
Jan 1 Bal b/d 130,000 Dec31 Bal c/d 130,000 13,236 13,236

Motor Vehicles Account CUBE Trading

2008 RM 2008 RM Statement of Financial Position (extract) as at 31 December
Jan 1 Bal b/d 250,000 Dec31 Bal c/2 250,000
Non-current assets 2008 2009
Jan 1 Bal b/d 250,000 Dec 31 Bal c/d 295,000 RM RM RM RM
Bank 45,000 Land 850,000 850,000
295,000 295,000
Motor Vehicles 250,000 295,000
Furniture & Fittings Account Less : Accum Dep (50,000) 200,000 (79,500) 215,500
2008 RM 2008 RM
Jan 1 Bal b/d 90,000 Dec31 Bal c/2 90,000 Furniture & Fittings 90,000 98,000
Less : Accum Dep (8,775) 81,225 (13,236) 84,764
Jan 1 Bal b/d 90,000 Dec 31 Bal c/d 98,000 1,131,225 1,150,264
Bank 8,000
98,000 98,000
Acc. Dep.: Motor Vehicles Account
2008 RM 2008 RM Workings : Depreciation
Jan 1 Bal b/d 25,000 Motor vehicles : 2008 –> 250,000 x 10% = RM25,000
: 2009 –> 295,000 x 10% = RM29,000
Dec 31 Bal c/d 50,000 Dec 31 Depn 25,000
50,000 50,000
Furniture & Fittings:
2009 2009 1.1.08 NBV 85,00 (90,000-4,500)
Jan 1 Bal b/d 50,000 31.12.08 Depn (4,275) (85,500 x 5%)
Dec 31 Bal c/d 79,500 Dec 31 Depn 29,500
1.1.09 NBV 81,225
79,500 79,500 New 8,000
ABFA1153 FINANCIAL ACCOUNTING 1 2 May 2019

89,225
31.12.09 Depn (4,461) (89,225 5%)
NBV 84,764

Question 2:

(a) Depn. Each = (96,000-24,000)/3= 2,4000

(b) Reducing balance method:

RM
Cost 96,000
Yr1 (-) Dep. (96,000 x 37%) (35,520)
NBV 60,480
Yr2 (-) Dep. (60,480 x 37%) (22,378)
NBV 38,102
Yr3 (-) Dep. (38,102 x37%) (14,098)
NBV 24,004