Question

15 The following information is extracted from the books of Hajat & Co on 1 July 2015. Office equipment (cost) Accumulated depreciation RM68,000 RM18,800 RM49,200 On 12 August 2015, a computer at the cost of RM18,000 is sold at RM15,100. The computer is bought on 30 April 2014. On 1 February 2016, the company buys two computers priced at RM9,800 each. The company policy is to depreciate office equipment at the rate of 15% annually using sfrang ht line :monthly basis You are required to prepare the following accounts on 30 June 2016: (a) Office equipment account. (b) Accumulated depreciation accourt. (c) Disposal account. 16 Abusiness selling clothes huvs two vehiclor on 1 Jon

Answer 1

	OFFICE EQUIPMENT ACCOUNT
01/07/2015	To balance b/d	68,000.00	12/08/2015	By disposal	18,000.00
01/02/2016	To cash	19,600.00
			30/06/2016	By balance c/d	69,600.00
		87,600.00			87,600.00
	ACCUMULATED DEPRECIATION ACCOUNT
12/08/2015	To disposal	3,375.00	01/07/2015	By balance b/d	18,800.00
			12/08/2015	By depreciation(on sold asset)	675.00
			30/06/2016	By depreciation	8,725.00
30/06/2016		24,825.00
		28,200.00			28,200.00
	DISPOSAL ACCOUNT
12/08/2015	To office equipment	18,000.00	12/08/2015	By cash/bank	15,100.00
12/08/2015	To Profit on sale	475.00	12/08/2015	by accumulated depreciation	3,375.00
		18,475.00			18,475.00
working note:-Profit /loss on sale of computer
computer purchased on 30/04/2014
deprecaition till 30/4/2015	18000*15/100	2,700.00
deprecaition 12th AUGUST	18000*15/100*3/12	675.00
	total depreciation		3,375.00
	book value=cost- total depreciation
	book value=18000-3375		14,625.00
	profit on sale=sale value -book value
	=15100-14625		475.00
Depreciation for the year 30/6/2016
	Depreciation (old asset)	(68000-18000)*15/100	7,500.00
	depreciation on new asset	19600*15/100*5/12	1,225.00
	total depreciation during the year	8,725.00