Q.
a) A company, which makes up its financial statements annually to 31 December, provides for depreciation if its machinery at the rate of 15% per annum using the reducing balance method.
On 31 December 2011, the machinery consisted of three items purchased as shown:-
Item particulars --------------------------- (RM)
On 1 January 2009 Machine A Cost 4,000
On 1 September 2010 Machine B Cost 6,000
On 1 May 2011 Machine C. Cost 5,000
Required:-
Show the calculations of the figures for depreciation provision for the year 2011.
b) Discuss five (5) causes of depreciation on fixed assets.
(10 marks each, 2012 Q8)
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