Depreciation Machinery and Office Furniture Q3

Q.
Axisrata Sdn Bhd maintains its fixed asset at cost. Depreciation provision accounts, one for each type of asset, are in use. At 31 December 2013, the position was as follows:-

The following additions were made during the financial year ended 31 December 2014:

• Machine RM16,000; office furniture RM460
• A machine bought in 2010 for RM1,600 was sold for RM360 during that year
• The rates of depreciation are: Machine 20 per cent, office furniture 10 per cent, using the straight line basis, calculated on the assets in existence at the end of each financial year irrespective of date of purchase.

Show:

(i) Machinery Account

(ii) Office Furniture Account

(iii) Depreciation accounts for Machinery

(iv) Depreciation accounts for Office Furniture

(v) Machinery Disposal Account

(vi) Balance Sheet (Extract) at that date

(20 marks, 2015 Q3)

A.

Ref: