Situation 1

Part
A
Depreciatio
n per
annum
Depreciatio
n per
annum
Depreciatio
n per
annum

Date
Year
Year
Year
Year

1
2
3
4

Part B
Dr
Year 1

=
=

(Cost - scrap value)

Useful life (years)
(2600-200)
4

RM 600 per annum

Beginning
Value

Depreciation Book Value at

per annum the year-end

2600
2000
1400
800

Cash

600
600
600
600

2000
1400
800
200

Office Equipment
RM2,600.00
Year 1
RM2,600.00

###
###

Balance c/f

###
###

Balance b/f

Year 1

Accumulated Depreciation of Office Equipment

Cr
Balance c/f
RM600.00
Year 1
Depreciation RM600.00
RM600.00
RM600.00

Year 2

Balance c/f

RM1,200.00
RM2,600.00

Year 2

Balance c/f

Year 2

Dr

RM2,600.00
RM2,600.00

Cr

Year 2

Balance b/f RM600.00

Depreciation RM600.00
###

Part 3
Depreciation are part of the original cost in a fixed asset consumed during the period of use in the
to be continuous in its original purchased state. Depreciation are required to be provided by busin
asset. However fixed asset do have physical deterioration such as wear and tear, depletion , and o
in accounting, the word depreciation is used calculate the amount of

Situation 2
Part
A
Depreciatio
n per
annum
Depreciatio
n per
annum
Depreciatio
n per
annum

Date
Year
Year
Year
Year
Year
Year
Year
Year

1
2
3
4
5
6
7
8

=
=
=

RM 1050 per annum

Beginning
Value

Depreciation Book Value at

per annum the year-end

10000
8950
7900
6850
5800
4750
3700
2650

Dr
Year 1

Year 2

Dr

(Cost - scrap value)

Useful life (years)
(10000-1600)
8

Cash

1050
1050
1050
1050
1050
1050
1050
1050

8950
7900
6850
5800
4750
3700
2650
1600

Vehicle
RM10,000.00
Year 1
RM10,000.00

Balance b/f RM10,000.00

RM10,000.00

Year 2

Cr
Balance c/f

###
###

Balance c/f

###
###

Year 1

Accumulated Depreciation of Vehicle

Cr
Balance c/f RM1,050.00
Year 1
Depreciation
###
RM1,050.00
###

Year 2

Balance c/f

RM2,100.00
RM2,100.00

Year 2

Balance b/f
Depreciation

###
###
###

during the period of use in the business. However not every item are able to be maintain
uired to be provided by business owner are because in account we do not write off fixed
ear and tear, depletion , and others. In order to credit the amount of loss from fixed asset
used calculate the amount of loss cause by the fixed asset.

Situation 2
Part
A
Depreciatio
n per
annum
Depreciatio
n per
annum
Depreciatio
n per
annum

Date
Year
Year
Year
Year

1
2
3
4

=
=
=

RM 3000 per annum

Beginning
Value

Depreciation Book Value at

per annum the year-end

16000
13000
10000
7000

Dr
Year 1

Year 2

Dr

(Cost - scrap value)

Useful life (years)
(16000-4000)
4

Cash

3000
3000
3000
3000

13000
10000
7000
4000

Vehicle
RM16,000.00
Year 1
RM16,000.00

Balance b/f RM16,000.00

RM16,000.00

Year 2

Cr
Balance c/f

###
###

Balance c/f

###
###

Year 1

Accumulated Depreciation of Vehicle

Cr
Balance c/f RM3,000.00
Year 1
Depreciation
###
RM3,000.00
###

Year 2

Balance c/f

RM6,000.00
RM6,000.00

Year 2

Balance b/f
Depreciation

###
###
###

Description
Inventory expense
Inventory

Debit

Credit
3440

3440

ii

Description
Debit
Credit
Wages & Salaries
680
Accrued Wages & Salaries
680

iii

Description
Rent Prepaid
Cash

iv

Description
Debit
Credit
van running cost
144
Accrued van running cost
144

Description
Debit
Credit
Allowance of doubtful de
182
Cash in bank
182

vi

Description
Debit
Credit
Depreciation expense
760
Accumulated depreciation of offi
760
Depreciation expense
2500
Accumulated depreciation of vehi 2500

Debit
Credit
460
460

Name of account
Purchase and sales
inventory
Closing stock
Cash at Bank
Cash in hand
Capital account 1
march 2010
drawings
Office furniture
Rent
Accrued Rent
Wages & salaries
Accrued wages &
salaries
discount
Account receivable &
account payable
Inventory 1 march
2010
Depreciation of fixed
assets
Accumulated
depreciation
Allowance for
doubtful debts 1
march
2010
Delivery
van
Van running costs
Van running cost
owings
Bad debts written
off

Trial balance
DR
CR
RM
RM
185600
314330

Adjustment
DR
CR
RM
RM
3440

Adjusted Trail Balance

DR
RM
185600
4800

3440
8200
648

460

11640
648

22800
34200
5800
6800

34200
5800
6800
460
63480

460
680

62800

680
1640

320

1640

24632

10490

24632

8240
810

3260

3260
3260

182
7500
1230

7500
1374

144
144

1460
348750

348750

8166

182
8166

351834

djusted Trail Balance

CR
RM
314330

460
22800

680
320
10490

810
3260
182

144
182
353658