REVISION 4 : TOPIC 9 [ACCOUNTING FOR NON-CURRENT ASSETS]

A new machine at the price of RM45,000 and was given the trade discount of 10%. The transportation cost of RM1,000 and installation cost of RM1,500 were also paid. What is the cost of the machine?

• RM38,000

• RM40,500

• RM43,000

• RM52,200

The cost of equipment is RM23,000 and is expected to have a residual value of RM3,000 after 10 years. Using the straight line method, what is the depreciation expenses each year?

• RM1,000

• RM1,500

• RM2,000

• RM2,300

What is the gain or loss arising from disposal of a machine bought at the cost of RM20,000, with accumulated depreciation of RM5,600 and trade in value of RM12,000?

• Gain RM1,500

• Gain RM2,400

• Loss RM1,500

• Loss RM2,400

A car at cost of RM20,000 and residual value of RM2,000 is expected to be used for five years. What is the accumulated depreciation for year 5, if straight line method is used.

• RM3,600

• RM4,000

• RM18,000

• RM20,000

A machine was purchased at the cost of RM50,000 on 1 September 2019, residual value RM2,000 and was depreciated at 12% per annum using straight line method and monthly basis. What is the depreciation expenses for the year ended 31 December 2019?

• RM5,760

• RM6,000

• RM2,000

• RM1,920

A machine was purchased at the cost of RM50,000 on 1 September 2019, residual value RM2,000 and was depreciated at 12% per annum using monthly basis. What is the accumulated depreciation for the year ended 31 December 2020, if the company is using reducing balance method.

• RM11,280

• RM10,828.80

• RM7,760

• RM7,449.60

A machine was purchased at the cost of RM50,000 on 1 September 2019, residual value RM2,000 and was depreciated at 12% per annum using monthly basis. What is the accumulated depreciation for the year ended 31 December 2020, if the company is straight line method.

• RM12,000

• RM11,520

• RM8,000

• RM7,680

An asset was purchased on 1 July 2018 for cash of RM104,000. It is a policy of the business to depreciate its asset using the reducing balance method at the rate of 15% per annum on yearly basis. Calculate the asset's net book value on 31 December 2020, assuming that the business closes its account on that date.

• RM63,869

• RM63,877

• RM63,883

• RM63,889

A machinery was purchased for RM10,000. The transportation cost incurred RM400 and an additional RM1,200 was paid to have it installed, ready for its intended use. After being used for 3 months, it broke down and had to be repaired at a cost of RM200. In the statement of financial position at the end of the period, the cost of the machinery would be shown as

• RM10,400

• RM10,200

• RM11,400

• RM11,600

• RM11,800

Mia trading owns machinery that costs RM60,000. It is the policy of the business to charge depreciation over its useful life of 5 years. At the end of its useful life, it is estimated that its residual value is RM4,000. What is depreciation expense during the year.

• RM12,000

• RM12,800

• RM11,200

• RM800