Answer Happy

Exercises The financial statements of Setia Sdn. Bhd. as at 31 December 2015 are as follows: Non-current Accumulated Net book value assets Cost (RM) depreciation (RM) (RM) Machinery 210,000 105,000 105,000 Furniture 45,000 16,200 28,800 Below are the additional non-current assets purchased by Setia Sdn. Bhd. in the current year and all payments were made by cheque. Non-current assets Cost (RM) Date of purchase Machinery 90,000 7 March 2016 Furniture 18,600 26 June 2016 Additional information: Depreciation for machinery is to be provided at 25% per annum on cost and furniture at 20% per annum on net book value. ii All depreciations are calculated on yearly basis including the year of purchase. You are required to prepare the following for the year ended 31 December 2016 of each assets: Show the calculation of depreciation. (4 marks) (b) Non-current assets account (4 marks) (c) Accumulated depreciation account. (4 marks) (d) Statement of Financial Position (extract) as at 31 December 2016 (9 marks) (e) State FOUR (4) reasons to calculate depreciation for non-current assets (4 marks)