Reference no: EM132583810

Mr Cheung commenced business on 1 January 2015 and makes his accounts to 31 December every year. For the year ended 31 December 2015, bad debts written off amounted to RM1,200. It was also found necessary to create a allowance for doubtful debts of RM20,000. Total accounts receivable outstanding was RM600,000.

• In 2016, debts amounting of RM9,000 proved bad and written off. As at 31 December 2016, total debts outstanding were RM560,000. It was decided to bring the allowance up to 5% of this figure on that date. A bad debt recovery of RM2,100 was made in 2016.
• In 2017, RM23,510 were written off during the year. As at 31 December 2017, total debts outstanding were RM420,000. The allowance for doubtful debts is 4%. And, another recovery of RM3,200 was made in respect of debts written off in 2016.

From the above details, draw up for years of 2014, 2015 and 2016:

Question (a) the Plant and Motor Vehicles Accounts

Question (b) the Accumulated Depreciation Accounts for both assets

Question (c) the relevant extracts from the Statement of Financial Position as at the end of each year.