Reference no: EM132595738

Ahmad started a business on 1 January 2006 and the transactions below show the fixed asset bought and sold until 31 December 2008.

1 Jan 2006 : An office equipment was bought at RM24,000 by cash. On the same date, a used lorry and a used van were bought from Mas Auto Ltd at the price of RM64,000 and RM24,990 respectively.

14 May 2006 : Bought four motorcycles at equal price for the use of sales staff at the total price of RM30,000.

10 Nov 2007 : Company expected that customer demand will increase. Therefore, two lorries were bought at the price of RM87,000 each.

4 Feb 2008 : The lorry, which was bought at the cost of RM64,000 on 1 Jan 2006 was sold at RM60,700.

23 July 2008 : A motorcycle, bought on 14 May 2006, was sold at RM6,000.

All vehicles are depreciated at the rate of 15% annually and the office equipment at 10% annually. Depreciation method used is the reducing balance method and is calculated according to monthly basis.

Required:

Question 1: Prepare the following accounts on 31 December 2008:

i. Office equipment account

ii. Motor vehicles account

iii. Accumulated depreciation for Office equipment account

iv. Accumulated depreciation for Motor vehicles account

v. Disposal account for Motor vehicles