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UNIVERSITI TEKNOLOGI MARA

ASSIGNMENT 2

COURSE : TAXATION II
COURSE CODE/STATUS : ACC 115
ASSIGNMENT 1 : QUESTION 1- DEPRECIATION

DUE DATE : DURING SEMINAR 4: 13 SEPTEMBER 2009

INSTRUCTION TO CANDIDATES:
i. This assignment consists of TWO (2) questions.
ii. Answer all questions. Start each answer on a new page.
iii. Used your own handwriting
iv. Show all the workings needed
iv. Submission of assignment:
When sending your assignments, it is important to:
• Number the page and stapled them together. Do not use pins or paperclips as these will catch on other
assignment in the sorting, and your assignment could be lost.
• Attach an assignment information sheet, completed in full, to the front of each of your assignments. Make
sure you include your ID number
• Sign a declaration of own work
“I declare the following to be my own work as understood by the University’s Policy on Plagiarism, unless otherwise
stated”

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Signature
v. Penalties
Penalties will be imposed to late assignments. 5% per day.
QUESTION 1

The following is the Balance Sheet (extract) of SEDAR Sdn. Bhd. as at 30 June 2006.

Fixed Assets Cost (RM) Net Book Value (RM)

Equipment 180,000 125,000

Motor Vehicle 250,000 175,000

Additional information:

1. It is a policy of the company, to provide depreciation as follows:-

Asset Method
Equipment 20% on reducing balance method; yearly basis
Motor Vehicles 15% on cost; yearly basis

2. During the year ended 30 June 2008, the following fixed assets were
purchased:

Fixed assets Date of purchase RM

Motor vehicle 2 October 2007 35,700 (including road tax RM700)
Equipment 15 October 2007 25,000
Motor vehicle 1 February 2008 44,500(excluding delivery charges
RM500)
Equipment 1 March 2008 20,000

(All payments are made by cheques)

Required:

You are required to prepare:

i) Fixed assets accounts

ii) Provision for depreciation account for each of the fixed assets
iii) Balance sheet (extract) as at 30 June 2008.