Q.

3 T-account
Dr Machinery cost a/c Cr
20_5 RM RM Straight line method
1-Jan bal b/d 23,000 31-Dec bal c/d 23,000
1-Jan bal b/d 23,000 10-Jan Disposal 23,000 (23,000-3000)/4

Extract SOPL at the end o

Fixed asset
Dr Machinery acc.dpn.a/c Cr machinery
20_5 RM RM Dpn exp
31-Dec bal c/d 5000 31-Dec acc.dpn.exp 5000 Gain of disposal

20_6 Extract SOFP at the end o

31-Dec bal c/d 10000 1-Jan bal b/d 5000 Fixed asset
31-Dec acc.dpn.epx 5000 machinery
10000 10000 cost
20_7 dpn exp
31-Dec bal c/d 15000 1-Jan bal b/d 10000 NBV
31-Dec acc.dpn.epx 5000
15000 15000

20_8
31-Dec bal c/d 20000 1-Jan bal b/d 15000
31-Dec acc.dpn.exp 5000
20000 20000

20_9
31-Dec disposal 20000 1-Jan bal b/d 20000

Dr Disposal account CR
RM RM
10-Jan machinery cost 23,000 10-Jan acc.dpn.exp 20000
10-Jan Gain of disposal 2000 10-Jan disposal 5000
25,000 25000
Disposal of fixed asset

Dr Motor van cost a/c Cr Reducing Balance

20_6 RM RM Fixed asset
1-Jun bal b/d 10,800 31-May bal b/d 10,800 20_6
1-Jun bal b/d 10,800 1-Jun Disposal 10,800 Motor van
cost
dpn 10800*33.33%
NBV

20_7
dpn 7200*33.33%
NBV

Dr Motor van accu.dpn a/c Cr 20_8

20_6 RM RM dpn 4,800*33.33%
31-May bal c/d 3,600 31-May dpn exp 3,600 NBV
20_7
31-May bal c/d 6,000 1-Jun bal b/d 3,600
31-May dpn exp 2,400 Extract SOPL at the end of May
6,000 6,000 dpn
20_8 gain of disposal
31-May bal c/d 7,600 1-Jun bal b/d 6,000
31-May dpn exp 1,600
7,600 7,600 Extract SOFP at the of May
Fixed asset
20_9 Motor van
31-May bal c/d 7,600 31-May dpn exp 7,600 cost
dpn
NBV
Dr Disposal a/c CR
20_9 RM RM
1-Jun motor van cost 10,800 1-Jun accu.dpn.exp 7,600
1-Jun disposal 3000
1-Jun lose of disposal 200
10,800 10800
Straight line method
RM
(23,000-3000)/4 5000

Extract SOPL at the end of December 31 20_5-20_820_9

Fixed asset
machinery
-5000
Gain of disposal 2000

Extract SOFP at the end of Decemer 31 20_5 20_6 20_7 20_8 20_9
Fixed asset
machinery
23,000 23,000 23,000 23,000
-5000 -10000 -15000 -20000
18,000 13,000 8,000 3,000
 RM

10800
10800*33.33% -3600
7200

7200*33.33% -2,400
4,800

4,800*33.33% -1600
3,200

OPL at the end of May 20_6 20_7 20_8 20_9

-3600 -2,400 -1600
3,400

OFP at the of May 20_6 20_7 20_8 20_9

10,800 10,800 10,800 10,800