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Answer on Finance Question for sugunah

Question #41430
a. PK Berhad purchased a Truck for RM85, 000 on 1st of January 2013. It was paid by cash with a trade-in of RM15, 000 on an older lorry. The lorry was purchased on the 1st of January 2009 for RM70, 000 and expected to have a salvage value of RM5, 000 at the end of 5 years of its useful life.


i. Calculate the depreciation per annum on the lorry. (3 marks)

ii. Calculate the net book value of the lorry as at 31st December 2012. (6 marks)

iii. Record the journal entry for the purchase of the truck. (6 marks)
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