## Answers

Depreciation (1 July 2014 until 30 June 2015) : RM 5,500 Machineries RM 2,350 Furniture and fittings (RM 1,950 + RM 400) Workings: Machineries (Straight line method): (Cost - Salvage Value) / Estimated useful life (RM 55,000 - 0) / 10 Years RM 5,500 per year Furniture and fittings (Reducing balance method): Book value * Depreciation rate Purchase (1 october 2014) RM 13,000 * 20% * 9/12 RM 1,950 Purchase (1 January 2015) RM 4,000 * 20% * 6/12 RM 400

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