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Dalehe San Bod is a company whose financial year ends on 31 August. Below are the transactions of the company from 2006 to 2008:

a) Purchase a motor vehicle on 17/1/2006 for RM60,000.
b) Purchase machinery on 1/8/2006 for RM230,000.
c) Purchase a computer on 20/11/2007 for RM8,700.
d) Purchase a motor vehicle on 14/5/2008 for RM80,000.

The company uses the reducing balance method, with the following rates:
- 20% for machinery
- 10% for motor vehicles
- 10% for computers, calculated on a monthly basis

Sagot :

Sure, let's break down the depreciation calculations for Dalehe San Bod's assets using the given reducing balance method and depreciation rates for each transaction.

### Depreciation Terms:
- Reducing Balance Method: Depreciation is calculated based on the remaining balance of the asset at the beginning of each period.
- Depreciation Period: The time from the purchase date to the end of the financial year (31 August 2008).
- Depreciation Rates:
- Machinery: 20% per year
- Motor Vehicles: 10% per year
- Computers: 10% per year

### Calculation of Depreciation:

#### 1. Motor Vehicle Purchased on 11 July 2006 for RM60,000

- Purchase Date: 11 July 2006
- Cost: RM60,000
- Depreciation Rate: 10% per year
- Depreciation Period: From 11 July 2006 to 31 August 2008

Step-by-Step Calculation:
1. Calculate the number of years from 11 July 2006 to 31 August 2008:
- From 11 July 2006 to 31 August 2008: Approximately [tex]\(2 + \frac{(August - July + Days from 11 to end of July)}{12}\)[/tex]
- Thus, number of years = [tex]\(2 + \frac{(1 + 20)}{12} = 2 + \frac{21}{12} \approx 2 + 1.75 = 2.08\)[/tex] years.

2. Apply the reducing balance formula:
- Remaining Balance = 60,000 (1 - 0.10)^2.08

Depreciation Amount:
[tex]\[ \text{Depreciation amount} = RM49,897.14 \][/tex]

#### 2. Machinery Purchased on 1 August 2006 for RM230,000

- Purchase Date: 1 August 2006
- Cost: RM230,000
- Depreciation Rate: 20% per year
- Depreciation Period: From 1 August 2006 to 31 August 2008
- Number of years = [tex]\(2\)[/tex] years (no additional months required)

Step-by-Step Calculation:
1. Remaining Balance = 230,000
(1 - 0.20)^2

Depreciation Amount:
[tex]\[ \text{Depreciation amount} = RM147,200.00 \][/tex]

#### 3. Computer Purchased on 20 November 2007 for RM8,700

- Purchase Date: 20 November 2007
- Cost: RM8,700
- Depreciation Rate: 10% per year
- Depreciation Period: From 20 November 2007 to 31 August 2008

Step-by-Step Calculation:
1. Calculate the number of years from 20 November 2007 to 31 August 2008:
- From 20 November 2007 to 31 August 2008: Approximately [tex]\( \frac{(Days from 20 November to end of November) + December to August}{12}\)[/tex]
Number of years = [tex]\( \frac{10}{30} + \frac{9}{12} = 0.03 + 0.75 \approx 0.78 \)[/tex] years.

2. Apply the reducing balance formula:
- Remaining Balance = 8,700 (1 - 0.10)^0.78

Depreciation Amount:
[tex]\[ \text{Depreciation amount} = RM8,038.98 \][/tex]

#### 4. Motor Vehicle Purchased on 14 May 2008 for RM80,000

- Purchase Date: 14 May 2008
- Cost: RM80,000
- Depreciation Rate: 10% per year
- Depreciation Period: From 14 May 2008 to 31 August 2008

Step-by-Step Calculation:
1. Calculate the number of years from 14 May 2008 to 31 August 2008:
- From 14 May 2008 to 31 August 2008: Approximately [tex]\( \frac{May to August}{12} = \frac{4}{12} \approx 0.33 \)[/tex] years.

2. Apply the reducing balance formula:
- Remaining Balance = 80,000
(1 - 0.10)^0.33

Depreciation Amount:
[tex]\[ \text{Depreciation amount} = RM77,920.30 \][/tex]

#### Summary of Depreciation Results:

1. Motor Vehicle (11 July 2006):
- Depreciation amount: RM49,897.14

2. Machinery (1 August 2006):
- Depreciation amount: RM147,200.00

3. Computer (20 November 2007):
- Depreciation amount: RM8,038.98

4. Motor Vehicle (14 May 2008):
- Depreciation amount: RM77,920.30

These calculations provide the depreciated values of the assets for Dalehe San Bod as of 31 August 2008.