Overview
Assignment Questions:(Marks 15)
Q1. On 1st July 2019 Saudi & Company purchased machinery worth SR 40,000. On 1st July 2021 it buys additional machinery worth SR 10,000. On 30thJune 2022 half of the machinery purchased on 1st July 2019 is sold for SR 9,500. The company writes off 10% on the original cost. The accounts are closed every year on 31st December.
Required: (4 +3+2= 9 marks)
a) Show the machinery account for 4 years accounts are closed on December 31st every year.
b) Calculate the profit / loss on sale of machinery
c) Prepare a journal entry for sale of machinery
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Q2. Explain the types of Intangible Assets. Give numerical example to support your answer.
Note- Students should provide numerical examples based on their understanding. The answers may vary.(3marks)
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Q.3-From the following information of an impairment scenario (3 marks)
• Asset: A company's factory equipment.Original cost: $10,000,000
• Accumulated depreciation: $3,000,000,Carryingamount?
• Recoverable amount:
• The company determines the fair value of the equipment is now only $4,200,000
You are required to Calculate
1. Compare carrying amount to recoverable amount:
2. Calculate the impairment profit / loss:
3. The Impact of impairment profit / loss:
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