Question: A company starts in business on 1 January 2003, the financial year end being 31 December.

You are to show:
a) The machinery account
b) provision for depreciation account
c) The Statement of Financial Position (balance sheet) (extract) for each of the years 2003, 2004, 2005 and 2006.

The machinery bought was: 2003 1 January 1 machine costing RM1,400
2004 1 July 2 machine costing RM600 each 1 October 3 1 machine costing RM1,000 2006 1 April 1 machine costing RM400

Depreciation is over 10 years, using the straight line method, machines being depreciated for the proportion of the year they are owned.​