Ah Huat Coach Builders

GSM 5301 Problem # 4 Ah Huat Coach Builders Sdn Bhd assembles trailes. It operates its business from a website rent 10 long time ago from siamese union Koon Realty for RM540000. The take up has 40 more years to run. When suppliers arrive with split posted, a storekeeper checks the items delivered and listed in the saving document against Ah Huats secure order. A copy of the examine documents is then sent to the Accounts Department. The storekeeper then records the quantity of parts received. At the obliterate of the fiscal year, December 31 2008, in that respect are 2 riges be RM 100,000 each, which have been accurate and 1 coach is half assembled. The lodge also has a 25-seater coach to transport its employees. The coach was bought in 2000 for RM60, 000 and has been well maintained that it could be sold for RM 50,000. Ah Huats accounts private instructor is unsure of how the consummate coaches and the 25-seater coach should be accounted for. How s hould it be determine for reporting purposes? What closely the leasehold impart? Since the owner is actually Tai Koon Realty should the land be part of Ah Huats assets at year end? Should the supply of spare parts be included in the financial statements too? Please respond to the above issues. Answers 1. How the completed coaches and the 25-seater coach should be accounted for? 2. How should it be treasured for reporting purposes?

The completed coaches should be accounted as inventory: origin Finished Coaches: 2 X RM 100,000 = R M 200,000 The 25 seater coache! s should be accounted as asset chthonian the ride vehicle |Fixed Asset | constitute | compile Depreciation |Net book value | |Motor Vehicle |RM 60000 |(RM 60000) |Nil | Note: We have made the precondition that, the coach would have...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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