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TIME 3 HOURS INSTRUCTIONS: (100 MARKS) There are FOUR (4) questions in this section. Answer ALL Questions in the Answer Booklet. (25 MARKS) QUESTION 1 You were given the following information by Kirana Knitting Manufacturing Company On 1 January 2018, the company has in its possession knitting machinery costing a total of RM575,000 with an accumulated depreciation of RM268,000. . On 28 March 2018, the company purchased several units of new knitting machinery costing a total of RM158,000 by cheque. On 13 June 2018, the company traded in an old knitting machinery for RM40,000 for a new model costing RM170,000. The price difference was paid by cheque. The old knitting machinery cost RM95,000 and has depreciated by RM47,000 It is the company's policy to depreciate its machinery at the rate of 25% per annum on a reducing balance method. A full year's depreciation is provided for all machinery held by the company at the end of each accounting period, The company's financial year ends at 31 December 2018. equired: a. Prepare the following accounts for Kirana Knitting Manufacturing Company for the year ended 31 December 2018: i. Knitting Machinery Account. (5 marks) (CLO3:PL03:03) ii. Accumulated for depreciation of Knitting Machinery Account. (7 marks (CLO3:PL03:03 121/ 2010

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