Ah Huat Coach Builders

GSM 5301 Problem # 4 Ah Huat Coach Builders Sdn Bhd assembles private instructores. It operates its business from a grade rent 10 old age ago from siamese tie Koon Realty for RM540000. The take up has 40 more years to run. When suppliers arrive with part posted, a storekeeper checks the items delivered and listed in the sales talk document against Ah Huats secure order. A copy of the canvas documents is then sent to the Accounts Department. The storekeeper then records the quantity of parts received. At the remnant of the fiscal year, December 31 2008, in that location are 2 posturees be RM 100,000 each, which have been consummate 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 ideal coaches and the 25-seater coach should be accounted f or. How should it be determine for reporting purposes? What nigh the leasehold visit? 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 finished 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 100,00 0 = RM 200,000 The 25 seater c! oaches should be accounted as asset to a lower place the ride fomite |Fixed Asset | constitute |accrued 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

If you want to get a full essay, visit our page: write my paper