PAST YEAR EXAM PAPER (MAT 112)
Depreciation
COLLECTIONS OF PAST YEAR EXAM PAPER
List of Formula:
2. BVn C1 r n
S
1. r 1 n
C
JUNE 2018
Part A - Question 8
NS Company bought an excavator for RM 72 000 . The useful life of the excavator is 8 years.
If the book value of the excavator at the end of 4 years is RM 42 000 , find its scrap value at
the end of 8 years using the straight line method. (5 marks)
Part B - Question 2
c) Rajoo bought a lorry at RM 250 000. It is estimated to last for 10 years and with the scrap
value of RM 165 000. Find the book value of the lorry after 5 years by using the declining
balance method. (6 marks)
JANUARY 2018
Part A - Question 8
A car costing RM 98 000 depreciates at a rate of r%. Its scrap value at the end of 7 years is
RM 20 000. Using the reducing balance method, find r and the accumulated depreciation at
the end of 6 years. (5 marks)
Part B - Question 2
c) The book value for an asset at the end of the second year and the third year were RM16000
and RM 12000 respectively. Using declining balance method, calculate the rate of
depreciation. (6 marks)
MARCH 2017
Part A - Question 8
A vehicle that costs RM 70 000 has a life span of five years. If the salvage value is RM 45 000,
find the book value of this vehicle at the end of the third year using the straight line method.
(5 marks)
PAST YEAR EXAM PAPER (MAT 112)
Depreciation
Part B - Question 2
c) Carlo Bakery bought an oven at the cost of RM 11 122.40. It is estimated to last for eight
years and has a salvage value of RM 4 000. Calculate the book value of the oven after four
years using the declining balance method. (6 marks)
OCTOBER 2016
Part A - Question 8
The cost of a new machine is RM 600 000. It is estimated to have a useful life of 15 years with
a scrap value of RM 10 000. Calculate the book value at the end of seven years using the
straight line method. (5 marks)
MARCH 2016
Part A - Question 8
A new car is priced at RM 125 000. The life expectancy of the car is 15 years and the scrap
value is RM 25 000. Find the depreciation rate using the declining balance method. (5 marks)
SEPTEMBER 2015
Part A - Question 8
A xerox machine was purchased for RM 55 000. It has an estimated useful life of 10 years with
scrap value of RM 15 000. Compute the depreciation for the fifth year using the straight line
method. (5 marks)
MARCH 2014
Question 5
a) A senior executive bought a car for RM 135 000. The car was estimated to have a scrap
value of RM 40 000 after 10 years. Construct a depreciation schedule for the first three
years using the straight line method. (4 marks)
b) A factory purchased a new machine for RM 120 000. The machine has an expected life of
15 years. If the scrap value of the machine is RM 15 000, calculate the book value after 6
years using the declining balance method. (4 marks)
SEPTEMBER 2013
Question 5
a) A sewing machine has a scrap value of RM 3000 at the end of 5 years. The book value at
the end of the third year is RM 4500. Using the straight line method, find the cost of the
sewing machine. (4 marks)
PAST YEAR EXAM PAPER (MAT 112)
Depreciation
b) Donald bought a boat which costs RM 75 689 and the boat is expected to have a useful
life of 7 years. Calculate the book value for the 5th year if the salvage value is RM 21 345
using the declining balance method. (4 marks)
MARCH 2013
Question 5
a) A company bought a lorry at RM 72 000. The useful life of the lorry is 8 years. If the book
value at the end of 4 years is RM 42 000, find the scrap value of the lorry at the end of 8
years using the straight line method. (5 marks)
b) Find the book value at the end of 3 years for a machine which costs RM 30 000. Use
declining balance method with an annual rate of 26%. (3 marks)
