A company maintains its non-current assets at cost. Accumulated provision for depreciation accounts are kept for each

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A company maintains its non-current assets at cost. Accumulated provision for depreciation accounts are kept for each asset. At 31 December 2011 the position was as follows:

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The following transactions were made in the year ended 31 December 2012:

(a) Purchased – machinery £2,480 and office furniture £320

(b) Sold machinery which had cost £2,800 in 2008 for £800 Depreciation is charged, on a straight line basis, at 10 per cent on machinery and at 5 per cent on office furniture on the basis of assets in use at the end of the year irrespective of the date of purchase. Required: Show the asset and accumulated provision for depreciation accounts for the year 31 December 2012 and the relevant statement of financial position entries at that date.

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Frank Woods Business Accounting

ISBN: 9780273759287

12th Edition

Authors: Frank Wood. Sangster, Alan

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