A company bought a machine for the production department at the beginning of the year for 3,000.

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A company bought a machine for the production department at the beginning of the year for £3,000. It is estimated that the machine will contribute to the profits of the business for the next 10 years. Six months later the chief accountant finds out that if the machine had to be sold it would be worth only £2,000. Using the going concern concept, which of these two amounts should be shown in the accounts?

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Business Accounting An Introduction To Financial And Management Accounting

ISBN: 9780230276239

2nd Edition

Authors: Jill Collis, Roger Hussey, Andrew Holt, Holt Collis, J. Collis

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