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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Related Book For
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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