A Gill, purchased a notebook PC for 1,211. It has an estimated life of three years and
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A Gill, purchased a notebook PC for £1,211. It has an estimated life of three years and a scrap value of £50.
She is not certain whether she should use the straight line or the reducing balance basis for the purpose of calculating depreciation on the computer.
You are required to calculate the depreciation (to the nearest £) using both methods, showing clearly the balance remaining in the computer account at the end of each of the four years under each method. (Assume that 65 per cent per annum is to be used for the reducing balance method.)
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Related Book For
Business Accounting Uk Gaap Volume 1
ISBN: 9780273718765
1st Edition
Authors: Frank Wood, Alan Sangster
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