On 1 January 2001 a business purchased a laser printer for 1,800. The printer has an estimated
Question:
On 1 January 2001 a business purchased a laser printer for £1,800. The printer has an estimated life of 4 years after which it will have no residual value.
It is expected that the output from the printer will be:
Required:
(a) Calculate the annual depreciation charges for 2001, 2002, 2003 and 2004 on the laser printer on the following bases:
(i) the straight line basis, (ii) the diminishing balance method at 60% per annum, and (iii) the units of output method.
Note: Your workings should be to the nearest £.
(b) Suppose that in 2004 the laser printer were to be sold on 1 July for £200 and that the business had chosen to depreciate it at 60% per annum using the diminishing balance method applied on a month for month basis.
Reconstruct the following accounts for 2004 only:
(i) the laser printer account, (ii) the provision for depreciation – laser printer account, and (iii) the assets disposals account.
Step by Step Answer:
Business Accounting Uk Gaap Volume 1
ISBN: 9780273718765
1st Edition
Authors: Frank Wood, Alan Sangster