A company maintains its fixed assets at cost Depreciation provision accounts, one for each type of asset, are in use Machinery is to be depreciated at the rate of 12 1 2 per cent per annum, and fixtures at the rate of 10 percent per annum, using the reducing balance method Depreciation is to be cal...

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A company maintains its fixed assets at cost. Depreciation provision accounts, one for each type of asset,

Question:

A company maintains its fixed assets at cost. Depreciation provision accounts, one for each type of asset, are in use. Machinery is to be depreciated at the rate of 12¹/₂ per cent per annum, and fixtures at the rate of 10 percent per annum, using the reducing balance method.

Depreciation is to be calculated on assets in existence at the end of each year, giving a full year’s depreciation even though the asset was bought part of the way through the year. The following transactions in assets have taken place: image text in transcribed