Complete the following depreciation schedule for machinery X, using the reducing instalment method with a fixed rate of 10%. Depreciation should be calculated to the nearest £1.

Machinery X: cost £13,000 Year 1986 1987 1988 1989 1990 Depn for the year ended 31 Dec.
£
1,300 1,170 Accumulated depn up to the year ended 31 Dec.
£
1,300 2,470 Asset value at 31 Dec.
£
11,700 9,477 We can now turn to recording depreciation in the ledger. There are two main methods used. One I shall call the simple method and the other the accumulated depreciation method.